Global Gateway
Global Gateway is the European investment strategy to boost smart, clean and secure connections in digital, energy and transport sectors, and to strengthen health, education and research systems across the world. Through Team Europe, Global Gateway brings together the EU, its Member States and their financial and development institutions to increase scale and impact, and to mobilise the private sector to leverage investments promoting sustainable green growth.
Between 2021 and 2027, Team Europe is mobilising up to €300 billion of investments, of which at least €150 million in Sub-Saharan Africa, for sustainable, transformational and high-quality projects, taking into account the needs of partner countries and ensuring lasting benefits for local communities. This allows EU’s partners to build resilient and sustainable societies and economies, to create opportunities for the European private sector to invest, and to ensure the highest environmental and labour standards, as well as sound financial management.
More information on Global Gateway
Global Gateway offer in South Africa
The European Union (EU) and South Africa share a long-standing strategic partnership rooted in shared values of democracy, human rights, and social justice. The EU was a steadfast supporter of South Africa's transition to democracy, and this strong foundation has continued to underpin the bilateral relationship. The strategic partnership is also based on shared interest of decarbonisation, reduction of dependencies and diversification of value chains, job creation and transition to a green and digital socio-economic growth model.
The implementation of Global Gateway investments in South Africa represents the next chapter in this strategic partnership. Investments focus on strategic value chains essential for the green transition and they are geographically targeted in regions impacted by the energy transition to increase transformation, create local value addition and build regional links with neighbouring countries.
Our support to the Just Energy Transition and green value chains takes form through regular policy dialogue; trade and investment support via the EU-SADC Economic Partnership Agreement (EPA) and the Trade, Development and Cooperation Agreement (TDCA); through innovative financing such as blending, guarantees and green bonds; through research and innovation program Horizon; regulatory cooperation; skills development; and much more. This comprehensive support offers significant opportunities for further strengthening the economic and political ties between the EU and South Africa.
The EU in South Africa also comprises 22 of our Member States present and over 1,000 European companies registered in the country, setting us in a unique position to bring together Team Europe, strengthened by public and private partnerships, into our support to the South African just energy transition.
Our support to South Africa's transition to a low-carbon economy is coordinated under the Just Energy Transition Partnership (together with Germany, France, Denmark, The Netherlands, UK and USA), under which the EU has pledged €1 billion in support.
Key areas of cooperation under the Global Gateway in South Africa include
Local pharma manufacturing
To support South Africa’s ambition in becoming a vaccine manufacturing and health technology transfer hub, Team Europe played a key role in establishing an mRNA technology transfer hub to increase local vaccine production in low- and middle-income countries. Team Europe also supports the expansion of local companies to produce mRNA vaccines, South Africa’s regulatory authorities with capacity building and support to efforts for South Africa to be a skilling hub in Africa.
Renewable energy infrastructure: European Union support to South Africa’s Green Hydrogen ambitions
The Just Energy Transition constitutes an overarching framework for the EU to mobilise Global Gateway investments in renewable sources of energy, including green hydrogen, to support South Africa's green transition and sustainable economic growth.
On green hydrogen, two European Union grants to the sum of R628 million (€32 million) are mobilised to support South Africa’s green hydrogen agenda. The first, a R490 million EU grant is expected to leverage R10 billion in private and public sector finance across the hydrogen value chain, covering production, transportation, storage and downstream industries. A second EU grant of R138 million to assist Transnet in its turn-around strategy, is expected to leverage additional funding for the green transformation of its core operational areas, including ports, rail, pipeline, engineering and related facilities. More info here
The EU is significantly boosting other renewable energy investments in South Africa. Through partnerships with FirstRand Bank, the Development Bank of Southern Africa (DBSA), and Transnet, the European Investment Bank is investing a total of €950 million (ZAR 18.84 billion) to support solar and wind energy generation, as well energy infrastructure projects. These initiatives aim to increase the supply of clean, affordable, and reliable energy, reduce reliance on fossil fuels, and create jobs. As part of it, the €350 million loan to Transnet, leveraged by a €21 million EU grant, will support the company's infrastructure investments on its low-carbon pathway, contributing to sustainable growth and climate action in the energy, transport, and logistics sectors.
More information on Scaling up Renewables in Africa
Education and Research
The EU is mobilising investments in Technical Vocation and Education Training, and Science Technology and Innovation, to modernise and reform higher education institutions, develop new curricula and improve governance.
Through Erasmus+, South African university students can participate in a mobility programme with European universities. And Horizon Europe, the EU's flagship research and innovation programme, offers significant opportunities for South African researchers and institutions to collaborate with European counterparts. Key areas of cooperation between South Africa and the EU through Horizon Europe include: climate Change and Environmental sustainability, health research, digital technologies, and sustainable development
By participating in Horizon Europe, South African researchers can access funding, state-of-the-art research facilities, and international networks. This collaboration strengthens the scientific and technological capacity of both regions and contributes to addressing global challenges.
Innovative financing
Innovative finance and support to MSMEs in accessing finance helps to improve the investment climate and business environment. As of February 2023, about 5,115 MSMEs have received EU investments in the form of grants and blended finance, creating 2,000 direct jobs in areas such as agribusiness (cotton, deciduous and essential oils), green economy, ICT and health, IT and automotive.
Other initiatives like the Global Green Bond Initiative (GGBI) are being mobilised to leverage innovative finance in support of green infrastructure. By providing technical assistance to green bond issuers in emerging markets and acting as an anchor investor, the GGBI mobilizes private capital for climate and environmental projects. This approach helps countries like South Africa access the necessary funds to finance their green transition and achieve sustainable development goals.
With ENRICH Africa, the EU and South Africa are leveraging innovative finance to foster collaboration between European and African innovation ecosystems. In doing so, the EU and South Africa are poised to build a stronger, more sustainable and prosperous future together.
More information on the EU partnerships with South Africa
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