By Simon Nare
President Cyril Ramaphosa has hailed the South African and European Council summit as a step toward cementing relations between the two blocs.
In his weekly newsletter on Monday, Ramaphosa said the two had agreed to work towards a Clean Trade Investment Partnership.
The president said this would make South Africa and Europe 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.
“As a bloc, the European Union 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,” the president wrote.
Ramaphosa said the partnership would improve cooperation between South Africa and the EU on some of the regulatory issues that constrained greater levels of trade.
This would enable South African companies to export products like sustainable fuel and electric and hybrid vehicles to the EU.
“One of the most important outcomes of the summit was the announcement by the EU of an investment package worth €4.7 billion – around R90 billion – to support investment projects in South Africa. This package would 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,” he wrote.
The president committed the country to work with EU partners to develop the industries that processed natural resources into finished goods for export.
He said this would create more jobs in South Africa and ensured that the country derived a greater benefit from natural resources.
“We agreed on further cooperation in the areas of education, science, technology and innovation, specifically providing opportunities for young people to acquire skills through greater investment in education and science,” he said.
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