Iran, South Africa eye joint bank
Tehran Times Economic Desk

TEHRAN – Iran and South Africa re-emphasized the implementation of banking agreements, such as the establishment of a joint bank, which would streamline bilateral trade and economic cooperation.

International Relations and Cooperation Deputy Minister Ebrahim Ismail Ebrahim lead the South African delegation to the fourth meeting of the SA-Iranian Deputy Ministerial Working Group that took place on 28-29 September in Tehran. The South African delegation met with the Iranian Deputy Minister of Economic Affairs and Finance, Behrouz Alishiri and reviewed ways of expanding economic and trade ties.

During the meeting Alishiri pointed out that due to Iran’s political and economic stability it had less trouble compared to other countries during the global economic crisis.

The Iranian official stated that promoting relations with African countries is at the top of the agenda of Tehran’s foreign policy, adding that South Africa has a key place in this regard.

He referred to the two countries' close views on international issues and developments and called for increased talks and common positions in international arenas.

Diplomatic relations between Pretoria and Tehran was re-established in 1994. Currently the South African Ambassador in Tehran is Ibrahim M. Saley while Asghar Ebrahimi Asl is representing Tehran in Pretoria.

The annual bilateral trade has increased significantly to $4 billion in 2008 since 1995, when the two countries established a Joint Bilateral Commission and signed oil storage agreements.

In an interview with the Tehran Times recently the South African Ambassador pointed out that South Africa imports nearly a quarter of its crude oil from Iran. He also mentioned a joint venture in a cracking unit with Petropars.

Cracking is the process whereby complex organic molecules or heavy hydrocarbons are broken down into simpler molecules (e.g. light hydrocarbons) by the breaking of carbon-carbon bonds in the precursors. Oil refinery cracking processes allow the production of ""light"" products such as LPG and gasoline from heavier crude oil distillation fractions.

In January 2009, South African Deputy Director-General and Foreign Affairs Ambassador Jerry Matjila discussed increasing bilateral economic cooperation with Alishihri during a meeting in Pretoria.

In May 2009, South African ministers participated in a large conference on foreign investment in Iran hosted by Tehran. In June 2009, the National Iranian Petrochemical Company announced that the South African Company, Sasoul, would be involved in Iranian petrochemical projects.

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