Africa-Press – South-Africa. South Africa plans to open its first overseas office for its infrastructure development agency in the Middle East, aiming to tap into the region’s deep-pocketed investors to fund energy, water and logistics projects.
The office will be launched on a two-year trial basis, Public Works and Infrastructure Minister Dean Macpherson said in an interview.
His department is currently finalizing a budget for the office and assessing potential host countries.
Beyond establishing a physical presence in the Gulf, Macpherson said the office will serve as a platform to build relationships with global financiers.
Africa’s most industrialized economy needs about R1.6 trillion rand in public sector investment and an additional R3.2 trillion from the private sector to meet its infrastructure targets by 2030.
Officials are focused on boosting construction to revive an economy that has averaged less than 1% annual growth over the past decade and to restore public finances after years of corruption, mismanagement and bailouts of struggling state-owned companies.
South Africa’s push to court Gulf states — which are increasingly deploying their petrodollars to expand influence — comes amid a retreat by the continent’s traditional partners.
China is slowing its lending, Europe is scaling back its engagement and the US is turning increasingly inward-focused.
Countries like Kenya and Zimbabwe have already seen a rise in Middle Eastern investment in recent years.
“They’ve got all the money in the world,” Macpherson said. “They don’t need to run after you — you have to run after them.”
Middle Eastern sovereign wealth funds oversee over $4 trillion while the richest families in the United Arab Emirates alone are estimated to control about $1 trillion.
The plans come after the minister led a delegation earlier this year to Kuwait, the UAE, Saudi Arabia and Qatar.
Macpherson, accompanied by representatives from the development agency — Infrastructure South Africa, presented potential investment opportunities to wealth funds, state entities and government ministries.
Among the flagship projects showcased was a $2.3 billion joint water infrastructure venture with neighboring Lesotho.
Macpherson, a member of the Democratic Alliance — South Africa’s second-largest political party — was appointed in June following the formation of a national unity government after May’s election failed to produce a clear winner.
However, the coalition’s future remains uncertain due to a protracted dispute over the national budget. The political standoff has prompted business leaders to urge both the African National Congress and the DA to resolve their differences and preserve the coalition.
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