'Concentrate on foodstuffs, clothing and consumer goods'
THERE ARE already some noticeable business deals taking place between SA companies and Libyan buyers, according to Roger Ballard-Tremeer, director for North Africa at the Department of Foreign Affairs.
One company, for example, has just concluded a R32-million contract for dried milk, he said.
Raw materials - the traditional basis of SA exports - are not high on the Libyan shopping list, Ballard-Tremeer added. There is not a large enough manufacturing industry there for these to be a big demand, he said.
But foodstuffs, clothing and other consumer goods - that's what will sell. And these are the items to note on the SA trader's list of export needs in Libya, according to Ballard-Tremeer.
They buy huge quantities, he said, so you must be able to produce in quantities to match this demand if you intend to do business there.
Looking immediately ahead, Ballard-Tremeer highlights other areas of exciting potential.
There are vast opportunities in the programme to renew Libya's national infrastructure, he told FTW. This through telecommunications, information technology, railway, airline and military goods.
While selling guns to Gaddafi at this time is off-limits, Ballard-Tremeer has to point to future prospects in Libya for SA armaments manufacturers and their associated suppliers.
The potential for arms sales could be very good, he said. Especially given our technical back-up expertise.
But this, he added, is only possible where there is absolutely no US involvement. That country has created its own set of sanctions against Libya.
First of these is the D'Amato Act - a ruling which prevents US companies and their associates from any involvement in the Libyan oil industry. A ruling which, Ballard-Tremeer added, means that this oil sector has not been upgraded for decades.
The other legislation relates to the definition of terrorism, and its application to Libya as a terrorist-supporting state, he said, effectively condemning it as a pariah state.
It will require a large force to overcome the inertia of these years.
The more general sanctions - and those most applicable in SA - are those of the United Nations. Sanctions which have just been suspended, said Ballard-Tremeer, now that the Lockerbie accused are in Holland.
This means that we can engage in on-off trade transactions. But it would not be wise to involve oneself in longer-term business until these sanctions are totally removed from the statute books.
A matter of about six months, according to Ballard-Tremeer, but a delay which will allow Foreign Affairs time to get its Libyan pieces on the board.
We are presently busy with a whole suite of agreements which will open up trade beyond the one-off category, he said. These will take about three-to-six months to get into place.
But distance is a problem - and no direct transport services.
By sea, Ballard-Tremeer suggests that cargo movement via Malta would be one option.
On the airfreight route, he points to Aeroflot, the Russian air carrier having flights into Tripoli through the neighbouring states.
