South Africa forging closer economic ties with Oman

South Africa’s Minister of Trade and Industry, Rob Davies, who is hosting his Omani counterpart, Ali Bin Masoud Al-Sunaidy yesterday attended the South Africa-Omani Business Forum in Johannesburg.

South Africa wants to boost trade with Oman. Trade between the two countries remained fairly consistent over the past five years and stood at R5.9 billion in 2016, with Oman enjoying a trade surplus of R4.7 billion.

The Persian Gulf country is historically dependent on oil, while South Africa’s economy relies on minerals.

Briefing the media, Davies said the two countries agreed on further cooperation in other sectors and have identified possible growth opportunities emanating from the fall in commodity prices.

Exports from South Africa to Oman peaked at R978 million in 2013.

The value decreased to R500 million in 2015 and picked up again to R619 million last year.

South Africa’s import value from Oman was R5 billion last year compared with about R6 billion in 2015, said Davies.

“That is probably an indication of the oil price ... we probably did import less oil but its price has significantly declined.

“Our exports have great potential, though, which include vegetable products, vehicle parts and machinery,” Davies said.

“Both of us have been trying to diversify our economies and move up the value chain to create a solid base for sustainable economic growth in the future.

“As South Africa, we work well when bringing businesses together, businesses identify opportunities and we facilitate and develop those opportunities.”

Al-Sunaidy, Oman’s Commerce and Industry Minister, said as a nation, Oman was moving away from a reliance on oil exports.

He said his country was looking forward to knowledge-sharing and joint investments.

“We are a net importer of food [and] part of our discussion here were as a result of Oman creating a state holding company for red and white meat.

“Because we have water scarcity, this interaction allows us to think of cooperation on food production.

“Seasons in Asia are totally different from the ones here … we hope we could complement each other in that sphere.”

Oman companies from sectors such as food processing, mining and logistics were also part of Al-Sunaidy’s delegation.

The Omani business delegation will hold talks with their South African counterparts during the two-day business forum.

Other areas of possible cooperation include renewable energy, technology, construction and water treatment. – ANA