South Africa and Saudi Arabia have signed 17 memoranda of understanding related to various industries, says president Cyril Ramaphos – key of which relates to renewable energy and green hydrogen projects.
The president was in the middle eastern nation this weekend, bolstering relations and trying to draw investment amid several crises hitting the country.
Remarking at the closing session of the Saudi Arabia-South Africa Investment Conference on Saturday, Ramaphosa noted that trade relations between the two countries already amounted to $5 billion, which could grow even further.
In particular, the countries could partner on mining and industry – including health products, chemicals, steel, automobiles and many others; agriculture and food processing; tourism and hospitality; and most importantly, energy and renewables.
“I look particularly forward to welcoming more of your renewable energy firms and technologies to enter our market. We hope to see you partnering with South African firms as we increase our renewable energy generation footprint and manufacture green energy components,” he said.
“An area of potential synergies I want to particularly refer to is the green hydrogen economy,” he added.
Ramphosa referred to Saudi Arabia’s Neom project on the Red Sea Coast – an ambitious and futuristic smart city concept valued at over $500 billion – noting that its 100% renewable energy target would make partnering with South Africa a key opportunity.
“With plans to source 100% of Neom’s energy from renewable sources, including hydrogen-based power, Saudi investors will find substantial opportunities to leverage in South Africa in this regard. Similarly, there are opportunities for South African businesses to leverage at Neom,” the president said.
“Our ambitious plans to unlock the potential of the green hydrogen economy include developing a Hydrogen Valley that stretches from the platinum belt through the country’s industrial heartland. A number of multinational investors like Anglo-American Platinum have already begun leveraging these opportunities.
“Saudi investment across the value chain of the green hydrogen economy will not just support South Africa’s economic goals, but those of Saudi Arabia as well in its ongoing drive towards sustainability.”
Tourism boost
Ramaphosa said that partnering with Saudi Arabia would also help boost South Africa’s tourism industry, noting that it would create opportunities for new flight paths to open between the two countries.
“I should say it is embarrassing that we do not have a direct flight from South Africa to Saudi Arabia, and with both of us being embarrassed, I think it creates a great opportunity to ensure that we do ensure that we connect the two countries,” the president said.
“South Africa is a leading tourism destination, including for visitors from Saudi Arabia and the Gulf. Our wildlife tourism is a particular drawcard for tourists from the region. Beyond the need to facilitate greater tourism between our two countries, there are many investment opportunities for Saudi businesses in the tourism sector.”
Acknowledging the security concerns raised by the recent murder of a German tourist in the country, the president said South Africa would “deepen and extend security” to counter these issues.
“Linked to this whole process are the other reforms that will bolster and continue to bolster our tourism industry and to ensure that as we grow our own tourism industry, we deepen and extend security to make sure that there is adequate security that can make our country even more attractive,” he said.
Tourism minister Lindiwe Sisulu previously proposed that the country implement a specialised security team to tackle tourist safety as a potential measure.
