The South African Ambassador to Saudi Arabia, Mogobo Magabe, says the lifting of the 21-year import ban of South African meat products by Saudi Arabia has opened a lucrative market for local meat producers.
Ambassador Magabe was speaking during the virtual Outward Selling Mission to Saudi Arabia that was hosted by the Department of Trade, Industry and Competition (the DTIC), in partnership with the Department of Agriculture, South African Embassy, Saudi Arabia Food and Drug Authority, South African National Halaal Authority, and the Red Meat Producers Organisation.
Lifting of the 21-year ban
Over 250 people attended Thursday’s session that was held under the theme: “Unlocking Trade Opportunities through Collaboration”
“The lifting of the ban was one of the strategic outcomes of President Cyril Ramaphosa’s State Visit to the Kingdom of Saudi Arabia where he held constructive and fruitful engagements with the Crown Prince and Prime Minister of the Kingdom of Saudi Arabia, Mohammed bin Salman. The two leaders signed 15 agreements that included collaboration in agriculture, mining and tourism.
“It is an opportune time for the South African meat producers to take advantage of the lifting of the ban and export their products to the Kingdom. This can contribute in growing our economy, and strengthening our bilateral economic relations with Saudi Arabia,” Magabe said.
The Chief Director of Export Promotion and Marketing at the DTIC, Zanele Sanni, encouraged South African companies to utilise the virtual session to market their respective products to potential Saudi buyers with the aim of concluding sustainable export contracts that would increase trade between the two countries.
“As government, we are mandated to support local industries to enhance their manufacturing capacity and find suitable export markets for their products through strategic mechanisms like these,” Sanni said.
“We are committed to enhancing bilateral economic ties with Saudi Arabia. In recent years, both countries have had high-level political and business exchanges, leading to the lifting of the 21-year ban on South African meat exports to Saudi Arabia. This has opened up the substantial Saudi Arabian market to South African producers,” she said.
Lamb and mutton
She expressed South Africa’s appreciation to the Saudi authorities for having already approved twelve South African companies to export beef meat to Saudi Arabia, and seven companies for lamb and mutton meat products.
“This demonstrates the high standards met by South African companies. It also confirms that the meat-producing sector in South Africa is highly developed and strategically positioned to meet the demand of the Saudi Arabian market,” Sanni noted.
The Chief Director of Animal Production and Health at the Department of Agriculture, Dr Botlhe Modisane, said Saudi Arabia provided a high potential market for South African exporters to tap into, in terms of both fresh or chilled beef meat as well as frozen beef products.
“Saudi Arabia currently accounts for about one percent of agricultural exports from South Africa,” Modisane said.
South Africa anticipates to expand its export market share with Saudi Arabia given the signing of the recent trade agreements.
Saudi Arabia is a net importer of beef. Its imports of frozen beef and fresh or chilled meat imports recorded approximately 71% and 90% growth rates respectively.
The session was also addressed by representatives of the South African National Halaal Authority (SANHA), Hammid Mulla and of the Red Meat Abattoir Association, Dr Gerhard Neethling.
