The South African – Saudi Arabia Business Council has committed to boosting trade as part of efforts to grow the economies of both countries.
In 2023, South Africa’s exports to Saudi Arabia increased to R7.3 billion from R6.6 billion in 2022, while imports from Saudi Arabia decreased to R54.6 billion in 2023 from R73.6 billion in 2022.
The exported goods include agricultural products, motor vehicles, and basic chemicals, whereas the import items mainly consisted of refined petroleum and related products and crude oil.
Speaking at a press briefing in honour of the visiting Saudi business delegation, Co-Chair of the South African-Saudi Arabia Business Council, Stavros Nicolaou, underscored the need to increase trade and investment.
‘From my vantage point, the Saudi Arabia market presents enormous growth opportunities for South African companies looking to expand their businesses in the gulf region as shown by local companies that are slowly establishing a presence in that region,’ Nicolaou said.
President
Cyril Ramaphosa and Minister of Trade, Industry, and Competition Ebrahim Patel have been leading ongoing engagements between South Africa and Saudi Arabia – which have since resulted in local businesses finding a foothold in the vast Saudi Arabia market.
Also speaking at the same media briefing, Dr Hisham Al Amoudi, Vice-Chairman of the Saudi-South Africa Business Council, reaffirmed Saudi Arabia’s commitment to investing in South Africa.
Al Amoudi said the South Africa and Saudi Arabia Joint Economic Commission and the Business Council was a good platform to further progress and boost inward investments between the two respective countries.
He said Saudi Arabia is committed to increasing investment across various sectors in South Africa.
“We are committed to increasing investments for mutual benefits and supporting South Africa’s economic growth. Our current investments contribute to South Africa’s Gross Domestic Product,’ Al Amoudi said.
The visit by the Saudi business delegation aims to not only stre
ngthen current trade relations but also to explore opportunities for South African companies to increase market access with products that have high export potential to Saudi Arabia.
These products include motor vehicles for the transport of persons, fruits, mineral resources, chemicals, machinery and electrical equipment.
Additionally, the Saudi delegation seeks to boost investment from Saudi Arabia in sectors beyond South Africa’s renewable energy industry. Currently, Saudi is the largest investor in South Africa’s local renewable energy sector and ACWA Power has a leading role in this area.
Overall, it is estimated that Saudi investment into South Africa amounts to $1.62 billion.
The Business Council focuses on five main workstreams – energy and renewable energy, tourism, hospitality and entertainment, healthcare and pharmaceuticals, mining and commodities, and food and agro-processing. These areas aim to utilise investment capital from Saudi Arabia while tapping into the opportunities that South Africa
offers in these sectors.
Source: South African Government News Agency