South Africa is committed to enhancing the export of value-added goods and services to Saudi Arabia.
"We must strive for a mutually beneficial trade relationship," said Minister of Trade, Industry and Competition, Parks Tau at the opening of the South Africa - Saudi Arabia Business Forum at the Sandton Convention Centre in Johannesburg on Monday.
Tau announced that South Africa and Saudi Arabia have agreed to consolidate several initiatives into a comprehensive action plan.
"Over the next few weeks, we will consolidate several initiatives into an action plan for implementation over the next two years and institutionalise the relationship in that way.
"We will take direct responsibility for overseeing the implementation of this plan, ensuring that we deliver on these commitments," he said.
He highlighted that the cornerstone of economic relations between South Africa and Saudi Arabia has been guided by the structured framework of the Joint Economic Commission.
"Within the Joint Economic Commission, we have the South Africa and Saudi Arabia Joint Business Council, which has cemented and strengthened our commercial and economic linkages," Tau said.
He underscored the importance of diversifying South Africa's trade profile, moving beyond a commodity-based relationship.
Trade between the two countries has shown significant growth, with South Africa's exports to Saudi Arabia increasing from US$6.6 billion in 2022 to US$8.1 billion in 2023. However, the trade relationship remains skewed in favour of Saudi Arabia.
"Our collective efforts over the years have shown notable growth in overall trade. 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," Tau said.
He highlighted the opportunities presented by the African Continental Free Trade Area (AfCFTA) and encouraged Saudi businesses to explore investment prospects in South Africa.
"Just as Saudi Arabia is positioned as the gateway to the Middle East, South Africa is the gateway to a dynamic continent with great prospects.
"We encourage Saudi companies to utilise South Africa's strengths and take advantage of the free movement of goods, services, and people across Africa.
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"I also want to call on South African businesses to be part of the new momentum of international investors coming into South Africa. Our opportunities for investment span sectors such as renewable energy, oil storage and refining, tourism, hospitality, and the ocean economy," he said.
Tau expressed optimism about the future of South Africa-Saudi Arabia relations.
"I am encouraged by the enthusiasm of Saudi Arabian and South African businesses. I sincerely believe that the strong ties of goodwill between our countries will translate into strong economic gains," he said.
