Saudi Arabia and South Africa are stepping up efforts to expand economic cooperation, with officials highlighting opportunities in renewable energy, mining, healthcare and the automotive industry as both nations look to turn shared ambitions into long-term partnerships.
The 10th meeting of the Saudi-South African Joint Committee, held this week in Riyadh, marked a fresh push to align the Kingdom’s Vision 2030 diversification drive with South Africa’s industrial strength and vast natural resources.
Saudi Industry and Mineral Resources Minister Bandar Alkhorayef said relations had gained momentum since South African President Cyril Ramaphosa’s 2022 visit to the Kingdom, pointing to “common ambitions in strategic sectors including renewables, mining, pharmaceuticals, tourism and automotive manufacturing.”
Speaking at a press conference, Alkhorayef said the private sector was already implementing projects with government backing. He cited a 2022 agreement that allowed licensed South African beef into the Saudi market, and added that Riyadh was now targeting car manufacturing as part of plans to build a strong industrial base.
Responding to a question by Asharq Al-Awsat, the minister underlined Saudi Arabia’s ambitions in hydrogen, saying the futuristic NEOM project would soon become the world’s largest hydrogen producer.
Mining, he added, was among the most promising areas, with Riyadh seeking South African expertise to boost its industrial competitiveness.
“Today’s opportunities are greater than ever before,” Alkhorayef said, noting that the Saudi-South African Business Council had become a permanent platform for dialogue, investment and problem-solving. Still, he described current trade volumes as “below expectations” and urged efforts to close the gap.
South Africa’s Trade and Industry Minister Parks Tau invited Saudi investors to take part in his country’s infrastructure and mining projects, describing the bilateral relationship as “growing and strategic.”
He said the timing of the committee’s meeting was significant, coinciding with South Africa’s first presidency of the G20 and the African Union’s admission as a permanent member.
Tau said Saudi Arabia offered “an ideal market” for South African exports, particularly in agriculture and cars, and stressed plans to attract investment into railways, power stations, ports and renewable energy, as well as value chains for critical minerals.
Healthcare has also emerged as a priority area. Hisham al-Amoudi, vice chairman of the Saudi-South African Business Council, told Asharq Al-Awsat the two sides were focusing on mining, healthcare, tourism, food security and medical services. He revealed plans for knowledge exchanges, including recruiting South African doctors and nurses.
South Africa made its first investment in Saudi Arabia two years ago, with a 65 million riyal ($17.3 million) medical and pharmaceutical project in Jazan, set to run for 50 years, Amoudi said. He added that a first memorandum of understanding between the two business councils was expected within three months.
Saudi investments in South Africa include projects by state-backed ACWA Power, notably the Bokpoort concentrated solar plant in the Northern Cape, alongside other renewable energy ventures.
Non-oil Saudi exports to South Africa reached 2.3 billion riyals in 2023, while South African exports to the Kingdom totaled 3.38 billion riyals, underscoring the scope for further growth in trade and investment.
