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)”.

 



South Korea’s SK Hynix Launching $28 Billion US Listing to Ride Global AI Wave

The logo of SK Hynix at a SK Hynix booth before a public briefing on the development vision for advanced industry in South Korea's southwestern region, in Gwangju, South Korea, June 30, 2026. (Reuters)
The logo of SK Hynix at a SK Hynix booth before a public briefing on the development vision for advanced industry in South Korea's southwestern region, in Gwangju, South Korea, June 30, 2026. (Reuters)
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South Korea’s SK Hynix Launching $28 Billion US Listing to Ride Global AI Wave

The logo of SK Hynix at a SK Hynix booth before a public briefing on the development vision for advanced industry in South Korea's southwestern region, in Gwangju, South Korea, June 30, 2026. (Reuters)
The logo of SK Hynix at a SK Hynix booth before a public briefing on the development vision for advanced industry in South Korea's southwestern region, in Gwangju, South Korea, June 30, 2026. (Reuters)

South Korean chipmaker SK Hynix will launch a US listing on Monday to raise about $28 billion, according to regulatory filings, as it capitalizes on the global artificial intelligence boom with one of the world's largest new share sales.

The company will sell 17.79 million new shares in the depository receipt listing on the Nasdaq. Ten ADRs will represent one common share and the stock will be sold in a price range that is due to be revealed on Monday, based on SK Hynix's Seoul trading price.

SK Hynix's share price was down 4% at 2,327,000 won each on Monday, but the stock is up about 273% this year, as it rides surging global investor demand for AI stocks. Korea's KOSPI was down 2.2% on Monday.

Memory chip stocks were volatile in recent sessions due in part to renewed investor concerns about how long the boom would last.

"While ‌market volatility has been ‌quite high recently, I would expect demand for SK Hynix shares to remain relatively robust," ‌said ⁠Albert Yong, a ⁠managing partner at Petra Capital Management.

South Korea last week unveiled a sweeping industrial strategy centered on semiconductors and AI, including a $576 billion chip investment program in the country's southwest to help spread returns from the boom.

SK Hynix and Samsung Electronics will anchor the investment program, the government said.

South Korean President Lee Jae Myung on Monday ordered officials to move quickly to get to work on major chip and AI projects announced last week.

He warned that delays in permits, land acquisition, and securing power and water supply could undermine the country's bid to dominate advanced industries.

MEMORY INFLATION

SK Hynix has been among the world's largest beneficiaries of the AI boom ⁠as it outperformed its major rivals Samsung and Micron.

"This is more than a liquidity event," ‌said Dave Mazza, the chief executive officer of Roundhill Investments in New ‌York, which manages an exchange-traded fund tracking DRAM manufacturers, which is one of the most popular ways for US investors to trade SK Hynix's ‌stock. "SK Hynix has been one of the most important companies in the world that most US institutions could not ‌easily own."

"The listing removes an accessibility discount, not a quality discount."

Steve Sosnick, chief strategist at Connecticut-based Interactive Brokers, said individuals and smaller institutions would benefit from the US listing, rather than large investors.

"The new listing will make it easier for capital-hungry Hynix to directly access a new group of momentum-hungry investors," Sosnick said.

SK Hynix said the proceeds from the listing of the American Depositary Receipts will be used to build ‌chip factories in South Korea and buy chipmaking equipment including an extreme ultraviolet scanner made by Dutch equipment maker ASML.

The final price of the New York listing is ⁠due to be set on Thursday, ⁠ahead of the stock starting trade on Friday, regulatory filings showed. The company's management will meet global investors on a roadshow this week.

The deal is expected to be the second-biggest share sale after a record $85.7 billion initial public offering by SpaceX last month.

Some investors were cautious that memory "inflation" would dent spending on AI infrastructure, mobile phones and PCs.

"We expect better access, but timing of the memory cycle is equally important," said Sundeep Gantori, Standard Chartered's chief investment officer of equities. "We believe memory cycle is beyond the early phase and now in the mid-cycle stage."

SK Hynix is a key supplier of high-bandwidth memory chips used in AI systems by customers such as Nvidia and Google.

SK Hynix is expected to join the chip-heavy Philadelphia SE Semiconductor index, analysts said, helping pave the way for a surge in passive investments. A Nasdaq listing should help reduce the valuation gap with smaller US rival Micron, they said.

Last month, HSBC said it would raise its valuation of SK Hynix by applying a 20% premium to its previous price-to-book multiple of 2.8 times, implying a multiple of 3.4 times, "reflecting more proactive shareholder-friendly initiatives and improved accessibility to global investors."


South Korea to Create Future Fund from Chip Windfall to Spur Growth

A graduate student majoring in semiconductor engineering demonstrates a PR track at Korea University in Seoul, South Korea, June 11, 2026. REUTERS/Kim Hong-Ji/File Photo 
A graduate student majoring in semiconductor engineering demonstrates a PR track at Korea University in Seoul, South Korea, June 11, 2026. REUTERS/Kim Hong-Ji/File Photo 
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South Korea to Create Future Fund from Chip Windfall to Spur Growth

A graduate student majoring in semiconductor engineering demonstrates a PR track at Korea University in Seoul, South Korea, June 11, 2026. REUTERS/Kim Hong-Ji/File Photo 
A graduate student majoring in semiconductor engineering demonstrates a PR track at Korea University in Seoul, South Korea, June 11, 2026. REUTERS/Kim Hong-Ji/File Photo 

South Korea plans to establish a future fund using extra tax revenue generated by a semiconductor boom to invest in growth engines, support for younger generations ‌and efforts to address widening inequality, a top government official said on Sunday.

Speaking at a meeting between the government and the ruling Democratic Party, Presidential Chief of Staff Kang Hoon-sik said President Lee Jae Myung's administration would use the “Future Response Fund” to help finance major national investment projects and ⁠strengthen the country's long-term competitiveness, according to Reuters.

“At this critical juncture that will determine South Korea's future, we must not squander additional tax revenue generated by the semiconductor boom and other factors,” Kang said.

He said the fund would support the government's three “mega projects,” create new growth drivers, respond to what he described as “K-shaped” economic polarization and provide housing, startup and employment support for people in their 20s and 30s.

He called the proposed fund “a cornerstone” for realizing Lee's goal of making South Korea ‌globally “irreplaceable” ⁠and urged close cooperation between the government and the ruling party to move quickly.

The comments come days after Lee unveiled three large-scale industrial projects across the country centered on semiconductors, physical AI and data centers, backed by hundreds of billions of dollars in planned investments ⁠by Samsung Electronics, SK Hynix and government agencies.

The strategy aims to strengthen South Korea's leadership in chip and AI-related industries while promoting growth outside the Seoul metropolitan area.

Prime Minister ⁠Han Sung-sook said on Sunday the projects could become a new growth engine if the government, ruling party and private sector worked as “one team,” describing them ⁠as a 30-year strategy linking semiconductors, AI, data centers and physical AI.

For his part, Democratic Party floor leader Han Byung-do vowed legislative and budget support for the projects' early implementation.

 

 

 


Gold Eases from Two-week High as Firmer US Dollar Weighs

An employee displays gold bars at the Korea Gold Exchange store in Seoul (AFP)
An employee displays gold bars at the Korea Gold Exchange store in Seoul (AFP)
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Gold Eases from Two-week High as Firmer US Dollar Weighs

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

Gold retreated after touching its highest level in two weeks on Monday as the US dollar edged up from recent lows, though easing bets on Federal Reserve interest rate hikes limited bullion's losses.

Spot gold was down 0.4% at $4,160.33 per ounce, as of 0451 GMT, after hitting its highest since June 22 earlier in the day. US gold futures ‌for August ‌delivery climbed 1.1% to $4,172 per ounce, according to Reuters.

"Gold continues to ‌face ⁠headwinds from a ⁠resilient US dollar," said Tim Waterer, chief market analyst at KCM Trade.

"This week's FOMC Meeting Minutes will be closely watched for clearer signals on the Fed’s monetary policy leanings. Investors will be looking for evidence of whether other committee members share Kevin Warsh’s hawkish outlook or if there is more dovish sentiment within ⁠the group."

The dollar gained 0.1%, making greenback-priced bullion ‌more expensive for holders of other ‌currencies.

Bullion gained more than 2% last week, snapping a four-week losing ‌streak, after softer-than-expected US payrolls data eased worries about persistent ‌inflation and higher interest rates.

Data on Thursday showed US job growth slowed sharply in June and payroll gains for the prior two months were revised lower, pointing to a cooling labor market and prompting markets to ‌dial back expectations for a near-term Fed rate hike.

Traders now see about a 55% chance ⁠of a ⁠rate increase in September, down from more than 60% before the data, according to the CME FedWatch tool.

Lower interest rates tend to be favorable to gold, as it is a non-yielding asset.

J.P. Morgan said demand for gold from key sectors would not be as strong as it had expected, capping bullion prices this year at $4,300 in the third quarter and $4,500 in the fourth quarter.

Among other metals, spot silver fell 1% to $61.77 per ounce after hitting its highest since June 23 earlier. Platinum lost 0.3% to $1,632.80 per ounce and palladium was down 0.5% at $1,267.65 per ounce.