Tuesday 07 / May / 2024
Muscat: Trade between Oman and South Africa is still in its preliminary stages and has a huge potential to grow, according to speakers at a business forum held at the Oman Chamber of Commerce and Industry (OCCI).
Bilateral trade between the two countries stood at OMR167.5 million in 2016 and recently an Omani trade delegation led by Dr. Ali Al Sunaidi, minister of Commerce and Industry, visited South Africa to boost trade ties. However, according to Manabile Shogole, South Africa’s ambassador to Oman, trade ties can grow much more.
“Trade between the two countries has not yet peaked and a lot more can be done. We have to work together to continue and increase this figure,” he told the business delegation from South Africa and members of OCCI during the seminar.
“There is so much potential. South African countries are strong in mining, agriculture, food processing and renewables. They are more than just ready to partner with Omani investors,” he added. The ambassador also highlighted the potential for re-exports that could possibly benefit both countries due to their strategic locations.
“I think both Oman and South Africa must look at re-exporting products as both are situated at locations, which provide access to different parts of the world and have different trade agreements between countries. Oman can re-export its products to anywhere in Africa, while South Africa can re-export to Asian and Middle Eastern markets using Oman’s trade deals,” he explained.
Nearly 10 to 11 South African countries operate in Oman at present, mainly in the agriculture and food processing sectors. Mining, however, is one of South Africa’s main sources of income and Oman’s proven reserves of minerals, such as gypsum, coal and chromite, among others, along with studies on potential gold reserves showing positive results, mining is another sector where South African countries would invest in the Sultanate.
Food security is a significant issue for Oman due to limited water resources that feed agriculture and was a topic of high interest for the delegation to South Africa under Dr. Ali Al Sunaidi. The South African delegations in Oman presented a food security solution by promoting technology that could increase shelf life of food products from 30 days to 120 days without using chemical preservatives.
The technology has been tested and is being brought to Oman by South African investors.
“I think there is a huge potential here to develop trade between the countries. I have been here for more than 10 years and have made Oman my home and I would like to see more jobs coming in for locals due to these ventures. Agriculture, fisheries and food processing will all improve job opportunities,” Jan Van Wyk, co-chairman of Oman South African Friendship Association, said.
OSAFA launched
The Oman South African Friendship Association (OSAFA) was also launched at the business seminar. The association has been operating for several years to facilitate trade ties between the two countries, but was officially registered only recently.
