The European Union has announced a €4.7 billion ($5.1 billion) investment package for South Africa to support green energy and vaccine production, marking a significant step in strengthening economic and political ties. The commitment was made during the first bilateral summit between the EU and South Africa in seven years, held at President Cyril Ramaphosa’s office in Cape Town.

Speaking at the summit, European Commission President Ursula von der Leyen drew parallels between the histories of the EU and South Africa, both of which emerged from conflict and found a path to peace through reconciliation.

South African President Cyril Ramaphosa echoed this sentiment, emphasizing the importance of collaboration in upholding shared values. He said this is the time to work together in defence of what we believe in democracy, the rule of law, including the respect for international law and international humanitarian law.

The EU and South Africa already share a strong trade relationship, with the bloc being South Africa’s largest trading partner in sub-Saharan Africa. Von der Leyen reiterated Europe’s commitment to expanding trade ties.

A major focus of the investment package is South Africa’s transition from coal to greener energy. The EU pledged to continue supporting the Just Energy Transition Partnership (JETP), a multilateral initiative aimed at reducing carbon emissions. This comes in stark contrast to the recent U.S. withdrawal from a similar agreement.