South Africa-EU Partnership Strengthens with New Investment Package

Pretoria: South Africa’s first democratic elections on 27 April 1994 marked a new era, not just domestically but also on the international stage. The end of apartheid heralded a shift in South Africa’s global image, shaping its identity as a nation committed to liberation, reconciliation, and international solidarity.

According to South African Government News Agency, South Africa’s philosophy of Ubuntu, which emphasizes respect for all nations and cultures, forms the backbone of its diplomatic approach. This philosophy has facilitated its strategic partnerships, notably with the European Union (EU), based on shared values like democracy, human rights, and the rule of law.

The relationship between South Africa and the EU began to formalize after Nelson Mandela’s release from prison 35 years ago, when he addressed the European Parliament and received the Sakharov Prize. This set the stage for formal relations, leading to South Africa becoming the first African country to sign a Free Trade Agreement (FTA) with the EU in 1999, known as the Trade, Development and Cooperation Agreement (TDCA).

Over the years, the partnership has deepened, with the 2007 adoption of the South Africa-EU Strategic Partnership Joint Action Plan, focusing on trade, climate change, science and technology, and other global issues. The TDCA has integrated South Africa into the global economy, ensuring high-level political dialogue between the two entities.

As South Africa celebrates over 30 years of democracy, trade relations with the EU have flourished. The EU remains South Africa’s largest trading partner, with trade increasing by 44% over the past five years, reaching R846 billion in 2023. The EU accounts for 41% of Foreign Direct Investment in South Africa, with over 2,000 EU companies supporting more than 500,000 jobs in the country.

In February this year, the 16th Ministerial Political Dialogue highlighted shared priorities and commitments to multilateralism and international order, preparing the way for the EU-South Africa Summit held on 13 March 2025. The summit focused on reducing poverty, unemployment, and inequality, aligning with South Africa’s National Development Plan.

During the summit, the EU announced a 4.7-billion-euro investment package for projects in critical sectors like raw mineral processing, renewable energy, and digital infrastructure, among others. This investment aims to foster cleaner value chains and bolster trade in animal and plant products, with South Africa committing to facilitate poultry imports from EU disease-free areas.

The Summit provided South Africa an opportunity to influence international policies and reaffirmed commitments to global peace, including reforms to the UN Security Council. The EU also expressed support for South Africa’s G20 Presidency in 2025 and pledged to strengthen the G20 Compact with Africa.

The South African government welcomed the EU leaders’ visit and the agreements signed, anticipating accelerated economic growth and progress in tackling unemployment, poverty, and inequality.

Nomonde Mnukwa is the Acting Director General of the GCIS