Trade between Iran and African countries stood at 2.03 million tons worth $967.8 million during the first 10 months of the current Iranian year (March 21, 2021-Jan. 20).
Ghana with 518,825 tons worth $317.45 million, South Africa with 491,087 tons worth $220.16 million and Nigeria with 199,033 tons worth $85.55 million were the main trade partners during the period.
Data released by the Islamic Republic of Iran Customs Administration show Iran exported 1.98 million tons of goods worth $930.9 million to the African continent during the period.
Iran’s main export destinations in Africa were Ghana with 515,338 tons worth $310,79 million, South Africa with 490,134 tons worth $215.8 million and Nigeria with 199,033 tons worth $85.55 million.
Ivory Coast, Djibouti, Algeria, Egypt, Guinea, Libya, Morocco, Mali, Macao, Mauritania, Mauritius, Mozambique, Nigeria, Sudan, Senegal, Somalia, Togo, Tanzania, Uganda, South Africa, Zambia, Ethiopia, Algeria, Kenya, Tunisia and Rwanda were other customers of Iranian goods.
This is while imports hit 48,194 tons worth $36.89 million.
Tanzania topped the list of African countries in terms of exports to Iran during the period, as a total of 33,258 tons worth $9.66 million worth of goods were imported from Tanzania to Iran. It was followed by Ethiopia with 7,534 tons worth $7.15 million and Ghana with 3,486 tons worth $6.65 million.
With 54 countries, Africa is the second largest continent with a population of 1.3 billion and has a higher economic growth compared to the world average.
Ghana with 518,825 tons worth $317.45 million of bilateral exchanges with Iran was the main trade partner
According to Trade Promotion Organization of Iran's Arab and African Countries Department, Iran exported $580 million worth of goods to Africa in the last fiscal year (ended March 20, 2021).
Steel and iron semi-finished products and ingots, urea, rebar, cement, raisins, food pastes, sweets, chocolate, biscuits, pistachios and floor coverings were the main goods exported to Africa.
Iran’s fiscal 2020-21 imports from Africa stood at $96 million. The imported goods mainly included feed corn, manganese ore and concentrate, tobacco, tea, tuna, mining machinery and equipment, essence and herbs, zinc ore and fruit seeds.
Iran’s exports to African countries registered an 8% and 14% decline in tonnage and value respectively compared with the previous fiscal year, according to the Islamic Republic of Iran Customs Administration.
Expansion of US sanctions, the coronavirus pandemic and the partial closure of global events and trade relations were the main reasons behind the decline in Iran-Africa trade in the fiscal 2020-21, ILNA reported.
Problems on both sides are said to blame for the low presence of Iranian export products in African markets.
"From the Iranian side, lack of close communication and knowledge of African markets by the private sector, non-existence of planning and high marketing costs, lack of direct presence in African markets, shortage of infrastructure such as banking relations, transportation, etc. are among the most important problems and obstacles," Piltan has been quoted as saying.
Economic and political instability, lack of administrative and security arrangements for long-term economic and trade activities, inadequate financial capacity of the private sector and African governments are among the problems and obstacles from the African side.
Trade Promotion Organization of Iran has said that it plans to introduce the export capabilities to African traders by using the capacities of the United Nations Economic Commission for Africa as well as Iranian embassies in African countries and other relevant institutions, while creating coordination at the domestic level and pursuing the establishment of trade infrastructure with the Africa, such as the development of transportation lines and the establishment of banking relations.
TPO also plans to allocate €200 million to promote exports to African countries. The funding will be part of a $2 billion support package approved by the National Development Fund of Iran (the country's sovereign wealth fund) to promote Iranian exports.
The package is aimed at removing hurdles for expanding foreign trade with African nations.
According to Hamid Zadboum, a former TPO chief, the NDFI support would be given to exporters via designated banks over two years.
Money has been deposited with four banks, namely the Export Development Bank of Iran, Cooperative Development Bank, Bank Keshavarzi (special agro lender) and the Venezuela Bi-National Bank.
