TEHRAN - Trade between Iran and Africa is experiencing significant growth, with both sides actively pursuing new opportunities in key sectors such as energy, industry, and agriculture. The Iranian government has emphasized its commitment to enhancing commercial relations with African nations, leveraging strategic initiatives aimed at boosting trade volumes.

Increasing trade volume

Speaking at the opening of the Third Iran-Africa Cooperation Summit in Tehran, Iran’s Minister of Industry, Mining, and Trade Mohammad Atabak highlighted the vast potential for cooperation between Iran and Africa and announced plans to increase trade value by tenfold, aiming for a target of $10 billion.

Atabak emphasized that the friendship between Iran and Africa is a long-standing cultural and historical bond that has now evolved into a valuable asset.

While reflecting on the long-standing economic relations between the two parties, Atabak noted that current trade volumes are insufficient and stated, "At present, Iran's trade with Africa constitutes only three percent of the country's exports and one percent of imports, amounting to around $800 million."

The minister highlighted that the goal for the future is an annual exchange of more than $10 billion in goods, services, technical expertise, and value chains. "We have large-scale plans to achieve this target," he said.

Key initiatives outlined by Atabak to achieve this goal include: infrastructure development, the construction of industrial parks and refineries, expansion of renewable energy sources, overseas farming, the establishment of shipping lines to Southern and Southwestern Africa, launching air routes, facilitating banking exchanges, and setting up a settlement mechanism through a foreign exchange fund. Additionally, there are plans to create operational strategies for Africa's strategic mines and allocate €2 billion in financing through the National Development Fund's buyer-seller credit mechanism.

Atabak also announced plans to expand the number of joint chambers of commerce from 13 to 20 and increase commercial attachés to 12. Furthermore, the establishment of a joint Iran-Africa development fund was revealed, with the fund aiming to attract $2 billion in investment and provide 75 percent insurance coverage to reduce commercial risks.

Also speaking on the sidelines of the summit, the spokesperson for the Trade Development Commission of the Iran House of Industry, Mine, and Trade Seyed Rouhollah Latifi, stated that the total foreign trade volume of the African continent stands at $1.2 trillion. However, he pointed out that Iran’s share of trade with African countries is just one-thousandth, which is very insignificant, despite Africa being a golden opportunity for Iranian trade.

Latifi highlighted the importance of Iran’s trade with Africa over the past three decades. He noted that trade with this region of the world became a focus of Iran's foreign policy since the 1990s. However, he added, "What occurred in the political and economic spheres did not align with one another, and the economic sector lagged behind political developments."

Iran ready for industrial cooperation with Africa

Also, during a specialized session at the summit, the head of the Industrial Development and Renovation Organization of Iran (IDRO) also announced that Iran is fully prepared to cooperate with African countries in various industrial sectors, particularly in infrastructure, energy, and advanced industries.

Farshad Moqimi referenced the 58-year history of IDRO as the country's first and oldest development organization. He highlighted IDRO’s areas of activity, which include transportation, industrial enterprise establishment and development, industrial renovation, advanced industries, maritime industries, and human resources development. He added that IDRO is fully prepared to collaborate with African countries, especially in the fields of infrastructure, energy, and advanced industries.

Moqimi also pointed out the potential for cooperation between Iran and African countries and mentioned that Iran can help increase the efficiency of projects by reducing investment time and costs. Furthermore, Iran is eager to jointly develop industrial capacities with African nations.

The deputy minister of industry, mining, and trade emphasized that Iran is ready to transfer expertise, knowledge, technology, and industrial equipment to African countries, expressing the country's desire for mutual cooperation aimed at fostering growth and development.

The head of the Industrial Development and Renovation Organization of Iran announced that Iran is fully prepared to cooperate with African countries in various industrial sectors, particularly in infrastructure, energy, and advanced industries.

Expanding transport routes, establishing commercial centers

Mohammad Ali Dehghan Dehnavi, the head of the Trade Promotion Organization of Iran (TPO), outlined the organization’s plans for enhancing trade relations with African countries on the sidelines of the Third Iran-Africa Economic Cooperation Summit.

Dehghan Dehnavi emphasized the importance of facilitating trade with Africa, stating, "One of our main objectives is to develop shipping lines to African countries. Additionally, we are prepared to ease trade for Iranian and African merchants by offering export incentives and providing subsidies for transportation costs."

He also pointed out the significant role of commercial centers in boosting economic exchanges, saying, "Several commercial centers have already been established in African countries, and plans to expand these centers in the future are ongoing. These centers serve as focal points for expanding trade cooperation between Iranian and African traders."

Dehghan Dehnavi highlighted the exchange of trade delegations as another key aspect of TPO's activities, stating, "Hosting African trade delegations and sending Iranian delegations to these countries creates new opportunities for enhancing bilateral economic relations."

According to the official, a $2.0 billion credit line has been allocated for purchasing goods from Africa. He emphasized the high potential of Africa for expanding trade relations and the importance of strengthening economic ties with the continent.

Iran's petchem industry eyes conquering African markets

Delivering his speech at the summit, the Head of Iran’s National Petrochemical Company (NPC) stated that there are good opportunities for cooperation with African countries to develop relations in the petrochemical industry. He mentioned that the possibility of expanding cooperation is based on supplying feedstock from Iran.

Hassan Abbaszadeh highlighted the achievements and potential of Iran’s petrochemical industry. He noted that the country's petrochemical production capacity has reached around 100 million tons per year, and with the implementation of 67 new projects, it is expected to increase to 131 million tons by 2029.

He added that currently, 73 petrochemical complexes and three power and utility plants are operating in the country, with two major petrochemical hubs established in Assaluyeh and Mahshahr. Other petrochemical companies are located in various provinces. Abbaszadeh also pointed out that the nominal capacity of Iran's petrochemical industry has reached 97 million tons per year.

EF/MA