EU unveils €12bn investment drive in South Africa

The European Union has launched its Investment Roadshow in South Africa, marking the start of a week-long initiative aimed at strengthening bilateral cooperation and expanding Team Europe’s engagement across key strategic sectors.

More than 200 companies attended the European Union’s investment roadshow in South Africa on Monday, seeking opportunities linked to the bloc’s €12 billion investment commitment amid intensifying global competition for critical minerals, reported Reuters.

Following a broader trend across Africa, South Africa wants investors to support higher-value mineral processing within the country before gaining access to critical minerals used in renewable energy, modern weaponry, and artificial intelligence. Restrictions imposed by China on strategic mineral exports have accelerated efforts by Western nations to diversify supply chains through partnerships across Africa.

The European Union and South Africa have already secured several major agreements, including a €600 million framework loan to the Development Bank of Southern Africa to support projects expected to generate 1,200 megawatts of renewable energy and reduce carbon emissions by 3.6 million tonnes.

In addition, state-owned freight and logistics company Transnet has received a €1.48 billion financing facility to upgrade the country's port and rail infrastructure. The funding represents the first disbursement under a broader EU-European Investment Bank Just Energy Transition commitment.

The EU remains South Africa’s largest trading and investment partner, with bilateral trade reaching €46 billion in 2025. More than 1,700 European companies operate in the country, accounting for over 40% of foreign direct investment.