The UAE and South Africa are accelerating their strategic trade and investment partnership in 2025, building on a relationship that has rapidly expanded over the past five years. Non-oil trade between the two nations reached $8.5 billion in 2024, marking a 14% increase from 2023 and more than double the volume recorded in 2019. South Africa now stands as the UAE’s second-largest African trading partner, accounting for 7.6% of the UAE’s total non-oil trade with the continent. Momentum continued into 2025, with bilateral non-oil trade hitting $3.93 billion in the first half alone, driven by multi-sector cooperation and deepening private-sector engagement.

Strategic Context

The UAE’s long-term vision to strengthen economic connectivity across Africa is taking shape through strategic alliances, high-level government collaboration, and Comprehensive Economic Partnership Agreements (CEPAs). South Africa, with its diversified industrial base and continental influence, plays a central role in this strategy. The partnership spans logistics, renewable energy, agriculture, real estate, food production, manufacturing, and infrastructure—creating a diversified platform for cross-border growth.

  • $8.5 billion in total non-oil trade in 2024.
  • $3.93 billion achieved in the first half of 2025 alone.
  • $1.3 billion in UAE investments in South Africa (2024).
  • $600+ million in South African investments in the UAE.

Key Areas of Trade and Investment Collaboration

Logistics, Ports, and Infrastructure

  • Joint projects to enhance port capacity and maritime connectivity across Southern Africa.
  • UAE logistics operators expanding into gateway cities to strengthen regional supply chains.
  • Infrastructure upgrades positioned to support trade flows into sub-Saharan markets.

Renewable Energy and Industrial Development

  • Major UAE-backed solar initiatives, including a $120 million solar power project.
  • Collaboration in hydrogen, clean energy, and sustainability technologies.
  • Co-investments in industrial zones and manufacturing clusters supporting export growth.

Agriculture, Food Security, and FMCG

  • UAE investments in agriculture and food processing to secure supply chain resilience.
  • Expansion of FMCG operations, strengthening brands across GCC and African markets.
  • Joint R&D opportunities in agritech and sustainable farming models.

Growing Private-Sector Participation

Recent high-level meetings between UAE and South African trade ministers emphasized the need for stronger private-sector engagement, particularly in co-investment platforms, supply chain collaboration, and innovation-led industries. With both countries pushing forward economic diversification agendas, the private sector is becoming a crucial engine of bilateral growth.

  • Increased participation of UAE conglomerates and investment firms in African ventures.
  • South African companies expanding into the UAE’s logistics, retail, and professional services sectors.
  • New cross-border partnerships in manufacturing, renewable energy, and technology.

Alignment With the UAE’s Africa Strategy

This partnership supports the UAE’s broader geopolitical and economic strategy to position itself as a gateway to African markets. Through CEPAs and targeted investment vehicles, the UAE is building long-term commercial corridors across the continent, anchored by mutually beneficial trade frameworks and sustainable development commitments.

  • CEPAs under negotiation with multiple African countries to streamline trade barriers.
  • Alignment with Africa’s industrialization initiatives and regional economic communities.
  • Expansion of UAE-backed logistics and technology infrastructure across Africa.

Implications for Investors, Businesses, and Family Offices

  • For UAE businesses: New market entry points, joint venture opportunities, and supply chain expansion across African sectors with high-growth potential.
  • For South African companies: Access to UAE capital, free zones, advanced logistics, and global re-export networks.
  • For family offices: Diversification across energy, logistics, and agriculture, supported by stable regulatory frameworks and bilateral investment protections.

Handle Insight

The UAE–South Africa partnership reflects a strategic alignment built on resilience, diversification, and shared economic ambition. With trade volumes surging, investment flows strengthening, and major joint projects underway, both nations are building a long-term growth corridor that will reshape commercial opportunities across the Middle East and Africa. For businesses and private capital, this is a pivotal moment to position for cross-border expansion and participation in one of 2025’s most dynamic bilateral relationships.

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