The European Union (EU) has announced a US $5bn investment initiative for South Africa, with a significant amount allocated to advancing the country’s clean energy sector, particularly green hydrogen development.
European Commission President Ursula von der Leyen emphasized South Africa’s potential to lead in green hydrogen production due to its vast renewable energy resources and its dominance in platinum group metals, which are essential for electrolyser manufacturing.
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Transition to renewable energy
This investment, part of the EU’s Global Gateway strategy, seeks to strengthen trade relations while supporting South Africa’s transition to renewable energy. The initiative includes financial mechanisms to attract both public and private investors, as well as technical assistance for hydrogen-related projects.
During the announcement, von der Leyen also introduced negotiations on the first Clean Trade and Investment Partnership, reflecting the robust €50 billion trade relationship between the EU and South Africa.
She highlighted South Africa’s strategic advantages, including abundant solar and wind energy, critical raw materials, and a growing hydrogen industry with export ambitions. The EU aims to collaborate with private companies to drive investments in clean energy and industrial development, securing agreements for future hydrogen production and facilitating trade between South Africa and Europe.
This collaboration aligns with South Africa’s Just Energy Transition Partnership (JETP), which focuses on building sustainable value chains for critical raw materials essential to the green energy sector and future industries.
