This partnership with Standard Bank Group will enable Saudi companies to benefit from increased financial support to facilitate their trade with South Africa. According to Arab News, 420 business leaders and officials gathered at the Forum to discuss ways of strengthening economic relations between the two countries, with a particular focus on the mining sector.
The funds granted will be mainly dedicated to supporting trade between South Africa and Saudi Arabia, with the aim of increasing Saudi non-oil exports to South African markets. The agreement aims to
strengthen trade cooperation and boost exports of products and services between the two countries,
said Saudi Exim Bank, underlining its commitment to expanding globally and offering Saudi companies access to new markets. This initiative comes against the backdrop of a slowdown in Saudi exports to South Africa. The latest data from the Standing Committee for Economic and Commercial Cooperation reveal that imports from Saudi Arabia have fallen to $3.10 billion (R54.6 billion) in 2023, from approximately $4.15 billion (R73.6 billion) in 2022. By contrast, South African exports to the kingdom increased, reaching $12 million (R7.3 billion) in 2023, compared with $372 million (R6.6 billion) in 2022. This brings total trade between the two countries to around $3 billion (R61.9 billion) in 2023. The agreement aims to strengthen these exchanges while intensifying trade relations between Saudi Arabia and Africa in general.
Africa is one of the kingdom’s main destinations for non-oil exports. Between 2019 and 2023, Saudi Arabia exported over $34 billion (128 billion Saudi riyals) worth of non-oil goods to the African continent, Arab News reports. The partnership also aims to bridge the trade finance gap currently facing South Africa.
