South Africa plans to build its own oil refinery with the aim of processing Iran's crude oil expected to be imported to the country in the wake of the recent nuclear deal between Tehran and world powers and the upcoming termination of anti-Iran sanctions.
Pretoria has said it will resume oil imports from Tehran "tomorrow" if sanctions are lifted but without its own refinery, it would have to rely on foreign oil companies who own refineries in Africa's most developed economy, Reuters reported.
The decision by South Africa comes as the country's Deputy President Cyril Ramaphosa is scheduled to pay an official visit to Tehran on Saturday.
A huge delegation including 160 South African businessmen, industrialists, and investors will also accompany the African country’s deputy president.
"Ramaphosa's delegation will also explore opportunities for the cooperation in the energy sector with a view of attracting investment into South African refinery and shipping capacity and for an exchange of technology and skills in the energy sectors," Ramaphosa’s office said in a statement on Thursday.
Ramaphosa’s Tehran visit will come six months after South African Minister of International Relations and Cooperation Maite Nkoana-Mashabane paid an official visit to Iran.
During a meeting with the South African minister back in May, Iranian President Hassan Rouhani had noted that there are good grounds for boosting cooperation between the two countries at bilateral and multilateral levels.
Expansion of relations with African nations in all political, economic and cultural fields is top on the agenda of Iran's foreign policy.
President Rouhani, who took office in August 2013, has repeatedly stressed his government's interest in boosting relations with the African states.