Market News

JOHANNESBURG, Oct 10 (Reuters) – The European Union has pledged to invest 11.5 billion euros ($13.3 billion) in South Africa in clean energy, infrastructure and pharmaceutical projects, it said late on Thursday.

A large chunk of the investment aims to accelerate South Africa’s shift to renewable energy through new power generation capacity, grid upgrades, energy storage and green hydrogen.

Africa’s biggest economy is trying to woo investors to help lift flagging growth and bring down high unemployment, while U.S. tariffs have also dealt it a blow. The EU’s statement mentioned the Coega Green Ammonia Project, which seeks to meet growing demand for green ammonia in agriculture, chemicals and mining, and bolstering production of vaccines and other pharmaceuticals in South Africa for the African continent.

European Commission President Ursula von der Leyen pledged 4.7 billion euros of investment in March during a visit to South Africa, and it was not immediately clear whether the latest investment pledge included that money or was in addition to it.

South Africa’s export outlook took a knock from the 30% tariff U.S. President Donald Trump imposed on its goods in August, as well as from the expiry of a major U.S. trade initiative with Africa at the end of last month.

South African officials are trying to persuade the Trump administration to lower the 30% tariff.