Canada, South Africa Begin Talks on Investment Pact for Minerals

Prime Minister Mark Carney announced that Canada and South Africa have initiated discussions aimed at establishing an investment-protection agreement focused on clean energy and critical minerals. This announcement was made during the G20 Summit taking place in Johannesburg, where Carney emphasized Canada’s goal of enhancing private-sector collaboration between the two nations.

The proposed investment pact underscores the importance of responsible sourcing of essential minerals, which are crucial for advancing clean energy initiatives. Carney’s remarks come shortly after South Africa’s envoy in Ottawa hinted at a potential “wine for gas” agreement. This arrangement would see South Africa exporting higher-quality wines to Canada in exchange for importing liquefied natural gas.

Strengthening Economic Ties with Africa

During the summit, Carney also met with João Lourenço, President of Angola, in his capacity as chair of the African Union. They discussed opportunities for Canada to engage with the continental free-trade area currently being developed. Despite these discussions, Carney’s government has faced criticism from advocates who argue that Canada should prioritize stronger economic ties with African nations. They point out that the recent budget focused more on markets in Asia and Europe while neglecting the young and emerging economies in Africa.

Carney acknowledged the need to strengthen existing relationships with countries like Mexico and the United Kingdom before expanding further into Africa. Nevertheless, he expressed optimism about future economic partnerships with African countries, indicating a willingness to explore new opportunities.

The discussions between Canada and South Africa represent a significant step towards enhancing bilateral relations, especially in sectors critical to sustainable development. As the global focus shifts towards clean energy and sustainable practices, such agreements are pivotal in shaping future economic landscapes.

This report was first published by The Canadian Press on November 23, 2025.