South Africa, Spain forge deeper economic ties, eyeing diversification

President Cyril Ramaphosa has recently, addressed South Africa‒Spain Business Forum, emphasizing the robust, growing partnership between the two nations while calling for greater diversification in trade and a just approach to global climate action.

The forum, held during his working visit to the Kingdom of Spain, highlighted shared commitments to inclusive growth, industrial development, and sustainable
prosperity.

Ramaphosa expressed gratitude for the warm hospitality extended by King Felipe
VI, the Spanish government, and the business community.

He underscored that the visit was a testament to the enduring partnership and a mutual desire to build a modern,
dynamic, and mutually beneficial economic relationship.

“Spain is a valued partner to South Africa,” President Ramaphosa stated, noting that the relationship is built on shared values and a common belief in inclusive growth, industrial development, and sustainable prosperity.

He added, “Today, we meet not only to celebrate our partnership, but to shape its next chapter.”
Total trade between South Africa and Spain reached approximately 2.8 billion Euros in 2025, with South Africa’s exports to Spain increasing by 10 percent to 1.3 billion Euros.

This makes Spain South Africa’s fastest -growing major trading partner within the European Union.

The President highlighted that the two countries complement, demonstrating how strategic partnerships can strengthen global value chains.
Over 150 Spanish companies currently operate in South Africa, supporting more than 20,000 jobs across various sectors, including renewable energy, infrastructure, financial services, technology, and tourism.

A significant commitment of over 2.1 billion Euros from Spain is directed towards South Africa’s just energy transition, focusing on green hydrogen,
electric vehicles, renewable energy, and grid infrastructure.

South African President described this as “a statement of confidence not merely in our economy, but in our future.”
Despite the strong trade relationship, President Ramaphosa acknowledged a structural imbalance, with nearly half of S’Africa’s exports to Spain concentrated in motor vehicles for the transport of goods.

He stressed the need for diversification to strengthen and sustain relationship. “If we are to strengthen this relationship, if we are to make it sustainable, we must focus on diversification,” he asserted.

Ramaphosa pointed to South Africa’s vast reserves of platinum group metals, crucial for hydrogen fuel cell technology, clean energy systems, and electric
mobility.

This aligns with Spain’s emergence as a leading player in the hydrogen economy creating an opportunity for a synergistic partnership where South Africa provides resources and Spain offers technological capability, investment, and market access.
The President also highlighted Spain’s global leadership in sectors vital to South Africa’s needs, like renewable energy, water management, desalination, infrastructure, hydrogen, and tourism.

In return, South Africa offers a sophisticated industrial base, abundant natural resources, world-class financial institutions, and a strategic position as a gateway to the African continent.

The President emphasized opportunities to expand South African exports to Spain and the broader European market in areas like agro-processing, high-value agricultural products, specialty chemicals.

Also, sustainable fuels, pharmaceuticals, health technologies, beneficiated critical minerals, green industrial materials, renewable energy inputs, and electric vehicles and components.
He called for deeper industrial cooperation, expanded market access, and integration into value chains.

Specifically, he noted South Africa’s automotive industry, the largest on the
African continent, and expressed the nation’s desire to be manufacturers and assemblers in electric vehicle transition, inviting Spanish companies to partner in this endeavor.

Examples of successful Spanish investments in South Africa include Acciona’s wind farms at Zen and Bergriver, and Iberdrola’s Jasper Solar Plant.

He assured investors of South Africa’s policy certainty, strong institutions, diversified industrial economy, robust legal framework, and ongoing reforms to improve logistics, strengthen electricity system, and create a more competitive business environment.
Addressing climate action, the President affirmed South Africa’s commitment to a
just transition towards a low-carbon economy.

However, he cautioned against new
regulatory frameworks, such as the EU Carbon Border Adjustment Mechanism,
inadvertently penalizing developing economies for historical emissions.

Ramaphosa called on Spain to champion a just and equitable approach within EU institutions, ensuring climate measures are accompanied by necessary climate finance, technology transfer, transitional arrangements as promised by the Paris Agreement and COP commitments.

The forum also showcased a high- impact pipeline of 85 investment projects valued at over 62 billion Euros, developed by InvestSA.
These opportunities span energy transition infrastructure, green industrialization, critical minerals beneficiation, agro-industrial value
chains, sustainable fuels, digital connectivity, and pharmaceutical manufacturing.

President Ramaphosa extended an invitation to Spanish capital, technology, and industrial expertise to partner in these projects.

“South Africa is open for business,” President Ramaphosa declared, inviting Spanish companies to be long-term industrial partners and co-builders of industries that will serve both nations for generations.

He concluded by emphasizing the opportunity to connect European technological strength with African growth, build resilient and sustainable supply chains, and create genuinely shared prosperity across both continents.