Pretoria – South Africa and the European Union signed a pivotal agreement on critical minerals on Thursday, just days before the G20 summit in Johannesburg. The deal aims to bolster South Africa’s mining sector while advancing global efforts toward clean energy and technological innovation.
At a press conference following the signing of the memorandum of understanding by South Africa’s Mines Minister Gwede Mantashe, President Cyril Ramaphosa emphasized the importance of diversifying the country’s mineral sector. “We are no longer going to rely on extracting minerals only. We will want to extract those minerals and process them locally, so South Africa can move up the value chain,” Ramaphosa said.
The agreement is part of a broader strategic partnership between the EU and South Africa, as the latter hosts the first-ever G20 summit on African soil. While the summit has been overshadowed by a partial boycott led by the United States, President Ramaphosa noted that the U.S. was reconsidering its participation in some form. Analysts view the absence of U.S. leadership as an opportunity for South Africa to strengthen its ties with the EU and China, its two largest trading partners.
The deal is critical for the EU, which is in urgent need of rare earths and other minerals necessary for the transition to renewable energy, computing technologies, and defense industries. European Commission President Ursula von der Leyen expressed the need for diversified, reliable supply chains, particularly after Russia’s war in Ukraine disrupted Europe’s energy security. The EU is also planning a 9-million-euro joint purchasing mechanism to stockpile these critical resources ahead of global competitors.
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