(MENAFN- The Peninsula) By Mohammad Shoeb I The Peninsula
South Africa, Africa's second largest economy, can serve as the best gateway for Qatari companies that are planning to expand their foothold in Africa and have free access to a market with over 1 billion people and a combined GDP of over $2.2 trillion.
With the African Continental Free Trade Agreement (AfCFTA) between 27 African Union member states in force, its a potential market that Qatar can tap into, Harold Manamela (pictured), Deputy Director Export Promotion responsible for the Middle East Region within the Department of Trade and Industry of South Africa told The Peninsula.
Manamela said South Africa is Africa's most industrialised economy and the region's principal manufacturing hub and leading service destination. The country, with a population of nearly 57 million people and growing middle class is the choice of multinationals. Underpinned by factors such as a wide pool of skilled workers, established infrastructure, and world-class banking and financial services, the economy is poised to grow fast and serve as gateway to the regional markets.
'South Africa is a resource-rich country. It is emerging as a new land of opportunities and can be a best gateway for the Qatari companies that are looking forward to expand their foothold in Africa and have hassle-free market access, he said.
Manamela, who was here heading a 20-member trade delegation, added: 'We are exploring the Qatari market and indentifying the products and services in which both the countries have absolute and comparative advantage. This will help us in forging partnerships to invest in Qatar and South Africa, especially in special and free economic zones that are being developed in both the countries.
He noted that South African companies are good in agro-processing, pharmaceuticals, medical devices and infrastructure among other sectors. 'We also have skills and resources in the field of advanced manufacturing sector, and Qatar has surplus capital. We can come together and establish partnerships for mutual interests.
He also said that South African companies are also open to collaborate with Qatari firms to set up manufacturing facilities in Qatar, including the free zones and special economic zones.
Farhan Al Sheikh Al Syed, a Qatari businessman also lauded similar views, adding that it's a great opportunity for companies from both sides to collaborate and work together.
'South Africa is not only one of the biggest economies in Africa and the world. It is also a member of G20 and BRICS group (acronym for the combined economies of Brazil, Russia, India, China and South Africa). It's a privilege of doing business with South Africa and other countries in the region, which has very promising future.
South Africa is ranked number one in Africa with regard to Strength of Investor Protection (21 globally), and also number one in World Bank's Logistics Performance Index.
Zodwa Zikalala, Brand and Marketing Manager RBIDZ Special Economic Zone in South Africa, said: 'We are mainly focusing on logistics part to facilitate export and import between South Africa, Qatar and other countries. The government has put a lot of attractive incentives such as duty-free export and import of goods, tax rebate, and other incentives for companies that are coming to manufacture in our country.
She added: 'As food security is one of the important priorities in Qatar, we have good and adequate arable lands for growing food, which can be processed in the economic zone, and eventually to be exported to Qatar and other countries.
Zikalala and her colleagues had scheduled meetings with officials of Qatar Free Zones Authority and Manateq to exchange ideas and their experience for collaboration.
The RBIDZ has identified agro processing as one of the priority sectors. It is located within the vicinity of the Richards Bay harbour, the largest deep-water port on the African continent.
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