SA looks to business relationships with Iran

THE Minister of International Relations, Maite Nkoana Mashabane, has addressed the Iranian business community in Tehran, calling Iran South Africa’s “second home”.

With South Africa’s business delegation to Iran now numbering 60 delegates, alongside 45 senior South African officials, it is the largest to visit the country.

“South Africans and Iranians share the same values, including non-alignment, independence and inclusive development. We implore South African and Iranian business communities to seize the moment and engage in business partnerships,” Mashabane said at the launch of the South Africa-Iran Business Forum.

“We are natural economic partners and both a gateway to our respective continents.

“Africa is a priority for Iran, and South Africa is an important gateway to the continent of 250 million people,” Iranian Foreign Minister Mohammad Javad Zarif has said.

The South African business delegation has already been finalising deals with its counterparts and positioning themselves for when sanctions are lifted.

In terms of oil, South Africa wants its foot in the door, as companies like Chevron, BP and Total have been in Iran positioning themselves to secure oil blocs, some since 2013.

Gas is not part of the sanctions regime, and South African delegates are continuing to strengthen and expand deals with Iranians in the field.

Last week, the Minister of Energy, Tina Joematt Petterson, was in Iran pursuing South Africa’s energy interests. While South Africa is eager to start importing Iranian oil again, under the present sanctions regime, it is almost impossible. Companies are not prepared to ship Iranian oil or cover the insurance, and South African banks are afraid to engage in any transactions regarding Iranian oil.

The Americans sent a clear message to financial institutions around the world last year when they imposed a record fine on French banking giant Paribas.

Paribas was slapped with an $8.9 billion (R108bn) fine for violating US sanctions against Iran, Sudan and Cuba.

Key to South Africa’s ability to deepen trade ties with Iran will be the finalisation of a nuclear deal by the P5+1 (China, France, Russia, UK, US, Germany) and the lifting of sanctions.

During South Africa’s 11th Joint Commission with Iran 18 months ago, 90 documents were signed to improve co- operation and trade relations.

“Sanctions have been a major hindrance to the implementation of those agreements,” Mashabane told the business delegates. ”For too long, we have talked about untapped potential.”