Donald Trump’s cancellation of millions in aid to the country left a massive funding gap. The EU’s investment package includes funding to boost vaccine manufacturing and for a transition to clean energy.
The European Union will invest $5 billion (€4.7 billion) in South African aid and development projects, EU chief Ursula von der Leyen announced Thursday.
The majority of the investments will go to supporting the transition to clean energy, such as improving wind, solar and hydrogen power production.
The funds will also be put into vaccine manufacturing.
“South Africa wants to protect the health of [its] people… We Europeans want to diversify some of our most critical supply chains. This is what I call a true mutual interest,” von der Leyen said.
The announcement came at the first bilateral summit between the bloc and South Africa, the continent’s most advanced economy, in seven years.
What led to the summit?
The summit in Cape Town was called to strengthen ties between the bloc and South Africa, the EU’s largest sub-Saharan trading partner.
South African President Cyril Ramaphosa said the meeting came at a time of increasing “global uncertainty … characterized by rising unilateralism, economic nationalism,” a reference to the impact of US President Donald Trump’s policies.
The United States’ decision to ax nearly all aid to South Africa has sparked concerns about funding gaps in critical areas, such as HIV/AIDS treatment.
Source: https://www.dw.com/en/eu-to-invest-5bn-in-south-africa-after-us-aid-withdrawal/a-71915894
