The European Union and South Africa have signed the first-ever Clean Trade and Investment Partnership (CTIP), marking a major step in their joint drive toward sustainable economic growth and decarbonisation.

The CTIP, building on the EU-South Africa Strategic Partnership and the Economic Partnership Agreement, aims to boost trade and investment in clean supply chains, benefiting both economies while advancing their climate and industrial goals.

Key sectors include renewable energy, low-carbon technologies, electricity grids, clean fuels, raw materials, and climate solutions. The partnership will promote business opportunities through public and private financing, reduce trade and investment barriers, ensure transparent procurement, and facilitate European Investment Bank support for South Africa’s Just Energy Transition.

“South Africa is the EU’s first CTIP partner and a gateway to green growth in Sub-Saharan Africa,” said an EU spokesperson. Trade between the EU and South Africa reached €45 billion in 2024, with the EU accounting for over 40% of foreign direct investment in the country.

Announced by European Commission President Ursula von der Leyen two decades ago, the CTIP is part of the EU’s Clean Industrial Deal and the Global Gateway Investment Package, offering flexible, business-focused deals that integrate trade, investment, climate, energy, and development cooperation.

The CTIP is expected to diversify clean supply chains, create local value in South Africa, and strengthen EU access to strategic raw materials, while giving businesses a direct role through a new Business-to-Government Forum.

With this partnership, the EU and South Africa are not just trading goods—they are investing in a sustainable, net-zero future.