Trade between Iran and African countries reached 1.51 million tons worth $650.22 million during the first seven months of the current Iranian year (March 21-Oct. 22).
As per the data released by the Islamic Republic of Iran Customs Administration, Iran exported 1.47 million tons worth $620.2 million worth of goods to the African continent during the period while imports amounted to 36,164 worth $30.02 million.
Iran’s main export destinations in Africa were Ghana with 423,191 tons worth $252.52 million, South Africa with 337,744 tons worth $105.33 million and Algeria with 95,360 tons worth $66.58 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, Tunisia and Rwanda were other customers of Iranian goods.
Tanzania topped the list of African countries in terms of exports to Iran during the seven months under review, as a total of 24,022 tons worth $38.2 million worth of goods were imported from Tanzania to Iran.
Ethiopia came next with 6,154 tons worth $3.57 million, followed by Ghana with 2,481 tons worth $4.61 million and Kenya with 868.34 tons worth $3.24 million.
In fact, Ghana was Iran's largest African trade partner during the seven-month period, with bilateral trade standing at 425,672 tons worth $257.13 million.
With 54 countries, Africa is the second largest continent with a population of around 1.3 billion and has a higher economic growth compared to the world average.
According to Farzad Piltan, director general of 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).
Ghana, Algeria, Kenya, South Africa, Somalia, Tanzania, Cameroon, Mozambique, Nigeria and Ivory Coast were the main export destinations.
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.
Swaziland, Tanzania, Ghana, South Africa, Zimbabwe, Kenya, Ethiopia, Egypt, Morocco and Sudan were the main exporters to Iran.
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.
Trade Obstacles
The intensification and 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 from 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.
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.
The Trade Promotion Organization of Iran said that it plans to introduce the country’s 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 Africa, by expanding transportation lines and establishing 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 to developing foreign trade with African nations.
According to Hamid Zadboum, former TPO head, the NDFI support would be extended to exporters via designated banks over two years, noting that money has been deposited with four banks, namely the Export Development Bank of Iran, Cooperative Development Bank, Bank Keshavarzi and the Venezuela Bi-National Bank.
