As business and government leaders gather at the 5thFrance-South Africa Business Forum today, France and South Africa are exploring new opportunities to deepen trade, investment and industrial cooperation across sectors critical to economic growth, competitiveness and sustainable development.

France remains a key strategic economic partner to South Africa and an important source of investment, expertise and industrial collaboration. According to the French Ministry for Europe and Foreign Affairs, nearly 480 French companies and subsidiaries operate in South Africa, representing approximately €4.3 billion in French foreign direct investment stock and employing more than 65,000 people across sectors including energy, transport, logistics, manufacturing, pharmaceuticals and financial services.

The strength of the relationship is also reflected in growing commercial engagement. According to Business France, almost 5,000 French companies export to South Africa. Business France also reports that French companies and subsidiaries established in South Africa support socioeconomic development and employ thousands of South Africans. Since 2019, French companies have invested approximately R166 billion in South Africa, underscoring growing confidence in the South African market and its role as a gateway into broader African opportunities.

The Forum comes at a time of renewed momentum in bilateral economic relations, with increasing interest in collaboration across energy transition, infrastructure development, industrialisation, skills development and innovation.

"The France-South Africa relationship has evolved into a broad-based economic partnership spanning trade, investment, industrial development and innovation. French businesses continue to play an important role in sectors that are critical to South Africa's growth ambitions, while South African businesses are increasingly looking to international markets to support expansion, diversification and competitiveness," says Luthando Vuba, Head of International Trade at Business and Commercial Banking, Standard Bank Group.

The France-South Africa partnership is underpinned by broader Africa-Europe economic ties. According to the European Council's EU-Africa Trade Facts and Figures, the European Union remains Africa's largest export market and leading source of foreign direct investment, with European companies holding more than €250 billion in investment stock across the continent in 2024.

For South Africa, the European Union remains the country's largest trading partner. According to the European Council's EU-South Africa Trade Facts and Figures, trade in goods between South Africa and the EU exceeded €44 billion in 2024, accounting for more than 20% of South Africa's total trade and growing by more than a third over the past decade.

Key sectors expected to drive future collaboration include energy, infrastructure, manufacturing, logistics, skills development, technology and innovation as businesses strengthen supply chains, build industrial capacity and pursue new growth opportunities.

Energy Transition

South Africa's renewable energy ambitions, mineral resources and growing green hydrogen potential continue to attract international interest.

In March 2025, the European Union announced a €4.7 billion Global Gateway Investment Package for South Africa focused on supporting the country's just energy transition, strengthening connectivity infrastructure and supporting pharmaceutical sector development. The package includes €4.4 billion earmarked for clean energy initiatives, including critical raw materials and green hydrogen value chains, according to the European Commission and the EU Global Gateway Investment Package factsheet.

These investments are expected to create opportunities across clean energy, green hydrogen, critical minerals, logistics and advanced manufacturing, sectors identified as strategic priorities by both South Africa and European partners.

Increasing emphasis is also being placed on local beneficiation and value addition, with growing recognition that greater economic value can be created by processing and refining critical minerals closer to source rather than exporting raw materials alone.

"Europe's growing focus on energy security, critical minerals and clean industrial development presents meaningful opportunities for greater collaboration between African and European businesses," says Vuba.

Agriculture and Agri-processing

Agriculture and agri-processing are emerging as significant areas of opportunity, particularly in food processing, cold-chain logistics, agri-technology, renewable-powered irrigation and value-added agricultural exports. Growing demand for sustainable agricultural value chains and improved food security is creating new opportunities for collaboration between South African and French businesses.

Infrastructure and Industrial Development

Continued investment in transport, logistics, manufacturing and infrastructure development remains critical to strengthening economic competitiveness and supporting job creation. The Forum's focus on transport, logistics and infrastructure reflects growing recognition that efficient trade corridors and resilient supply chains are essential to unlocking economic growth and investment between Africa and Europe.

Regional Growth and AfCFTA

As implementation of the African Continental Free Trade Area (AfCFTA) progresses, stronger trade and investment relationships will help support regional integration and economic development.

According to the Afreximbank African Trade Report 2024, intra-African trade accounted for approximately 15% of Africa's total trade in 2023, highlighting the opportunity to strengthen regional value chains and unlock greater levels of cross-border trade.

Despite the continent's significant economic potential, Africa's trade finance gap is estimated to exceed US$80 billion annually, with small and medium-sized enterprises among the most affected. Addressing this challenge will be critical to enabling greater participation in regional and global value chains and unlocking the full benefits of trade and investment.

"Partnerships that bring together investment, expertise, innovation and market access will be essential to unlocking sustainable growth across Africa. The France-South Africa Business Forum provides an important platform to strengthen commercial relationships, unlock new investment opportunities and support long-term economic cooperation between South African and French businesses," says Vuba.

As one of the Platinum Sponsors of the 5th France-South Africa Business Forum, Standard Bank is supporting efforts to strengthen commercial ties between South Africa and France and advance dialogue on trade, investment and economic development. Operating in 21 countries across Africa and international financial centres, the bank works with businesses, investors and institutions to facilitate trade and investment flows, support market access and help unlock growth opportunities between South Africa, Europe and the broader African continent.