Pretoria: The European Union’s R230 billion (pound 11.5 billion) investment package into South Africa is set to bolster the country’s efforts towards achieving inclusive and sustainable growth. President Cyril Ramaphosa conveyed this message to the nation through his weekly newsletter.

According to South African Government News Agency, the investment was announced last week at the Global Gateway Forum in Brussels, Belgium. President Ramaphosa highlighted that the partnership aligns with South Africa’s strategic priorities, focusing on investment, clean energy transition, skills and technology, connectivity, and the development of strategic industries. A key objective of the investment is to contribute to job creation, skills development, and technology transfer across various sectors.

The investment package encompasses critical areas such as minerals, e-battery development, green hydrogen, renewable energy, and vaccine production. President Ramaphosa emphasized that these investments will aid South Africa in transitioning to a low-carbon economy, facilitating local mineral processing and refining crucial for the energy transition, and accelerating the deployment of solar and wind power projects.

President Ramaphosa reiterated South Africa’s commitment to ensuring that its energy transition is both just and inclusive, highlighting the allocation of funds for re-skilling, training, and entrepreneurship opportunities. Additionally, the package aims to enhance access to clean water, waste management, and energy-efficient public services.

The investment will also focus on developing South Africa’s infrastructure, including rail, road, and ports, as well as logistics and digital connectivity. It will support local pharmaceutical manufacturing through partnerships with regulatory authorities, along with innovative research, training, and capacity building in biotechnology and pharmaceutical infrastructure.

President Ramaphosa pointed out the progress made in improving energy supply, port efficiencies, and infrastructure investment, which have positioned South Africa as a viable investment destination. The country is also seen as a gateway into the African continent amidst a volatile global environment marked by trade realignments, technological advancements, and the climate crisis.

In conclusion, President Ramaphosa asserted that South Africa is committed to building a resilient and sustainable economy, addressing present needs while preparing for future challenges.