South Africa is a reliable partner committed to an equitable economic partnership with Iran on a win-win basis, President Jacob Zuma said on Sunday.

South Africa had categorically condemned the imposition of unilateral sanctions against Iran and applauded the recent lifting of many of these sanctions, he told the Iran Business Forum during his state visit to that country.

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 imposition of sanctions.

“We, however, continued our engagements within the joint commission, the cornerstone of our bilateral relationship, which was established in 1995,” he said.

South Africa viewed Iran as a strategic trading partner within the Middle East and Central Asian regions. Within the bilateral sphere, South Africa and Iran shared a long historical relationship.

“Total trade, however, has unfortunately been falling over the past decade owing to, among others, the non-existence of banking relations between South Africa and the Islamic Republic of Iran and the various sanctions imposed by the West,” Zuma said.

As of 2015, total trade between the two sides stood at R358-million. This figure did not reflect the optimal capabilities of the two economies.

In recognition of this, he and President Hassan Rouhani agreed earlier on Sunday to increase non-oil trade to $1-billion by 2020, Zuma said.

“It is imperative that we focus on diversifying our respective trade baskets in favour of value-added trade. This would add much impetus towards addressing issues of job creation as well as skills and technology transfer in both our countries.”

Thus, the memorandum of understanding (MoU) on establishing a joint investment committee which put in place a measured and pragmatic form of co-operation was to be welcomed.

“I believe the MoU on co-operation in the field of trade and industry that we signed today [Sunday], which was one of eight MoUs that were signed, and the accompanying roadmap provides a good departure point for strengthening our economic co-operation. It aptly outlines the objectives that both our sides wish to achieve,” Zuma said.

He also welcomed the establishment of the envisaged South Africa-Iran Business Council. It was imperative that the council members streamline their planning so as to complement the objectives of the roadmap.

This would translate into tangible deliverables and would add further impetus towards expanding economic ties between the respective business communities.

South Africa was well positioned to deliver on its commitments as outlined in the various agreements entered into by the different ministries. South Africa had an open economy and provided a sound business case for investment and profit, he said.

“Our country offers a diversified base of industrial sectors and has a large number of competitive industries, abundant natural resources, and well-developed transport and logistical infrastructure. Our financial systems are stable and we have a sound Constitution and institutional framework to protect property rights.”

South Africa offered many opportunities, not only for access to a growing domestic market, but also as a platform to the dynamically growing markets of the African continent.

Investors enjoyed robust protection in South Africa, comparable to the highest international standards. The Organisation for Economic Co-operation and Development rated South Africa as among the least restrictive jurisdictions for investment, Zuma said.