EU and South Africa kick off intergovernmental dialogue on Clean Trade and Investment Partnership

On 9 July, the EU and the South Africa held the first government-to-government dialogue at senior-official level to advance on the implementation of their Clean Trade and Investment Partnership (CTIP).

The work between the two regions will reinforce clean and resilient supply chains, support local strategic industries, and accelerate investments in green hydrogen and critical raw materials. 

The government-to-government dialogue will focus on three main areas: 

• Specific CTIP business cases and flagship projects – looking at materialising the ample 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. 
• Trade and investment facilitation measures – making the business environment more transparent and predictable by sharing specific information on recent regulatory processes and providing clarifications to industry. 
• Regulatory cooperation on climate and energy – deepening cooperation on regulatory approaches, standards and implementation frameworks to advance the green transition. 

This new, dynamic 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. Governments play a crucial role in creating a conducive regulatory business environment for these investments to scale and reach their full potential. The ambition for future developments in the clean transition is big – South Africa aims to reform its electricity sector and build approximately 14,500 km of new transmission lines in the next decade. The CTIP will promote investment opportunities in clean supply chains and create 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 drive mutually beneficial trade, investment and job creation while supporting decarbonisation and clean supply chains. This new type of cooperation will strengthen the EU's position as a partner of choice for countries committed to the clean transition. 

In March this year, South Africa and the EU organised the first Business-to-Government dialogue under the Clean Trade and Investment Partnership (CTIP) to gather business views and priorities for CTIP implementation. 

South Africa is the EU’s first CTIP partner and the largest investment partner in Sub-Saharan Africa. Trade flows stood at 45 billion euros in 2025, and the EU is the number one investor in South Africa, representing over 40% of foreign direct investment.   

Clean Trade and Investment Partnerships are a new policy tool announced by European Commission President 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 Deal.  

For more information   

Clean Trade and Investment Partnership 

First Business-to-Government dialogue 

Ahead of G20 Summit, EU and South Africa advance cooperation on clean trade and investment 

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