A new report from the Middle East Africa Research Institute (MEARI) warns that South Africa’s deepening relationship with Iran carries significant consequences—undermining democratic values and threatening strategic interests, particularly with the United States.In an interview with BizNews, MEARI’s Benji Shulman expands on the report’s findings, raising the alarm over what he sees as a troubling alignment with an authoritarian regime. He argues that South Africa’s engagement with Iran risks damaging its constitutional integrity and jeopardising trade with the US, where Iran is increasingly viewed as a hostile actor. Shulman also details the ANC’s historical and financial ties to Iran, including alleged funding linked to South Africa’s International Court of Justice case against Israel, and MTN’s business interests in Iran’s cellular market. While Iran gains a rare ally in the Global South, Shulman questions what South Africa stands to gain—suggesting the relationship may be less about diplomacy and more about the Ramaphosa government being part of a strategic alignment against Israel and the United States..Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here.Support South Africa’s bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here.If you prefer WhatsApp for updates, sign up to the BizNews channel here.The auditorium doors will open for BNIC#2 on 10 September 2025 in Hermanus. For more information and tickets, click here..Watch here.Listen here.Edited transcript of the interview .Linda van Tilburg: (00:01.766)A report from the Middle East Africa Research Institute (MEARI) warns that South Africa's ties with Iran carry real-world consequences and are undermining South Africa's democratic values and strategic interests. With us in the studio is Benji Shulman, Executive Director of the MEARI to discuss that. Hi Benji.Benji Shulman (00:31.906)Hi, Linda, great to be here. Thank you so much.Linda van Tilburg: (00:34.268)Can you summarise the key findings of this report?Benji Shulman (00:41.592)Broadly speaking, when we talk about the relationship between Iran and South Africa, people are often confused and unsure what to make of it. This report aims to clarify what this relationship entails, why it exists, and, crucially, the costs South Africa pays as a democratic country with a constitution by engaging with an authoritarian regime that does not share our values. It examines the costs at various levels of maintaining this relationship and what South Africa gains from it.Linda van Tilburg: (01:15.99)That's the key question: What are we getting out of it? Do you believe the ANC's foreign policy is being shaped by financial support from Iran for the ANC?Benji Shulman (01:25.07)The report fleshes out that narrative in more detail. We've examined the issue of financial support, particularly the MTN case, which I believe is central to this discussion—more so than the International Court of Justice application. The report also looks at the historical context and the ideological frameworks the ANC uses to drive its foreign policy, which differ from South Africa's Constitution and Bill of Rights. These align with Iran's ideological position, reinforcing a worldview that goes beyond just financial elements.Linda van Tilburg: (02:07.616)Do you think this relationship is ongoing? I know it was quite active under Naledi Pandor. What about now?Benji Shulman (02:16.622)What's interesting about the Iranian relationship is how far back it goes. After the 1979 revolution, the Ayatollahs claimed to have cut engagement with the apartheid regime. However, they were conducting under-the-table oil-for-weapons deals worth $750 million—a significant amount 40–50 years ago. At the same time, they rhetorically supported the ANC and provided financial backing. As South Africa transitioned to democracy, this relationship flourished and has continued to grow steadily, regardless of key figures like Naledi Pandor. For example, after the recent conflict between Israel and Iran, the Iranian embassy in South Africa opened a condolence book, and senior ANC and DIRCO members attended to sign it. The purpose of the condolences is unclear, but it was clearly a propaganda move to demonstrate ongoing engagement.Linda van Tilburg: (03:36.777)There seems to be increasing pressure on South Africa because of this relationship. For instance, Mcebisi Jonas reportedly faces restricted access to the United States. Why would South Africa continue this relationship, and what’s in it for them?Benji Shulman (03:53.091)The Jonas case is a prime example. Some thought the issue stemmed from comments he made, which likely didn’t help. However, the core issue is MTN’s deep involvement in Iran’s cellular market, where Jonas is chairman. Credible allegations, now being litigated in courts in the U.S. and South Africa, suggest impropriety. The Constitutional Court will soon decide whether these cases can proceed. This relationship involves major South African businesses with significant financial interests in Iran, tied to the ANC’s anti-imperialist ideological stance and financial inducements through corporate channels and direct support to the ANC. This cements the ANC’s commitment to Iran, as the party is reluctant to abandon its ideological positions, both domestically and internationally.Linda van Tilburg: (05:19.571)Is the pressure on South Africa regarding its relationship with Iran related to the case against Israel at the ICJ?Benji Shulman (05:33.305)The pressure is part of a broader picture, with the ICJ case being the tip of the pyramid. Beneath it are military exercises, economic ties, and South Africa’s shielding of Iran’s nuclear program at the IAEA. Even our grey listing is partly due to concerns about Iranian and North Korean money entering the country. International institutions were already scrutinizing this relationship before the ICJ case. Questions remain about Iran’s role in the ICJ case—whether it was rhetorical or through proxies. For instance, Naledi Pandor called Hamas after October 7th. Hamas claimed it was to offer support; Pandor said it was about humanitarian aid. Regardless, this shifted the ANC-Hamas relationship to a state-level engagement. After an unscheduled trip to Tehran, the ANC’s financial troubles reportedly eased. While there’s no definitive smoking gun yet, if the MTN case progresses, it may reveal a broader pattern of strategic alignment between South Africa, Iran, and others to pressure Israel and the United States.Linda van Tilburg: (07:40.498)What are the links between MTN and President Cyril Ramaphosa?Benji Shulman (07:45.655)A key aspect of this case is that Ramaphosa was chairman of MTN when it secured the cellular license in Iran. Turkcell, a competitor, alleges this was done corruptly, involving payments and nuclear diplomacy by South Africa. The report notes that individuals in the U.S. have already been jailed for related collusion, though the main case is ongoing. If these allegations are substantiated, it could pose serious problems for Ramaphosa’s administration, as he was central to these events.Linda van Tilburg: (08:36.946)This is all about South Africa’s foreign policy, where opposition parties seem to have little influence. Would you like to see a shift in South Africa’s foreign policy away from Iran?Benji Shulman (08:50.392)We must ask what South Africa gains from this relationship. Trade with Iran is minimal compared to other Middle Eastern countries, including Israel, despite strained diplomatic ties. While oil is important, it can be sourced elsewhere. The risk is jeopardizing trade with the United States, as executive orders and Congressional actions cite Iran as a concern. Unlike Russia or China, Iran is a minor economic player. There’s no constitutional or values-based alignment with Iran, where rights like freedom of speech, association, and political freedom—core to South Africa’s Constitution—are absent. Women’s rights and cultural freedoms are also restricted. From both a values and strategic perspective, continuing this relationship in its current form makes little sense.Linda van Tilburg: (10:19.355)What is Iran getting out of this relationship?Benji Shulman (10:22.062)For Iran, this relationship is critical because it has few allies. Disliked in the Middle East by both Israelis and Arabs, Iran’s partnerships are limited to North Korea, Russia (via drone sales for the Ukraine war), and China (via oil). South Africa, as a democratic, open society, provides legitimacy. It played a key role in bringing Iran into BRICS and participates in initiatives like the Hague group, alongside Colombia, to boycott Israel. South Africa serves as Iran’s entry point into the global south and the broader international system, where it otherwise has few partners.Linda van Tilburg: (11:24.795)Are you expecting more pressure from the U.S. on South Africa because of its links to Iran?Benji Shulman (11:31.053)The recent White House meeting between Trump and Ramaphosa wasn’t the end of the story. Other groups have since applied pressure, and the U.S. remains dissatisfied with South Africa’s foreign policy. Recent U.S. military actions against Iran, like the B2 bombings of Fordow, signal a shift to a near-hot war. South Africa’s alignment with Iran, especially amidst this escalation, is problematic. The U.S. now views Iran as a significant threat, and South Africa’s continued engagement raises concerns.Linda van Tilburg: (12:31.908)What would you say to critics who argue you’re raising these issues now due to pressure on Israel over Gaza?Benji Shulman (12:40.098)The Iranian issue is linked to the ICJ and Iran’s ties to Hezbollah, Hamas, and the Assad regime, but it’s not just about Gaza. These groups have been openly engaging in South Africa, including at UCT, for over a decade—well before October 7th. These Iranian-funded and supported proxies operate under its influence. South Africa’s association with Iran is causing reputational damage, and addressing this issue is a necessary step, not a reaction to recent events.Linda van Tilburg: (15:33.625)Can you explain the presence of Hamas in South Africa?Benji Shulman (15:33.625)The report details Hamas’s efforts to establish a presence in South Africa. They met with figures like Ronnie Kasrils and others in the Middle East when he was Minister of Intelligence. In 2015, Hamas formally visited South Africa, meeting with Jacob Zuma. Officially, it was an ANC meeting, but they signed an MOU between Hamas and the ANC. Subsequent visits included Hamas’s representative to Iran, who drives the ANC-Hamas relationship, highlighting the deep connections between these parties and Iran.Linda van Tilburg: (16:28.802)Benji Shulman, thank you so much for speaking to us.Benji Shulman (16:31.618)Linda, I really appreciate the time. Thank you so much.