BRUSSELS, March 12 (Reuters) – As tensions between South Africa and the United States intensify, particularly under President Trump’s second term, the European Union has announced a significant $5 billion investment in South Africa, highlighting deepening trade ties and climate change cooperation.
European Commission President Ursula von der Leyen, during her visit to South Africa, emphasized the EU’s commitment to fostering stronger relations, noting that South Africa is already the EU’s largest trading partner in sub-Saharan Africa. She said, “We want to strengthen and diversify our supply chains, but we want to do it in cooperation with you,” referring to the need for mutual collaboration.
The EU’s announcement comes amid increasing global instability and escalating diplomatic tensions with the U.S. South Africa, in particular, has become a target of U.S. sanctions, attributed to its foreign policy stance, including its criticism of Israel over the Gaza conflict and its growing ties with China and Iran. Last month, President Trump signed an executive order cutting all U.S. funding to South Africa, citing alleged human rights violations and its support for groups like Hamas and Iran.
Von der Leyen’s visit was also a strong reaffirmation of European support for South Africa’s leadership of the Group of 20 (G20) this year. She praised South Africa’s presidency as an opportunity to advance global cooperation on issues such as climate change and debt relief for poorer countries. In contrast, the U.S. has distanced itself, with U.S. Secretary of State Marco Rubio skipping key G20 meetings and indicating minimal engagement with South Africa’s leadership on the world stage.
Of the $5 billion pledged by the EU, $4.7 billion will go towards assisting South Africa in its transition from a coal-based economy to greener energy sources. This aligns with the EU’s commitment to the Just Energy Transition Partnership, a framework aimed at reducing carbon emissions globally. Von der Leyen made it clear, stating, “We are doubling down and we are here to stay,” in contrast to the U.S. decision to withdraw from a similar agreement last week.
This investment marks a significant moment in EU-South Africa relations and reflects the EU’s desire to maintain strong partnerships in the face of shifting global dynamics, particularly as the U.S. focuses inward.
