European Union (EU) and South Africa have committed to deepening their partnership at a summit held this week. The gathering takes on added urgency as both entities navigate rising challenges stemming from the new U.S. administration under President Donald Trump, marked by a retreat from multilateralism and increasing economic nationalism.
“This is a time for partners who share the same values to collaborate, particularly when multilateralism is under attack,” said South African President Cyril Ramaphosa during the summit’s opening remarks in Cape Town. He articulated concerns over the “huge global shake-up” that has occurred since Trump took office, expressing a desire to defend democracy and uphold the rule of law.
Echoing Ramaphosa’s sentiments, EU Commission President Ursula von der Leyen announced plans to mobilise a €4.7 billion (approximately R93.5 billion) investment package, aimed at facilitating a transition to clean energy and expanding vaccine manufacturing capabilities in South Africa. “We are presenting a new €4.7 billion Global Gateway investment package for South Africa for projects that support a just energy transition,” she stated, outlining the EU’s commitment to local job creation and sustainable development.
As the summit progressed, discussions focused on the dramatic policy shifts emanating from Washington. The U.S. has imposed significant tariffs, including a 25% levy on steel and aluminium imports from the EU, and is threatening to initiate a staggering 200% tariff on various alcoholic beverages from the bloc. Furthermore, the U.S. withdrawal from a climate funding agreement—designed to support developing countries, including South Africa, in their transition to clean energy—has intensified the urgency of the EU’s support.
The concerns raised by both leaders at the summit reflect a mutual resolve to strengthen their relationship in light of global uncertainties. “What is going on in the world is going to strengthen our resolve to remain partners in order to tackle the many challenges that are arising,” Ramaphosa asserted.
Von der Leyen highlighted the need for both the EU and South Africa to diversify their supply chains and invest in strategic industries, stating, “We want to do this in co-operation with you.” She underlined a stark contrast between the EU’s approach and that of other nations, emphasizing the bloc’s commitment to ethical standards and local added value in its partnerships.
Alongside trade discussions, the summit also sought to address the ongoing war in Ukraine, with President Volodymyr Zelensky anticipated to visit South Africa next month. “We’ve been encouraging both Ukraine and Russia to find a peaceful solution,” Ramaphosa noted, demonstrating South Africa’s active engagement in international dialogues.
As the EU’s largest trading partner in sub-Saharan Africa, South Africa exported approximately €24 billion worth of goods this year, predominantly in minerals and automotive products. However, the trade balance remains skewed towards the EU, with total bilateral trade valued at €49.5 billion in 2023. Despite these challenges, EU foreign direct investment in South Africa reached about €71 billion in 2022, signifying strong economic ties that are likely to deepen with the new initiatives announced at this summit.