Saudi Arabia and South Africa Enhance Trade Relations at Key Business Forum
On October 14, 2024, Saudi Arabia and South Africa hosted a Business Forum in Johannesburg, focusing on enhancing bilateral trade and investment opportunities. Over 400 delegates from both countries participated, discussing key sectors for cooperation and resulting in a $25 million credit agreement. Ministers from both sides emphasized the importance of collaboration in various sectors and the prospects within the African Continental Free Trade Area.
On October 14, 2024, a pivotal Business Forum took place in Johannesburg, spearheaded by Saudi Arabia and South Africa with the intent of exploring avenues for furthering bilateral trade, investment, and the exchange of expertise. This gathering unfolded against the backdrop of a 30-year formal relationship characterized by friendly ties and mutual economic aspirations, particularly significant given the stature of both nations as leading economies within their respective regions. The event drew an impressive assembly of over 400 participants, including prominent figures from both public and private sectors. The forum was orchestrated through a collaborative effort involving the National Competitiveness Center (NCC) of Saudi Arabia, the South African Department of Trade, Industry and Competition, and the Federation of Saudi Chambers (FSC). Among the dignitaries who contributed to the proceedings were South African Minister of Trade, Industry and Competition, Parks Tau; Saudi Minister of Commerce and Chairman of the NCC, Dr. Majed Al-Qasabi; South African Minister of Small Business Development, Stella Ndabeni-Abrahams; South African Minister of Tourism, Patricia de Lille; Saudi Deputy Minister of Commerce and NCC Chief Executive, Dr. Iman bint Habbas Al-Mutairi; and the Saudi Ambassador to South Africa, Faisal Al-Harbi. Minister Parks Tau spoke to the collective progress made in enhancing trade relations, stating, “As a country, we want to enhance our export of value-added goods and services to Saudi Arabia. It is important that, as we strive for a mutually beneficial trading relationship, we intensify cooperation in value-added sectors such as agro-processing, infrastructure, minerals beneficiation, services, technology and skills transfer, healthcare, automotive and agriculture.” He further urged Saudi enterprises to capitalize on opportunities within the African Continental Free Trade Area (AfCFTA), which aims to facilitate the seamless movement of goods, services, and people across the continent. Reinforcing Minister Tau’s insights, Minister Al-Qasabi articulated that the Saudi delegation’s engagement with South Africa signifies the Kingdom’s unwavering commitment to nurturing its trade and economic relations with the African continent. He added that this initiative is extensively endorsed by Crown Prince and Prime Minister Mohammed bin Salman, who highlighted this commitment during the inaugural Saudi-African Summit in November 2023. A significant outcome of the forum was the signing of a $25 million (R440 million) credit agreement between the Saudi Export-Import Bank and Standard Bank Group to support trade ventures. Moreover, both nations pledged to consolidate their investment and trade engagements, culminating in the development of a comprehensive action plan to be executed over the forthcoming two years.
The strengthening of ties between Saudi Arabia and South Africa has been grounded in a shared goal of economic advancement and mutual cooperation, particularly within trade. The Business Forum held in Johannesburg serves as a crucial step in enhancing bilateral relations established over three decades ago. As the leading economic powers in their respective regions, collaboration between these two nations is vital, especially in the context of a comprehensive strategy to boost trade, investments, and sectorial cooperation.
The Business Forum held on October 14, 2024, marks a significant advancement in the already strong bilateral relationship between Saudi Arabia and South Africa. Through collective efforts from both nations, key sectors are poised to benefit from enhanced cooperation, with initiatives such as the credit agreement indicating a robust commitment to elevating trade and investment opportunities. Going forward, the agreed-upon action plan is expected to pave the way for sustainable growth and mutual prosperity over the next two years.
Original Source: brandsouthafrica.com
