South Africa and the EU Launch Groundbreaking Clean Trade and Investment Partnership
South Africa and the European Union (EU) have taken a significant step forward in their economic collaboration by launching the first government-to-government dialogue at the senior-official level. This initiative aims to advance the implementation of their new Clean Trade and Investment Partnership (CTIP). The talks are focused on reinforcing clean and resilient supply chains, supporting local strategic industries, and accelerating investments in green hydrogen and critical raw materials.
South Africa is the EU’s first CTIP partner and the region's largest investment partner in Sub-Saharan Africa. In 2022, trade flows between the two regions reached €45 billion (R839.7bn), with the EU representing over 40% of foreign direct investment in South Africa.
The government-to-government dialogue will focus on specific CTIP business cases and flagship projects. These initiatives aim to materialize mutual trade and investment opportunities, including South Africa’s expansion of the electricity grid, renewable energy, sustainable aviation fuels, critical raw materials, and green hydrogen.
Key Areas of Focus
In addition to these projects, the dialogue will also address trade and investment facilitation measures. These efforts are designed to make the business environment more transparent and predictable by sharing specific information on recent regulatory processes and providing clarifications to industry stakeholders.
Regulatory cooperation on climate and energy will also be discussed. This aspect of the partnership aims to deepen cooperation on regulatory approaches, standards, and implementation frameworks to advance the green transition.
“This new form of trade engagement brings together competitiveness and climate action by stepping up mutually beneficial cooperation in the clean economy and on critical raw materials,” said the EU. Governments play a crucial role in creating a conducive regulatory business environment for these investments to scale and reach their full potential.
Ambitious Goals for the Clean Transition
The ambition for future developments in the clean transition is substantial. For instance, South Africa aims to reform its electricity sector and build approximately 14,500 km of new transmission lines in the next ten years. The CTIP will promote investment opportunities in clean supply chains and create mutual benefits for both the EU and South Africa.
The CTIP complements the Economic Partnership Agreement between the EU and the Southern Africa Development Community. This agreement provides a solid legal framework on trade in goods for the CTIP by liberalizing trade in environmental goods and granting favorable market access for South African agricultural and manufactured goods.
A New Policy Tool for Sustainable Growth
The EU and South Africa signed their first CTIP in November 2025. This partnership is designed to drive mutually beneficial trade, investment, and job creation while supporting decarbonization and clean supply chains.
In March, South Africa and the EU organized the first business-to-government dialogue under the CTIP. Over 150 business representatives attended this event, highlighting the growing interest and commitment from the private sector.
CTIPs are a new policy tool announced by European Commission President Ursula von der Leyen in 2024. They are aimed at supporting the EU’s decarbonization and competitiveness objectives as an external instrument of the Clean Industrial Deal.
Key Components of the CTIP
The CTIP cooperation tools include:
- Investment measures to improve the business environment for EU companies
- Mobilization of sustainable finance and green investment via EU development banks and export credit agencies
- Exchange of information on CTIP-related investments and EU Global Gateway projects
- Promotion of public procurement opportunities in clean sectors
- Promotion of clean technologies and environmental social governance standards
- Regulatory cooperation on trade, investment, energy, and climate issues
Commitment to Strengthening the Partnership
Deputy Minister of Trade, Industry and Competition of South Africa, Alexandra Abrahams, emphasized the importance of the EU as one of South Africa’s largest trading partners. She noted that total trade has grown by 56% since 2016, and the mutually beneficial partnership will continue to be deepened.
“The CTIP will expand trade volumes while reshaping value chains. It will align decarbonization with industrialization and investment with local economic development, ensuring that South Africa participates as an industrial partner in clean supply chains rather than as a supplier of raw materials,” she said at the time.
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