Saudi Arabia Signs $25M Credit Deal to Boost Trade with South Africa

AFRICAN BUSINESS AND ECONOMYOctober 15, 2024 at 5:19 PM UTC

TLDR

Saudi Export-Import Bank and Standard Bank Group sign $25 million credit agreement to boost Saudi goods export to South Africa, supporting trade.
Saudi Arabia diversifying its economy by investing in African markets, with Zahid Group eyeing acquisition of Barloworld.
ACWA Power to invest $10 billion in South Africa's renewable energy sector in the next decade.

The Saudi Export-Import Bank has signed a $25 million credit agreement with South Africa’s Standard Bank Group to facilitate trade between the two nations by supporting the export of Saudi goods to South Africa.

Saudi Exim also signed a separate agreement with Absa Group, though details were not disclosed. This move is part of Saudi Arabia’s broader strategy to diversify its economy by investing in African markets.

In line with this, Saudi entities such as Zahid Group are in talks to acquire Barloworld, a key African distributor of Caterpillar Inc. equipment and ACWA Power plans to invest $10 billion in South Africa's renewable energy sector over the next decade.

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Key Takeaways

Saudi Arabia is deepening its economic ties with South Africa through the credit agreement aimed at boosting trade and investment. With Saudi Exim providing financing for companies interested in South African markets, the kingdom is positioning itself as a major player in Africa’s largest economy, particularly in sectors such as renewable energy. South Africa, in turn, seeks to expand its export of services and increase cooperation in value-added sectors, balancing the trade relationship.

South Africa

Economy

Trade Deal

Saudi Arabia

Saudi Exim

Absa Group

Zahid Group

Barloworld

Caterpillar Inc

ACWA Power

Credit Guarantee