Iran traded 1.43 million tons of non-oil commodities worth $517.78 million with Africa during the first seven months of the current fiscal year (March 21-Oct. 22) to register a 2.67% and 7.1% decline in tonnage and value respectively compared with last year’s corresponding period.
Data released by the Islamic Republic of Iran Customs Administration show, Iran’s exports to Africa totaled 1.36 million tons worth $440.11 million during the period, indicating a 2.32% decrease in tonnage and 11.26% increase in value year-on-year. This is while imports stood at 70,953 tons worth $77.67 million, down both in tonnage and value by 8.96% and 52.03% respectively YOY.
Main Commodities
Iran mainly exported semi-finished iron or anon-alloy steel products, bitumen, liquefied butane, iron and non-alloy steel ingot, sodium hydroxide, dried sheepskin, white Portland cement, urea, methanol, film grade polyethylene and biscuits to Africa.
Major commodities imported into Iran from Africa included pod vegetables, aluminum oxide, sesame seeds, amalgam, skipjack or stripe-bellied bonito, yellowfin tunas, fermented tea, manganese ore and its concentrates, and air pump parts.
Vice Presidency’s Director of Biotechnology Development Department Mostafa Qanei recently said bio-fertilizers produced in Iran will be exported to Africa.
"Under the agreement signed in this regard, Iranian knowledge-based companies active in the field of agriculture and biotechnology will export their products to African countries," he was quoted as saying by Mehr News Agency.
Qanei said agriculture plays an important role in spurring the economy of African countries, as employment, economy and production sectors are based on agriculture.
“Biotechnology Development Department intends to pave the way for the permanent presence of Iranian knowledge-based companies working in the field of biotechnology through the establishment of farms.”
He also noted that preparing a suitable ground for export of products of knowledge-based companies working in the field of agricultural biotechnology and promoting agricultural biotechnology in Uganda through the introduction of bio-farming methods are the main duties of the Biotechnology Development Department.
“Transfer of technical knowhow and the conclusion of contracts for the transfer of technology between the Islamic Republic of Iran and Uganda are other missions of the Biotechnology Development Department," he said, adding that bio-fertilizers can have a good and lucrative market in African countries.
Top Trading Partners
Egypt, Kenya, Sudan, South Africa and Tunisia were Iran’s top five export destinations among African nations, as Eswatini, Ethiopia, South Africa, Ghana and Kenya were the top African exporters of goods to Iran.
In terms of total trade value, Egypt topped the list among African nations with bilateral trade standing at 428,400 tons worth $194.03 million, up by 25.18% and 92.28% in tonnage and value respectively YOY.
Exports to Egypt amounted to 428,135 tons worth $192.34 million, up by 25.90% and 99.35% in tonnage and value respectively YOY. In return, Egypt exported 264 tons of commodities worth $1.69 million to Iran during the period, down by 87.91% and 61.71% in tonnage and value respectively YOY.
Egypt was Iran’s first export destination in Africa and the 10th major exporter of goods to Iran among African countries.
Major Iranian commodities exported to Egypt were semi-finished iron or non-alloy steel products, iron and non-alloy steel ingot, methanol, ethylene glycol and diethylene glycol.
For its part, Egypt mainly exported razor, safety razor, smoking pipes, stabilizers, lighting devices parts and glass dishes to Iran.
Kenya was Iran’s second trading partner in Africa during the seven-month period. Two-way commercial exchanges stood at 204,495 tons worth $61.36 million, registering a 33.37% and 12.77% growth in tonnage and value respectively YOY.
Iran exported 203,449 tons of goods worth $57.01 million to the East African state, up by 33.66% and 12.76% in tonnage and value respectively YOY. Iran’s major exports to Kenya included liquefied butane, bitumen, liquefied propane, sodium hydroxide and clinker.
This is while Iran imported 1,045 tons of commodities worth $4.34 million from Kenya during the same period, down 6.34% in tonnage and up 12.91% in value YOY, the majority of which included fermented tea, green tea and coffee. The country was Iran’s second top export destination among African nations and the fifth major exporter of goods to Iran.
Mutual trade between Iran and Sudan amounted to 93,516 tons worth $41.23 million, indicating a 15.25% and 8.27% decrease in tonnage and value respectively YOY. Iran’s exports reached 90,911 tons worth $37.53 million, down 15.36% and 8.26% in tonnage and value respectively YOY, while Sudan’s exports to Iran were at 2,605 tons worth $3.7 million, down by 11.47% and 8.42% in tonnage and value respectively YOY.
Sudan was Iran’s third export destination and seventh exporter of goods to Iran among African states.
Semi-finished iron or non-alloy steel products, bitumen, test liners, vaseline and semi-chemical fluting paper were Iran’s main goods exported to Sudan, while Sudan exported sesame seeds and pod vegetables to Iran.
Next was South Africa, which traded 60,512 tons of non-oil goods worth $35.3 million with Iran during the reviewed period, down 9.71% in tonnage and up 18.44% in value YOY.
South Africa imported 56,791 tons of Iranian commodities worth $23.09 million, down 10.49% and 4.67% in tonnage and value respectively YOY from Iran, and exported 3,720 tons of goods worth $12.2 million to Iran, up 4.07% and 51.40% in tonnage and value respectively YOY. The country was Iran’s fourth major export destination and the third exporter of goods to Iran among African countries.
Exports to South Africa mainly included sodium hydroxide, floorings, asphalt blends, sulfur and white Portland cement. Iran mainly imported amalgam, steel products, alcohol and coke.
Iran’s fifth trading partner among African states was Tunisia. Iran-Tunisia trade amounted to 39,696 tons worth $22.84 million, registering a staggering 271.88% and 110.36% hike in tonnage and value respectively YOY. Exports to Tunisia stood at 38,141 tons worth $21.72 million, up by 737.63% and 224.49% in tonnage and value respectively YOY.
Iran imported 1,554 tons of goods worth $1.12 million from Tunisia during the period, down 74.60% and 73.09% in tonnage and value respectively YOY. Tunisia was Iran’s fifth biggest export market while it was the 11th exporter of goods to Iran.
Tunisia mostly imported semi-finished iron or non-alloy steel products, casting products, finished iron or non-alloy steel products and grapes from Iran. This is while Iran mostly imported monocalcium phosphate and trisodium phosphate.
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Barter Trade System in the Making
Secretary-General of Iran-Africa Council for Economic Cooperation Mohammad Reza Faqihi told Financial Tribune in October that to ease trade with African countries, Iran Chamber of Commerce, Industries, Mines and Agriculture is devising a barter system with African banks.
“Trade with Africa is, indeed, important. Iranian industries can benefit from Africa’s rich mines and trade in raw materials and semi-industrial goods, especially during sanctions,” he said.
Faqihi noted that the implementation of the plan would be a step forward for reducing the effects of US sanctions on Iran, noting that the country can use this opportunity to compensate economic losses and boost interaction with African companies trading in goods and services.
“The plan will not work with Africa’s international banks during the sanctions’ era because they are exposed to US business,” he said.
Iran-Africa barter project is being pursued in collaboration with the Foreign Ministry, Trade Promotion Organization of Iran and the Africa Department at ICCIMA.
US President Donald Trump decided in May to abandon the Iran nuclear agreement and reimpose economic sanctions on Iran.
Several European diplomats say the EU is finalizing a Special Purpose Vehicle aimed at creating a barter system, similar to the one used by the former Soviet Union during the Cold War to exchange Iranian oil for European goods without money changing hands.
Visa Conditions Eased for Traders
Iran's Foreign Ministry and South Africa's Department of Home Affairs recently reached an agreement that facilitates the process of obtaining visa for Iranian traders.
Based on the agreement signed between the Iranian ministry's Consulate Affairs Department and South Africa's Visa Permits Department, a variety of facilities will be offered to Iranian businesspeople for simplifying the process of visa issuance and travel to the African nation, Tehran Chamber of Commerce, Industries, Mines and Agriculture reported.
Based on the agreement, if Iranian traders and businesspeople present an official introduction letter from any of Iran's chambers of commerce to apply for visas from South Africa, they will receive an appropriate response in three to five days.
More importantly, businesspeople who receive a formal introduction letter from a chamber of commerce in Iran will not have to present any invitation letter from their trade and business partners in South Africa.
On the other hand, the agreement allows South African citizens, including businesspeople, traders and tourists, to receive visas at airports upon entering Iran. In response, South Africa has committed to issue multiple-entry visas that will remain credible for one to three years for traders who have entered the country multiple times using one-time visas.
What's more, South Africa has agreed to renew the visas of Iranian traders with visa validity of under 90 days if they refer to a designated website seven days before the validity period is over.
or businesspeople who have more than 90 days left on their visas, South Africa has committed to renew visa only if they observe due process 60 days before the visas expire.
