The 8th South Africa-European Union (EU) Summit held in Cape Town last week was a “watershed” moment for trade and investment relations between South Africa and the regional bloc.
This is according to President Cyril Ramaphosa who reflected on the summit in his weekly newsletter on Monday.
“As a bloc, the European Union (EU) is one of South Africa’s largest trading partners and the source of much investment in our country. Our economic ties with European countries go back to colonial times. Since the advent of democracy 30 years ago, we have steadily been growing the volume and value of trade.
“This summit will be remembered as a watershed moment in the development of our trade and investment relations. While expanding our traditional areas of cooperation, we are now focused on working together to develop the industries of the future,” the President said.
READ | South Africa-European Union Summit concludes
He stated that South Africa and the EU agreed to work together towards a Clean Trade and Investment Partnership.
“This partnership will support the development of value chains that are 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.
“This partnership will improve cooperation between South Africa and the EU on some of the regulatory issues that constrain greater levels of trade. This work should enable South African companies to export products like sustainable fuel and electric and hybrid vehicles to the EU,” he said.
A key outcome of the SA-EU Summit was an announcement of a €4.7 billion (approximately R90 billion) investment package aimed at supporting investment projects in the country.
READ | President Ramaphosa engages EU on new investment package
According to the President, the package will “include grants and loans from European financial institutions and businesses”.
“Among other things, this investment will 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,” President Ramaphosa said.
On the global stage
The summit also 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”.
“We 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,” he said.
Furthermore, the EU expressed its support for South Africa’s G20 Presidency this year and welcomed the country’s “focus on forging partnerships between G20 members and other African countries”.
The President said the two parties agreed that collective global effort is needed to overcome current global challenges.
“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.
“Above all, we are committed to the mutual well-being and development of the peoples of South Africa and all the member states of the European Union. We have a shared vision of the future and we are determined to work together to achieve it,” President Ramaphosa concluded. – SAnews.gov.za
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