It is high time that Venezuela starts sending oil to South Africa
Hugo Chavez said Venezuela started sending oil to South Africa and enhanced the south-south co-operation.
At the press conference in Pretoria he said that the world was facing a "terrible crisis" and a new strategic agenda needed to be devised to address this.
President Thabo Mbeki said the strategic partnership would allow the countries to learn from and draw on each other's strengths and experiences.
"It is critically important that as we build this partnership we do so in a context of developing our south-south relationship," he said.
As part of the agreement South Africa would also gain access to Venezuela's oil reserves.
However, Mbeki said the purpose of the agreement was to cut out the intermediaries and have a direct state to state relationship.