The First Press Conference

Business Opportunities with South Africa

As a result of the road map outlined by the Islamic Republic of Iran for increasing trade between Iran and African countries, we are seeing promising results. However, Iran’s trade with other countries is not proportional to its significant potentials, which requires private sector assistance. In this regard, in the meeting that was held with the presence of Mr. Vika Khumalo, the ambassador of South Africa in Tehran, Mr. Babak Tootoonchi, the chairman of the board of directors of the Iran-Africa Business Club and the spokesperson of Iran Customs, in addition to announcing the current state of Iran’s trade with African countries, there were also solutions to solve the challenges and The increase of trade exchanges was raised.

Also, the spokesperson of Iranian customs announced the increase in trade between Iran and the African continent and said: In the first five months of this year, exports have grown by 40% and imports by 147% with 54 African countries compared to the same period last year

Mr.Latifi said in the meeting to examine business opportunities between Iran and the African continent: In the first five months of this year, 1million 354thousand tons of goods that worth 741million 122thousand 922USD were exchanged between Iran and the African continent, of which the share of exports 1million 311thousand 647tons that worth 696million 731thousand 412 USD went to 37 African countries and the import share of 42thousand 629 tons of goods that worth 44 million 391 thousand USD was from 19 African countries. He emphasized: South Africa with 212 million 740 thousand USD and 203% growth, Mozambique with 105 million 292 thousand USD and 1511% growth, Sudan with 85 million 283 thousand USD and 374% growth, Nigeria with 81 million USD and growth 334 percent and Ghana with 76 million and 500 thousand USD and a decrease of 62%, were the first five destinations of Iranian goods in trade with the African continent in the first five months of this year.

Mr. Latifi stated that we had a good jump in trade with South Africa, but we have not achieved our goals, and clarified: Last year, Iran exported 254 million 268 thousand USD to South Africa with a growth of 570% compared to 2019, and imported 6 million 445 thousand USD.

The spokesman of the customs emphasized that based on the trade statistics in the last decade, the trade between Iran and the African continent has had many ups and downs, and noted that the customs is ready to sign a trade agreement to increase the speed of trade, customs control and exchange and processing of information in order to increase exchanges. According to his speech , the raw materials and machinery of imported goods and oil derivatives, petroleum refinery, food and minerals were exported products to South Africa.

There is no service exchange!

In this meeting, South Africa’s ambassador to Iran, “Vika Khumalo”, also mentioned that products are exchanged in South Africa’s trade with Iran. But there is no service exchange, He stated: We can develop this part of the business as well.

Of course, we should not forget that most of the products between this country and Iran are imported and exported indirectly.

Mr. Khumalo emphasized: Before this, Iran and South Africa had a memorandum of understanding to expand trade relations, but we did not achieve its goals. But it can be signed by drafting a new agreement with the 13th government that has provided the necessary facilities to increase imports and exports.

According to him, in recent months, the government has shown interest in developing relations with Africa, and this can be seen from the increase in the demand for business and economic visas for traveling to this continent.

Referring to the problems created due to the imposition of sanctions in trade with Iran, He emphasized: Not using the SWIFT system has made bank transactions problems.

But the lack of direct shipping lines and the lack of reaching agreements have caused many interruptions in the commercial improvement of the two countries.

Conversation between the Iranian and African Business club

Also, the Chairman of the Board of Directors of the Iran and Africa Business Club also stated: The cultural commonality and virgin economy of this continent needs a strategic view. And for this reason, in addition to neighboring countries, the region and Europe, the private sector must have a strategic view of this sector.

Mr. Babak Tootoonchi added:

In the past year, with the beginning of the 13th government, we saw the most financial transactions between Iran and Africa, although we have not yet reached the ideal statistics, but the path for development has been prepared.