Iran cannot compete with Turkish rivals in Africa; Official
The head of Iran-East Africa Joint Chamber of Commerce, says Iran has tried to open four banks in Africa through the chamber of commerce in order to grant required credit to traders especially to Iranian businessmen.
Speaking to ILNA news agency, Hasan Khosrojerdi said that the chamber is working to open four Iranian banks in Africa in order to help business activists especially Iranian traders because African banks are unable to work with Iranians because Iran is not connected to the SWIFT and Iranian banks can grant credit to Iranian traders and support them.
Touching upon the latest condition of Iran’s trade with East Africa, he said Iran’s exports to Africa are mostly towards East African states like oil products, bitumen, construction materials like tile, concrete and ironware.
He noted that in return Iran has imported food stuff from these states like tea and coffee.
Khosrojerdi went on to say that Iran’s trade volume with Africa is around $700m officially and around $3.5b unofficially via Dubai, and East Africa accounts for around 60% of this amount.
On the cooperation with Africa and especially with Senegal especially in the field of auto making, he said Senegal has shown its good will in the field of auto and they imported some cars from Iran but unfortunately Iranians faced problem in providing the auto parts and therefore auto exports to Africa came to a halt and now some talks have been held foe resumption of this cooperation.
He also admitted that some policies in African countries especially in the banking sector are not good and Iran has been unable to take advantage of excellent opportunities in Africa.
"The chamber proposed for the launch of a transportation company in Africa with Iran providing it with Iranian vehicles but it was not welcomed because of lack of interest shown by African banks."
Khosrojerdi went on to say that two giant Iranian carmakers SAIPA and Iran Khodro intended to enter the field of oil in Africa and to establish an oil company in this continent for more earning.
He admitted that currently cooperation in the auto sector between Iran and Africa is not good at all and African countries show no eager for import of Iranian cars because of the problems regarding the provision of spare parts.
He also said that Iranian busses do not fit African countries because they want more spacious buses.
He reiterated that although Iranian goods are cheaper and good, they cannot compete with Turkish rivals in Africa, adding that most Iranian exporting companies in Africa have low investment and Turkey has chosen 4 to 5 companies and grant them enough credit to be active in the target country and the current problem of Iranian exporters is lack of investment and knowledge about Africa.
Khosrojerdi said Turkey and China provide required capital for their exporters while there is no sign of it in Iran.
He said the launch of Iranian banks can help to some extent Iranian traders in Africa.
END