President Cyril Ramaphosa wants South Africa and the Kingdom of Saudi Arabia to forge more ties in the technology space.
The president made the proclamations during the closing session of the Saudi Arabia-South Africa Investment Conference on the occasion of the state visit to the Kingdom of Saudi Arabia.
Ramaphosa visited the kingdom at the invitation of 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 and 16 October.
The president is looking to boost ties in sectors such as mining technologies, ICT and renewable energy, among others.
During the visit, the two countries signed agreements and memorandums of understanding worth about $15 billion (R270 billion).
“Having started in 2018 with a commitment by Saudi Arabia to invest $10 billion in the South African economy, in many ways was planting the seed and that seed has been germinating and thus far $1 billion has been invested in South Africa through a company called ACWA Power,” said Ramaphosa.
Renewable energy boost
Last year, ACWA announced the commencement of construction of the Redstone Concentrated Solar Plant in the Northern Cape.
At the time, the Saudi-based company said at R11.6 billion total investment, the Redstone project was the largest renewable energy investment in South Africa to date.
The Redstone plant will be equipped with a 12-hour thermal storage system that will deliver clean and reliable electricity to nearly 200 000 households round the clock.
Commencement of operations is scheduled for Q4 2023.
Ramaphosa added that South Africa can offer expertise in mining services, in technologies and in a range of equipment and components used in the mining industry.
“There are many opportunities as well for joint venture partnerships,” said the president. “South Africa leads the way on the continent in terms of advanced manufacturing, science and technology that drives the export of our goods and services.
“Our firms can benefit from sharing ideas, technologies and market knowledge in fields as diverse as green hydrogen, petrochemicals and pharmaceutical products. South Africa is a favourable, reliable and stable place to conduct business.”
According to Ramaphosa, South Africa’s services 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.”
On energy and renewables, the president said: “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.”
The announcement comes as SA is leaning towards cleaner energy sources with some of the coal-powered electricity plants reaching their end of life.
The South African government believes the move to renewables will be critical in plugging the country’s electricity shortfall.
Over the years, the country has been bedevilled by crippling power shortages, which have seen power utility Eskom implement load-shedding that adversely impacts businesses and households.
This morning, South Africans woke up to the news that stage four load-shedding was implemented at 5:30am due to breakdowns of five generators at five power stations overnight.
According to Eskom, the load-shedding will be implemented until further notice.
“An area of potential synergies I want to particularly refer to is the green hydrogen economy,” Ramaphosa added.
“We have all been following with great interest the ambitious and spectacular Neom project on the Red Sea Coast.”
Creating hydrogen valley
Based in Saudi Arabia, the Neom project is the world’s largest utility-scale, commercially-based hydrogen facility powered entirely by renewable energy.
He pointed out that 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, said Ramaphosa, there are opportunities for South African business to leverage at Neom.
“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 through the country’s industrial heartland.”
The president revealed that 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.”
Share