Johannesburg — South Africa and Saudi Arabia announced yesterday a joint holding company which will focus on mining, petrochemicals and agriculture investments in the two countries.
The Saudi Arabian SA Holding (Sasah) company is a 50-50 joint venture which should lead to 20 billion rand ($2.4 billion) worth of business opportunities, according to a statement from South African Trade and Industry Minister Rob Davies.
The company could become a major shareholder in “strategic joint ventures,” the statement noted.
The oil giant is one of several Gulf countries the government in Pretoria has been courting in an effort to bring in new investments to boost the local economy.
South Africa is also looking for ways to export its expertise in mining. Davies said Saudi Arabia could tap his country’s technology base for Middle East mining projects.
Last year, trade between the two countries increased by 32.6 per cent to reach 34 billion rand, according to government figures. In April, the two states announced their intention to see the number reach 60 billion by 2017.