South Africa and Saudi Arabia sign agreements worth billions

By Sinazo Mkoko

SA ready to increase the overall export of a basket of goods

Agreements and memorandums of understanding worth billions were signed between South Africa and Saudi Arabia during a state visit by President Cyril Ramaphosa to the Kingdom of Saudi Arabia, Riyadh on 15 -16 October.

The joint Saudi-South African Committee and the executive authorities’ efforts to strengthen cooperation between the two countries in many economic fields - in a bid to achieve their goals and aspirations in accordance with the vision of the leaders of the two friendly countries - have been widely lauded.

In a joint statement issued at the conclusion of President Ramaphosa’s official visit to the Kingdom of Saudi Arabia the two countries stated: “The two sides expressed satisfaction with the development of investment and economic relations between the two countries, stressing the importance of exerting further efforts to boost these relations to reach a level that accords with the volume of the two countries’ economies by aligning the objectives of the Saudi Vision 2030 and South Africa’s National Development Plan 2030; exploring investment sectors and opportunities in areas of common interest, mainly renewable energy, industry, mining, tourism, logistics and agriculture; enabling and encouraging the private sector and investors in both sides to make joint and mutual investments; increasing investment delegations and events; and exchanging expertise in the fields of improving and developing the investment environment.”

When it comes to the energy sector, where South Africa has had its fair share of challenges, the countries agreed to explore areas of joint cooperation in a number of energy fields, “including petroleum and petrochemicals, energy efficiency, and fields of electricity and renewable energy such as solar, wind and atomic energy, as well as the developing projects relying on these sources, enhancing cooperation in the field of hydrogen, innovation and clean technologies to manage hydrocarbon emissions, working to localise energy sector products and relevant supply chains, and developing projects concerned with these areas.”

The two sides expressed satisfaction with the development of investment and economic relations between the two countries

President Ramaphosa said trade between the two countries already totals $5-billion and it can be increased further in the next few years.

“South Africa stands particularly ready to increase the overall export of a basket of goods with Saudi Arabia, to bring greater balance to the trade account.

“The current flows of investment between our two countries are very promising. One such company, from Saudi Arabia, is active in the renewable energy space, one of the catalytic sectors for South Africa. South Africa has unparalleled opportunities that await investors with the financial capability and appetite.

“Just as Saudi Arabia is positioned as the gateway to the Middle East and to the region, South Africa is the gateway to a dynamic continent with great prospects. Africa is growing its output, rapidly urbanising and has a young population,” he said.

President Ramaphosa added that our country’s service sectors and professional skills are highly regarded across the Middle East. “Our engineers, doctors and teachers have already made a mark here.

We also have filmmakers, entertainment entrepreneurs, bankers, insurance firms, tourism companies and information and communication technology businesses who are ready to partner with you.”

Both countries have praised the positive and fruitful results achieved since President Cyril Ramophosa’s visit to the Kingdom in 2018, which contributed to the expansion of cooperation between the two countries in various fields.