On 15th November, Thursday, Minister Rob Davies told that Iraq and South Africa had the opportunity to extend their business remarkably if their trades were guided directly. It’s good to conduct directly instead of conducting by other parties in the Middle East. The trades and industries were poised to extend economy around 11 percent per year.
Mr. Davies announced that even South Africa wished to vary its origin of oil supply. In the globe, the oil of Iraq was one of the cheapest. Mr. Davies expressed that the business connection would be in usual, lawful civilian materials and the trade relation had no purpose of money from other nations like Israel.
On Thursday, Khairallah Hassan Babiker, the Iraqi Trade Minister and Mr. Davies signed a trade settlement of two sides. Iraq asked for this agreement. Mr. Davies had belief that this agreement would help to gain the essential structure for better trade flows. Actually this agreement was a general co-operative.
Mr. Davies told that South Africa would agree to perform a trade operation to Iraq after a meeting of Iraqi businessmen and South African before registering the settlement. He might manage the meeting if he was there.
He noticed that complete business between the nations sized to R197m last year from R2bn in 2007. He noted that Iraq is exporting greater amount than the amount it imported in most of the years.
Mr. Babakir announced that the South African-Iraqi business mainly occur via intermediate nations, basically in neighbor nations such as Jordan and Dubai. The way for direct trading relationship would be opened by the settlement.
He also said that there were many chances for South African firms to invest in Iraq. He expressed this agreement not only embarked on post-war reformation of trade and agriculture but also basic structures of roads, hospitals, schools, airports and hotels.
Hisham Al-Alawi, the Iraqi ambassador to South Africa said South Africa did not bring oil from Iraq. Iraq decided to increase its production of oil from 3.2 million barrels (mbp) per day to 6 million barrels (mbp) per day. And they are going to do that in the upcoming two years. Iraq also planned to extend this amount to 12 million barrels (mbp) per day within the next 5 years.
He also expressed that the degree of excellence of crude oil generated by Iraq was almost equivalent to the quality needed by the oil refineries of South Africa.
Source: [Business Day Live]