'Trade focus
is likely to sharpen'
PENT-UP interest in Libya -with Africa's highest per capita GDP (gross domestic product) - has been restrained in recent years by United Nations' sanctions, according to Paul Runge of the SA Foundation.
Now that these are likely to be removed, he said, we can expect this interest to develop into exploratory involvement in the market.
Business forays have already been made, Runge added, but some restrictions have existed. Companies with any US affiliations or trading interests, for example, have had to restrain themselves, he said.
But the investigative gates are now open, and focus on trade with Libya is likely to sharpen, according to Runge.
This will follow the intended development of the North African market, currently being supported by the Department of Foreign Affairs, he said. It would also conveniently follow business visits to Algeria - where a number of positive developments have been identified. SA Foundation clients on these visits have expressed themselves confident at opportunities there.
However, Runge casts a shade of warning.
Because of the geographic distance and the associated higher freight rates, North Africa must still be viewed as a niche marketing area for SA business, he said. With this factor reducing our price competitiveness, we cannot look on it as a general widget market.
But, with Libya being one of the richest countries in North Africa - ranking alongside the likes of Egypt, Algeria and Morocco - it deserves attention.
