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24 February 2009

The South African Minister of Trade and Industry, Mandisi Mpahlwa and the Saudi Arabian Minister of Commerce and Industry Ali Reza today witnessed the launch of the South Africa-Saudi Arabia Business Council at the Hilton Hotel in Sandton, Johannesburg. The council came into being as a result of the Memorandum of Understanding (MoU) that was signed by business unity South Africa and the Saudi Chamber of Commerce in 2004.

Minister Mpahlwa said the council, as well as the joint commission that was holding its third session today, are part of the mechanisms that Saudi Arabia and South Africa have put into place in order to strengthen the economic relations between the two countries.

“The launch of the council is an important milestone in the history of our countries. There is a great need to increase trade and investment between the Kingdom of Saudi Arabia and South Africa. The two countries occupy crucial positions in their respective regions and have a great role to play in the economic development of countries in both the Middle East and Southern Africa. There are opportunities available for business people to take advantage of in both nations and invest,” said Minister Mpahlwa.

Mpahlwa said that the bilateral meetings between the two governments are meant to ensure that a conducive environment is provided for business people to operate in. He emphasised that the council will ensure that business people are able to engage directly about issues that affect them.

Minister Reza said Saudi Arabia had embarked on a programme aimed at diversifying the Saudi economy that will open up more opportunities to possible investors from South Africa.

“There is no better time to nurture and enhance the relationship between South Africa and Saudi Arabia than today. The current economic global crisis affects all of us. Nobody is insulated. As a result, the business people and government from both countries need to work together to ensure that trade and investment are increased between South Africa and Saudi Arabia,” added Reza. Reza is leading a delegation of fifteen ministries and representatives of business.

The South Africa-Saudi Arabia Joint Commission has amongst others agreed on the followings:

* increasing the volume of trade by using all possible means to facilitate the entry of products to each other’s markets
* increasing investment flows between the two countries by concluding an MOU between the Department of Trade and Industry (dti) and the Saudi Arabian General Investment Authority
* working together on initiatives to address food security
* Saudi Arabia to send expert team to examine the foot and mouth disease situation in South Africa with a view to reconsider its ban on South Africa’s meat and dairy products exports.

In the course of his visit Saudi Arabian Minister will sign a MoU on science and technology with Minister Mosibudi Mangena.

For more information contact:
Sidwell Medupe
Tel: 012 394 1650
Cell: 073 522 6801
E-mail: MSMedupe@thedti.gov.za

Issued by: Department of Trade and Industry
24 February 2009