Iran and African countries traded 2.46 million tons of goods worth $1.23 billion during the 11 months from the beginning of last Iranian year (March 21, 2022-Feb. 19, 2023).
South Africa with 605,097 tons worth $317.57 million was Iran’s main trade partner in the African continent during the period. It was followed by Mozambique with 394.3 tons worth $189.17 million and Ghana with 313,433 tons worth $164.65 million.
Data released by the Islamic Republic of Iran Customs Administration show Iran exported 2.37 million tons of goods worth $1.15 billion to the African continent during the period.
South Africa with 594,416 tons worth $303.92 million was Iran’s main export destination in the African continent. Mozambique with 349,305 tons worth $189.17 million and Ghana with 309,145 tons worth $155.69 million came next.
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 85,870 tons worth $82.12 million during the period.
Tanzania topped the list of African countries in terms of exports to Iran during the period, as a total of 49,997 tons worth $19.58 million were exported to Iran. It was followed by Kenya with 3,655 tons worth $17.04 million and South Africa with 10,680 tons worth $13.64 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.
The volume of exports is a record high, according to the director general of 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 $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 ($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 conducting trade under economic sanctions,” the TPO official said.
“Iran has taken measures to increase the number of commercial delegations it sends and receives to and from African states in the past few years, organized many exhibitions and joint economic commissions, and entered into talks with private and public sectors of Africa.”
Piltan noted that as development projects have increased in some African counties, demand for certain commodities is on the rise in these states, providing ample opportunity for Iran to further increase exports.
Stepped Up Economic Diplomacy
The Iranian government has been taking measures to increase the number of “business centers” across the African continent.
By establishing these centers, Iran seeks to facilitate its commercial ties in target countries by providing assistance to foreign businesspeople and advice on best ways to enter the Iranian market.
More than 400 business delegations from Africa visited Iran in the last Iranian year.
“Despite seeing a 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 last year,” said the report, “Africa in the New Trade Environment: Market Access in Troubled Times.”
“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.”
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.
