The European Union (EU) and South Africa have signed a new Clean Trade and Investment Partnership, marking a significant upgrade in bilateral trade cooperation. The announcement, made ahead of the G20 summit, included a sizable investment envelope as well as a framework aimed at expanding trade integration, supply chain cooperation and critical minerals development between the two partners.
The commitments were unveiled during the EU-South Africa Summit in Pretoria, focusing on accelerating clean energy investment. Funding is expected to support energy infrastructure, transport corridors, renewable energy technologies and key manufacturing sectors, including battery production and electric vehicle supply chains.
"This new, dynamic form of trade agreement brings together competitiveness and climate action. We are stepping up mutually beneficial cooperation in the clean economy and on critical raw materials," said Ursula von der Leyen, president of the EU Commission.
The agreement focuses heavily on critical minerals, establishing a joint commitment to develop, process and trade resources central to clean energy manufacturing. These include manganese, platinum group metals, vanadium and other minerals essential for batteries, hydrogen technology and renewable energy infrastructure. The partnership aims to build more resilient and transparent value chains that support both South Africa's industrial ambitions and Europe’s supply-security needs.
Alongside minerals, the deal strengthens cooperation on clean technology, industrial standards and regulatory alignment, with both sides emphasising the need to reduce bottlenecks in customs procedures, logistics networks and product certification.
"This new type of cooperation will strengthen the EU's position as a partner of choice for countries committed to the clean transition," the EU said.
South Africa is already the EU’s largest African trading partner and the new agreement is expected to complement existing arrangements under the EU–Southern African Development Community (SADC) Economic Partnership Agreement. By expanding cooperation into critical minerals and clean-tech sectors, both parties aim to modernize their trade relationship and position themselves competitively in emerging low-carbon value chains.