Significant direct Iranian investment in South Africa reflect robust economic ties between the two countries, Foreign Minister Nkosazana Dlamini-Zuma said on Monday.
”Relations between our two countries in the economic sphere are in the best shape they have ever been,” she told the seventh session of the South Africa-Iran commission in Pretoria.
”It also gives us great pleasure to acknowledge significant Iranian direct investment in our country.”
Nkosazana-Zuma is to co-chair the two-day session at the Diplomatic Guest House with her Iranian counterpart Kamal Kharrazi. The joint bilateral commission was set up seven years ago to strengthen ties between the two countries in economic, agricultural, mining, scientific and other fields.
Dlamini-Zuma said the past year had seen the private sectors of both countries making serious commitments to each other. From the South African side, oil giant Sasol and PetroSA had established regional offices in Iran or were in the process of
doing so.
”Agreements have been signed that will see these two companies co-operating with their Iranian counterparts in groundbreaking work in the petro-chemical sector.”
Kharrazi said Sasol and the Iranian National Petro-chemical Company were finalising another partnership agreement of $1,2-billion (about R9-billion).
The Iranian company and PetroSA were also discussing projects on oil exploration and the storage of crude oil in South Africa.
”Initial estimations at this stage indicate that investments of the two countries could reach $4-billion (about R30-billion) in the coming years,” Kharrazi said.
South Africa’s principal import from Iran is crude oil. Volumes decreased in 1998 and 1999 as South Africa sought to diversify its sources of supply.
In 2000, crude oil imports from Iran rose again, surging to nearly R9-billion in 2001. This has resulted in a trade imbalance largely in favour of Iran.
Describing this as worrying, Dlamini-Zuma said: ”I would like to implore this gathering to find a way to resolve this issue.”
On direct Iranian investment, she said a consortium from that country recently committed more that $75-million (R577-million) to a housing development in the Western Cape.
Dlamini-Zuma noted that the number of business visas issued to Iranian business people had doubled in the past year. The seventh session would also see the establishment of a South Africa-Iran business forum, she said.
Turning to bilateral ties in general, Kharrazi said the two countries held the same views on the Middle East, southern Africa and several other international issues.
He reiterated his country’s support for plans to revive Africa through the New Partnership for Africa’s Development (Nepad).
”(This) clearly indicates our common aspirations to make the world free from inequality and injustice.”
Dlamini-Zuma thanked Iran for its support for efforts to uplift Africa.
She added: ”Our governments are equally resolved to ensure that the benefits of economic change and prosperity reach all sectors of our societies.”
Kharrazi is also scheduled to meet President Thabo Mbeki during his stay. – Sapa