South Africa and Chile Forge Stronger Trade Ties with New Agreement Focused on Decarbonisation and Critical Minerals

In a significant move to bolster bilateral economic relations, South Africa and Chile have signed a comprehensive cooperation agreement aimed at enhancing trade, industry collaboration, and sustainable development. The agreement, formalized during the 8th Joint Trade and Investment Commission (JTIC) meeting in Pretoria, focuses on key areas such as decarbonisation, critical mineral beneficiation, and support for micro, small, and medium enterprises (MSMEs).

The partnership was announced by South Africa’s Department of Trade, Industry and Competition (dtic) and underscores the commitment of both nations to elevate their positions in global value chains while addressing pressing environmental and economic challenges.

Key Areas of Cooperation

The agreement goes beyond traditional trade facilitation, emphasizing investment in MSMEs, women-led enterprises, and the integration of both countries into global value chains. South Africa’s Deputy Minister of the dtic, Zuko Godlimpi, and Chilean Vice Minister of Trade, Claudia Sanhueza Riveros, co-chaired the JTIC meeting, where practical measures to diversify trade and investment were identified.

Deputy Minister Godlimpi highlighted the importance of this partnership, stating, “We have agreed to explore cooperation in the beneficiation of critical minerals. This includes opportunities in fuel cell and battery manufacturing, which will contribute to both our countries’ industrialization efforts and green economy transition.”

Decarbonisation and Critical Minerals

A cornerstone of the agreement is the commitment to collaborate on decarbonisation initiatives and the beneficiation of critical minerals. This aligns with President Cyril Ramaphosa’s vision of elevating developing countries from the lower tiers of global value chains. By focusing on fuel cell and battery manufacturing, both nations aim to drive industrialization while supporting the global transition to a green economy.

Expanding Trade and Investment

The agreement positions South Africa as a gateway for Chilean businesses into Africa, leveraging the African Continental Free Trade Area (AfCFTA). Chilean companies operating in South Africa will gain access to key markets, including the European Union, the European Free Trade Association, and Mercosur.

“This agreement unlocks significant potential for trade expansion and investment, benefiting both nations,” said Godlimpi.

Support for MSMEs and Women-Led Enterprises

The partnership also prioritizes the growth of MSMEs and women-led enterprises, recognizing their critical role in economic development. The agreement facilitates knowledge-sharing, integration into global value chains, and enhanced access to export opportunities.

To advance these initiatives, ministries and agencies responsible for MSMEs and women-led enterprises in both countries will establish formal contact before the end of April 2025.

A New Chapter in Bilateral Relations

This agreement marks a pivotal moment in South Africa-Chile trade relations, fostering economic growth, industrial collaboration, and sustainable development. By addressing shared challenges and leveraging mutual strengths, both nations are poised to create a more resilient and inclusive economic future.

As South Africa and Chile deepen their partnership, the focus on decarbonisation, critical minerals, and MSMEs sets a powerful example of how developing nations can collaborate to drive innovation and prosperity in an increasingly interconnected world.

Follow Joburg ETC on Facebook, Twitter , TikTok and Instagram

For more News in Johannesburg, visit joburgetc.com