SA-EU launch clean trade partnership
South Africa is charting it path toward a green energy transition. PHOTO: FILE

SA-EU launch clean trade partnership

South Africa and the European Union held the first Business-to-Government dialogue for the Clean Trade and Investment Partnership (CTIP) on Tuesday. The partnership, endorsed in late 2025 by President Cyril Ramaphosa and European Commission President Ursula von der Leyen, marks a strategic evolution in the economic relationship between the two regions.


Deputy minister of trade, industry and competition Alexandra Abrahams said the EU remains one of South Africa’s largest trading partners, with total trade growing by 56% since 2016. She said the CTIP aims to reshape value chains by aligning decarbonisation with industrialisation, ensuring South Africa participates as an industrial partner in clean supply chains rather than merely a supplier of raw materials.


Strategic infrastructure and investment


The partnership seeks to improve the investment climate to unlock both public and private capital, specifically leveraging Global Gateway financing. Maria Martin-Prat, the deputy director general at the European Commission, highlighted the immense scale of opportunity, citing South Africa’s ambition to construct 14,500 km of new transmission lines over the next decade.


Martin-Prat said transforming these ambitions into reality requires companies ready to invest, catalytic funding to reduce risk, and a conducive regulatory environment. She said European firms possess a clear comparative advantage in supporting South Africa’s green transition through cutting-edge technology and expertise.


Industry engagement and implementation


The dialogue, held alongside the Africa Energy Indaba, was attended by over 150 representatives from industry and financial institutions. Industry leaders shared recommendations on regulatory and risk-mitigation measures needed to facilitate trade in clean supply chains.


The department of trade, industry and competition said these recommendations will be discussed by government representatives later this year. The initiative follows a trilateral meeting held ahead of the G20 Leaders' Summit in November 2025, where leaders reaffirmed their commitment to a tailored and flexible approach to decarbonisation and economic growth.

Advertisments