The European Commission has highlighted that South Africa and the EU are holding the first government-to-government dialogue at senior level to advance the implementation of the Clean Trade and Investment Partnership (CTIP) between the two governments.

This partnership aims to reinforce clean and resilient supply chains, support local strategic industries and accelerate investments in green hydrogen and critical raw materials.

The dialogue will focus on specific CTIP business and flagship projects, trade and investment facilitation measures and regulatory cooperation.

Moreover, these efforts will prioritise the materialisation of 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.

The Commission notes that there is also a greater push to make the business environment in South Africa more transparent and predictable, thereby deepening cooperation on regulatory approaches, standards and implementation frameworks to advance the green transition.

In November 2025, the EU and South Africa signed the first such CTIP, designed to drive mutually beneficial trade, investment and job creation while supporting decarbonisation and clean supply chains.

In March, both parties organised the first business-to-government dialogue under this CTIP to gather business views and priorities for CTIP implementation.

The Commission also highlights that South Africa is the EU’s first CTIP partner and its largest investment partner in sub-Saharan Africa, as trade flows stood at about 45-billion euros in 2025, and the EU is the largest investor in South Africa, representing over 40% of foreign direct investment.  

Notably, CTIPs 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. 

“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 [about] 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,” the European Commission says.