Dear Fellow South African,

Last week, we had the opportunity to attend the Global Gateway Forum in Brussels at the invitation of European Union (EU) Commission President Ursula von der Leyen.

The forum showcases the EU’s investment initiatives in other regions of the world and is meant to advance its global relationships.

South Africa’s attendance at the forum follows the South Africa-European Union Summit that was held in Cape Town in March to further advance political and economic ties between our country and EU member countries.

At the Summit in Cape Town, the EU announced an investment package of 4.7 billion Euros to support strategic projects in South Africa.

Last week, the EU announced a further investment package that will bring the total investment value to 11.5 billion Euros, which is over R230 billion.

This innovative partnership focuses on priorities that South Africa has set for itself as it strives to improve the lives of its people. These priorities include investment, the clean energy transition, skills and technology, connectivity and developing strategic industries. Importantly, the partnership will contribute to the work being done to create jobs.

The investment package covers areas such as critical minerals, e-battery development, green hydrogen, renewable energy and vaccines. This will lead to the creation of a number of jobs, skills development and transfer of technology.

As we said in Brussels, these investments will support our effort to build the economy of the future in the South Africa of the present. They will help to accelerate South Africa’s ambitious transition to a low-carbon economy that is just and inclusive.

The package aims to mobilise financing to invest in local processing and refining of minerals that are critical to the energy transition. It includes investments in projects to produce green hydrogen and derivatives that will set South Africa up as a world-leading producer for the local economy and for export.

The investments are also expected to accelerate large-scale solar and wind power projects, while boosting energy efficiency in industry, housing and public services. These measures will reduce reliance on coal, lower costs and improve energy security for households and businesses.

As a country, we have always insisted that our energy transition must be just and inclusive, and that we must take deliberate measures to protect workers, communities and businesses that would be affected. That is why part of the investment package is dedicated to re-skill, train and provide entrepreneurship opportunities. It will also be used to expand access to clean water, waste management and energy efficient public services.

The investment package will also support the work that South Africa is undertaking to develop our rail, road and ports infrastructure, logistics and digital connectivity.

These investments will also support the local manufacturing of pharmaceuticals through partnerships with regulatory authorities, as well as innovative research projects, training and capacity building on biotechnology and pharmaceutical infrastructure.

This investment package is being announced against the backdrop of the progress we are making in addressing some of the critical impediments to inclusive economic growth.

As our country, we have made immense progress in overcoming our energy supply constraints through the improved performance by Eskom and a massive investment in renewable energy generation. We are improving efficiencies at our ports and opening our freight rail lines to private operators. We are undertaking a massive investment in infrastructure and streamlining regulations to improve the environment for investors. The progress we are making with our reforms is recognised and it’s making our country an investment destination. We are seen as the gateway into the African continent.

The EU investment takes place in the context of a more volatile global environment. There is a significant realignment of trade and investment between countries. In addition, rapid advances in technology and the escalating climate crisis are contributing to greater uncertainty.

That is why South Africa is forging ahead with the work of building a resilient and sustainable economy that address the needs of the present while positioning itself for the needs and challenges of the future.

With best regards,