Remarks by Deputy President Cyril Ramaphosa at the South Africa-Iran Business Forum, Tehran, Iran
Programme Director,
Minister of Industry, Mines and Trade, Mr Nematzadeh
Ministers and Deputy Ministers
Senior government officials
Business leaders from South Africa and Iran
Ladies and gentlemen,
Good morning.
This is an important and timely business engagement.
It promises to consolidate trade and investment ties between South Africa and the Islamic Republic of Iran.
Under the auspices of our departments of International Relations and Cooperation and Trade and Industry, we recently held a meeting with representatives of South African business to brief them on the immense opportunities available on both sides for increased trade, investment and commerce.
South Africa and Iran have strong bonds of friendship that go back many years.
During the dark days of apartheid, Iran pledged its solidarity with the liberation movements fighting against the oppressive system of apartheid.
After the triumph of the 1979 Revolution, Iran sacrificed much in support of our cause by refusing to supply oil to a system that had been judged by the world as a crime against humanity.
With the dawn of democracy in 1994, South Africa and Iran established formal diplomatic ties.
Our bilateral relations with Iran are also conducted within the framework of the Joint Commission established in 1995.
This provides a platform for structured engagement between our two governments on matters of mutual interest.
We are keen that the breadth of our inter-governmental relations should be replicated in the economic sphere.
Despite significant progress in the early years of our democracy, trade and investment ties were severely curtailed by the imposition of sanctions against Iran, particularly the unilateral sanctions brought by the United States and European Union.
South Africa has consistently condemned the unilateral sanctions on Iran and has resolutely supported Iran's right to pursue nuclear energy for peaceful means.
We are therefore greatly encouraged by the Final Joint Comprehensive Plan of Action, which was agreed on 14 July 2015.
We believe that this represents a victory for dialogue over coercion.
We look forward to the removal of all remaining impediments to Iran's successful economic development.
This provides a new opportunity for the people of Iran.
It provides a new opportunity for South Africa and Iran not only to return our bilateral trade to its former state, but to significantly increase the volume and broaden the extent of our economic engagements.
It is for this reason that a Deputy Ministerial Working Group has been established to monitor and advise on all spheres of the bilateral relationship.
This working group will ensure the implementation of a number of agreements across a range of areas.
Iran is a country of 80 million people, the largest market in the region.
With a GDP of US$441 billion, prior to sanctions Iran was considered among the top performing emerging economies.
We are certain that it will quickly regain this position.
South Africa is a country of 55 million people, with a GDP of US$390 billion.
It occupies a critical strategic position in Southern Africa and on the African continent more broadly.
Iran is soon to emerge from a period of crippling sanctions.
South Africa is emerging from a past of economic dispossession.
There is much we can learn from each other, and much we can contribute to each other's success.
There are a number of economic sectors and sub-sectors that present great potential for cooperation.
These include:
- petrochemical gas exploration and the alternative energy sectors,
- agricultural products,
- mining, mining technology and beneficiation
- manufacturing
- chemicals and pharmaceuticals
- clothing and textiles
- forestry, pulp and paper and furniture
- infrastructure development,
- financial services
- tourism and hospitality infrastructure
- aquaculture, maritime oil and gas exploration, and shipbuilding.
South Africa is open for business.
We remain a preferred destination for foreign investors.
According to the World Economic Forum, South Africa has risen seven places to rank 49thout of 140 countries in the Global Competitiveness Index.
South Africa remains in the top 30 economies globally.
South Africa has a relatively diverse economy.
The unique combination of a highly developed economic infrastructure and a huge emergent market economy has given rise to a strong entrepreneurial and dynamic investment environment.
The South African government has also achieved significant success in ensuring macroeconomic stability through policies directed at promoting domestic competitiveness, growth and employment.
The South African government has adopted the National Development Plan to 2030, which aims to address the triple challenges of poverty, unemployment and inequality.
To address the immediate challenge of low growth, we have adopted a nine-point plan that focuses on key measures to stimulate growth and job creation.
This plan requires that we resolve the energy challenge through a mix of energy sources.
It involves enhancing the agricultural value chain.
We are building the infrastructure that will develop our agrarian resources and which will benefit some of the poorest communities in South Africa.
Another important component of the plan is mineral beneficiation. We are prioritising the beneficiation of titanium, platinum and other ferrous metals.
Through the implementation of our Industrial Policy Action Plan, we continue to prioritise the development and expansion of industries such as information and communications technology, energy, transportation, oil, gas, water and sanitation.
South Africa has advanced capabilities and is internationally competitive in many areas of manufacturing.
We plan to expand our global supply chains through potential partnerships and collaboration.
We have decided to establish two Special Economic Zones which will exclusively focus on the beneficiation of the platinum group metals.
We are working with labour and business to reduce work place conflict, improve the incomes of workers, and create an enabling environment for business in South Africa.
Our plan includes unlocking the ocean economy, with a focus on marine transport and manufacturing, offshore oil and gas exploration, aquaculture and marine protection services, and ocean governance.
We encourage our Iranian friends to partner with us to foster cooperation in these fields for the mutual prosperity and development of our peoples.
Opportunities for partnerships between our two countries are extensive.
As businesses, and as governments, we should build on the strong bonds between our two countries.
We should work together to unlock the significant resources we each possess.
We should work together to realise our potential.
Most importantly, we must work together to improve the lives of our people.
I thank you.
