Brussels, Belgium — The European Commission has pledged a multi-billion-euro financing package for South Africa focused on renewable energy and vaccine manufacturing, according to official statements released on 10 January. Commission president Ursula von der Leyen said the bloc will channel €11. 5 billion into solar, wind and hydrogen projects as well as local pharmaceutical production up to 2027.
The funds come through the EU’s Global Gateway infrastructure scheme and follow Washington’s decision last year to cancel a separate $300 million transport-and-energy compact with Pretoria. South Africa’s National Treasury welcomed the commitment, calling it “a vote of confidence that can unlock green-energy jobs and vaccine sovereignty. ” Independent observers say the money could help Africa’s most industrialised economy ease chronic power shortages that have kept growth near 1.
5 % in recent years. Context Since 2021 South Africa has appeared on an EU list of “high-risk third countries” subject to extra anti-money-laundering checks, a status that raises transaction costs for local banks trading with Europe. While Pretoria has amended its financial-intelligence laws to address Brussels’ concerns, no legal act removing it from the register has been published.
A banking — sector source said lenders therefore “keep compliance burdens in place, limiting immediate trade-finance relief. ” World Bank figures show sub-Saharan Africa is projected to grow 3. 8 % in 2025, but South Africa’s trend remains below regional peers, underlining why external partners are targeting job-heavy sectors such as clean power and health.
What next EU delegations are expected to sign individual project contracts with South African ministries during the first quarter. Officials have not yet indicated when a final decision on the anti-money-laundering list will emerge, and further details of the financing terms are still pending.
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Source: Africa.
*Additional reporting by ImNews | Sources consulted: 5*
