SA, Saudi business body set up
Tebogo Mantu
1 June 2004
South Africa has signed a memorandum of understanding with the Saudi Arabia Chamber of Commerce and Industry that will see the establishment of a joint business council.
The council will facilitate direct exchange of information on economic and market situations, as well as technological and industrial co-operation between the two countries.
Business Unity South Africa president Patrice Motsepe, who signed the agreement with the Saudi chamber on Tuesday, urged businesses from both countries to move beyond the rhetoric and work to increase bilateral trade relations.
"It is very nice to talk, but it is important to do more", Motsepe said. "We must begin to make things happen on the ground."
The chairperson of the Saudi Chamber of Commerce and Industry, Ali O' Al Zaid, said the agreement would enable businesses from both countries to set a clear roadmap on how to create business opportunities.
A Saudi Arabian delegation, by Trade and
Commerce Minister Hashim Abdullah Yamani, arrived in South Africa on Sunday with the aim of expanding the R14-billion trade relations between the two countries.
Trade and Industry Minister Mandisi Mpahlwa said the reason for expanding trade relations with Saudi Arabia was due to the strategic positions the two countries hold in their respective regions.
"Trade relations will enhance the impact each country has on its region", Mpahlwa said.
Yamani said the council would encourage trade between Africa and the Middle East in general.
"We have investments all over the world, but in certain areas we need to complement our capabilities, with SA as a partner", Yamani said.
Trade between South Africa and Saudi Arabia stands at close to R14-billion per annum.
However, there is a large trade deficit on the South African side, as Pretoria purchases a significant percentage of its oil from Saudi Arabia. In 2002 the trade deficit was R11-billion.
Saudi Arabia is South Africa's sixth largest trading partner by imports, and it is hoped that in time South African businesses will increase the volume of exports to Saudi Arabia and so reduce the trade deficit.
Source: BuaNews
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