JOHANNESBURG/ABU DHABI - Abu Dhabi’s largest listed firm, International Holding Co., is partnering with South Africa’s sovereign wealth fund for mining, green energy, and railway projects in Africa’s biggest economy.
The conglomerate’s resources unit plans to invest in projects that move South Africa off coal-dominated power generation, according to a joint statement. South Africa’s ailing state power company, Eskom, has previously said it will delay the decommissioning of some of its coal-fired power stations to address electricity shortages that have choked the economy in recent years.
The agreement would also “bring underperforming and undeveloped mining assets” in South Africa to full production capacity, according to the statement. Inefficiencies at South Africa’s state-owned logistics company Transnet have caused freight train shortages and port backlogs which cut the country’s income from exports, particularly mining.
South Africa’s coalition government, which took office in June, is trying to significantly increase investment as part of its plans to tackle the country’s logistics and energy problems.