The European Union (EU) has pledged a €4.7 billion ($5.1 billion) investment package to support South Africa’s transition to green energy and boost vaccine production. 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.

European Commission President Ursula von der Leyen highlighted the shared history of reconciliation between the EU and South Africa, emphasizing their commitment to democracy and stability.

“South Africa remains an emblem of hope for the world,” von der Leyen stated. “Today, we are together announcing an investment package to mobilize €4.7 billion in South Africa.”

President Ramaphosa welcomed the investment, calling for closer collaboration on key global issues, including climate change and economic development.

A major portion of the investment will be allocated to South Africa’s Just Energy Transition Partnership (JETP), aimed at moving away from coal towards renewable energy. This pledge comes as the U.S. recently withdrew from a similar initiative.

“We know that others are withdrawing, so we want to be very clear with our support,” von der Leyen affirmed. “We are doubling down, and we are here to stay.”

South Africa and the EU also aim to strengthen trade ties, with the EU already being South Africa’s largest trading partner in sub-Saharan Africa. Von der Leyen described South Africa as a “reliable partner” and emphasized the need to diversify supply chains while maintaining cooperation.

The summit took place against the backdrop of rising geopolitical tensions. Ramaphosa, who will lead South Africa’s G20 presidency, emphasized the need for debt relief and climate financing for developing nations—issues that have seen friction with the U.S.

Meanwhile, relations between South Africa and the U.S. have strained following South Africa’s case against Israel at the International Court of Justice. The U.S. has since imposed sanctions on South Africa, citing human rights concerns and allegations of ties with Hamas and Iran.

As the EU and South Africa strengthened economic ties, tensions between the EU and U.S. escalated. President Donald Trump announced a 200% tariff on European wine and spirits, prompting von der Leyen to respond:

“We will defend our interests. We’ve said it and we’ve shown it, but at the same time, I also want to emphasize that we are open for negotiations.”