Business sectors from Iran and South Africa have been urged to further cement economic ties between the two developing nations by tightening their co-operation and investing in each others growing economies.

Foreign Affairs Minister Nkosazana Dlamini-Zuma made the appeal during the opening of the seventh joint commission between the two countries in Pretoria yesterday.

Deputy Minister pf Foreign Affairs Aziz Pahad recently made a similar call and urged local businesses to “break trade barriers”.

Minister Dlamini-Zuma call comes amid growing economic interest in the oil-rich Gulf state by local business, which together with some of their Iranian counterparts met in a separate meeting in Johannesburg this morning.

There are at least 12 South African corporations including, sugar, mining, banking corporations together with oil giants Sasol and PetroSA who are active in the multibillion-dollar oil industry in the Middle East region.

Trade relations between the two countries are at the moment favouring Iran through the 'sugar for oil' trade where Iran total exports mainly oil, stood at R5,2-billion in 2002, constituting 40% of the country's supplies. South Africa's exports to Iran mainly in sugar were to the tune of R325-million in 2002.

Dlamini-Zuma also challenged business to correct the trade imbalances between the two nations, which stood at more than a billion dollars in favour of Iran.

“Despite significant developments we cannot, however, ignore the fact that the trade imbalance that exists between our two countries remains a worrying characteristic of our relationship. I would like to implore this gathering to find a way to resolve this issue,” said the minister.

In its move to further consolidate co-operation between their respectively private sectors, the two countries are due to launch the South Africa-Iran Business Forum in Johannesburg to promote organised trade and investment opportunities.

According to deputy director general for international trade at the Department of Trade and Industry Tshediso Matona, the Iran’s untapped economic provided local business with opportunities especially in manufacturing sector.

“We have an advantage in that we have a sophisticated, diversified manufacturing industry producing anything from electronics, clothing and textiles to automotives, capital equipment to chemicals,” said Matona. The minister hailed the Iranian support for the New Partnership for Africa’s Development (Nepad), saying such commitment was illustrated by the hosting of the Africa-Iran Forum in the capital Tehran last year.

“This Forum has enabled Africa to identify areas of mutual cooperation which will enable the Continent to engage Iran in a strategic manner,” she said. – BuaNews.