The European Commission is planning to invest in critical raw materials processing in South Africa and improve transport links to the Democratic Republic of Congo, both important sources of minerals needed for the energy and digital transitions. President Ursula von der Leyen announced the launch of negotiations for a Clean Trade and Investment Partnership during a diplomatic mission to Cape Town. South Africa was praised for its abundant clean energy sources and the majority of the world’s platinum group metal reserves. An investment package worth €4.7bn through the Global Gateway scheme was announced, focusing on infrastructure investments and financing.
The investment package will be a mix of European public and private finance, directed towards critical raw material processing in South Africa. Von der Leyen emphasized the importance of processing these raw materials in the country to create added value and economic benefits. President Ramaphosa highlighted green hydrogen production, renewable energy, infrastructure development, vaccine production, and skills as key investment targets. The development of a rail link between South Africa and the Democratic Republic of the Congo was mentioned as a specific project to improve connectivity in the region.
A joint declaration issued after the meeting emphasized the importance of achieving a just, comprehensive, and lasting peace in various conflict areas, including Ukraine, the occupied Palestinian Territories, Sudan, South Sudan, the Democratic Republic of the Congo, among others. The focus was particularly on the DRC, with calls for accountability for rebel groups in the mineral-rich eastern region. The EU reiterated its commitment to the Just Energy Transition Partnership signed at the COP26 climate summit, where financial support was pledged for South Africa’s green transition, despite the US announcing its withdrawal from the programme.
Von der Leyen highlighted the EU’s ongoing commitment to supporting developing countries in transitioning away from fossil fuels, contrasting this with the US withdrawal from the programme. The EU is doubling down on its support, with additional partnerships formed for Indonesia and Vietnam, worth $20bn and $15bn respectively. The focus remains on sustainable and green energy transitions in these countries. The EU aims to strengthen its partnerships and investments in critical raw materials processing and infrastructure development in key regions like South Africa and the DRC.
Overall, the European Commission’s investment plans in South Africa and the Democratic Republic of Congo aim to enhance critical raw materials processing, strengthen transport links, and support sustainable energy transitions. The emphasis is on creating added value and promoting economic benefits locally through infrastructure development and investment in key sectors like renewable energy and vaccine production. The EU’s commitment to supporting global peace efforts and sustainable development in conflict-affected regions like the DRC showcases its dedication to fostering stability and prosperity through strategic partnerships and investment initiatives.
