Transactions between Iran and African countries stood at 1.65 million tons worth $881.16 million during the first six months of the current fiscal year (March 21-Sept. 22), registering a 47.1% year-on-year rise in terms of value, respectively.
South Africa with 393,564 tons worth over $214.01 million was Iran’s main trade partner during the period, registering a 17.61% and 102.92% growth in weight and value respectively.
It was followed by Mozambique with 261,037 tons (up 1,182.81%) worth $145.44 million (up 2,119.11%) and Nigeria with 194,721 tons (up 45.14%) worth $114.93 million (up 162.86%).
Data released by the Islamic Republic of Iran Customs Administration show Iran exported 1.59 million tons of goods worth $829.85 million to the African continent during the period, registering a 44.82% rise in terms of value compared with last year’s corresponding period.
Iran’s main export destinations in Africa were South Africa with 392,928 tons (up 17.66%) worth $208.74 million (up 102.49%), Mozambique with 261,037 tons (up 1,182%) worth $145.44 million (up 2,119%) and Sudan with 218,377 tons (up 263%) worth $121.23 million (up 563%) came next.
Ivory Coast, Djibouti, Algeria, Egypt, Guinea, Libya, Morocco, Mali, Macao, Mauritania, Mauritius, Nigeria, Sudan, Senegal, Somalia, Togo, Tanzania, Uganda, Zambia, Ethiopia, Algeria, Kenya, Tunisia and Rwanda were other customers of Iranian goods.
This is while imports hit 55,846 tons worth $51.31 million to register a 97.36% growth in value, year-on-year.
Tanzania topped the list of African countries in terms of exports to Iran during the period, as a total of 36,546 tons (up 66.06%) worth $14.47 million (up 141.02%) were exported to Iran. It was followed by Kenya with 1,973 tons (up 148.16%) worth $10.49 million (up 243.83%) and South Africa with 636 tons (down 5.72%) worth $5.27 million (up 121.29%).
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.
The volume of exports is a record high, according to the former 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 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 were sold to that country worth around $254 million. 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 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).
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 footholds in new markets.
“They have also adapted themselves and found new ways of going about trade under economic sanctions,” the TPO official said.
“Given that development projects have increased in some African counties, demand for certain commodities is on the rise in these states, providing an 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 set up in the African continent, and we plan to increase them to 10 by the yearend,” Mohammad Sadeq Ghanazadeh, caretaker of TPO’s Arab and African Affairs 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.”
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, “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.
