South African economic relations with Iran were “on the increase”, but peace and stability in the Middle East was key to the relationship, South Africa’s Deputy Minister of Foreign Affairs Aziz Pahad said on Tuesday.
Addressing a media conference in Cape Town, he said that a joint commission — the ninth session — which focused on economic ties, would be held in Pretoria between the South African and Iranian foreign ministers on Monday and Tuesday next week.
He noted that it was taking place on the eve of Iran having to respond to proposals from the Group of Five concerning its nuclear policy. “Therefore it will give us an important occasion to get their assessment of how this is going,” he said.
South Africa will use the opportunity to discuss the Middle East situation.
Pahad noted that there were “a lot of allegations” about Iran being involved in the Israel/Lebanese conflict — which Iran had denied — but this had been denied even by Hezbollah. “This will give us an opportunity to discuss a comprehensive resolution in that region.”
South Africa depended on Iran for more than 40% of its oil imports, said Pahad, who noted that the trade balance was heavily in Iran’s favour. In 2005 South Africa exported R785-million worth of goods while imports from Iran amounted to R14,3-billion.
South African companies were getting involved in the Iranian economy. He noted that Sasol, the petrochemicals group, was investing R900-million in a project while MTN was involved in the second mobile-operator project.
“There are many other signs that we could increase our economic relations with Iran but this depends a lot on finding stability in that area.” — I-Net Bridge