President Cyril Ramaphosa has welcomed a Team Europe investment package worth nearly €12-billion, announced at the Global Gateway Forum, in Brussels, Belgium, last week.

This package builds on the €4.7-billion package announced at the EU-South Africa Summit in March, as previously reported by Engineering News.

“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 President writes in his latest weekly letter.

He points out that 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,” Ramaphosa posits.

He adds that the investments will support the effort to “build the economy of the future in the South Africa of the present”, and will help to accelerate the country’s 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 to position the country as a leading producer for the local economy and for export, Ramaphosa outlines.

The investments are also expected to accelerate large-scale solar and wind power projects, while boosting energy efficiency in industry, housing and public services, he adds.

“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,” Ramaphosa emphasises.

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

These investments are also expected to 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.

Ramaphosa avers that this investment package is being announced against the backdrop of the progress being made in addressing some of the critical impediments to inclusive economic growth, including energy supply constraints and port inefficiencies, and with investments being made in infrastructure, and regulations being streamlined.

“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,” Ramaphosa notes.