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)”.

 



Lagarde: ECB Has No Pre-set Response to Mideast Tensions

European Central Bank (ECB) President Christine Lagarde delivers the 2026 Annual Global Risk Lecture in honor of Robert Mundell, at Johns Hopkins University, in Bologna, Italy, March 5, 2026. REUTERS/Michele Lapini
European Central Bank (ECB) President Christine Lagarde delivers the 2026 Annual Global Risk Lecture in honor of Robert Mundell, at Johns Hopkins University, in Bologna, Italy, March 5, 2026. REUTERS/Michele Lapini
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Lagarde: ECB Has No Pre-set Response to Mideast Tensions

European Central Bank (ECB) President Christine Lagarde delivers the 2026 Annual Global Risk Lecture in honor of Robert Mundell, at Johns Hopkins University, in Bologna, Italy, March 5, 2026. REUTERS/Michele Lapini
European Central Bank (ECB) President Christine Lagarde delivers the 2026 Annual Global Risk Lecture in honor of Robert Mundell, at Johns Hopkins University, in Bologna, Italy, March 5, 2026. REUTERS/Michele Lapini

The European Central Bank has no pre-set stance as regards to geopolitical tensions from the conflict in the Middle East and will decide monetary policy on a "meeting-by-meeting" basis, President Christine Lagarde said on Thursday.

The ECB will take its decisions "in view of all the ⁠data that we can ⁠harness, and that we can analyze, and that we can scrutinize with sufficient confidence," Lagarde said in a Q&A session at the Johns Hopkins ⁠University in Bologna, Italy.

There is no "preset pace for our monetary policy stance. And I think that if you bring these two elements together, it places the ECB and the euro system in a good position to monitor very carefully and to try to understand ⁠what ⁠the consequences of the current shocks will be in the future," she added.

The US-Israeli war on Iran, which has spread to other countries in the Gulf, is threatening to drive up inflation and hit sluggish euro zone growth by making energy more expensive and disrupting supply chains.


Rising Fuel Prices Lash Airline Sector as Iran Conflict Widens

An Emirates Airbus A380 aircraft that has remained parked at the airport after the flight was cancelled, amid the U.S.-Israel conflict with Iran, at Incheon International Airport in Incheon, South Korea, March 5, 2026. REUTERS/Kim Hong-Ji
An Emirates Airbus A380 aircraft that has remained parked at the airport after the flight was cancelled, amid the U.S.-Israel conflict with Iran, at Incheon International Airport in Incheon, South Korea, March 5, 2026. REUTERS/Kim Hong-Ji
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Rising Fuel Prices Lash Airline Sector as Iran Conflict Widens

An Emirates Airbus A380 aircraft that has remained parked at the airport after the flight was cancelled, amid the U.S.-Israel conflict with Iran, at Incheon International Airport in Incheon, South Korea, March 5, 2026. REUTERS/Kim Hong-Ji
An Emirates Airbus A380 aircraft that has remained parked at the airport after the flight was cancelled, amid the U.S.-Israel conflict with Iran, at Incheon International Airport in Incheon, South Korea, March 5, 2026. REUTERS/Kim Hong-Ji

Airline shares seesawed on Thursday, as some regained ground on more flights taking off from the Middle East while others dipped on spiking oil prices after US-Israeli strikes on Iran sparked major disruption across the global aviation industry.

Governments have scrambled to arrange flights out of the Middle East for tens of thousands of citizens stranded by the intensifying conflict, which has closed most of the region's airspace due to the risk of missiles hitting planes.

Takeoffs from Dubai International Airport more than doubled on Wednesday, the latest data from Flightradar24 show, as activity slowly restarts at the world's busiest travel hub, which was brought to a near standstill amid the conflict.

Traffic remains far below normal levels, with global aviation disruption likely to take some time to normalize as the conflict shows little sign of easing. Air cargo has also been hit, disrupting the movement of perishables and aircraft parts.

"The past few days have been unprecedented," Dubai Airports CEO Paul Griffiths said on Thursday on LinkedIn in his first public remarks since the airstrikes began, adding that teams were pulling together and "navigating with confidence".

In a sign of the ongoing threat to airlines, Azerbaijan - part of one key flight corridor from Asia to Europe - temporarily closed part of its airspace near Iran after a drone strike in the southern Nakhchivan area near the Iranian border.

Flights appeared to still be crossing the country further to the north, according to realtime tracking from Flightradar 24.

The war has pummelled airline stocks since initial strikes last weekend on fears a protracted conflict could block key routes and raise fuel costs. Carriers have varying levels of Middle East exposure and different hedging strategies.

Some stocks rebounded on Thursday. Cathay Pacific Airways , Qantas Airways and Korean Air Lines rose. Japan Airlines edged down 1%.

Major Chinese carriers such as Air China, , China Eastern Airlines and China Southern Airlines fell between 1% and 4% in both Hong Kong and Shanghai.

Gary Ng, a senior economist at Natixis, said Asian airlines were sensitive to Iran's situation given the impact on routes, revenue and costs.

In Europe, Air France KLM was slightly higher, but Lufthansa, British Airways-owned IAG and budget carrier Ryanair dipped. Wizz Air, which flagged a $58 million hit to profits from the conflict, tumbled 10%.

Wizz Air's CEO told Reuters the financial hit should be limited to its current financial year that ends this month and said that the firm was shifting its capacity towards Europe.

REPATRIATION FLIGHTS RAMP UP

Emirates and Etihad are now operating limited services from Dubai and Abu Dhabi through safe air corridors. An Emirates spokesperson said more than 100 flights should depart from Dubai with passengers and cargo on Thursday and Friday.

Qatar Airways said it would run limited relief flights from Thursday for stranded passengers, departing from Muscat in Oman to six European destinations including London, Berlin and Rome as well as from Riyadh to Frankfurt.

Governments from the US to Canada and across Europe have arranged charter flights and helped secure seats on commercial services to repatriate citizens. More than 17,500 Americans have returned to the US since February 28.

A flight carrying Kenyans and others fleeing the UAE arrived in Nairobi on Thursday, including 13 children and their teachers who had been on a school trip to the Gulf.

"We were stuck there for five days ... it was scary, every day we would get alerts and the children would just lose it," school director Olive Tindika told Reuters, saying the children arrived in tears at teachers' hotel rooms whenever explosions lit up the sky.

"It was a very, very traumatising experience."

AIRLINE SECTOR OUTLOOK TIED TO IRAN CONFLICT

Jet fuel prices have soared globally since the strikes on Iran, hitting an all-time high in Singapore on concerns over supply disruption, S&P Global Platts said on Thursday.

Many Asian airline shares have rebounded or pared double-digit declines in recent days, though analysts said the gains may not last.

"I consider this rebound to be primarily short-term in nature," said Kenny Ng, a securities strategist at China Everbright Securities International. "Its sustainability will still depend on the ongoing situation in the Iranian conflict."

Restrictions on airspace have forced airlines to reroute flights, load extra fuel or make additional refuelling stops to guard against sudden diversions or longer flights on safer routes. Prices on some key global routes have risen sharply.

Marooned tourists and some expatriates have also tried to find their own way out of the Middle East through Saudi Arabia or Oman, where airspace remains open.


Gold Rises on Safe-haven Bid from Iran War

An employee displays gold bars at a store of the Korea Gold Exchange in Seoul (AFP)
An employee displays gold bars at a store of the Korea Gold Exchange in Seoul (AFP)
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Gold Rises on Safe-haven Bid from Iran War

An employee displays gold bars at a store of the Korea Gold Exchange in Seoul (AFP)
An employee displays gold bars at a store of the Korea Gold Exchange in Seoul (AFP)

Gold prices rose on Thursday, lifted by safe-haven demand amid an escalating war in the Middle East, though a stronger dollar and concerns around the US Federal Reserve's monetary policy capped gains.

Spot gold was up 0.4% at $5,156.11 per ounce as of 1030 GMT, while US gold futures for April delivery were up 0.7% at $5,168.20.

Gold, which hit a record $5,594.82 in January, initially jumped above $5,400 on Monday as the launch of the US-Israeli air war against Iran sparked safe-haven demand, but pulled back from those highs as the dollar also benefited from a flight to safety, Reuters reported.

Israel launched another large wave of strikes on Tehran on Thursday, targeting what it said was infrastructure belonging to the Iranian authorities, after Iranian missiles sent millions of Israelis rushing into bomb shelters.

"On the one hand, there may be greater safe-haven demand for gold given the ongoing conflict in the Middle East," said Hamad Hussain, a climate and commodities economist at Capital Economics.

"On the other hand, the risk of a prolonged period of higher energy prices that takes rate cuts off the table, and adds to the chance of rate hikes, could be capping further gains."

The US dollar rose about 0.2% after briefly retreating from three-month highs, as the fallout from the war roiled global markets and kept sentiment fragile.

Concerns about energy supply continued to drive up oil prices and stoke inflation fears.

Gold is considered a hedge against inflation in the long run, but also tends to thrive when interest rates are lower, as it is a non-yielding asset.

President Donald Trump on Wednesday officially nominated former Federal Reserve Governor Kevin Warsh to be the US central bank's next chair.

US economic activity grew slightly, prices continued to increase and employment levels were stable in recent weeks, the Federal Reserve said on Wednesday in its latest Beige Book report.

Markets expect the Fed to keep rates steady at its next policy meeting on March 18, according to CME Group's FedWatch tool.

Investors are looking out for the weekly US jobless claims data, due later today, and the US employment report for February on Friday for further clues on monetary policy this year.

Spot silver rose 0.8% to $84.1 per ounce. Platinum gained nearly 1% to $2,168.05, while palladium lost 0.9% to $1,659.35.