Brussels – The European Union (EU) is formalizing new agreements with strategic partners as it navigates a shifting global landscape marked by trade tensions and deteriorating relations with Russia.

On March 13, leaders from the EU and South Africa convened in Cape Town for the eighth EU-South Africa summit, where they initiated discussions on a landmark agreement titled the "Clean Trade and Investment Partnership."

European Commission President Ursula von der Leyen highlighted the current trade dynamics between the EU and South Africa, indicating that bilateral trade exceeds €50 billion annually, with 98% of goods traded already duty-free.

To support this evolving relationship, the EU announced an investment package totaling €4.7 billion through its Global Gateway initiative, primarily targeting projects that facilitate a "clean and just energy transition" within South Africa.

Approximately €4.4 billion is earmarked for clean energy initiatives, while €700 million will bolster local vaccine production, with an emphasis on increasing the African Union's capacity to produce over 60% of the vaccines required for the continent.

The specifics of the "clean tech" agreement are still under development, but preliminary discussions indicate a focus on fostering investments, transitioning to clean energy, developing skills and technology, and enhancing strategic industries throughout the entire supply chain, including cooperation on critical raw materials.

Von der Leyen elaborated on the EU's interest in partnering with South Africa to cultivate sectors such as green hydrogen, electric vehicles, and battery production.

She emphasized the importance of investing along the entire value chain, from resource exploration to recycling.

Von der Leyen also acknowledged South Africa's burgeoning economy and its aspirations to enhance local value creation, describing the partnership as mutually beneficial.

She underscored the potential for South Africa to emerge as a global leader in clean energy production, given its substantial reserves of key raw materials, including platinum group metals, which comprise approximately 91% of global reserves.

A Memorandum of Understanding is anticipated to be signed during the upcoming G20 summit in South Africa in November.

This initiative aligns with the Scaling up Renewables in Africa campaign that was co-launched by von der Leyen and South African President Cyril Ramaphosa earlier this year in Rio.

European Council President António Costa also attended the summit, where he emphasized the significance of regional cooperation and the importance of multilateralism in today's uncertain environment.

He stated, "In these turbulent times, trusted partnerships are more important than ever," reaffirming the EU's commitment to South Africa as a reliable partner.

The summit concluded with a joint declaration affirming both parties' dedication to supporting a just and lasting peace in various global conflicts, including in Ukraine, the occupied Palestinian territories, Sudan, South Sudan, and the Democratic Republic of Congo.