South Africa looks to deepen trade ties with Spain as logistics challenges create new opportunities
South Africa used its presence at the Rail Live 2025 Expo in Madrid this past week to strengthen economic ties with one of its fastest-growing European partners, with Ambassador to Spain, Ms Sankie Mthembi-Mahanyele, emphasising that Spanish industry continues to view South Africa as a significant market for long-term investment and collaboration.
Speaking during her visit to the South African exhibition stand on the final day of the expo (28 November 2025), Ambassador Mthembi-Mahanyele highlighted that South Africa’s participation at global industry platforms plays a critical role in deepening trade relationships and profiling local industries to international audiences.
“Spain sees South Africa as a good opportunity,” she said. “It is always very important for the Department of Trade, Industry and Competition (the dtic), and other departments, to participate in exhibitions of this nature because they help profile our industries, while giving global audiences a clearer understanding of what South Africa can offer across different sectors.”
A growing economic and trading relationship
Relations between the two countries have expanded rapidly. Over the past decade, bilateral trade has quadrupled, reinforced by the presence of more than 150 Spanish companies operating in South Africa. These firms collectively support over 20,000 local jobs, according to statistics referenced by the Ambassador.
Key sectors driving this partnership include manufacturing, machinery, minerals and metals, textiles, agriculture, agro-processing, and tourism. In 2024, South Africa exported goods worth €1.35 billion to Spain, while importing €1.42 billion—underscoring a healthy and mutually beneficial trading environment.
Collaboration aligned to South Africa’s energy and logistics priorities
A central theme of the Ambassador’s message was the strategic value of Spain’s support for South Africa’s just energy transition. Spanish President Pedro Sánchez previously pledged €2.11 billion to support Spanish companies investing in renewable energy and energy-transition projects in South Africa – reinforcing Spain’s position as a vital partner in addressing one of South Africa’s most urgent economic challenges.
Beyond energy, the Ambassador highlighted several emerging areas of cooperation, including digitalisation, maritime technologies, and advanced port-management solutions – sectors that closely align with South Africa’s ambition to modernise its ocean economy and upgrade its logistics capabilities.
This comes at a critical time for South Africa. The decline of the country’s rail and freight-logistics networks has placed pressure on exporters and constrained economic growth. However, industry experts and government stakeholders increasingly view this as an opportunity to work with international partners – such as Spain – to rebuild core logistics infrastructure, introduce global best practice, and attract investment into rail and port-modernisation projects.
Spain’s advanced rail, port, and digital-logistics systems position it well to support South Africa’s turnaround efforts, especially as South Africa seeks partners with proven expertise in modern transport management, signalling technologies, and integrated systems.
Strategic tools to support investment
South Africa also stands to benefit from Spain’s PASE (Country with a Strategic Sector Action Plan) framework, which allows Spanish companies investing locally to access preferential financing mechanisms. This arrangement complements the €2.11 billion already committed by President Sánchez during his Pretoria visit.
The Ambassador further noted growing interest in South Africa’s ocean economy and related technology offerings. Companies specialising in maritime-monitoring software and advanced port-management systems are already engaging local stakeholders, alongside established partners such as Indra, which is preparing to expand activities in aviation and defence communication.
Expanding South Africa’s Global Economic Footprint
Reflecting on broader engagements—including the Ibero-African Business Forum in Tenerife—the Ambassador reaffirmed the importance of sustained international collaboration to grow South Africa’s trade footprint.
“These engagements help us promote commercial activity, deepen trade, and ensure mutual growth,” she said. “Spain is a key partner, and we must continue working to expand opportunities for South African companies while maintaining balanced, sustainable trade.”
South Africa’s participation at Rail Live 2025 forms part of the dtic’s broader commitment to supporting export-ready firms, strengthening industrial capability, and reinforcing South Africa’s global economic presence.
For South Africa, deepening ties with partners such as Spain is not only a trade strategy—it is central to rebuilding logistics capacity, accelerating renewable-energy projects, and positioning the country for long-term, globally competitive growth.
