South Africa's Energy minister, Tina Joemat-Pettersson (photo) has said that the country is ready to work together with Iranian companies in terms of energy projects. According to her, South Africa is prepared to convert MoUs to be signed with Iranian counterparts into trade proposals for conducting transactions.

“The position of South Africa in the European Union can serve as a good opportunity for Iranian companies to show their true potentials. The economic mobility of the two countries relies on energy cooperation and development of infrastructure. The power grids in South Africa are not stable enough, and we are hoping Iran's Ministry of Energy will help stabilize our country's electricity industry, and cooperate in the areas of monitoring and training South African experts in Iran,” she said.

Iran used to be South Africa's biggest oil supplier, export close to 68,000 bpd but sanctions against the Middle East country were increased in 2012 limiting exports, thereby forcing Pretoria to search for suppliers elsewhere so as to meet its fuel demand.

However, as part of efforts to strengthen the two countries' energy trade, Iran has said it will construct an oil refinery in South Africa or procure stocks in an existing refinery.

This is aimed at enabling a new market for Iran's crude as the world is currently witnessing a downward trend in crude oil prices and oversupply since mid-2014. Iran's crude output had decreased to 1 million barrels during the sanctions, but the country plans to attain its pre-sanctions level of 4 million barrels in June 2016, Mehr news reports.

Anita Fatunji