Iran exported 1.31 million tons of goods worth $696.73 million to 37 African countries during the first five months of the current Iranian year (March 21-Aug. 22), registering a 40% rise in value compared with the similar period of last year, according to the spokesperson of the Islamic Republic of Iran Customs Administration.
The top export destination was South Africa with $212.74 million of imports from Iran, registering a 203% rise, Rouhollah Latifi was also quoted as saying by IRNA.
It was followed by Mozambique with $105.92 million (up 1,511%), Sudan with $85.28 million (up 374%), Nigeria with $81 million (up 334%) and Ghana with $76.5 million (down 62%).
Oil derivatives, petrochemicals, foodstuff and mineral products were Iran’s main exports to Africa during the period.
Around 42,629 tons of goods worth $44.39 million were imported from 19 African counties during the same period, registering a 147% rise compared with the corresponding period of last year.
Tanzania with $12.43 million was the main exporter to Iran during the period, registering a 168% year-on-year rise. Kenya with $9.5 million (up 518%), South Africa with $4.57 million (up 320%), Congo with $4.12 million (no import was registered from this country during the similar period of last year) and Ghana with $3.34 million (up 131%) came next.
Iran’s main imports from the African continent during the period were industrial machinery and production raw material.
“Iran traded a total of 1.34 million tons of goods worth $741.12 million with Africa during the five months under review,” Latifi said.
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 Trade Promotion Organization of Iran’s Department of Arab and African Affairs.
“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 ex-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 said 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 a foothold in new markets.
“They have also adapted themselves and found new ways of going about trade under economic sanctions,” the former TPO official said.
“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 its 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 founded in the African continent and we plan to increase this number to 10 centers by the end of the year,” Mohammad Sadeq Ghanazadeh, caretaker of the Trade Promotion Organization of Iran’s Department of Arab and African Affairs, was quoted as saying by IRNA.
By establishing trade centers, Iran seeks to facilitate its 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 airline agreement between Iran and South Africa, and another on shipping lines will be concluded,” he added.
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.
