SA’s Cabinet Hails R100bn+ Investments from Google and EU

Cabinet hailed the launch of Google South Africa’s new cloud region in Johannesburg as a historic milestone and a major boost for the country’s digital infrastructure.

South Africa's Cabinet has expressed strong optimism about the country's economic resilience and long-term growth prospects, following the announcement of several high-profile investments and strategic partnerships aimed at revitalizing key sectors such as technology, logistics, energy, and manufacturing.

Minister in the Presidency, Khumbudzo Ntshavheni, provided an update during a media briefing on Thursday, highlighting the outcomes of the Cabinet meeting held the previous day. Among the major developments welcomed by Cabinet was the launch of Google South Africa’s R2.5 billion cloud region project, the European Union’s (EU) R93.5 billion Global Gateway Investment Package, and ongoing initiatives to increase private sector participation in South Africa’s freight logistics system.

Google Launches First Cloud Region in Africa

Cabinet hailed the launch of Google South Africa’s new cloud region in Johannesburg as a historic milestone and a major boost for the country’s digital infrastructure. The R2.5 billion project is Google’s first cloud region on the African continent and will integrate South Africa into the company’s vast global network, enabling faster and more secure cloud services for businesses, government, and consumers.

“This is a significant development not just for the tech industry, but for the broader economy,” said Ntshavheni. “This investment by Google demonstrates global confidence in South Africa’s digital capabilities and positions us as a strategic technology hub in Africa.”

The cloud region is expected to support local innovation, improve data security and latency, and create jobs, particularly for skilled IT professionals. It also forms part of the country’s broader digital transformation agenda aimed at harnessing the Fourth Industrial Revolution for inclusive economic growth.

EU’s R93.5 Billion Strategic Investment Package

Another key highlight was the European Union’s announcement of a massive R93.5 billion investment through its Global Gateway initiative. The package is designed to support South Africa’s clean energy transition, enhance connectivity infrastructure, and strengthen the country’s pharmaceutical manufacturing sector.

“This investment reaffirms the strong strategic relationship between South Africa and the EU,” said Ntshavheni. “It aligns with our national priorities and will accelerate the shift towards a green and just economy.”

The investment pledge came during the 8th South Africa-EU Summit, which was held in South Africa on 13 March 2025. At the summit, the EU also reaffirmed its support for South Africa’s upcoming G20 Presidency, recognizing the importance of international cooperation in driving economic recovery and development.

Private Sector to Play Bigger Role in Freight Logistics

Cabinet also welcomed progress in reforming the country’s freight logistics sector, particularly through increased private sector involvement in rail and port operations. A Request for Information (RFI) has been issued to gauge private sector interest in participating in critical logistics projects, as the country moves to address bottlenecks in freight transport that have hindered exports and economic efficiency.

“The Roadmap for Freight Logistics System in South Africa promotes greater competition and efficiency,” explained Ntshavheni. “While we are opening operational aspects to private investment, core infrastructure like rail lines and ports will remain under public ownership.”

These reforms are expected to not only modernize South Africa’s logistics system but also unlock trade opportunities, reduce costs, and improve the movement of goods across borders.

A Call for Unity in Building an Inclusive Economy

Minister Ntshavheni concluded by calling on all sectors of society to contribute to South Africa’s journey toward sustainable and inclusive economic growth. She emphasized that the recent investments should serve as a catalyst for further collaboration between government, business, and international partners.

“Cabinet calls on all sectors to reinforce the many positives about our country and work together to accelerate job creation and development,” she said.

As the country navigates global economic uncertainty, these strategic investments and partnerships signal growing confidence in South Africa’s economic trajectory. The government remains committed to fostering an environment conducive to investment, innovation, and inclusive prosperity.