Latest news with #EU-SouthAfrica
Arab News
15-03-2025
- Business
- Arab News
Europe sets sights on Global South to build influence
One of the most striking features of Donald Trump's second presidency is how its unilateralism is eroding US soft power, including in the so-called Global South. This is creating a window of opportunity for other powers, including Europe, to fill the political and economic vacuum left in its wake, in areas such as Africa, the Middle East, South America, and the Asia Pacific. European Commission President Ursula von der Leyen turned her attention this week to Africa, building on her recent trips to South America and India, and the EU's interest in other key emerging markets, including the Gulf Cooperation Council. Specifically, she co-hosted an EU-South Africa summit in Cape Town on Thursday with South African President Cyril Ramaphosa, who is the chair of the G20 this year. The EU is South Africa's leading source of foreign direct investment, accounting for 53.7 percent of the total in 2022. Meanwhile, South Africa continues to be the EU's largest trading partner in Sub-Saharan Africa, with €49 billion ($53.3 billion) worth of trade in goods in 2023. The EU is also keenly aware that South Africa is the gateway to a much wider region on the emerging-markets-rich continent. In June 2016, the EU and South Africa, along with Botswana, Lesotho, Mozambique, Namibia, and Eswatini, signed the Southern African Development Community Economic Partnership Agreement. Through this, the EU either completely or partially eliminated customs duties on almost all imports from southern Africa. The agreement helps promote both bilateral and regional trade, opening up new opportunities to help achieve the goals of the EU-South Africa strategic partnership. One of Africa's key attractions, from the EU perspective, is its huge stock of resource wealth, as Europe seeks to diversify its global supply chains following its realization it was over-dependent on Russian energy before the war in Ukraine. Sub-Saharan Africa has an estimated 30 percent of global reserves of critical raw materials. The emerging-markets-rich continent has long been a super priority for the EU; von der Leyen's predecessor as commission president, Jean Claude Juncker, pushed for a 'pivot to Africa,' including the creation of a new Africa-Europe Alliance. Since the war in Ukraine began, this EU focus on Africa has intensified, with von der Leyen promoting the relationship as a key counterweight to other prominent world powers, including Russia. Brussels wants to encourage Africa as a champion of a rules-based, multilateral approach to world order. In the words of former EU High Representative for Foreign Affairs Josep Borrell, Europe seeks 'a new, integrated strategy for and with Africa,' based on an 'equal partnership' rather than the 'power politics' offered by some others, including Russia. The EU is seeking to bolster economic and political relationships with key markets, including Africa and the Middle East. Andrew Hammond The EU's diplomatic serenading of South Africa contrasts sharply with that of the Trump team since it took office in January. US Secretary of State Marco Rubio and US Treasury Secretary Scott Bessent failed to attend meetings of G20 foreign and finance ministers last month amid Trump administration's condemnation of the South African government. One focal point of the Trump team's attacks has been the 2024 South Africa Expropriation Act, which aims to resolve ownership-inequality issues created by the pre-1994 Apartheid system of white-minority rule. The controversial law has drawn criticism for potentially disregarding private property rights, particularly those of the white minority, as it could permit the state seizure of land without compensation. No land has been expropriated so far but Trump signed an executive order on Feb. 7 cutting aid to South Africa. This reduction came amid wider USAID funding disruptions, as the Trump team has terminated the vast majority of the agency's programs. This represents a body blow to hopes of the international community meeting the UN's Sustainable Development Goals for financial loans and aid to Africa. The US diplomatic rebuff of South Africa worries Europe, which fears foes, including Russia, will step into the economic and political vacuum left in its wake. This comes in a context of an increasing non-alignment among African nations, and developing countries across the wider world, on international issues such as the war in Ukraine. With its wooing of world powers, Europe seeks to address the fact that few so-called 'non-aligned' states imposed sanctions on Russia following its 2022 invasion of Ukraine. For many of these countries, diplomatic neutrality has significant appeal, not least because so many of them depend heavily on trade, aid, investment and/or weapons from both China and Russia, as well as the West. Russian President Vladimir Putin has been hosting Russia-Africa summits since 2019 in an attempt to restore Moscow's influence in the region, which had faded after the collapse of the Soviet Union. He is keen to entrench a Russian economic and political foothold in the continent, as bilateral trade with Africa has risen significantly. However, the most extensive diplomatic serenading of Africa has come from Russia's ally, China, which aims to better connect its huge Belt and Road Initiative infrastructure project with the continent's development. Trade between China and Africa has risen significantly, and more than 50 African countries are now participating in the Belt and Road Initiative. Thursday's big EU-South Africa event, then, was only the latest manifestation of Europe's efforts to double down on Global South powers during von der Leyen's second term. Conscious of the unpredictability of the Trump team, and attempts by foes such as Russia to fill the power vacuum, the EU and other powers are seeking to bolster their economic and political relationships with key markets, including Africa, the Middle East, South America, and the Asia Pacific.
Russia Today
14-03-2025
- Business
- Russia Today
EU announces South Africa investment after US aid cut
The European Union will invest €4.7 billion (over $5 billion) in South Africa to support various projects, including the clean-energy transition, vaccine manufacturing, and digital and physical connectivity, European Commission President Ursula von der Leyen announced Thursday. The announcement was made at a summit between the EU and South Africa aimed at strengthening bilateral ties. It comes shortly after the US withdrew financial assistance to Pretoria amid a diplomatic row. 'We spoke together at the G20 in Rio in November about green hydrogen and renewables…To open this new chapter in our relations, Europe can contribute a €4.7 billion Global Gateway investment package,' Von der Leyen told South African President Cyril Ramaphosa. The bulk of the aid package – €4.4 billion – will be invested in clean and just energy projects, such as expanding wind, solar, and hydrogen power production in the country. 'We know that others are withdrawing. So here, we want to be very clear with our message: We are doubling down with our support. We are here to stay,' the EU chief declared. Pretoria announced last week that the US had withdrawn from the International Partners Group (IPG), a coalition that includes the EU, the UK, Germany, France, Italy, Canada, Japan, Norway, and Denmark. The IPG seeks to help a number of countries, including South Africa, transition to cleaner energy. According to a statement from President Cyril Ramaphosa's office, South Africa now stands to lose over $1 billion in investment pledges from Washington following its exit from the group. Last Friday, US President Donald Trump said his administration would stop all federal funding to South Africa, calling the country a 'bad place to be right now.' The decision followed the passage of a controversial land expropriation law that the African country says aims to address racial disparities in land ownership. Trump has slammed the legislation as an 'egregious action' and signed an executive order instructing US government agencies to halt aid to the country. In his speech at the EU-South Africa summit in Cape Town on Thursday, Ramaphosa said the event was happening 'at a time of global uncertainty characterized by rising unilateralism, economic nationalism, and a retreat from international law.'
See - Sada Elbalad
14-03-2025
- Business
- See - Sada Elbalad
EU Pledges $5 Bln Investment in South Africa
In response to the US decision to slash aid to South Africa, the European Union has announced a $5 billion investment package aimed at boosting the country's clean energy transition and strengthening its vaccine manufacturing capabilities. European Commission President Ursula von der Leyen unveiled the initiative during the first EU-South Africa summit in seven years, held in Cape Town. The funding will primarily support the expansion of wind, solar, and hydrogen energy production, while also enhancing local vaccine production to reduce dependency on global supply chains. Von der Leyen emphasized the mutual benefits of the partnership, stating that Europe seeks to diversify its critical supply chains while South Africa aims to protect public health and accelerate its green energy transition. The move comes as South Africa faces significant funding gaps in key sectors, including healthcare and HIV/AIDS treatment, following former US President Donald Trump's decision to withdraw financial support. South African President Cyril Ramaphosa welcomed the EU's support, highlighting the need for global partnerships to address rising economic nationalism and geopolitical uncertainty. Unlike other global powers focused on resource extraction, the EU's strategy aims to create local jobs, enhance environmental standards, and support sustainable economic growth in South Africa. This strategic investment not only strengthens ties between the EU and its largest trading partner in Sub-Saharan Africa but also positions Europe as a key ally in South Africa's green and economic transformation.
See - Sada Elbalad
14-03-2025
- Business
- See - Sada Elbalad
EU Pledges €4.7 Billion to South Africa
European Union leaders announced €4.7 billion ($5.1 billion) in investments in South Africa to support green energy and vaccine production and agreed to begin talks on new trade deals with Africa's biggest economy. The announcement came at the first bilateral EU-South Africa summit in seven years on Thursday at the office of South African President Cyril Ramaphosa in Cape Town, according to the Associated Press. European Commission President Ursula von der Leyen and European Council President António Costa spoke with Ramaphosa about the need to strengthen international cooperation during the meeting. "We will defend our interests," von der Leyen said in response to US President Donald Trump's recent threat to impose 200% tariffs on EU alcohol. "We have said this and shown this, but at the same time, I want to emphasize our openness to negotiations." Von der Leyen added that Europe is looking forward to deepening its trade relations with South Africa, which is already the EU's largest trading partner in sub-Saharan Africa. Sitting next to Ramaphosa, Von der Leyen said, "We want to strengthen and diversify our supply chains, but we want to do this together with you." She described this as a new chapter in their relationship, referring to South Africa as a reliable partner. "Both sides have great respect for stability, predictability, and reliability," she said. Ramaphosa emphasized that the summit came at a time of increasing global uncertainty. Both the EU and South Africa have felt the effects of the first months of Trump's second term.
Nahar Net
13-03-2025
- Business
- Nahar Net
South Africa-EU summit centers on boosting trade and ties as both feel Trump's impact
by Naharnet Newsdesk 7 hours Senior European Union officials were in South Africa for a summit Thursday with President Cyril Ramaphosa that centers on bolstering trade and diplomatic ties as both feel the impact of the Trump administration's confrontational foreign policy. European Commission President Ursula von der Leyen and European Council President António Costa will meet with Ramaphosa at his Cape Town office in the first EU-South Africa summit since 2018. The focus of the 27-nation bloc will switch to its biggest trading partner in sub-Saharan Africa after the EU announced retaliatory tariffs against Washington in response to U.S. President Donald Trump's new duties on steel and aluminium. The summit in South Africa will "explore new avenues for economic, trade and investment cooperation, as well as address any challenges and trade irritants," the European Council said. South Africa has been singled out for sanctions by the Trump administration over some domestic and foreign policies that the U.S. leader has cast as anti-American. Trump issued an executive order last month cutting all U.S. funding to South Africa, accusing it of a human rights violation against a white minority group in the country, and of supporting some "bad actors" in the world like the Palestinian militant group Hamas and Iran. Von der Leyen's visit will also likely reemphasize the EU's support for South Africa's presidency of the Group of 20 leading rich and developing nations this year, another area where the U.S. has criticized South Africa while boycotting some early G20 meetings. South Africa hopes to use its leadership of the group to make progress on help for poor countries, especially on debt relief and more financing to mitigate the impact of climate change. U.S. Secretary of State Marco Rubio dismissed some of those priorities for the G20 and skipped a foreign ministers meeting of the group in South Africa last month. He also said that he wouldn't attend the main G20 summit in Johannesburg in November, indicating that the U.S. would give little attention to attempts at international cooperation through the bloc, which includes 19 of the world's major economies, the EU and the African Union. Rubio is attending talks with other top diplomats from the Group of Seven industrialized democracies in Canada starting Thursday. The EU said that von der Leyen would use the meeting in South Africa to announce a new investment package that uses public and private grants and loans to finance green energy projects in South Africa, improve transport infrastructure like railways and ports, and strengthen its vaccine production capacity. The U.S. withdrew this month from an agreement that gave funding to South Africa and two other developing nations to help them transition to clean energy sources. The EU has also pledged money to that Just Energy Transition Partnership and said that it's still committed to the program. "My message: Europe values its partnership with South Africa," von der Leyen said in a statement before the meeting with Ramaphosa.
