- EU seeks to mobilise part of its €12 billion (US$14 billion) investment package through roadshows in Johannesburg, Cape Town and Durban.
- South Africa pushes for local mineral beneficiation and industrialisation as a condition for critical minerals development.
- Existing EU backed projects include renewable energy investments and major upgrades to South Africa’s rail and port infrastructure.
The European Union has launched its first investment roadshow in South Africa, bringing together around 200 companies and ten financial institutions as part of efforts to translate its €12 billion (US$14 billion) investment commitment into bankable projects focused on critical minerals, clean energy and industrial development.
Hosted at the Johannesburg Stock Exchange on June 1 and 2, the event marks the first major capital mobilisation initiative under the EU South Africa Clean Trade and Investment Partnership (CTIP), signed in 2025 to strengthen cooperation in clean industries, energy and strategic mineral value chains.
The roadshow comes at a time of intensifying global competition for critical minerals that are essential for the energy transition, advanced manufacturing, defence technologies and artificial intelligence applications.
Opening the event, South Africa’s Trade, Industry and Competition Minister, Parks Tau, reiterated the country’s commitment to ensuring that mineral wealth supports domestic industrialisation.
“Our objective is not to export raw minerals. Our objective is beneficiation, processing and industrial development on South African soil,” Tau said.
South Africa is seeking to leverage its significant reserves of platinum group metals, manganese, vanadium and other strategic minerals to develop higher value industries and strengthen local manufacturing capacity.
The EU’s investment push also reflects growing efforts by Western economies to diversify critical mineral supply chains following export restrictions imposed by China on certain minerals with potential military applications.
According to David McAllister, the bloc has drawn lessons from its previous dependence on Russian energy supplies and is prioritising supply chain diversification.
“The best way to decrease dependencies is to diversify, and South Africa plays an important role,” McAllister said.
Several major financing agreements have already been concluded under the expanding EU South Africa partnership.
A €600 million framework loan to the Development Bank of Southern Africa is expected to support 1,200 MW of renewable energy capacity while avoiding an estimated 3.6 million tonnes of CO₂ emissions.
In addition, a €1.48 billion financing facility for Transnet will support the modernisation of South Africa’s rail and port infrastructure. The facility represents the first drawdown under a broader €1 billion EU and European Investment BankJust Energy Transition commitment.
The EU remains South Africa’s largest trade and investment partner, accounting for €46 billion in bilateral trade in 2025. More than 1,700 European companies operate in the country, representing over 40% of foreign direct investment.
The CTIP is closely aligned with the EU’s Global Gateway strategy, which aims to mobilise investment in infrastructure and strategic industries across developing markets. It complements the EU’s €8.7 billion support package for South Africa’s Just Energy Transition and extends cooperation into digital infrastructure and pharmaceutical manufacturing value chains.
Key sectors targeted under the partnership include renewable energy, low carbon technologies, electricity transmission infrastructure, sustainable transport fuels, climate adaptation technologies and critical mineral processing.
Following the Johannesburg event, the investment roadshow moves to Cape Town on June 3 and 4 before concluding in Durban on June 5. The initiative follows the inaugural EU South Africa Energy Dialogue and Business Forum held in Brussels in May and will be followed by the first formal government to government CTIP engagements scheduled for July.
Author: Bryan Groenendaal
