Trade between Iran and African countries stood at 890,287 tons worth $526.35 million during the first four months of the current fiscal year (March 21-July 22).
South Africa with 255,471 tons worth $152.94 million, Nigeria with 129,437 tons worth $80.63 million and Mozambique with 82,462 tons worth $57.195 million were Iran’s main trade partners during the period.
Data released by the Islamic Republic of Iran Customs Administration show Iran exported 864,027 tons of goods worth $495.51 million to the African continent during the period.
Iran’s main export destinations in Africa were South Africa with 255,101 tons worth $149.57 million, Nigeria with 129,437 tons worth $80.63 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 26,259 tons worth $30.84 million.
Kenya topped the list of African countries in terms of exports to Iran during the period, as the African state exported 1,556 tons worth $9.04 million during the period to the Islamic Republic. It was followed by Tanzania with 19,727 tons worth $7.72 million and South Africa with 369 tons worth $3.37 million.
Record High Exports 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, which is a record high, according to director general of the Arab and African States 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 products exported 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 in the year before, only 27,000 tons of goods worth $38 million were exported to the African state,” he added.
Iran’s main exported products were urea ($280 million), hot rolled steel ($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).
Piltan noted that 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, he added, declined by 25% during the period, to reach $6 million.
The main reason for the rise in Iran’s exports to Africa is 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 of conducting trade under economic sanctions,” the TPO official said.
“As development projects have increased in some African counties, demand for certain commodities is on the rise in these states, which provides ample opportunity for Iran to further increase exports.”
Stepped Up Economic Diplomacy
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 Sadeq Ghanazadeh, caretaker of TPO’s Africa Department, was quoted as saying by IRNA.
By establishing trade centers, Iran seeks to facilitate 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 agreement between Iran and South Africa and other shipping lines will be concluded,” he added.
“Despite seeing rapid export growth in the past decade, sub-Saharan African countries account for just 3% of global trade in goods and services, holding back Africa’s development, according to a World Bank report published earlier this year.
To reduce poverty on a large scale and transform their economies, African countries must scale up and diversify their participation in international markets and global value chains,” said the report titled, “Africa in the New Trade Environment: Market Access in Troubled Times.”
Sub-Saharan African nations are shifting away from Western trade partners. For example, the share of exports of goods to Europe dropped from 31% in 2005 to 25% in 2010.
“East Asia is rapidly replacing North America and Europe as Sub-Saharan Africa’s key trading partner in both intermediate and capital goods trade,” the report said.
