2023-07-12 16:20:39
The Iranian president begins an African economic tour that defies US sanctions
The economy leads the African tour that Iranian President Ibrahim Raisi started today, Wednesday, in search of new opportunities for trade and the advancement of Iranian-African economic relations that have remained outside Iranian accounts for decades, reflected in the meager volume of trade with the brown continent, which has sparked mounting internal criticism in recent years.
And now Raisi is knocking on African doors in an effort to rectify this situation and launch economic prospects with the countries of the continent, amid a major challenge his country faces in its foreign trade, represented by US sanctions that mainly target trade.
The Iranian president focused on the economy in his statements at dawn today, at Tehran airport, before heading to the African tour that includes Kenya, Uganda and Zimbabwe, stressing the necessity of “exchanging energies” between Iran and Africa due to the “great wealth, enormous natural and mineral resources and great talents” in this continent.
Raisi also stressed the need to develop economic relations, saying that in the fields of agriculture and technologies “there are good opportunities for cooperation,” pointing out that Iran’s share of international trade with Africa is small, and does not exceed one billion and 200 million dollars out of the 1,200 billion dollars that make up the volume of African trade.
After his arrival on Wednesday morning in Kenya, the first stop of his tour, the Iranian president stressed, in a press conference with his Kenyan counterpart, Lam Ruto, the need to develop economic relations with this country, saying that the level of trade between the two countries is “low and unacceptable.”
He said that his country is ready to transfer its “experiences in the field of economy and technologies” to Kenya, pointing to plans to double the proportion of trade 10 times in the first stage, then 20 and 30 times in the future, stressing that Tehran “has overcome sanctions and threats in various fields.”
For his part, the Kenyan president said that Raisi’s visit is “fruitful and constitutes a great opportunity to strengthen the bonds of friendship” with Iran, according to the Iranian state agency, “IRNA”, adding that “Kenya’s bosom is open to Iranian merchants and investors,” and revealed the signing of 5 memorandums of cooperation with Tehran. In the areas of communication, health, livestock and fishing.
increase and obstacles
Vice-President of the Iranian and African Merchants Club, Ruhollah Latifi, told Al-Araby Al-Jadeed that the Iranian president’s visit to the three African countries “shows Iran’s determination to comprehensively develop relations with Africa,” stressing that this visit comes following 11 years of limited communication. She points to “the importance that the African continent is gaining in Iran’s foreign policy in order to be present in new markets.”
Latifi added that the visit comes in light of the growth of Iranian exports to the African continent by 100% during the last two years following the formation of the 13th Iranian government, stressing that the tour “can pave the way for resolving structural problems in trade relations with this continent in order to develop it.”
Regarding the obstacles to developing trade, the former spokesperson for Iranian customs referred to Al-Araby Al-Jadeed regarding the obstacles to transport towards Africa and cash and financial transfers, calling on the Iranian government to search for solutions to reduce the risks of trade with Africa, as well as to provide “the necessary infrastructure to introduce the target markets.” Measuring its needs and Iranian goods, as well as enhancing the advantages of Iranian productions and seeking to reduce the entry tariff for Iranian goods to African markets through the conclusion of preferential trade agreements.
The volume of trade with the three countries
Regarding the volume of Iranian trade with the three countries (Kenya, Uganda and Zimbabwe) that the Iranian president is going to on his African tour, the deputy of the “Iranian and African Merchants” club says that last year Iranian trade with these countries amounted to regarding 74 million dollars, of which Iranian exports amounted to 54,667,000. dollars and importing goods from those countries worth 19,114,000 dollars.
Kenya topped the import of goods from Iran among the three countries, according to Latifi, who said that the value of Iranian goods exported to Kenya amounted to 53.2 million dollars, while trade with Uganda amounted to 1.2 million dollars and with Zimbabwe 236 thousand dollars.
An Iranian economic activist explains to The New Arab that asphalt worth $41 million constituted 75% of Iranian exports to the three countries, followed by industrial oils with the rest of $3.7 million, then petroleum products worth $2.3 million and other commodities.
Regarding commodities imported from the three African countries to Iran, Latifi says that Kenya topped exports to Iran among those countries, last year, with 17.3 million dollars, then Zimbabwe with 1.4 million dollars, and Uganda with one million dollars, noting that tea accounted for 84% of the goods. Imported goods amounted to 16 million dollars, then tobacco amounted to 1 million dollars and coffee amounted to 886 thousand dollars.
In addition, official and semi-official Iranian media and circles close to the Iranian government are looking with great interest at Raisi’s visit to the African continent, with talk that it comes in the context of his government’s strategy to “open diplomatic and economic horizons” for Iran in the face of US pressure and sanctions and to “thwart its effects.” “.
However, non-governmental circles, especially from the reformist movement, underestimate the importance of these visits in enabling Iran to confront the US sanctions, and believe that without reaching an agreement to lift the US sanctions, the possibility of resolving the Iranian economic crisis remains “minimal”.
This is taking into account that the visit of the current Iranian president to Africa comes following another tour he made during the past month to Latin America, which included Venezuela, Cuba and Nicaragua.
The economy also topped the agenda of Raisi’s tour, which he concluded with the conclusion of trade agreements with the three countries, especially Venezuela, to which the Iranian president focused, during his visit, on the need to jointly address the US sanctions imposed on the two countries.
Raisi confirmed that Tehran intends to raise trade with Venezuela from $3 billion at the present time, to $10 billion in the first step, and then $20 billion in the second step.
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