The European Union (EU) and South Africa signed a memorandum of understanding on strategic raw materials on Thursday, on the eve of the very first G20 summit to be held on the African continent, according to local media.
This is the fourth such partnership signed between the EU and an African country, following Namibia, the Democratic Republic of the Congo, and Zambia.
The EU is seeking to diversify its supply of these raw materials, which are essential for industries and new technologies.
The partnership is presented as a win-win, offering Pretoria not only the capacity to extract minerals but also to process them locally and create additional jobs.
“We want to extract these minerals, process them at the site of extraction, add value, so that South Africa begins to move up the value chain,” explained South African President Cyril Ramaphosa.
This agreement follows nearly 12 billion euros in EU investments in South Africa announced in October, notably through its “Global Gateway” program.
In its most recent list from 2023, the EU identified 34 critical raw materials, including platinum group metals and manganese, which are abundant in South Africa.
South Africa is the EU’s largest trading partner in sub-Saharan Africa, with 45 billion euros in goods exchanged in 2024. The EU also remains the largest source of foreign direct investment for South Africa, accounting for 40% of its FDI.