President Cyril Ramaphosa has secured a minimum investment commitment of $10 billion from the Saudi Arabian government.
The President met with Saudi King Salmaan after holding talks with Saudi Crown Prince Muhammed bin Salmaan, who is the heir apparent, in Jeddah on Thursday.
Most of this investment will be directed to energy and power creation.
Speaking to Clement Manyathela on The Midday Report, Economist at Ecomometrix Sam Rolland says the investment is certainly a very good start for the President.
The hope is that potentially allay some fears of some other investors that might also be willing to invest in the country.— Sam Rolland, Economist at Ecomometrix
He adds that Ramaphosa has in a bid to decrease the petrol price, urged oil-producing Saudi Arabia to produce more oil.
In the past couple of months, emerging markets really have taken a bit of a battering and the price of oil has been climbing since the end of last year. It was just that the rand strength that we saw at the end of last year and even after the end of April was really of centering any increases in the oil price.— Sam Rolland, Economist at Ecomometrix
So South African consumers were a bit lucky in that regard. Unfortunately, April came around and we saw increases in the fuel levy and the road accident fund that was added on to the petrol price and that pushed the petrol price higher.— Sam Rolland, Economist at Ecomometrix
Listen below to the full interview: