Trade between Iran and African countries stood at 182,276 tons worth $119.94 million in the first month of the current fiscal year (March 21-April 20).
Mozambique with 63,451 tons worth $49.33 million, Nigeria with 66,272 tons worth $45.17 million and Ghana with 11,192 tons worth $6.55 million were the main trade partners during the period.
Data released by the Islamic Republic of Iran Customs Administration show Iran exported 179,221 tons of goods worth $117.11 million to the African continent during the period.
Iran’s main export destinations in Africa were Mozambique with 63,451 tons worth $49.33 million, Nigeria with 66,272 tons worth $45.17 million and Ghana with 11,192 tons worth $6.55 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 3,054 tons worth $2.83 million.
South Africa topped the list of African countries in terms of exports to Iran during the period, as a total of 142 tons worth $1.23 million were imported from South Africa to Iran. It was followed by Kenya with 174 tons worth $598,068 and Tanzania with 2,429 tons worth $583,801.
Exports Hit Record High in Fiscal 2021-22
Iran’s exports to African countries exceeded $1.19 billion in the last Iranian year (March 2021-22), registering a 107% rise compared with the year before. The volume of exports is a record high, according to director general of the Arab and African Affairs Department of the Trade Promotion Organization of Iran.
“Our top 10 export destinations were Ghana with $353 million, South Africa with $254 million, Nigeria with $125 million, Mozambique with $98 million, Kenya with $77 million, Sudan with $73 million, Algeria with $67 million, Tanzania with $55 million, Somalia with $29 million and Ethiopia with $11 million,” Farzad Piltan was also quoted as saying by IRNA.
The official noted that Iran’s main exported products to Africa during the period were iron and steel ingots, urea, liquid butane and propane, floorings, iron and steel profiles and construction materials.
“Exports to South Africa saw the highest increase of 570%. Last year, close to 553,000 tons of goods worth $254 million were sold to that country. This is while the year before, only 27,000 tons of goods worth $38 million were exported to the African state. Our main exported products were urea ($280 million), hot rolled steel bars ($11 million), liquefied butane (close to $8 million), liquefied propane ($5.4 million), sulfur ($4.6 million), floorings ($2.8 million) and steel ($1.6 million),” he said.
“A total of $60 million worth of goods were imported from African states during the same period, registering a 37% decline compared with the previous year.”
The main exporters to Iran were Tanzania, Ghana, Ethiopia, South Africa and Kenya.
Imports from South Africa, the official noted, declined by 25% during the period, to stand at nearly $6 million.
Explaining the reasons for the increase in Iran’s exports to Africa, he stressed that Iranian producers and exporters have, in recent years, boosted their market research and marketing to secure a foothold in new markets.
“They have also adapted themselves and found new ways to go about trade under the economic sanctions,” he said.
“Iran has taken measures to increase the number of commercial delegations it sends and receives to and from African states over the past few years, has held many exhibitions and joint economic commissions and entered talks with private and public sectors in Africa.”
Piltan noted that as development projects have increased in some African counties, demand for certain commodities is on the rise, providing ample opportunities for Iran to further increase its exports.
“We have many plans that will be implemented in the next five months. We are establishing an African Affairs General Bureau in the Trade Promotion Organization that will focus on managing and expanding commercial ties with African states. Moreover, two Iranian trade centers are being launched in Uganda and Tanzania and a ‘Technology House’ in Kenya. We have scheduled joint economic commissions to be held with officials and businesspeople from Nigeria, Ghana, Mali and Niger. We will also be hosting Congo and Algeria’s ministers of industries and transportation,” he said.
Decline in Fiscal 2020-21 Trade
According to Trade Promotion Organization of Iran's Arab and African Affairs Department, Iran exported $580 million worth of goods to Africa in the fiscal 2020-21.
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.
Intensification and expansion of US sanctions, the coronavirus pandemic and the partial suspension of global events and trade relations, were the main reasons behind the decrease in Iran-Africa trade in the fiscal 2020-21, ILNA reported.
However, problems from both sides are said to blame for the low presence of Iranian 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.
Besides, economic and political instability, lack of proper 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.
