President Cyril Ramaphosa noted on Monday that while South Africa and the EU are expanding their traditional areas of cooperation, they are now focused on working together to develop the industries of the future.

Ramaphosa wrote in his weekly letter to the nation that the eighth Summit of South Africa and the EU, will be remembered as a watershed moment in the development of the country’s trade and investment relations.

Last week, Ramaphosa had the privilege of hosting European Commission President Ursula von der Leyen and European Council President António Costa at the Summit in Cape Town.

He noted that at a time of great geopolitical turmoil, the summit reaffirmed the unwavering commitment of South Africa and the EU to multilateralism, the consistent application of international law and the centrality of the United Nations Charter.

He said the partnership agreed that a collective effort was needed by all countries to overcome global challenges such as climate change, pandemics, rising inequality and conflict.

“The EU shares South Africa’s view that the UN Security Council needs to be reformed so that it is more inclusive, efficient, and democratic. In its composition and actions, the Security Council needs to better reflect the realities of today’s world. We also agreed to strengthen efforts to safeguard and advance human rights across the world,” explained Ramaphosa.

He highlighted that as a G20 member, the EU expressed its support for South Africa's G20 Presidency and its emphasis on solidarity, equality, and sustainable development.

It also welcomed South Africa’s focus on forging partnerships between G20 members and other African countries.

Ramaphosa noted that the summit confirmed the great alignment between South Africa and the EU on matters of global and continental significance.

“…we share a vision of a just, peaceful, and more equal world order in which all countries can develop and thrive. We share similar views on how to navigate these difficult times, by standing together to uphold the principles of the UN Charter, to adhere to international law and to strengthen the institutions of global cooperation,” he said.

TRADE AND INVESTMENT

Meanwhile, he said the partnership agreed to work towards a Clean Trade and Investment Partnership, highlighting that the partnership would support the development of value chains that were more environmentally sustainable.

“…it will make South Africa and the EU more competitive in a low-carbon global economy by improving conditions for investment in the extraction and local beneficiation of rare minerals, renewable energy, low-carbon hydrogen and clean technology,” he explained.

Ramaphosa noted that the partnership would improve cooperation between South Africa and the EU on some of the regulatory issues that constrained greater levels of trade.

He added that this work should enable South African companies to export products such as sustainable fuel and electric and hybrid vehicles to the EU.

“One of the most important outcomes of the summit was the announcement by the EU of an investment package worth €4.7 billion – around R90-billion – to support investment projects in South Africa. This package will include grants and loans from European financial institutions and businesses,” he said.

Ramaphosa explained that the investment would be used to build South Africa’s vaccine production capacity and boost local pharmaceutical value chains.

“The package will also support South Africa’s just energy transition through the development of critical raw minerals and low carbon hydrogen. In addition to investments in transport and digital infrastructure, the package will provide resources for skills development,” he said.

He pointed out that South Africa would work with its EU partners to develop the industries that processed natural resources into finished goods for export.

This, he said created more jobs in South Africa and ensured that the country derived a greater benefit from natural resources.

The partnership also agreed on further cooperation in the areas of education, science, technology, and innovation, specifically providing opportunities for young people to acquire skills through greater investment in education and science.