The European Union has pledged €11.5 billion (US$13.3 billion) to support South Africa’s economic transformation, focusing on clean energy, transport infrastructure, and healthcare improvements.
The investment package, announced this week, is part of the EU’s broader effort to help emerging economies transition to sustainable, low-carbon growth. It aims to reduce South Africa’s heavy reliance on coal, which currently fuels about 85% of the country’s electricity generation.
A major share of the funding will go toward renewable energy projects, including new power generation capacity, grid modernization, and energy storage systems. Upgrades to transport networks and investments in healthcare facilities are also included, reflecting a holistic approach to supporting South Africa’s long-term development goals.
The initiative comes as South Africa struggles with chronic power shortages and an aging coal fleet. However, progress may face resistance from Eskom, the state-owned power utility, which is undergoing restructuring as part of the energy sector reforms.
The EU’s renewed commitment follows the United States’ withdrawal from the Just Energy Transition Partnership (JETP) earlier this year—a multilateral program launched to help countries like South Africa decarbonize while protecting jobs and communities.
By stepping up its investment, the EU is signaling a stronger leadership role in Africa’s green transition, aiming to build resilience, create jobs, and strengthen diplomatic and economic ties with one of the continent’s largest economies.
