What's Happening?
The European Union and South Africa have entered into a significant agreement aimed at transforming the mineral processing landscape in Africa. This pact, announced in November 2025, is part of the EU's broader strategy to secure strategic supply chains
essential for the energy transition. The agreement focuses on processing minerals within Africa rather than exporting raw ore, thereby adding value on the continent. The EU has committed €750 million through its Global Gateway program to support infrastructure, clean energy deployment, and industrialization projects. This initiative is expected to reshape supply-chain dynamics, with African nations like the Democratic Republic of Congo already taking steps to enhance transparency and value retention in their mineral exports.
Why It's Important?
This agreement is crucial as it addresses both economic and environmental objectives. For Europe, it represents a strategic move to diversify its supply chains away from Asia, ensuring a more secure and sustainable source of critical minerals needed for electric vehicles, renewable energy, and digital technologies. For Africa, the pact promises industrialization, job creation, and technology transfer, offering a fairer share of the global mineral value. The collaboration also aligns with broader goals of sustainable development and clean energy transition, highlighting the importance of deeper EU-Africa partnerships in achieving long-term resilience and economic growth.
What's Next?
The next steps involve practical implementation of the agreement, with discussions scheduled for the 2026 Invest in African Energy Forum in Paris. This event will bring together African governments, European regulators, and private-sector investors to address challenges such as structuring offtake agreements, scaling processing capacity sustainably, and establishing regulatory frameworks for transparent and climate-aligned mineral value chains. The forum aims to turn high-level commitments into actionable roadmaps, facilitating the integration of refining, precursor manufacturing, and clean energy infrastructure.
