President Jacob Zuma met with Iran’s president, Hassan Rouhani, yesterday (Sunday) to sign a memorandum of understanding (MoU) to increase non-oil trade between the two countries to US1 billion by 2020.
Zuma is on a state visit to strengthen trade relations. The visit, which concludes today, follows the official visit to Iran by Deputy President Cyril Ramaphosa last year after the lifting of nuclear-related sanctions against the country.
On his visit, Zuma pointed out that South Africa had categorically condemned the imposition of unilateral sanctions against Iran and applauded the recent lifting of many of these sanctions.
The imposition of sanctions on Iran had also impacted negatively on South Africa’s own economic development agenda, as Iran was one of the biggest suppliers of crude oil to South Africa prior to the sanctions.
“We, however, continued our engagements within the joint commission, the cornerstone of our bilateral relationship, which was established in 1995,” he said.
As of 2015, total trade between Iran and SA stood at R358 million. This figure did not reflect the optimal capabilities of the two economies, said Zuma.
“It is imperative that we focus on diversifying our respective trade baskets in favour of value-added trade. This would add much impetus to addressing issues of job creation as well as skills and technology transfer in both our countries.”
A joint investment committee has been established to boost mutual trade and investment. Zuma also welcomed the establishment of the envisaged South Africa-Iran Business Council.
The president was accompanied by a high-level ministerial delegation which included the Minister of Trade and Industry, Dr Rob Davies, and finance minister, Pravin Gordhan, as well as a business delegation.
