The European Union has launched its first investment roadshow in South Africa, seeking to mobilise private sector participation in a €12 billion (US$14 billion) investment package aimed at strengthening cooperation on critical minerals, clean energy and industrial development.
The event, held at the Johannesburg Stock Exchange, attracted around 200 companies and marks the first major investment mobilisation initiative under the 2025 EU-South Africa Clean Trade and Investment Partnership.
The programme comes as global competition for critical minerals intensifies amid growing demand for materials essential to renewable energy technologies, electric vehicles, advanced manufacturing, defence systems and artificial intelligence.
Opening the event, South African Trade Minister Parks Tau said the country is determined to ensure that its mineral wealth supports domestic industrialisation rather than simply serving as a source of raw material exports.
“Our objective is not to export raw minerals. Our objective is beneficiation, processing and industrial development,” Tau said.
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South Africa possesses some of the world’s largest reserves of critical minerals, including platinum group metals, manganese, chromium and vanadium, all of which are increasingly important to global energy transition strategies.
The roadshow reflects a broader effort by the European Union to diversify supply chains and reduce strategic dependence on a limited number of suppliers.
European officials say recent restrictions imposed by China on exports of certain strategically important minerals have heightened concerns about supply security among Western economies.
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David McAllister said the EU had drawn lessons from its previous dependence on Russian energy supplies and now views diversification as a strategic necessity.
“The best way to decrease dependencies is to diversify, and South Africa plays an important role,” he said.
The initiative is part of a broader economic partnership that has deepened ties between South Africa and the European bloc.
The EU remains South Africa’s largest trading and investment partner, accounting for €46 billion in bilateral trade during 2025 and hosting more than 1,700 European companies operating in the country.
European firms collectively represent over 40 percent of foreign direct investment in South Africa, making the bloc a critical source of capital and technology.
Among the flagship projects already announced under the partnership is a €600 million framework loan to the Development Bank of Southern Africa, which will support the delivery of approximately 1,200 megawatts of renewable energy capacity.
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The project is expected to help reduce carbon emissions by an estimated 3.6 million tonnes.
Another major initiative involves support for Transnet, which is set to benefit from a €1.48 billion financing facility aimed at modernising the country’s rail and port infrastructure.
The funding forms part of the EU’s broader Just Energy Transition partnership with South Africa, which seeks to support economic growth while advancing climate objectives.
EU Ambassador to South Africa Sandra Kramer said the relationship has evolved beyond traditional development assistance towards a stronger investment-led partnership.
“We’ve moved from development thinking to investment thinking,” she said.
Analysts say the roadshow highlights Africa’s growing strategic importance in the global race for critical minerals and reflects increasing efforts by major economies to secure long-term access to resources needed for future industrial and technological development.
For South Africa, the challenge will be balancing foreign investment opportunities with its goal of expanding domestic processing, manufacturing and value addition within the mining sector.
