The EU and South Africa launch an intergovernmental dialogue on the Clean Trade and Investment Partnership

On 9 July, the EU and South Africa held their first intergovernmental dialogue at senior official level to take forward the implementation of their Clean Trade and Investment Partnership.

Collaboration between the two regions will strengthen clean and resilient supply chains, support local strategic industries and accelerate investment in green hydrogen and critical raw materials. 

The intergovernmental dialogue will focus on three main areas: 

• Specific business cases and flagship projects under the CTIP (Technology Innovation and Trade Programme) that aim to realise the extensive mutual trade and investment opportunities, including the expansion of South Africa’s electricity grid, renewable energy, sustainable aviation fuels, critical raw materials and green hydrogen. 
• Trade and investment facilitation measures: achieving a more transparent and predictable business environment by sharing specific information on recent regulatory processes and providing clarity to industry. 
• Regulatory cooperation on climate and energy: deepening cooperation on regulatory approaches, standards and implementation frameworks to drive the green transition. 

This new and dynamic form of trade collaboration brings together competitiveness and climate action by intensifying mutually beneficial cooperation in the clean economy and on critical raw materials. Governments play a crucial role in creating a regulatory business environment conducive to these investments expanding and reaching their full potential. There is great ambition for the future development of the clean energy transition: South Africa intends to reform its electricity sector and build approximately 14,500 km of new transmission lines over the next decade. The CTIP will promote investment opportunities in clean supply chains and generate mutual benefits for the EU and South Africa. 

Background   

In November 2025, the EU and South Africa signed the first Clean Trade and Investment Partnership, designed to boost mutually beneficial trade, investment and job creation, whilst supporting decarbonisation and clean supply chains. This new form of cooperation will strengthen the EU’s position as a preferred partner for countries committed to the green transition. 

In March this year, South Africa and the EU organised thefirst business-government dialogue under the Clean Trade and Investment Partnership (CTIP) to gather views and priorities from the business sector regarding the implementation of the CTIP. 

South Africa is the EU’s first partner under the CTIP programme and the EU’s main investment partner in sub-Saharan Africa. Trade flows reached €45 billion in 2025, and the EU is the leading investor in South Africa, accounting for over 40 per cent of foreign direct investment.   

Clean Trade and Investment Partnerships are a new policy instrument announced by the President of the European Commission, Ursula von der Leyen, in 2024, with the aim of supporting the EU’s decarbonisation and competitiveness objectives, as an external instrument of the Clean Industrial Pact.  

 

More information: European Commission