The exterior of the Johannesburg Stock Exchange building visible from the street. stock image.
Nearly 200 companies took part in an EU investment roadshow in South Africa on Monday, competing for a slice of the €12 billion ($13.98 billion) in investment made by the bloc amid a global rivalry over critical minerals.
The EU's first investment roadshow, held at the Johannesburg Stock Exchange, marks the first major effort to mobilize capital under the 2025 EU-South Africa Clean Trade and Investment Partnership.
In line with other African countries, South Africa wants to move up the value chain to condition access to critical minerals needed for the energy transition, modern weapons and artificial intelligence.
“Our objective is not to export raw minerals,” Trade Minister Parks Tau said in opening remarks at the event. “Our objective is beneficiation, processing, industrial development.”
EU is building supply chains after Chinese sanctions
China's restrictions on mineral exports with potential military applications have led Western countries to seek alternative supply chains across Africa.
David McAllister, chairman of the EU Parliament's Foreign Affairs Committee, said reuters With regard to critical minerals, the bloc had learned from its experiences in diversifying away from Russian energy supplies, on which many members were heavily dependent, he said in an interview.
“The best way to reduce dependency is to diversify and South Africa plays an important role in this,” he said.
Among deals already signed between the countries, a €600 million framework loan to the Development Bank of Southern Africa will provide 1,200 MW of green energy and displace 3.6 million tonnes of CO2.
A separate €1.48 billion facility for state freight company Transnet – the first withdrawal under the €1 billion EU-EIB Just Energy Transition pledge – will modernize South Africa's port and rail networks.
The EU is South Africa's largest trade and investment partner, with €46 billion in bilateral trade flows by 2025 and more than 1,700 European companies representing more than 40% of foreign direct investment.
“We have moved from a development mindset to an investment mindset,” EU Ambassador Sandra Cremer said. reuters.
($1 = 0.8581 euros)
(By Colleen Gocko and Tim Cox; Editing by Jan Harvey)