By Lehlohonolo Lehana.
The European Union (EU) announced on Friday it would invest more than 280 million euros in grants in South Africa to help the country green its coal-dependent economy.
Through this partnership with South Africa, the Just and Green Recovery Team Europe Initiative will support the country in achieving its national goal to tackle the country’s pressing socio-economic challenges through policy dialogue, facilitating investment, including for public infrastructure and to unlock a sustainable, biodiversity friendly and circular economy and combat climate change.
For example, €40 million of EU grant funding will be used to facilitate investment in public infrastructure in South Africa through blended finance.
Additionally, under the Just Energy Transition Partnership (JETP), Germany, France and the EU will provide financing of more than $3 billion to South Africa.
Africa has become a renewed diplomatic battleground since the Ukraine war began, with South Africa and other countries on the continent aggressively courted by Russia and China and the West.
The EU said the money came as part of the bloc’s recently unveiled Global Gateway initiative, which is in part aimed at countering China’s growing influence.
“This partnership enhance Africa’s own capacities,” the Department of International Relations and Cooperation, Dr Naledi Pandor, said on Friday.
These were Pandor’s opening remarks during the 15th South Africa-European Union Ministerial Dialogue held in Pretoria.
Pandor was speaking alongside EU High Representative for Foreign Affairs and Security Policy, Joseph Borrell.
“I hope that during our engagement today we will be able to review all the opportunities for enhancing two-way trade and increasing investment under the existing bilateral and multilateral frameworks,” she said.
“We also greatly appreciate the EU partnership at the regional level and continental level, which through our strategic partnership, can also be enhanced to be more effective.”
She told delegates that the bilateral engagements and events on Thursday, 26 January 2022, were most productive and successful.
These include the ceremonial signing of a number of partnerships, most notably the South Africa-European Union Multi-Annual Indicative Programme; the centrepiece of the strategic relationship between the country and the union, and an integral instrument in the EU’s support for South Africa’s development priorities.
According to the Minister, the delegates also spoke about peace and security issues and developments.
“Our discussions will no doubt contribute to how we seek to address all these pressing challenges through our various levels of engagement including at the United Nations (UN) with our shared commitment to multilateralism, democratic principles and the Rule of Law,” she said, adding that strengthening the UN system is a priority.
‘For the first time, the various engagements under the Strategic Partnership are taking place as they were meant to be synchronised.”
She said the parties will soon receive feedback on the South Africa-EU Joint Cooperation Council (JCC), which took place in South Africa on 7 December 2022.
This comes after several decisions were taken to reflect current realities and priorities.
The delegates also discussed the preparations for the 8th South Africa-European Union Summit, which South Africa will host in the first half of 2023.
The summit will touch on political and security cooperation; cooperation in international fora; trade and investment as well as financial flows.
“Regarding the latter issue, South Africa appreciates the technical assistance received from the EU related to the possible greylisting of South Africa by the Financial Action Task Force (FATF).”
This is after President Cyril Ramaphosa signed two Acts in December 2022, which it is hoped will assist the country make progress to avoid such a greylisting, which Pandor believes would have disastrous consequences.
US Treasury chief Janet Yellen, who was also in South Africa on Friday, said Washington is contributing more than $1-billion under the scheme dubbed the Just Energy Transition Partnership.
The US “is firmly committed to this engagement,” she said, as she visited the eastern Mpumalanga province, South Africa’s coal mining hub.
Recent studies suggest more jobs will be created than lost in South Africa by going green, but analysts say the swap will not be painless.
“We must demonstrate quickly that these coal communities… will not be left behind in the context of an energy shift that benefits other regions,” Yellen said after touring a US-funded renewable energy job training facility for women.