Saudi Arabia pledges to invest $10 billion in South Africa

JOHANNESBURG (Bloomberg) -- Saudi Arabia intends to invest as much as $10 billion in South Africa’s economy, with a focus on energy.

The commitment was made during a state visit by South African President Cyril Ramaphosa to the Middle Eastern nation, his spokeswoman Khusela Diko said by phone on Thursday. Officials from Saudi Arabia will take part in an investment summit in October in South Africa when they are expected to give more detail about the planned spending, she said.

Ramaphosa is seeking to revive a flagging economy after taking over from Jacob Zuma as the nation’s leader in February and has started a drive to lure $100 billion in investment over the next five years. Business and investor confidence has slumped after an initial boost following Zuma’s resignation.

“It’s a fantastic commitment from Saudi Arabia, especially coming in the aftermath of the president’s call to have $100 billion of investment,” Energy Minister Jeff Radebe said during the visit. “Their minister of energy is deeply committed to cooperating with us on the energy side."