The European Union has pledged to invest €11.5 billion (USD 13.3 billion) in South Africa, targeting clean energy projects, infrastructure, and pharmaceutical manufacturing, aiming to promote sustainable development and support Africa’s largest economy.

The EU stated that a large portion of this investment will focus on accelerating South Africa’s transition to renewable energy by adding new power generation capacities, upgrading transmission networks, expanding storage capabilities, and launching green hydrogen projects, according to CNBC Africa.

South Africa, facing weak economic growth and high unemployment rates, seeks to attract foreign investments to revive its economy amid additional pressures on its exports due to recently imposed US tariffs.

The EU statement highlighted the “Koega Green Ammonia” project, aimed at meeting the growing demand for green ammonia in agriculture, chemicals, and mining sectors, alongside boosting vaccine and medicine production in South Africa to serve the entire African continent.

European Commission President Ursula von der Leyen had announced during her visit to South Africa last March a commitment of €4.7 billion in investments, but it is not yet clear whether the new funding includes or adds to this amount.

South Africa’s export prospects took a severe hit after US President Donald Trump imposed a 30% tariff on South African goods last August, in addition to the expiration of the African Growth and Opportunity Act at the end of last month.

South African officials are currently working to persuade the Trump administration to reduce the 30% tariffs in an effort to mitigate the negative impact on the country’s exports and restore foreign investor confidence.