The Iranian government is taking measures to boost its economic ties with African states.
Seven new business centers are going to be established in Africa by the end of the current fiscal year in March 2023.
"So far, three business centers have been founded in the African continent, and we plan to increase this number to 10 centers by the end of the year," Mohammad Sadegh Ghanazadeh, the caretaker of the Africa Department of Iran Trade Promotion Organization, was quoted by IRNA as saying
By establishing trade centers, Iran seeks to facilitate its commercial ties in target countries by providing assistance to foreign businesspeople and advice on best ways to enter Iranian markets.
The official noted that more than 400 business delegations from Africa have visited Iran since the beginning of the current fiscal year in March 2022.
"Many contracts have been signed for the development of infrastructure and sea and air transportation, and by the end of the year, an airline agreement between Iran and South Africa and other shipping lines will be concluded."
Trade between Iran and African countries stood at 807,180 tons worth $483.56 million in the first quarter of the current fiscal year (March 21-June 21).
South Africa with 229,834 tons worth $140.81 million, Nigeria with 129,003 tons worth $80.33 million and Mozambique with 82,462 tons worth $57.2 million were Iran's main trade partners in Africa during the period.
Data released by the Islamic Republic of Iran Customs Administration show Iran exported 788,028 tons of goods worth $460.29 million to the African continent during the period.
Trade between Iran and African countries stood at 807,180 tons worth $483.56 million in the first quarter of the current fiscal year (March 21-June 21). South Africa with 229,834 tons worth $140.81 million was Iran's biggest trade partner in the African continent
Iran's main export destinations in Africa were South Africa with 229,511 tons worth $137.77 million, Nigeria with 129,003 tons worth $80.33 million and Mozambique with 82,462 tons worth $57.2 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 19,152 tons worth $23.27 million.
Kenya topped the list of African countries in terms of exports to Iran during the period, as a total of 1,301 tons worth $8.1 million worth of goods were imported from Kenya to Iran. It was followed by Tanzania with 14,185 tons worth $5.65 and South Africa with 322 tons worth $3.04 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.
According to Farzad Piltan, a TPO official, Iran's exports to African countries stood at a record high of $1.19 billion during the last Iranian year (March 2021-22), registering a 107% rise compared with the year before.
Top ten 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, IRNA reported.
Iran's main exported products to Africa during the period were iron and steel ingot, urea, liquid butane and propane, floorings, iron and steel profiles and construction materials.
Exports to South Africa saw the highest increase of 570%. The year before, the figure stood at $38 million. The exports mainly included urea ($280 million), hot rolled steel bars ($11 million), liquified butane (close to $8 million), liquified propane ($5.4 million), sulfur ($4.6 million), floorings ($2.8 million) and steel ($1.6 million)."
A total of $60 million worth of goods were imported from African states during the same period, registering 37% decline compared with the previous year.
The main exporters to Iran were Tanzania, Ghana, Ethiopia, South Africa and Kenya.
Imports from South Africa declined by 25% during the period to stand at $6 million.
Among the reasons for the increase in Iran's exports to Africa, Piltan has said, are that Iranian producers and exporters have, in recent years, boosted their market research and marketing to securing footholds in new markets. "They have also adapted themselves and found new ways to go about trade under the economic sanctions."
Iran, he noted, 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.
Given that development projects have increased in some African counties, said Piltan, demand for certain commodities is on the rise in these states, providing ample opportunity for Iran to further increase its exports.
"We are establishing an African Affairs General Bureau in the Trade Promotion Organization which 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 for joint economic commissions to be held with officials and businesspeople from Nigeria, Ghana, Mali and Niger," he was quoted as saying.
