SA and Chile Strengthen Trade and Industry Ties with New Cooperation

Godlimpi reiterated President Cyril Ramaphosa’s stance on elevating developing countries from the lower tiers of global value chains.

In a significant step toward enhancing bilateral economic relations, South Africa and Chile have signed a comprehensive cooperation agreement covering trade promotion, industry collaboration, decarbonisation efforts, and critical mineral beneficiation. The agreement, announced by South Africa's Department of Trade, Industry and Competition (dtic), was formalized during the 8th Joint Trade and Investment Commission (JTIC) meeting held in Pretoria on Friday.

Key Areas of Cooperation

The agreement extends beyond trade facilitation, focusing on strengthening investment relations in micro, small, and medium enterprises (MSMEs) and women-led enterprises, as well as the integration of both nations into global value chains. The JTIC was co-chaired by South Africa’s Deputy Minister of the dtic, Zuko Godlimpi, and Chilean Vice Minister of Trade, Claudia Sanhueza Riveros.

Deputy Minister Godlimpi emphasized that both countries have identified practical measures to enhance and diversify trade and investment, including the exchange of products of export interest.

Decarbonisation and Critical Minerals Beneficiation

A key element of the agreement is the commitment to collaborate on decarbonisation initiatives and adding value to critical minerals. Godlimpi reiterated President Cyril Ramaphosa’s stance on elevating developing countries from the lower tiers of global value chains.

“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,” said Godlimpi.

Trade and Investment Expansion

Both South Africa and Chile recognize the importance of leveraging private sector opportunities and addressing trade challenges. The agreement ensures that Chilean companies operating in South Africa will gain access to key markets, including the European Union, the European Free Trade Association, Mercosur, and the African continent through the African Continental Free Trade Area (AfCFTA).

“This agreement positions South Africa as a gateway for Chilean businesses into Africa, unlocking significant potential for trade expansion and investment,” Godlimpi added.

Support for MSMEs and Women-Led Enterprises

A crucial aspect of the agreement is the emphasis on MSMEs and women-led enterprises. The cooperation will facilitate knowledge-sharing, integration into global value chains, and enhanced access to export opportunities.

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

This agreement marks a new chapter in South Africa-Chile trade relations, fostering economic growth, industrial collaboration, and sustainable development in both nations.