Iran and African countries traded 2.54 million tons of goods worth $1.27 billion in the fiscal 2022-23 (ended March 20), registering a 1.61% decline in terms of weight, but a 2.24% rise in value compared with the previous year, latest data released by the Islamic Republic of Iran Customs Administration show.
The value of exports has registered a record high in IRICA database.
South Africa with 608,491 (up 9.72%) tons worth $322.04 million (up 23.52%) was Iran’s main trade partner in the African continent during the period. It was followed by Mozambique with 353,448 tons (up 146.27%) worth $190.51 million (up 93.74%) and Ghana with 333,496 tons (down 43.49%) worth $174.15 million (down 51.63%).
Data released by the Islamic Republic of Iran Customs Administration show Iran exported 2.45 million tons of goods worth $1.18 billion to the African continent during the year, registering a 2.63% and a 0.48% decrease in terms of weight and value year-on-year, respectively.
South Africa with 597,672 tons (up 8.04%) worth $305.41 million (up 20.11%) was Iran’s main export destination in the African continent. Mozambique with 353,448 tons (up 146.27%) worth $190.51 million (up 93.74%) and Ghana with 329,125 tons (down 43.87%) worth $165.01 million (down 53.2%) 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.
Imports hit 89,861 tons worth $90.36 million during the period to register a 37.8% and a 59.48% growth in terms of weight and value YOY, respectively.
Tanzania topped the list of African exporters to Iran during the period, as a total of 52,408 tons (up 17.22%) worth $20.89 million (up 42.59%) were exported to Iran from this country. It was followed by Kenya with 3,699 tons (up 126.44%) worth $17.27 million (up 174.11%) and South Africa with 10,818 tons (up 672.22%) worth $16.63 million (up 158.14%).
The value of bilateral trade stood at $1.19 billion in the fiscal 2021-22, registering a 107% rise compared with the year before.
According to Farzad Piltan, director general of Arab and African Affairs Department of the Trade Promotion Organization of Iran, urea with $280 million, hot rolled steel bars with $11 million, liquefied butane with $8 million, liquefied propane with $5.4 million, sulfur with $4.6 million, floorings with $2.8 million and steel with $1.6 million were Iran’s main products exported to Africa during the period
“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,” he said.
Piltan noted that as development projects have increased in some African countries, 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.
