Petchem, oil-derived products dominate Iran’s exports
Iran-South Africa trade set to gain traction this year: Joint committee
By Sadeq Dehqan
Staff writer
The chairman of the Iran-South Africa Joint Trade Committee at the Iran Chamber of Commerce announced that bilateral trade and exchanges between the two nations are poised for growth this year.
In an interview with Iran Daily, Babak Hedayati described the deepening of bilateral interactions as a promising sign for brighter trade prospects between the two countries, emphasizing, “This year, we will witness more favorable developments in trade and an increase in bilateral exchanges.”
Hedayati noted that strong collaboration has already been established among the Joint Trade Committee, the Iran Trade Center in Johannesburg, and the Commercial Attaché of the Islamic Republic of Iran in South Africa.
“These three entities form a cohesive economic and trade triangle in South Africa, working in unison to expand commercial cooperation,” he stated.
On the volume of bilateral trade, Hedayati explained, “There is a notable discrepancy between official and unofficial trade figures, as much of the exchange occurs informally through third countries.”
“Petrochemical and oil-derived products currently dominate Iran’s exports to South Africa, followed by agricultural goods. Carpets, tailored to local color and design preferences, are another key export item,” he added.
“Iran also exports glassware, plastic products, bitumen, metal and iron equipment, rugs, and detergents to South Africa,” he continued.
“In return, South Africa primarily exports meat products, sweet corn, soybeans, and minerals to Iran.”
Regarding the Joint Trade Committee’s role, Hedayati underlined, “Our mandate is to facilitate economic activities for businesses in both nations and foster collaborative production opportunities. We aim to highlight each country’s economic, industrial, and trade strengths to catalyze joint ventures.”
Highlighting recent efforts, he said, “The committee recently arranged for 80 South African business representatives to attend the Iran Expo in early May. Through B2B meetings and face-to-face negotiations, several fruitful agreements were signed between Iranian producers and South African delegates.”
Hedayati added, “The committee has established five specialized working groups focused on food industries, agriculture and machinery, health tourism and medical services, industry and mining, knowledge-based enterprises, and petrochemicals. Their goal is to advance cooperation in these sectors.”
Transportation a key challenge
Hedayati termed transportation as a major hurdle, noting, “The lack of direct maritime or air logistics infrastructure to South Africa has inflated shipping costs, thereby driving up prices for goods exported there.”
“To address this,” he said, “We plan to soon form a logistics and transportation working group dedicated to resolving these issues.”
He also addressed financial obstacles, stressing that, “Monetary sanctions against Iran, coupled with South Africa’s stringent banking policies, have severely hampered financial transactions between the two countries.”
“Additionally,” he concluded, “Iranian businesses’ limited understanding of South Africa’s market dynamics and consumer preferences remains a barrier to deeper trade ties.”