Iran plans to have a fivefold increase in trade with African countries

2021-10-31 17:22:38
Iran plans to have a fivefold increase in trade with African countries

Iran plans to boost trade ties with African countries from the current $1 billion, to about $5 billion within the next year, an Iranian trade official says.

Farzad Piltan, the head of Arab and African office at Iran’s Trade Development Organization, made the remarks during a meeting with a trade delegation from West African nation of Gambia.

Piltan said Africa is crucial for Iran in many ways, but for various reasons, the two sides have been unable to benefit from this bilateral partnership.

However, he said Tehran has prepared programs to boost trade relations between the the resource-rich continent.

In July, Piltan said Iran’s export to African countries in the first three months of current Iranian year registered a 350% hike.

He said back then that the easing of coronavirus restrictions and reestablishment of trade events between Iran and African states are of the most important reasons behind considerable increase of trade during the period.

Iran has capabilities in areas such as agriculture, technical and engineering services, construction materials, pharmaceutics, medical equipment, that are reasonably priced and high quality.

Iran's trade opportunities and challenges with African nations

Iranian officials say Tehran is utilizing government agencies, the private sector and international institutions to significantly expand with trade with Africa.

Experts say trade and economic cooperation between Iran and African nations are far less than the capacities and mutual interests of the two sides.

They say the main obstacles for trade between Iran and Africa is the lack of direct sea and air transportation infrastructures, high marketing and transportation costs.

Iran allocates 200 million euros for promoting exports to Africa

In February, Iran’s National Development Fund (NDF) opened a credit line of 200 million euros for the country’s Trade Promotion Organization to use for developing exports of commodities and services to African countries.

The fund has been allocated as part of a $2-billion support package which has been allocated by NDF for developing the country’s non-oil exports.

Over the past few years, the Iranian government has been pursuing new plans to promote the country’s exports of non-oil goods and services to new markets in order to reduce the country’s economic dependence on oil revenues.

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