On October 15th, in Johannesburg, a significant credit agreement was signed between the Saudi Export-Import Bank and South Africa’s Standard Bank, valued at $25 million (approximately 440 million rand or 178 million yuan). Additionally, Saudi Arabia and South Africa have agreed to consolidate their lists of trade and investment opportunities within the next few weeks and will develop an action plan to implement over the next two years.
This announcement was made during the opening ceremony of the South Africa-Saudi Arabia Business Forum on October 14th. During the event, South Africa’s Minister of Trade, Industry, and Competition, Ebrahim Patel, highlighted the country’s commitment to enhancing exports of value-added goods and services to Saudi Arabia.
Patel emphasized the strategic positioning of Saudi Arabia as a gateway to the Middle East, mirroring South Africa’s role as a gateway to the African continent. He pointed out the opportunities arising from the African Continental Free Trade Area (AfCFTA) and encouraged Saudi companies to explore investment prospects in South Africa and beyond into Africa.
According to South African media outlet News24, Naif Al-Shammari, the Deputy CEO of the Saudi Export-Import Bank, stated at the forum that the credit agreement would facilitate Saudi exports of goods to Africa. Furthermore, this financial institution has also signed an agreement with the South African United Bank Group.
Bloomberg reports that Saudi Arabia ranks as South Africa’s 14th largest trading partner in 2023, with total investments reaching $1.6 billion, making it the largest investor in South Africa’s renewable energy sector. Notably, South African exports to Saudi Arabia increased by 23% year-on-year in 2023, totaling 8.1 billion rand (approximately $460 million).
