South Africa plans to open its first overseas office for its infrastructure development agency in the Middle East, aiming to tap into the region\u2019s deep-pocketed investors to fund energy, water and logistics projects.<\/p>\n\n\n\n
The office will be launched on a two-year trial basis, Public Works and Infrastructure Minister Dean Macpherson said in an interview.<\/p>\n\n\n\n
His department is currently finalizing a budget for the office and assessing potential host countries.\u00a0<\/p>\n\n\n\n
Beyond establishing a physical presence in the Gulf, Macpherson said the office will serve as a platform to build relationships with global financiers.<\/p>\n\n\n\n
Africa\u2019s most industrialized economy needs about\u00a0R1.6 trillion rand<\/a> in public sector investment and an additional R3.2 trillion from the private sector to meet its infrastructure targets by 2030. <\/p>\n\n\n\n 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.<\/p>\n\n\n\n South Africa\u2019s push to court Gulf states \u2014 which are increasingly deploying their petrodollars to expand influence \u2014 comes amid a retreat by the continent\u2019s traditional partners.<\/p>\n\n\n\n China is\u00a0slowing its lending<\/a>, Europe is scaling back its engagement and the US is turning increasingly inward-focused. <\/p>\n\n\n\n Countries\u00a0like Kenya<\/a>\u00a0and Zimbabwe have already seen a rise in Middle Eastern investment in recent years.<\/p>\n\n\n\n \u201cThey\u2019ve got all the money in the world,\u201d Macpherson said. \u201cThey don\u2019t need to run after you \u2014 you have to run after them.\u201d<\/p>\n\n\n\n Middle Eastern sovereign wealth funds oversee over $4 trillion<\/a> while the richest families in the United Arab Emirates alone are estimated to control about $1 trillion<\/a>.<\/p>\n\n\n\n The plans come after the minister led a delegation earlier this year to Kuwait, the UAE, Saudi Arabia and Qatar. <\/p>\n\n\n\n Macpherson, accompanied by representatives from the development agency \u2014 Infrastructure South Africa, presented potential investment opportunities to wealth funds, state entities and government ministries. <\/p>\n\n\n\n Among the flagship projects showcased was a $2.3 billion joint water infrastructure venture with neighboring Lesotho.\u00a0<\/p>\n\n\n\n Macpherson, a member of the Democratic Alliance \u2014 South Africa\u2019s second-largest political party \u2014 was appointed in June following the formation of a national unity government after May\u2019s election failed to produce a clear winner. <\/p>\n\n\n\n