Sunday 15, July 2018 by Kudakwashe

Saudi Arabia and UAE to invest $20 billion in South Africa

 

South Africa President Cyril Ramaphosa is on a mission to raise $100 billion in foreign direct investment in an attempt to revive the national economy.

  

Saudi Arabia and the United Arab Emirates have committed to invest $20 billion in South Africa’s energy as well as tourism and mining sectors.

The pledge was made during separate official state visits to MENA by President Ramaphosa and government ministers.

The money forms a sizeable chunk of Ramaphosa’s mission to generate $100 billion of foreign direct investment. South Africa is the African continent’s most industrialised country, its once-promising economy has suffered years of slow growth due to a decrease in the price of commodities and endemic governmental corruption.

Speaking during a state visit by the South African delegate, Sultan bin Saeed Al Mansouri, UAE’s Minister of Economy, said, UAE and South Africa have maintained vibrant economic and trade relations since 1994, with the African country becoming the key trading partner to the UAE in Sub Saharan Africa.

The first five months of 2018 saw a steady increase in non-oil trade between the two countries, rising from $ 1.2 billion to $ 1.1 billion during the same period last year.

Also, South Africa imports 47 per cent of its oil from Saudi Arabia and regards the country as a strategic partner in the Middle East.

The country's gross domestic product shrunk by 2.2 per cent in the first three months of 2018.

  

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