South African Minister of Electricity: Imminent Investments with Aramco, ACWA Power

South Africa’s Minister of Electricity Kgosientsho Ramokgopa (Reuters)
South Africa’s Minister of Electricity Kgosientsho Ramokgopa (Reuters)
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South African Minister of Electricity: Imminent Investments with Aramco, ACWA Power

South Africa’s Minister of Electricity Kgosientsho Ramokgopa (Reuters)
South Africa’s Minister of Electricity Kgosientsho Ramokgopa (Reuters)

 

South Africa’s Minister of Electricity, Kgosientsho Ramokgopa, said that Saudi Aramco is likely to pump $10 billion to invest in his country’s petrochemical sector, amid expectations that ACWA Power will announce more investments in the renewable energy sector.
Speaking on the sidelines of his participation in the World Economic Forum in Riyadh, Ramokgopa revealed that Saudi Arabia is the largest Gulf investor in the renewable energy sector in his country.
On Saudi-South African relations, he told Asharq Al-Awsat in an interview that “relations between the two countries improved from the time South Africa gained its freedom in 1994. This year this relationship coincides with a very important milestone in South Africa’s history as South Africa simultaneously celebrates 30 years of democracy it also celebrates 30 years of good bilateral relations between South Africa and the Kingdom of Saudi Arabia. 
“Following this in 1995 our first democratically elected President Nelson Mandela visited the Kingdom and his legacy since then has ensured that all subsequent Heads of State from my country have visited. Our current president Cyril Ramaphosa visited twice, the first time in 2018 and more recently in October 2022, when he met with His Royal Highness the Crown Prince and Prime Minister, Mohammed bin Salman. 
“Since then, there have been more than ten high-level visits between our two countries”, he said.
He added that investments from Saudi Arabia “shows significant progress with huge investments in SAs renewable energy sector. Saudi Arabia is SAs largest investor from the GCC region. Following President Ramaphosa’s State Visit in 2022, ACWA Power is expected to announce further investments in the renewable energy sector. A further US$10bn in investment is expected in the petrochemical sector, through Saudi Aramco. The recent investment was by Maaden investing in South Africa’s Chemicals sector in a Sales, Marketing & Support project.
“In March 2023, Saudia announced a resumption of direct flights to South Africa and earlier this month, the Saudi government announced that “It was agreed to include the Republic of South Africa [will be] among the group (A) countries where its nationals can obtain a tourist visa online (e-visa) or upon arrival.” As soon as this is implemented we will be the first African country to receive this privilege; whilst at the same time Saudi nationals do not require visas to visit South Africa for a ninety-day stay.”
“One of the key announcements made during the State Visit by President Ramaphosa in October 2022, was that Saudi Arabia will embark on importing red meat from South Africa. Robust engagements between the relevant authorities from the two countries have resulted in the uplifting of a 19-year-old ban and since February 2024, South African red meat and red meat products have been available on the shelves of major grocery stores throughout the Kingdom”, the Minister noted.
“In October 2023 Saudi Arabia announced the introduction of Saudi e-visas for citizens of 49 countries including South Africa, with a quick and easy-to-use online portal, and affordable fees. Making South Africa the first African country to receive the e-visa for Saudi Arabia”. 
“All of this is a clear indication of our strong growing relations. We look forward to ensuring that the work and effort that we as leaders of our countries continue to be reflected in the efforts being done by our support teams both economically and politically”, the Minister underscored.
On his participation in Davos in Riyadh, Ramokgopa stated that “participating in this WEF roundtable presents a significant opportunity to engage in critical dialogues on global economic and developmental challenges. It serves as a platform for exchanging ideas, forging partnerships, and advancing collective efforts towards sustainable development and prosperity”.
He added: “At the forefront of my participation are several pressing topics that concern not only South Africa but the entire global community. Firstly, ensuring access to reliable and affordable electricity remains a paramount concern. Electricity is the lifeblood of modern economies, essential for driving industrialization, powering innovation, and improving the quality of life for millions. Addressing energy poverty and enhancing energy access are imperative for fostering inclusive growth and development.
“Secondly, the transition towards renewable energy and the mitigation of climate change are central to our discussions. The world is facing unprecedented environmental challenges, and the urgency to decarbonize our energy systems cannot be overstated. Embracing clean and sustainable energy sources is not only an environmental imperative but also presents significant economic opportunities, particularly for regions abundant in renewable resources like South Africa.
“Moreover, the importance of fostering innovation and leveraging technology in the energy sector cannot be overlooked. Embracing digitalization, smart grids, and energy storage solutions are pivotal for enhancing the efficiency, reliability, and resilience of our energy infrastructure”.
He continued: “This year’s Riyadh gathering holds immense importance for the region and the world at large. It provides a platform for African nations to articulate their priorities, showcase their potential, and attract investments that can drive sustainable development and economic growth. By engaging in constructive dialogues and forging partnerships, we can collectively address shared challenges, unlock opportunities, and pave the way for a more prosperous and sustainable future for all”.
On the prospects of cooperation with Saudi Arabia in the field of energy, clean energy and electric energy, the Minister stated that investment from Saudi Arabia shows significant progress with huge investments in SAs renewable energy sector. Saudi Arabia is SAs largest investor from the GCC region. According to FDI markets, Saudi investment into South Africa is estimated at $1.62 bn with 563 jobs created. The recent investment was in 2022 by Maaden investing in South Africa’s Chemicals sector in a Sales, Marketing & Support project. Maaden, a mining company and a subsidiary of Saudi Arabia-based Public Investment Fund, has opened a new regional office in South Africa. Saudi investment into SA is focused in sectors such as oil and gas, renewable energy, business and financial services, real estate, software and IT services and transportation. In this regard South Africa’s position is to attract investment from Saudi Arabia in the following areas: 
- Investment in the Special Economic Zones and Industrial Development Zones: Oil and gas, which involve oil storage and building of an oil refinery with opportunities in Saldanha Bay and Richards Bay Special Economic Zones (SEZs). 
- Green economy: Power generation in terms of independent power generation, energy infrastructure and alternative energy. 
- Renewable energy: Solar PV and Concentrated Solar Power - manufacturing/assembly.
About South Africa’s plan to secure energy and electricity, Ramokgopa said: “In addressing South Africa's energy security needs, the government has laid out a comprehensive plan guided by key policy documents such as the 2023 draft Integrated Resource Plan (IRP) and the 2022 Energy Action Plan. These documents serve as the cornerstone of our strategy to ensure a reliable, sustainable, and inclusive energy future for the nation”.
The South African Minister added: “Our plan focuses on several key pillars:
Diversification of Energy Sources: The IRP emphasizes the importance of diversifying our energy mix to reduce dependency on any single energy source. This includes increasing the share of renewable energy sources such as solar, wind, and hydroelectric power while also maintaining a balanced mix that includes coal, natural gas, nuclear, and energy storage technologies.
Promotion of Renewable Energy: The government is committed to significantly increasing the contribution of renewable energy to our energy supply. Through the Renewable Energy Independent Power Producer Procurement Program (REIPPPP) and other initiatives, we aim to expand our renewable energy capacity, harnessing South Africa's abundant solar and wind resources.
Investment in Infrastructure: Ensuring reliable and efficient energy infrastructure is crucial for energy security. The Energy Action Plan outlines measures to invest in and upgrade our electricity transmission and distribution networks, enhancing their capacity and resilience to meet growing demand.
Whilst our efforts have focused on the supply and demand side of the energy value chain, we have now forged ahead to play a more aggressive role in mapping and planning for investment in the maintenance, modernization, and expansion of the national grid in Transmission infrastructure. This work includes the institutional and funding requirements in this regard. It is expected that 53GW will require a connection to the grid by 2032, which in turn requires over 14,000km of new transmission lines, amounting to planned investments of around $20b (USD) over the next ten years. 
Energy Efficiency and Conservation: The government recognizes the importance of energy efficiency and conservation in optimizing energy use and reducing demand. The Energy Action Plan includes initiatives to promote energy-efficient technologies, practices, and behavior among consumers and businesses.
The economic contribution of the energy sector is significant and multifaceted. Energy is a vital enabler of economic activity, contributing to sectors such as manufacturing, mining, agriculture, and services. In terms of growth rate, our National Treasury's medium-term outlook has improved slightly, with an average growth of 1.6% forecast, compared with 1.4% in the 2023 Medium Term Budget Policy Statement (MTBPS)”.

 



Washington Counts on Insurance Guarantees to Keep Hormuz Shipping Flowing

Oil tankers off the coast of Fujairah amid Iran’s pledge to fire on vessels transiting the Strait of Hormuz (Reuters) 
Oil tankers off the coast of Fujairah amid Iran’s pledge to fire on vessels transiting the Strait of Hormuz (Reuters) 
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Washington Counts on Insurance Guarantees to Keep Hormuz Shipping Flowing

Oil tankers off the coast of Fujairah amid Iran’s pledge to fire on vessels transiting the Strait of Hormuz (Reuters) 
Oil tankers off the coast of Fujairah amid Iran’s pledge to fire on vessels transiting the Strait of Hormuz (Reuters) 

In a bid to break the paralysis affecting one of the world’s most critical waterways, US President Donald Trump has proposed to provide insurance risk guarantees as a strategic tool to impose stability in the Strait of Hormuz, through which roughly 20 percent of global oil flows.

Experts, however, told Asharq Al-Awsat that the initiative may not be sufficient to guarantee the uninterrupted movement of trade and shipping. Iran has warned that vessels crossing the strait could be targeted unless their passage is coordinated in advance.

Analysts say the Trump administration’s approach blends military power with financial engineering in an attempt to enforce stability while calming markets through US-backed insurance guarantees.

Trump announced the policy on his platform Truth Social, directing the US International Development Finance Corporation (DFC) to provide guarantees for vessels operating in the area.

He also signaled that the US Navy could escort oil tankers if necessary. Details remain unclear, however, on how the DFC — an agency traditionally tasked with mobilizing private capital for development projects and reducing investment risks in emerging markets — would structure such coverage.

On Wednesday, US Energy Secretary Chris Wright said in an interview with Fox News that the US Navy would begin escorting oil tankers through the Strait of Hormuz once it had the operational capacity to do so.

Treasury Secretary Scott Bessent similarly indicated that the navy stood ready to provide secure transit corridors for tankers if needed, with the goal of ensuring uninterrupted energy supplies and preventing disruptions to global trade routes.

Abdulaziz Sager, chairman of the Gulf Research Center, said the proposed guarantees would not be enough to ensure the safe passage of commercial shipping. Washington could deploy naval escorts for oil and gas tankers or even place them under the US flag, a measure used during the Iran–Iraq War, but the risk of Iranian attacks would still persist.

He noted that Iran retains several options to target vessels, including missiles, naval mines, drones, cyberattacks and underwater strike capabilities. While the US measures might help bring some degree of stability to oil prices, he added, insurance costs for shipping are likely to remain high.

Meanwhile, more than half of the world’s major marine insurance associations have announced that they will suspend war-risk coverage for vessels entering the Arabian Gulf starting Thursday.

Such insurance typically protects shipowners and charterers from liabilities and damages caused by war, terrorism, piracy, and similar threats. Its withdrawal significantly reduces the willingness of companies to load cargo from Gulf ports.

Five days into the conflict, Sager said it remains difficult to estimate the scale of economic losses affecting trade volumes, oil flows, or shipping costs. Much will depend on the duration of the conflict and the extent of potential damage to tankers and energy infrastructure across the Gulf.

Saeed Salam, director of the Vision Center for Strategic Studies, said the US strategy reflects an attempt to impose what he described as forced stability in the Strait of Hormuz. By combining military deployment with financial guarantees, Washington is seeking to contain market panic and reassure shipping companies.

Yet he argued that the guarantees remain incomplete. Naval escorts may offer psychological reassurance, but they cannot fully counter asymmetric threats such as naval mines, suicide drones or anti-ship missiles.

In some cases, the escorts themselves could turn commercial tankers into legitimate military targets, increasing the risk of direct naval confrontation and potentially expanding the conflict from a regional crisis into a broader international one.

Salam added that while US intervention may help curb soaring insurance premiums, it will not eliminate what he described as a fear-driven surcharge on maritime transport. Military convoys tend to slow shipping traffic and create logistical bottlenecks, which in turn push costs higher.

He also noted that oil flows through the Strait of Hormuz have already declined as buyers adopt defensive hedging strategies. At the same time, war-risk insurance premiums have surged by around 300 percent, reaching about 1.5 percent of the value of each shipment and adding millions of dollars in additional costs to every tanker.

In Salam’s view, the deeper challenge lies in Washington’s attempt to substitute financial guarantees for geopolitical security. Any failure to militarily protect insured vessels could undermine the entire insurance framework and expose the US Treasury to massive compensation claims, potentially shifting the crisis from maritime chokepoints to the core of the global financial system.

 

 

 


World Food Prices Rebound in February, United Nations’ FAO Says

 A volunteer arranges iftar meals for Muslim devotees during the Islamic holy fasting month of Ramadan in Karachi on February 27, 2026. (AFP)
A volunteer arranges iftar meals for Muslim devotees during the Islamic holy fasting month of Ramadan in Karachi on February 27, 2026. (AFP)
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World Food Prices Rebound in February, United Nations’ FAO Says

 A volunteer arranges iftar meals for Muslim devotees during the Islamic holy fasting month of Ramadan in Karachi on February 27, 2026. (AFP)
A volunteer arranges iftar meals for Muslim devotees during the Islamic holy fasting month of Ramadan in Karachi on February 27, 2026. (AFP)

World food prices rose in February after falling for five straight months, as higher cereal, meat and most vegetable oil prices outweighed declines in cheese and sugar, the United Nations' Food and Agriculture Organization said on Friday.

The FAO Food Price Index, which tracks monthly changes in a basket of internationally traded food commodities, averaged 125.3 points in February, up from a revised 124.2 in January.

The index was still 1% below its value a year earlier and nearly 22% below its March 2022 ‌peak, reached after ‌the start of the war in Ukraine.

Average ‌cereal ⁠prices increased 1.1% ⁠from the previous month, with wheat prices rising 1.8% due to weather risks in Europe and the United States as well as continuing logistical disruptions within the Russian Federation and the wider Black Sea region. They were still 3.5% below their level of a year earlier.

Rice prices edged up 0.4%, supported by sustained ⁠demand for basmati and Japonica varieties.

Vegetable oil prices ‌climbed 3.3%, reaching their highest level ‌since June 2022. Palm oil prices increased due to strong global demand ‌and lower output in Southeast Asia, while soyoil prices rose ‌on expected policy support for biofuel in the US.

Meat prices rose 0.8% from January, led by record prices for sheep meat and stronger demand for beef in the US and China.

Dairy prices ‌fell 1.2%, extending a months-long decline, mainly due to lower cheese prices in the European ⁠Union. However, skimmed ⁠and whole milk powder and butter prices increased on strong demand amid tight supply in key exporters.

Sugar prices dropped 4.1% to their lowest since October 2020, reflecting expectations of ample global supply, including record output in the United States.

In a separate report, the FAO slightly raised its 2025 global cereal production forecast to a record 3.029 billion metric tons, reflecting minor adjustments, mainly to maize and rice estimates. It would be 5.6% higher year-on-year.

World cereal stocks by the close of the 2026 season are also set to rise, with the global stocks-to-use ratio seen at a comfortable 31.9%.


Asia Has Limited Options to Diversify from Middle East Energy Reliance

Cargo ships and tankers are seen off coast city of Fujairah, in the Strait of Hormuz in the northern Emirate on February 25, 2026. (AFP)
Cargo ships and tankers are seen off coast city of Fujairah, in the Strait of Hormuz in the northern Emirate on February 25, 2026. (AFP)
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Asia Has Limited Options to Diversify from Middle East Energy Reliance

Cargo ships and tankers are seen off coast city of Fujairah, in the Strait of Hormuz in the northern Emirate on February 25, 2026. (AFP)
Cargo ships and tankers are seen off coast city of Fujairah, in the Strait of Hormuz in the northern Emirate on February 25, 2026. (AFP)

Asian energy buyers are scrambling to find alternatives as the Iran war creates unprecedented supply disruption, but the region has limited longer-term options to reduce its heavy reliance on Middle Eastern oil.

The world's top crude importing region buys 60% of its oil and petrochemical feedstock from the Middle East, where the war that started with Israeli and US attacks on Iran nearly a week ago has pushed up global energy prices and threatens to drive inflation and hurt economic growth.

Unable to receive Middle Eastern crude, refiners from China to Southeast Asia are looking for expensive alternatives that will take weeks or months to arrive, while some are cutting output.

This week, China and Thailand suspended exports of oil products while Vietnam halted crude exports, which typically go to Australia.

However, alternative sources have drawbacks including distance, refinery configurations, long-term contracts and cost.

For example, oil shipped from West Africa and the Americas takes 1-1/2 to 2 months to reach China, meaning orders need to be placed three months in ‌advance.

By comparison, it ‌takes roughly 25 days for oil to reach China via the Strait of Hormuz.

Also, switching ‌crude ⁠grades changes product ⁠yields at refineries, which must adjust their operations.

"If you put a new crude into the refinery, you have to change the cutoff points (boundaries separating crude into different products). You have to change gasoline blending. There's a lot of things you need to change. It's hard work," said Adi Imsirovic, director of consultancy Surrey Clean Energy.

"This is why diversification has been so poor in a lot of countries," he said. Energy Aspects analyst Richard Jones said some governments may seek diversification at the margins, but many Asian refiners are tied to Middle East term contracts.

"Simply put, even replacing a modest share of the roughly 16 million barrels a day of Middle Eastern crude that ⁠arrives to Asia with Atlantic basin supply is not feasible," he said.

BIG ASIAN BUYERS

In Japan, ‌which has sourced 95% of its oil from the Middle East since halting ‌nearly all Russian oil imports after Moscow's invasion of Ukraine, refiners run ageing plants optimized for Middle Eastern crude.

With gasoline demand declining, refiners have ‌been wary of investing in upgrades needed to take on new sources such as Canada's heavy TMX.

Muyu Xu, senior analyst ‌at Kpler, said Japanese refiners could seek to blend lighter WTI or West African crude with heavier grades from the Americas to approximate the characteristics of Middle Eastern medium-sour.

"The caveat, however, is the logistical complexity and refinery operational risks," she said.

For the nearer term, Japan can tap a stockpile of roughly 250 days.

Top importer China has smaller reserves - roughly 78 days' worth - but a more diverse supplier profile, sourcing roughly ‌half of its oil from the Middle East including Iran, where it has been the top buyer.

China also buys from Russia despite western sanctions, as well as from mainstream producers. India, ⁠with just 25 days of ⁠reserves and reliance on the nearby Middle East for 55% of its oil, is scrambling to find alternatives, with Washington this week giving it a one-month reprieve to buy Russian oil after US President Donald Trump pressured it with punitive tariffs to curb its purchases from Moscow.

'GET SOME SOLAR PANELS'

The market for liquefied natural gas is much smaller and tighter. No.2 producer Qatar's move to halt production due to the war has had a swift impact, with India rationing gas to industrial customers.

Michal Meidan, head of China energy research at the Oxford Institute for Energy Studies, said the situation could lead to fuel switching and demand destruction.

"Long term, South Asian countries could look to limit the share of gas in their energy mix and follow China's model of reliance on coal and renewables," she said.

Tim Zhang, founder of Singapore-based Edge Research, said Asia could increase the share of non-fossil fuel such as renewables and nuclear in its energy mix or diversify its conventional fuel supply.

Surrey's Imsirovic said a prolonged disruption could prompt governments to reconsider their reliance on Middle East energy entirely.

"It's going to be like the Asian Currency Crisis or something. Definitely, people will seriously have to rethink," he said.

"In sunny Asia, get some solar panels and buy an EV. End of story."