Iran’s Exports of Non-Oil Goods to Nigeria Total $46.5M in 7 Months
Iran’s trade with Africa, particularly Nigeria, has been gaining momentum as non-oil commodities worth $46.5 million were exported to Nigeria in the first seven months of the current Iranian calendar year (March 21-October 22). This marks Nigeria as the fourth largest export destination for Iran and the 15th source of import to the country for the period, according to Ruhollah Latifi, spokesperson of the Trade Development Committee of Iran’s House of Industry, Mining, and Trade.
Trade with Africa has seen a 53 percent decrease in export value and a 33 percent decrease in weight compared to the previous year. On the other hand, Iran has imported goods worth $47.434 million from Africa in the same period, reflecting a 21 percent drop in worth and a 42 percent fall in weight compared to the previous year.
Despite political and cultural commonalities, economic relations between Iran and Africa have been hampered by economic crises and sanctions. However, the Iran Trade Promotion Organization (TPO) is optimistic about the potential for growth in trade between Iran and Africa, expecting trade figures to reach $10 billion within the next three years.
In the past year, trade between Iran and Africa rose two percent, with Iran exporting 2.452 million tons of products valued at $1.183 billion and importing 92,898 tons of goods worth $95.316 million from 49 African countries.
Efforts to strengthen economic cooperation with Africa were also emphasized during the Scientific and Economic Cooperation Meeting Between Iran and West African Countries (IRAN WAC), where 20 multilateral and bilateral cooperation agreements were signed to deepen economic ties.
Recognizing the untapped potential of the African market, experts emphasized the need to improve infrastructure, transportation, shipping lines, and legal and commercial relations. With Africa holding significant natural resources and a large share of the world’s population, Iranian traders and businessmen must pay closer attention to the continent.
Lack of awareness and the impact of international sanctions have hindered Iran’s engagement with African countries, prompting the suggestion to increase the activity of joint chambers of commerce to provide better market insights and reduce trade costs. Despite these challenges, President Ebrahim Raisi’s visit to Kenya, Uganda, and Zimbabwe in mid-July signals the government’s commitment to foster economic cooperation and boost the country’s participation in the African economy.
The trip laid the groundwork for expanding Iran’s presence in the $60-billion economy of the African continent, providing new opportunities for Iranian traders and businessmen. As a continent with vast mineral reserves and arable land, Africa holds considerable promise for the Iranian economy once the barriers to trade are addressed.
