Saudi Arabia, South Africa sign agreements worth $15 billion

Saudi Arabia and South Africa signed numerous agreements during President Cyril Ramaphosa’s visit to the kingdom. 

The official Saudi Press Agency reported today that the two countries inked agreements and memorandums of understanding worth more than $15 billion. They included an agreement to cooperate on energy matters including oil, hydrogen and renewables. They also pledged to establish a joint investment fund, announced a strategic partnership on the digital economy and information technology and expressed a desire to work together on Saudi Arabia’s growing mining sector in addition to numerous other deals, according to the agency. 

The two countries also held an investment conference attended by more than 100 South African businesspeople, according to a release from the South African government.

Ramaphosa was in Saudi Arabia Oct. 15-16. 

Why it matters: Saudi Arabia is seeking stronger economic relations with several countries in sub-Saharan Africa. Last week, the Saudi Fund for Development signed a deal to finance a solar street light project in the Central African Republic. In September, Saudi Arabia’s ACWA Power agreed to build a water desalination plant in Senegal. 

Know more: Saudi Arabia’s geopolitical rivalry with Iran also extends to Africa, and the two countries have competed for influence on the continent for years. Iran has repeatedly said Africa is a "top priority" for its foreign policy, and President Ebrahim Raisi plans to refocus on developing relations with several sub-Saharan African states. 

Saudi Arabia’s Gulf ally the United Arab Emirates is also looking to Africa, recently signing deals with Tanzania and several countries in west Africa.