Beyond trade: France and South Africa are building for the long term

Much of South Africa’s international economic debate focuses on the roles of the US and China. Yet the European Union remains South Africa’s largest trading partner, with France playing a leading role as an investor and economic partner.

At the South Africa Investment Conference in April, 30, French companies announced R20.7-billion in new investments, making France the largest investor at the event.

By the end of 2024, French investments in South Africa totalled €4.3-billion (about R79.81-billion). The relationship is increasingly reciprocal, with France now the second-largest European destination for South African investments abroad.

Both governments are working to deepen this partnership.

During President Cyril Ramaphosa’s visit to France in July, discussions with senior executives from major French firms centred on investment, skills development, South Africa’s business environment and the country’s economic transition.

It is against this backdrop that French and South African business leaders, investors and public institutions will gather in Johannesburg on Tuesday for the fifth South Africa-France Business Forum. The event aims to strengthen partnerships and unlock new opportunities for collaboration.

France has a substantial footprint in South Africa. Around 480 French subsidiaries employ more than 70 000 people across transport, healthcare, energy, water, manufacturing, agribusiness, tourism, media and retail, among other sectors.

Companies such as Alstom, Airbus Helicopters, Sanofi, TotalEnergies, Veolia, Suez, Canal+, Club Med and Decathlon are among those contributing to South Africa’s economy.

The collaboration between Sanofi and Biovac enables the production of about 5- million doses annually of the Hexaxim vaccine in South Africa.

Support from France has also helped strengthen pharmaceutical manufacturing.

Through Proparco, the private-sector financing arm of the French Development Agency (AFD), Biovac received a second loan worth R325.5-million in May. The funding forms part of a broader R2.9-billion package led by the International Finance Corporation to expand Biovac’s multi-vaccine manufacturing facility in Cape Town.

Through the Gibela factory in Ekurhuleni, Alstom has established one of the country’s most significant rail manufacturing operations. The facility produces 600 X’Trapolis Mega trains for Prasa and employs about 1 500 people.

RATP Dev operates the Gautrain, connecting Johannesburg, OR Tambo International Airport and Pretoria.

Climate cooperation is another important pillar of the relationship. France is a supporter of South Africa’s Just Energy Transition Partnership, having committed more than R18.8-billion to support decarbonisation.

Particular attention is being paid to vulnerable communities and regions most affected by the shift away from carbon-intensive energy sources.

Through the AFD, France is also supporting Transnet’s modernisation and decarbonisation strategy, including a R5.8-billion loan agreement signed in May. The AFD continues to work with Eskom on renewable energy initiatives.

The support has encouraged additional private-sector investment. French companies, including EDF, Engie, TotalEnergies and Voltalia, are helping expand renewable energy generation. Recent projects include Voltalia’s 148MW Bolobedu solar plant in Limpopo, developed for Richards Bay Minerals; Engie’s 75MW Graspan solar facility in the Northern Cape in partnership with Pele Green Energy; and EDF Power Solutions’ 420MW Koruson I wind-power cluster straddling the Eastern Cape and Northern Cape provinces.

Club Med recently committed R2-billion to develop its first all-inclusive South African resort at Tinley Manor on the KwaZulu-Natal coast, representing one of the country’s largest hospitality investments.

In the creative sector, Canal+’s acquisition of MultiChoice is expected to create a pan-African media group. Canal+ has committed about R26-million over three years to support content production and studio development, contributing to the growth of the creative economy.

Taken together, the investments demonstrate the depth and diversity of the economic relationship between France and South Africa. French companies are contributing to local manufacturing, infrastructure development, healthcare, renewable energy, tourism and media, while creating jobs, developing skills and supporting long-term growth.

The South Africa-France Business Forum will provide an important opportunity to build on the momentum and strengthen a partnership focused on sustainable development, economic growth and shared prosperity.

•Benjamin Cabouat is chargé d’affaires at the Embassy of France in South Africa, Lesotho and Malawi.