South Africa Opens Middle East Office to Attract Trillions in Infrastructure Investment

South Africa is casting its net wider in the hunt for infrastructure funding — and the Middle East is its next big target.

Public Works and Infrastructure Minister Dean Macpherson has announced that the country will open its first overseas investment office in the Gulf region. The goal: to secure billions in funding from some of the world’s wealthiest investors for energy, water, and logistics projects back home.

“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.”

The new office will be launched on a two-year trial basis, with the host country yet to be finalized. It will represent Infrastructure South Africa, a key state agency driving the country’s long-term development agenda.

South Africa estimates it will need about R4.8 trillion in total infrastructure investment by 2030 — R1.6 trillion from the public sector and another R3.2 trillion from private partners. With sluggish economic growth averaging under 1% over the past decade, officials are betting on infrastructure-led development to reignite job creation and stabilize the country’s finances.

Gulf Wealth Meets African Opportunity

The Middle East, particularly the Gulf states, is home to sovereign wealth funds with over $4 trillion in assets. Wealthy families in the United Arab Emirates alone control an estimated $1 trillion.

These investors are becoming increasingly active globally as part of efforts to diversify their portfolios and grow their geopolitical influence — especially as traditional funders like China, the US, and Europe scale back their exposure to Africa.

Already, countries like Kenya and Zimbabwe have seen growing interest from Gulf investors in recent years, and South Africa wants in.

Earlier this year, Macpherson led a high-level delegation to Kuwait, the UAE, Saudi Arabia, and Qatar, where they presented major investment opportunities — including a $2.3 billion joint water project with Lesotho — to wealth funds and state agencies.

“We’re not just setting up a desk,” Macpherson said. “This office will serve as a serious platform to build long-term relationships with global financiers.”

Political Context: Uncertainty at Home

Macpherson, a member of the Democratic Alliance (DA), was appointed in June following the formation of a national unity government after the May 2025 elections produced no outright winner.

However, political tensions are simmering as coalition partners — including the ANC and the DA — continue to clash over the national budget. Business leaders are calling for compromise to preserve stability and keep investment flowing.

Despite this backdrop, the government is pushing ahead with efforts to expand public-private partnerships and make South Africa an attractive destination for long-term infrastructure capital.

If the Gulf strategy works, it could mark a new chapter in how the country funds development — by moving closer to where the money is.

{Source: BusinessTech}

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