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A significant step is being taken to deepen trade relations between South Africa and Saudi Arabia as the Department of Trade, Industry and Competition (dtic) prepares to host a pivotal virtual Outward Selling Mission. Aimed at bolstering South African meat producers' access to the lucrative $5 billion Saudi market, the online event manifests dtic’s strategy to capitalize on recent regulatory changes in favor of South African exports.
Last year, South Africa's meat industry received a substantial boost when the Saudi government rescinded a 21-year import ban on red meat products like beef, lamb, and mutton. This pivotal decision came in the aftermath of President Cyril Ramaphosa's state visit to Saudi Arabia in October 2022, symbolizing the growing economic cooperation between the two nations.
Lerato Mataboge, the Deputy Director-General of Exports at the dtic, emphasized that the mission rests on the foundation of "Unlocking Trade Opportunities through Collaboration." The virtual session will home in on the specifics of market access and the key essentials that South African meat exporters must navigate to satisfy Saudi requirements.
To ensure compliance with the Saudi market's stringent regulations, including halaal certification, the Saudi Food and Drug Authority embarked on inspections of South African abattoirs and feedlots. The favorable outcome has seen SFDA's approval of twelve South African companies for beef exports and seven for lamb and mutton products.
The interactive engagement is expected to attract a diverse audience, including exporters, importers, retailers, chamber representatives, and business organizations. The discussions will delve into why South African meat producers are globally competitive suppliers and the means through which Saudi distributors can forge robust partnerships with local exporters. The session will delineate the country's meat export value chain and explore the strengths of South Africa's halaal compliance standards.
The dtic’s proactive maneuvers have already shown tangible results, with exports of bovine meat rocketing to R3.6 million in 2023—a stark contrast to the nil figure in 2022. Furthermore, these strides aim to reinforce the economic synergy between the two countries, given that Saudi Arabia is South Africa’s second-largest trading partner with bilateral trade totaling R66 billion in 2023.
By cementing these economic ties, the dtic anticipates a surge in South African meat exports to Saudi Arabia, thus diversifying and strengthening the nation's export portfolio. Today's session at 10 am promises to articulate these opportunities and lay down actionable strategies for South African meat producers keen on expanding their market reach.