Economist weighs in on Saudi Arabia, SA energy deal
Economist, Dawie Roodt says South Africa's request to Saudi Arabia to increase its oil production to curb the rising cost of fuel - is unrealistic.
President Cyril Ramaphosa has been on a state visit to the kingdom.
He's held bilateral talks with the Saudi king and other leaders of the middle eastern country.
During the talks, Saudi Arabia pledged to invest R130 billion in South Africa.
The Kingdom of Saudi Arabia has pledged $10bn in new investment in South Africa, a minimum of 25% of that amount going towards projects in the energy sector. pic.twitter.com/blV8hcLFNc
— PresidencyZA (@PresidencyZA) July 12, 2018
Roodt says while Saudi Arabia has a good relationship with South Africa, we are not a priority for them.
"They are not really interested in South Africa. They may be talking to South Africa, they may well be doing business with South Africa. Do not think they are going to do any special deals for South Africa because they like us. Part of the reason is that there are far bigger fish to fry.
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"For example, it's much more important to Saudi Arabia to be on a good footing with the United States. South Africa is important but is much less important on a global scale than other countries like the US," Roodt said.