Honourable Ministers of the Kingdom of Saudi Arabia and of the Republic of South Africa;
Distinguished Business Delegates;
Ladies and Gentlemen,

Good morning.

I feel very privileged to be part of this important and timely business seminar on elevating trade and investment ties with the Kingdom of Saudi Arabia.

I wish to thank all business people present here for attending and supporting this initiative. 

I would like to touch on how the Kingdom of Saudi Arabia contributed to the liberation of South Africa. 

For many years prior the establishment of formal diplomatic relations with South Africa in 1994, Saudi Arabia took a leading position in the Arab world in its principled and moral opposition against the injustices caused by Apartheid. 

South Africa is thankful to Saudi Arabia for its contribution to the creation of a free and democratic South Africa.

With the defeat of apartheid in 1994, South Africa and Saudi Arabia established formal diplomatic ties that have flourished to what they are today. 

Our bilateral relations with Saudi Arabia are also conducted within the structured framework of the Joint Economic Commission established in 1995, which held its 7th Session on 14 to 15 March 2016 in Cape Town, South Africa. 

Under the umbrella of the Joint Economic Commission is the South Africa – Saudi Arabia Joint Business Council launched in 2009 to strengthen commercial and economic linkages between our respective countries.

Ladies and Gentlemen,

While our political relations with Saudi Arabia are strong, our economic and trade ties should be reviewed and revitalised. 

The next important step is to enhance bilateral trade, investment flows, the identification of targeted areas of collaboration and to address impediments in this respect as well as the implementation of a mutually agreed upon framework to enhance economic, trade and investment cooperation.

This includes collaboration in skills and technology transfers, the strengthening of trade institutions and optimal cooperation between the governments and private sectors of our two countries.

On our part, we have identified the following targeted sectors with high potential to expand SA – Saudi Arabia trade, economic and investment relations:

1.Petrochemical gas exploration and alternative energy sectors, including investment in South Africa’s refining capacity.

2.Agricultural products, agro-processed goods and food processing equipment.

3.Mining management and technologies, mining equipment and minerals mapping and beneficiation.

4.The automotive industry and manufacturing.

5.Chemicals, medical and pharmaceuticals sector.

6. Clothing, textiles and leather

7.  Advanced manufacturing equipment

8. Forestry, pulp and paper and furniture

9.Infrastructure development, construction, engineering and transport sectors

10.Financial, banking and insurance sectors

11.Tourism and hospitality infrastructure, management and training

12. South African retail and franchising sectors

13. Operation Phakisa ocean economy initiatives – particularly aquaculture, maritime oil and gas exploration and shipbuilding.

14. Defence procurement and partnerships.

Ladies and Gentlemen,

1.On the investment front, I am happy to inform you that South Africa is open for doing business and is globally regarded as a strategic and competitive destination for foreign investors.

According to the World Economic Forum's Global Competitiveness Report latest rankings, South Africa has risen seven places to rank 49th out of 140 countries in the Global Competitiveness Index.  South Africa remains in the top thirty economies globally. Given the diverse nature of our economy, the South Africa of today is one of the most promising emerging markets globally.

The unique combination of a highly developed first-world economic infrastructure and a huge emerging market economy has given rise to a strong entrepreneurial and dynamic investment environment.

In addition, the South African government has achieved significant success in ensuring macro-economic stability via the implementation of policies directed at promoting domestic competitiveness, growth and employment. 

Wide-ranging legislation has also been introduced to promote training and skills development.

The South African government remains committed to the achievement of our five key priorities to transform the lives of South Africans, which include:

•Creation of decent work and sustainable livelihood;

•Fighting against crime and corruption;

•Education;

•Health; and

•Rural development, food security and land reform.

In order to realise our five key priorities, the South African Government has adopted the National Development Plan (NDP), Vision 2030 which has been translated into a five year plan with the objective of dealing with the triple challenges of poverty, unemployment and inequality.

Government has further developed a Presidential Nine Point Plan with a view to advance the objectives contained in the NDP Vision 2030 at a practical level. 

These plans also correspond with Saudi Arabia’s National Transformation Plans, which provide many opportunities for bilateral cooperation.

The Nine Point Plan entails the following important focus areas:

1.We are working to resolve the energy challenge through a mix of energy sources that include solar, coal, nuclear and other sources.

2.We are focusing on enhancing the agricultural value chain - we are building the infrastructure that will develop our agrarian resources and consequently will benefit some of the poorest communities in South Africa.

3.Another important component of the plan is mineral beneficiation. In this regard, the beneficiation of titanium, platinum and other ferrous metals is prioritised.

4.Through the on-going development of our Industrial Policy Action Plan, we continue to prioritise the development and expansion of industries such as ICT, Energy, Transportation, Oil, Gas, Water and Sanitation.

South Africa also has advanced capability and capacity and is globally competitive in many areas of manufacturing, including mining and transport capital equipment, the automotive sector and auto catalyst production.

We wish to grow and expand our global participation in these sectors and supply chains through potential partnerships and collaboration.

To this end we have decided to establish two Special Economic Zones which will exclusively focus on the beneficiation of the Platinum Group Metals.

5.Our interventions in all the economic areas are aimed at boosting private sector investment.

6.Labour, in conjunction with the private sector and government, is committed to addressing and moderating work place conflict, thereby creating an enabling environment for business in South Africa.

Our objective is to ensure that we bring about stability in the South African labour market.

7.We established the Department of Small Business Development to develop and strengthen the potential of Small, Medium and Micro Enterprises (SMME) in townships and the rural areas.

8.The reform of state-owned companies, broad band rollout, water and sanitation, science and technology and development of transport infrastructure are other key focus areas.

9. Lastly, our plan includes unlocking the ocean economy through Operation Phakisa focusing on the following four areas: marine transport and manufacturing, off-shore oil and gas exploration, aquaculture and marine protection services and ocean governance.

We would encourage our Saudi counterparts to partner with us to foster cooperation in these fields for the mutual prosperity and development of our peoples.  South Africa also has a substantive competitive advantage on offer as a strategic point of entry to the Southern African region and the African continent.

Ladies and Gentlemen,

Our partnerships with international companies are central to our drive for growing our economy.  We therefore value our relationships with international investors. 

Opportunities for mutual partnerships between our two countries are almost limitless. 

As Business and drivers of economic processes, we should rise to the occasion and effectively utilise the strong and strategic bonds between our two countries and resources available to us, and as a consequence to create wealth for our respective peoples and countries.

We look forward to greater and expanded economic cooperation between our two countries.

I thank you.

Issued by: The Presidency
Pretoria