[South Africa supports Muslim extremists and Muslim terrorists. Here you can see in which direction South Africa really leans. Jan]

PRETORIA (IRNA) — South Africa Central Bank Governor Tito Omoweini and Iranian Ambassador in Pretoria Mohammad Ali Qaenzadeh discussed here Tuesday expansion of banking ties between the two nations.

The Iranian envoy said that banking ties are suitable grounds for bolstering economic ties and opening lines of credit is also serious step for boosting industrial and trade cooperation.

He said that the two nations have enjoyed closer political and trade ties since the fall of apartheid in 1994.

Omoweini said that closer banking ties is in line with higher commercial transactions and is a prudent and sound decision.

Last month the deputy governor of Central Bank of Iran Mohammad Jafar Mojarrad heading a banking delegation visited South Africa.

The bilateral trade exchange topped 2.5 billion in 2004 most of which consists of Iranian crude exports to South Africa.

Iran is one the most important supplies of crude to South Africa. The largest South African oil Company SASOL is participating in the $1 billion petrochemical project in Iran.

The two nations have also strived to boost their non-oil exchanges and given the cordial ties the South African companies have shown good interests in joint ventures in Iran.

Managing director of Export Guarantee Fund of Iran (EGFI) said here Tuesday that the fund now covers investments risk of Iranian investors and traders in 20 African countries.

Speaking at a meeting of Iran-Africa Economic Cooperation Council Noruz Kohzadi said that Senegal, South Africa, Tunisia, Morocco, Algeria and Sudan are among the countries on the list. “Iranian businessmen after signing trade agreements will be under the coverage of the EGFI.” He, however, said that Iran’s trade with African countries is meager adding “Iran has lost many markets in the continent.”

He said that lack of banking institutions is another problem for higher trade with Africa saying that Iranian businessmen had good showing at the Senegal trade exhibition, but encountered difficulties in repatriation of their funds.

If some countries are unable to extend investments risk coverage to Iranian investors, other reputable banks in those countries are ready to open credit lines as guarantees, the EGFI managing director underlined.

He said that another thing for higher trade and investments is Iran’s lack of preferential trade agreements with African countries making goods exports to these countries relatively uncompetitive and expensive.

He also called for increasing the capital of the EGFI to make it able to boost coverage of investments risks and bring it close to international standards of about 92 percent coverage extended to the invested capital.

The EGFI has been asked to extend 100 percent insurance coverage which is currently unable to do unless its proposal for augmenting its capital has been approved, he said.

Source: Tehran Times
URL: http://www.tehrantimes.com/Description.asp?Da…/p>