The European Union (EU) has committed €11.5 billion, around R230 billion, to fund new investment projects in South Africa focusing on clean energy, infrastructure, and skills development, President Cyril Ramaphosa announced in his weekly newsletter this week.

The investment was unveiled at the Global Gateway Forum in Brussels, hosted by EU Commission President Ursula von der Leyen. It builds on the €4.7 billion package announced at the South Africa–EU Summit in Cape Town earlier this year, more than doubling the EU’s planned investment in the country.

Ramaphosa said the partnership would target clean energy investments, describing the move as vital to build the economy of the future in the South Africa of the present.

The funding is earmarked for critical minerals, green hydrogen, renewable energy, and battery development, alongside investments in rail, road, and port logistics, digital connectivity, and local vaccine and pharmaceutical manufacturing. According to Ramaphosa, the programme will also fund training and entrepreneurship support to ensure a just and inclusive energy transition.

“These measures will reduce reliance on coal, lower costs and improve energy security for households and businesses,” the President wrote, adding that improved Eskom performance and private investment in renewables are already easing power shortages.

He said the EU’s confidence reflected the impact of South Africa’s structural reforms in logistics, energy and investment regulation. “Our progress is being recognised, and it’s making our country an investment destination,” Ramaphosa noted.

The President framed the deal as part of South Africa’s long-term plan to build a resilient economy amid global volatility, technological change, and what he called a climate crisis.