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EU and South Africa start clean trade talks on investment

The European Union and South Africa have begun the first government-to-government dialogue under their Clean Trade and Investment Partnership (CTIP), as both sides move to strengthen clean supply chains, support strategic industries and accelerate investment in the green economy.
Source: Haris Illahi via
Source: Haris Illahi via Unsplash

Senior officials from both sides are discussing three priority areas as part of the partnership's implementation.

These include advancing flagship trade and investment projects, improving trade and investment facilitation, and strengthening regulatory cooperation on climate and energy.

Priority sectors include electricity grid expansion, renewable energy, sustainable aviation fuels, green hydrogen and critical raw materials.

Supporting South Africa's energy transition

According to the European Commission, the partnership is intended to create a more transparent and predictable business environment while encouraging investment in clean supply chains.

South Africa's planned electricity sector reforms, including the construction of approximately 14,500km of new transmission lines over the next decade, are expected to create further investment opportunities under the partnership.

Building on an existing partnership

The Clean Trade and Investment Partnership was signed in November 2025 to support trade, investment, job creation and decarbonisation.

Earlier this year, South Africa and the European Union held their first business-to-government dialogue to gather industry input ahead of implementation.

South Africa is the European Union's first Clean Trade and Investment Partnership partner and its largest investment partner in sub-Saharan Africa.

Trade between the two partners reached €45bn in 2025, while the European Union accounts for more than 40% of foreign direct investment in South Africa.

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