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The EU pledged to continue supporting the Just Energy Transition Partnership (JETP), a multilateral initiative for reducing carbon emissions. This contrasts starkly with the recent U.S. withdrawal from a similar agreement.
The European Union has announced a €4.7 billion (USD 5.1 billion) investment package for South Africa to support green energy and vaccine production. The commitment was made during the first bilateral summit between the EU and South Africa in seven years, held at President Cyril Ramaphosa’s office in Cape Town.
Speaking at the summit, European Commission President Ursula von der Leyen drew parallels between the histories of the EU and South Africa, both of which emerged from conflict and found a path to peace through reconciliation.
South African President Cyril Ramaphosa echoed this sentiment, emphasising the importance of collaboration in upholding shared values.
The EU and South Africa already share a strong trade relationship, with the bloc being South Africa’s largest trading partner in sub-Saharan Africa. Von der Leyen reiterated Europe’s commitment to expanding trade ties.
A major focus of the investment package is South Africa’s transition from coal to greener energy. The EU pledged to continue supporting the Just Energy Transition Partnership (JETP), a multilateral initiative for reducing carbon emissions. This contrasts starkly with the recent U.S. withdrawal from a similar agreement.
The summit took place amid growing geopolitical tensions, with the EU reaffirming its commitment to South Africa’s leadership within the G20. Ramaphosa aims to use South Africa’s G20 presidency to advocate for debt relief and climate financing for developing nations—priorities that have been downplayed by the U.S.
Tensions between South Africa and the U.S. have been rising, particularly after South Africa launched a case at the United Nations’ top court accusing Israel, a U.S. ally, of genocide in Gaza. The U.S. has since imposed sanctions on South Africa and cut funding, citing human rights concerns and allegations of ties with groups such as Hamas and Iran.
Transatlantic trade tensions escalated as the EU and South Africa celebrated their growing economic partnership. U.S. President Donald Trump announced plans to impose a 200% tariff on European wine, Champagne, and spirits in response to EU proposals to tax American whiskey.
The EU-South Africa summit marks a renewed commitment to cooperation in trade, energy, and global governance. Senior European Union officials were in South Africa for a summit Thursday with President Cyril Ramaphosa that centers on bolstering trade and diplomatic ties as both feel the impact of the Trump administration’s confrontational foreign policy.
South Africa hopes to use its leadership of the group to make progress on help for poor countries, especially on debt relief and more financing to mitigate the impact of climate change.
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The U.S. withdrew this month from an agreement that gave funding to South Africa and two other developing nations to help them transition to clean energy sources. The EU has also pledged money to the Just Energy Transition Partnership and said that it’s still committed to the program.
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