19 October 2022
A visit to Saudi Arabia by South African President Cyril Ramaphosa and his delegation of ministers and business people saw the signing of 17 Memoranda of Understanding (MoUs) between the two countries.
President Ramaphosa visited the Kingdom at the invitation of the Custodian of the Two Holy Mosques, His Royal Highness (HRH) King Salman bin Abdulaziz Al-Saud and was hosted in Jeddah by HRH Crown Prince and Prime Minister of the Kingdom of Saudi Arabia Mohammed bin Salman bin Abdulaziz al Saud on 15-16 October 2022.
The President applauded the 17 Memoranda of Understanding (MoUs) as testimony to the real success the two countries are seeking to achieve.
“Having started in 2018 with a commitment by Saudi Arabia to invest 10 billion dollars into the South African economy, in many ways was planting the seed and that seed has been germinating and thus far one billion dollars has been invested in South Africa through a company called ACWA Power.” said President Ramaphosa.
The MoUs signed were in the fields of technical cooperation in agriculture, fisheries and aquaculture; in the study of the establishment of a Saudi-South Africa Joint Investment Fund and in cooperation in the promotion of direct investment
Other memoranda of understanding signed are on the establishment of a Joint business council, cooperation in the field of military industries and procurements and on geological survey cooperation.
The heads of State also witnessed the exchange of MoUs in the fields of arts and culture; health; social development; mutual recognition of certificates of seafarers; in information, communication and technology including in cooperation between the economic cities and special zones authorities in the Kingdom and in South Africa.
While in Saudi Arabia, President Ramaphosa participated in and addressed the Saudi Arabia – South Africa Investment Forum.
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In this regard, the President utilized the opportunity to invite Saudi Arabia businesses to the South Africa’s fifth investment conference he will be convening in 2023.
President Ramaphosa also led a South Africa investment roundtable discussion with key captains of industry from both countries.
“Trade between our two countries already totals $5 billion and we think we can increase it much further in the next few years. In fact, it is our dream and our ambition that we should see this number scaling much higher.”
President Ramaphosa emphasised that economic relations between the countries can be mutually beneficial, citing South Africa’s long history of mining as a particular industry of interest.
“If it could be said that oil is the lifeblood of the Saudi economy, such is mining to the South African economy as well. We have not only the mineral resources, but also the capability, the capacity and above all, the solid experience.
“There are many opportunities for joint ventures and industrial partnerships between businesses on both our countries' side so as to foster greater growth and investment. For example, we can do partnerships in agro processing, fertilizer production and chemicals,” he said.
Turning to investment in renewable energy, President Ramaphosa said he looks forward to seeing Saudi Arabian renewable energy firms and technologies entering the South African market.
South Africa has embarked on a renewable energy strategy which is aimed at reducing the current load on coal fired generation fleet while also bringing down the country’s carbon footprint.
“We hope to see you partnering with South African firms, as we increase our renewable energy generation footprint and manufacture green energy components. And we are particularly pleased that Saudi Arabia is well steeped in the field of renewable energy and broad energy,” he said.
President Ramaphosa said another area of potential synergies between the two countries is the green hydrogen economy which has been billed as a new frontier for clean energy.
To its advantage, South Africa holds at least 80% of the world’s platinum group metals and 40% of the world’s platinum and palladium supplies which are key components in the production of hydrogen.
“Saudi investors will find substantial opportunities to leverage in South Africa in this regard. Similarly, there are opportunities for South African business to leverage on Saudi Arabia’s Green Hydrogen Project, Neom, as well. Saudi Arabia’s Neom project is a 170-kilometre futuristic, smart city on the coastal strip on the Red Sea Coast. The city will be powered entirely by clean energy, a major step in Saudi Arabia's shift away from an oil-based economy.
“We are the world’s largest producer of platinum, a key input in hydrogen fuel cell technology. Our ambitious plans to unlock the potential of the green hydrogen economy include developing a hydrogen valley that stretches from the platinum belt in our country through the country's industrial heartland,” Ramaphosa said.
President Ramaphosa concluded his visit by officially opening the Lulu Hypermarket South Africa Fest where over 500 South Africa products were on display demonstrating the improving trade relations between South Africa and Saudi Arabia.
TDS