By Herlee Media Hub | 20 November 2025
In a defining moment for Africa’s economic diplomacy, South Africa and the European Union have signed a landmark agreement on the processing of critical minerals, marking a pivotal step towards strengthening value chains within the continent.
The deal, signed in Pretoria ahead of the 2025 G20 Johannesburg Summit, seeks to expand South Africa’s capacity to process metals vital to the green energy, computing, and defence sectors.
According to Reuters, the agreement underscores a shared commitment between South Africa and the EU to promote democracy, human rights, and multilateral cooperation.
President Cyril Ramaphosa, alongside EU leaders, described the partnership as a step toward a more equitable and sustainable global economy. “This agreement reflects Africa’s growing influence in shaping the global green transition,” he said during the signing ceremony.
This milestone represents a significant shift in Africa’s diplomatic and economic posture - moving beyond raw material exports to value-added production and strategic global partnerships.
With the world racing to secure resources for renewable energy technologies, Africa and South Africa in particular is positioning itself as a key player in the global supply chain. The deal also comes amid rising geopolitical competition among major powers over access to Africa’s mineral wealth.
For the European Union, the agreement is part of its broader effort to diversify away from China’s dominance in the critical minerals market, while ensuring ethical and sustainable sourcing.
- Economic growth and jobs: The partnership could create thousands of jobs and enhance local technical skills in mineral processing.
- Industrial development: South Africa could become a regional hub for green-tech raw materials, attracting further investment into infrastructure and innovation.
- Continental opportunity: This move sets a precedent for other African nations, including Kenya and East African states, to pursue similar value-addition partnerships.
This deal embodies South Africa’s growing commitment to economic diplomacy using trade and investment as instruments of foreign policy. It also signals Africa’s determination to redefine its role in global value chains and to be recognised not merely as a supplier of raw resources, but as a strategic economic partner in the global green transition.
As the world prepares for the G20 Summit in Johannesburg, all eyes are on how Africa’s leading economies will leverage such agreements to advance the continent’s collective bargaining power on the global stage.
Source: Reuters | Herlee Media Hub Analysis
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