A landmark $25 million credit agreement was established between the Saudi Export-Import Bank and South Africa’s Standard Bank Group during the recent Saudi-South African Business Forum held in Johannesburg. This agreement is designed to provide vital financial support for Saudi companies aiming to strengthen their trading activities with South Africa. The forum, which attracted over 420 business leaders and officials, aimed to foster closer economic ties, particularly in sectors like mining.
Naif Al-Shammari, Deputy CEO of Saudi EXIM, noted that the partnership with Standard Bank is expected to significantly enhance trade relations between the two nations, paving the way for increased commercial opportunities.
Broadening Collaborations and Partnerships
In addition to the credit agreement, another memorandum of cooperation was signed between the Saudi Export Development Authority and Skytower Development Company, indicating a commitment to expanding collaborative efforts. Current estimates indicate that trade between Saudi Arabia and South Africa reached approximately $3.5 billion in 2023, with Saudi Arabia recognized as the leading trading partner for South Africa in the region.
The Saudi delegation was led by Majid bin Abdullah Al-Qasabi, Minister of Commerce and Chairman of the National Competitiveness Center (NCC). The event was organized in conjunction with the Federation of Saudi Chambers and South Africa’s Ministry of Trade and Industry.
Focus on Mining and Future Opportunities
Panels at the forum provided insights into potential partnerships in the mining sector and explored the broader economic relationship between the two countries. Discussions included the mechanisms that authorities can employ to overcome challenges facing businesses, highlighting a proactive approach to enhancing cooperation.
This gathering reflects Saudi Arabia’s ongoing commitment to fostering robust trade and economic relationships across the African continent, a goal emphasized by Crown Prince Mohammed bin Salman during the Saudi-African Summit in Riyadh last year.
Commitment to Economic Reforms
During the event, Iman bint Habas Al-Mutairi, Vice Minister of Commerce and NCC CEO, showcased the Kingdom’s efforts to improve its competitive standing. She outlined over 820 economic reforms initiated since 2016, which have fundamentally transformed the business environment. Approximately 1,200 regulations and laws have been updated, bolstering the legal framework for businesses and positioning Saudi Arabia as an attractive destination for foreign investment.
Al-Mutairi highlighted that the Kingdom allows for 100% foreign ownership in most sectors and has established the Saudi Business Center, streamlining the procedures for starting and operating businesses, leading to a significant reduction in licensing requirements.
New Logistical Ventures and Ministerial Dialogues
Al-Qasabi also inaugurated the operations center of SMSA Express during his visit, aimed at enhancing logistical solutions for both countries’ business sectors. Furthermore, he engaged in discussions with several South African ministers, including Parks Tau (Trade, Industry, and Competition), Stella Ndabeni-Abrahams (Small Business Development), Patricia de Lille (Tourism), and John Steenhuisen (Agriculture).
The discussions centered around strategies for enhancing trade relations, identifying promising business opportunities, and supporting the participation of South African firms in the upcoming Biban24 forum. A key focus was also placed on initiatives to empower small- and medium-sized enterprises, reinforcing the commitment to collaborative efforts in areas of mutual interest.
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