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EU and South Africa sign critical minerals deal as Washington misses G20

South Africa is hosting this year's G20 gathering amid a boycott by its most powerful member - the US.

South Africa is hosting this year’s G20 gathering amid a boycott by its most powerful member – the US.

 

Carmen Gavrila
U.S. President Donald Trump’s administration had said it will not attend the first G20 summit in Africa. The reason – the White House alleges that South African authorities discriminate against white people. The country was previously ruled by its white minority apartheid system until 1994.
On Thursday, a White House official said an envoy would attend a ceremony for the official handover of the G20 presidency from South Africa to the U.S. but there was no question of Washington participating.
The reaction came as South Africa’s president Cyril Ramaphosa said on Thursday, during a press conference with European Commission President Ursula von der Leyen and European Council President António Costa, that the U.S. had signaled it might participate in the G20 summit in Johannesburg.
Yet, even in the absence of an American high representative, the summit, the first hosted by an African country,  still was a showcase for a continent that has fast-growing economies and vast mineral wealth.
Also, the G20 meeting was an opportunity for South Africa to build closer ties to the European Union and China, its two largest trading partners.
“We are signing an unprecedented agreement,” South African president Ramaphosa said at a news conference with European Commission President Ursula von der Leyen and European Council President António Costa, just after mines minister Gwede Mantashe signed the memorandum of understanding with the EU.
President of the European Council, António Costa, President of the European Commission, Ursula von der Leyen and President of South Africa, Cyril Ramaphosa, met on the margins of the G20 Summit, in Johannesburg (South Africa), and agreed on a joint press statement.
In the statement the leaders welcomed the signature of the EU-South Africa Clean Trade and Investment Partnership (CTIP), which, according to a EU press release, will create new trade and investment opportunities, while supporting decarbonisation objectives through a tailored, flexible, and targeted approach taking into account the priorities of South Africa and the EU. In addition to facilitating trade and investment in clean supply chains, this partnership will also serve as a forum for regulatory cooperation between the EU and South Africa in areas of mutual interest.
The 3 leaders also welcomed the signature of the Memorandum of Understanding (MoU)
for a Strategic Partnership on Sustainable Minerals and Metals Value Chains, which
will promote value addition and beneficiation of critical minerals close to the source of
extraction and will enhance economic and industrial integration between South Africa and
the EU.
Delivering on the commitment taken up at the EU-South Africa Summit earlier this year,
the two sides launched the South Africa – EU Energy Dialogue in September 2025 and
agreed to raise it to Ministerial level in 2026. The Dialogue provides a platform to deepen
collaboration in areas such as transmission, clean energy technologies and additional just
transition initiatives. Both sides also reiterated the commitment to work together towards
future export of electro Sustainable Aviation Fuel (e-SAF) to the EU market in line with the
commitment made during the SA-EU Summit in March 2025.
The 3 leaders reiterated their commitment to facilitate bilateral trade in animals, plants and
their products. In particular, South Africa reaffirmed its commitment to enable trade of
poultry, including through a conclusive discussion on regionalisation, as well as further
assess and process EU market access applications based on the information to be
provided by exporting countries as a matter of priority.
The EU signaled readiness to advance listing South Africa as eligible to export shelf-stable composite products to the EU market. South Africa has shared progress report on various EU market access requests.
Both sides committed to identify tangible deliverables to demonstrate progress in fulfilling
their respective commitments by the next Trade and Investment Dialogue.
9. The two sides commended the agreement to facilitate bilateral cumulation of batteries
through a temporary derogation from the Rules of Origin under the provisions of the EU –
SADC Economic Partnership Agreement (EPA) to be submitted by South Africa. This
derogation would aim at promoting battery manufacturing in the EU and South Africa and
facilitating South Africa to employ batteries made in the EU and South Africa to export
electric and plug-in hybrid vehicles to the EU market under the EU-SADC EPA.
The EU announced five projects as part of the implementation of the Team Europe Global
Gateway Investment Package for South Africa of nearly EUR 12 billion, unveiled at the
Global Gateway Forum in Brussels on 9 October 2025. These projects included three
blended finance and technical assistance facilities on green hydrogen, minerals and
metals in the e-batteries value chain; a European Investment Bank (EIB) loan to Transnet
to support the decarbonization of South Africa’s transport sector; as well as support from
EIB under the EU-supported Human Development Accelerator initiative to boost South
Africa’s vaccine’s manufacturing capacities.
The two sides acknowledged the role of the implementing partners, including the Development Bank of Southern Africa, the Industrial Development Cooperation, Transnet and Biovac, as well as the EIB, the German Development Bank (KfW) and the German Agency for International Cooperation (GIZ).
The EU and South Africa have ongoing negotiations on the Horizontal Aviation
Agreement, and committed to strengthen cooperation on maritime security in the context of the Djibouti Code of Conduct.
“We are no longer going to rely on extracting minerals only. We will want to extract those minerals, have them processed at the point of extraction, so that South Africa begins to move up the value chain,” Ramaphosa said.
Carmen Gavrila is a journalist based in Romannia, focusing on MENA, EU affairs and Africa
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The GatewaySPI
The GatewaySPIhttps://thegatewayspi.org/
The Gateway Strategic Policies and Ideas is a place where we invite experts from various geographies and fields to provide a comprehensive picture of the world we live in and the world to be.
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