SA, Saudi Arabia to build trade
Thapelo Sakoana
13 March 2006South Africa and Saudi Arabia have identified numerous areas of co-operation in a bid to strengthen trade and investment between the two countries, following a meeting of the SA-Saudi joint binational commission in Saudi Arabia over the weekend.
The two countries are to establish sub-committees to foster economic, technical and social co-operation.
The sub-committee on economic co-operation is expected to increase trade exchange, with Saudi Arabia prepared to increase exports of non-oil products to SA.
Saudi Arabia expressed its readiness to export various petrochemical products to the country, while South Africa said it would move to increase exports in mining, electro-technical, financial services, agricultural equipment, agro-processed products and automotive components, among others.
Trade exchange
The two countries agreed to initiate co-operation between the Saudi Export Programme of the Saudi
Fund for Development and the Industrial Development Corporation of South Africa, as well as other financial services agencies, to enhance trade exchange.
They also agreed to encourage companies in their respective countries to invest in each other's territory in areas identified by investment authorities.
Trade and Industry Minister Mandisi Mpahlwa, who led the SA delegation, called for investment by Saudi Arabian companies in South African tourism, infrastructure, information technology, agro-processing, chemical and allied industries, energy, transport and electro-technical equipment.
Saudi Arabia called on interested South African companies to invest in the country's mining sector, including processing and refining of minerals.
Information sharing
Co-operation will also be established between the two countries' national oil parastatals, Saudi Aramco and PetroSA, as well as black economic empowerment interests in the oil and
gas sectors.
The two sides emphasised the importance of exchange visits and expertise and information sharing in the tourism sector.
The countries will also explore co-operation in agriculture, including veterinary products, fish farming and trade in agriculture products, as well as the exchange of information and research on medical and epidemic developments in the veterinary field.
South Africa welcomed a scholarship proposal submitted by the Saudi ministry of higher education for Saudi students to be enrolled at South African universities as a basis for closer co-operation.
Source: BuaNews
