South Africa

In June 2016, the EU and South Africa – together with Botswana, Lesotho, Mozambique, Namibia and Swaziland – signed the Southern African Economic Partnership Agreement (EU-SADC EPA) that regulates trade in goods between the European Union and Southern Africa. The agreement provisionally entered into force on 10 October 2016.

Under the EU-SADC EPA, the EU fully or partially removed customs duties on 97.8% of imports from South Africa in 2022, while guaranteeing full free access for the rest of the signatory countries. 

Until the application of the EU-SADC EPA, trade relations between the EU and South Africa had been governed by the trade chapter of the Trade, Development and Cooperation Agreement (TDCA) concluded in 1999. The trade-related provisions of the TDCA were replaced by the EU-SADC EPA.

Trade picture

• EU-South Africa trade and investment has been increasing steadily since the EU-SADC EPA began to be applied. Since 2016, EU-South Africa trade has increased by 42% (EU imports have risen by 65% and EU exports have gone up by 26%). 
• South Africa is the EU's biggest trading partner in Sub-Saharan Africa, with €49.5 billion of total trade in goods in 2023.
• The EU is the largest source of foreign direct investment in South Africa – almost half of South Africa's FDI stocks originate in the EU. 
• The automotive sector provides an example of successful diversification of South African exports and the creation of value chains with high-value addition in South Africa. Between 2016 and 2023, the EU’s automotive imports from South Africa increased by 64% and its automotive exports went up by 15%. Trade in the automotive sector reached €11 billion in 2023, accounting for 22% of overall trade. 
• South Africa's primary exports to the EU are machinery and transport equipment, fuels and mining products, and precious metals and articles. 
• EU exports to South Africa are dominated by machinery and appliances, transport equipment, and chemicals and allied industries.

The EU and South Africa

Among other benefits, the EU-SADC EPA provides South Africa with improved market access to the EU, more flexible rules of origin, and more effective safeguards.

The EPA contributes to improving the business climate between its partners by providing companies with a stable and forward-looking framework, in South Africa and across the Southern African region. It helps to boost bilateral and regional trade, thereby providing new opportunities to fulfil the objectives of the South Africa-EU Strategic Partnership.

EU-based companies invest in a wide range of economic activities in South Africa and are major contributors to the country’s industrialisation and transformation agenda.

Following the termination of most Bilateral Investment Treaties with EU countries, South Africa adopted a Protection of Investment Act in 2015. The EU Chamber of Commerce and Industry in Southern Africa, established in 2015, provides a coherent approach on issues of concern to European businesses investing in the region.

Trading with South Africa

• Importing into the EU from South Africa
  • EU trade defence measures on imports from South Africa
• Exporting from the EU to South Africa
  • Trade defence measures in force in South Africa
• Trade relations are part of the EU's overall political and economic relations with South Africa
• Factsheet on the EU-South Africa Strategic Partnership
• South Africa is a member of the World Trade Organization
• DG Trade webpage on the Southern African Development Community (SADC)
• DG Trade webpage on Economic Partnership Agreements
• Sustainable impact assessment of the EU-African Caribbean Pacific Trade Relations of the Economic Partnership Agreements