In the meeting, Head of International Affairs of Iran Chamber of Commerce, Industry, Mine and Agriculture (ICCIMA) Mohammad Reza Karbasi termed Kenya as one of the developing countries in East Africa which enjoys a good geopolitical position and favorable climate. He added that Kenya is considered as one of the most industrial countries of East Africa and one of the influential members of the Common Market for Eastern and Southern Africa (COMESA).

He went on to say that Kenya with having the most important and strategic Mombasa Port and its good infrastructures can easily provide marine transportation in the East Africa for the economic activists. Karbasi emphasized that due to the existing potentials and capacities in Kenya in different fields like extraterrestrial cultivation, food and agro conversion industries as well as livestock and meat, there are huge opportunities for economic cooperation between Tehran and Nairobi.

He then pointed to the current trade volume of the two countries, and added that despite such grounds for cooperation, we have seen inconsiderable trade volume between the two countries in the past years, noting that the trade between Iran and Kenya in 2020 hit just over $60m. He reiterated that because of the potentials of the two countries, their trade volume can easily reach $500m in the next one year.

Karbasi said that Iran can meet the demands of Kenya in oil, bitumen, petrochemicals, machineries and motor equipment, medicines and foodstuff and Kenya also have some good grounds for trade with Iran like in the field of coffee, tea, tropical fruits, grains and agro products. He further said that if the required grounds are provided for economic activists of the two states, the trade volume of the two countries would definitely reach $500m in the shortest time.

He claimed due to the good potentials of the two countries, it is forecasted that their trade volume can reach $6b but its materialization needs a long-term approach by the officials of the two countries as well as preparing the required grounds for the economic activists of Iran and Kenya.

He said one of the most important axes for bilateral cooperation is the cooperation between the provinces of the two countries and in this line since two years ago the Iran-Keya Joint Chamber and the Qazvin Chamber of Commerce have been tasked to pursue the affairs related to the trade between Iran and Kenya.

Karbasi also pointed to some problems in way of bilateral trade and said that using the capacities of the local banks and especially small banks in money exchanges between the two countries is one of the priorities. He said one of the problems is the banking brokerages regarding the money transfer which has caused the two countries to fail in expanding their economic cooperation.

He then termed barter trade as a tool for skirting the current financial problems between the two states. He then pointed to some fields like solar energies, technical and engineering services for bilateral cooperation. He then announced the readiness of the ICCIMA for any coordination and long-term economic cooperation between the two countries.

Then the governor of Bomet County of Kenya and head of the visiting Kenyan trade delegation Mr. Hillary Barchok, for his part, pointed to the good progresses in the ties of Iran and Kenya and said the last meeting of the trade delegations of the two countries happened last November. He said fortunately Iran has imported tea from Kenya considerably since then and the visiting delegation is to start a joint investment in the field of tea in Lahijan, Gilan Province.

He added that Kenya is after creating facilities for Iranian traders, adding that his country is facing some challenges in this regard like the U.S. sanctions but these restrictions will not cause Kenya to stop working and it wants to increase its trade with Iran in any condition.

Barchok expressed hope Kenya can receive services from Iran in the field of medical education, medical equipment and medicines. He then invited Iranian trade delegations for visiting Kenya and said that losing time means losing money and capital, adding that Kenya is determined to expand its economic relations with Iran and it believes it should not waste the time.

Then Karbasi said that it is expected the direct cargo flights between Iran and Kenya to be launched by the end of 2021, and said Iran is determined to expand its ties with Kenya and the launch of the first joint investment in the field of tea and its packing is a good news regarding the strong determination of the two countries for developing bilateral cooperation.

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In the meeting, Karbasi said due to the banking problems due to the sanctions, both countries can use barter as a solution for enhancing their trade ties.  He said the senior officials of the two countries eye the trade volume of at least $2b but despite plans, today we see considerable decline in the bilateral trade. He then pointed to some goods required by Iran which can be provided by Vietnam and said experience has shown us that there are good capacities for restoring trade relations in the fields of petrochemical, mining, agro, medicines and medical equipment, sea foods and products and rubber.

Karbasi then pointed to the lack of direct flight between Tehran and Hanoi and said it was expected after the formation of Iran-Vietnam Joint Chamber and Joint Council all-out bilateral cooperation would continue in higher levels between the two states which did not materialize, noting that restriction on visa issuance is also another hurdle in way of joint cooperation.

He then referred to some details of the Iran-Vietnam Joint commission meeting and signing the preferential tariff agreement on some goods which did not come into effect. He noted that there are good capacities for export of rice, tropical fruits and products from Vietnam to Iran and if there is a strong determination in Vietnam, it can import Iranian industrial and agro products in exchange of exporting its products to Tehran.

Karbasi then once again called for re-activation of the joint commercial council of the two countries.

Then the outgoing Vietnamese commercial attache Lin Bang Kok, for his part, expressed the interests of all companies in Vietnam for cooperation with Iran and reiterated that Vietnamese economic activists have no specific information on the business climate in Iran and they are willing to cooperate with their Iranian counterparts under a specified and a defined framework.

He then pointed to the lack of banking system in the trade exchanges and said that since in the field of bartering Vietnam is importer and exporter of different products, it is required some coordination is prepared in advance.

Ban Kok then referred to the joint commission meeting of the two countries and said for exchange of delegation both sides need sanitary agreement between the two states due to the pandemic. He said the embassy has referred its views to the senior officials over easing the visa for Iranian traders.

Then the new Vietnamese commercial attache Mr. Thuan Long, for his part, said there are several tropical fruits and rice in Vietnam for exports and said the trade volume between Iran and Vietnam was less than $100m last year and called it an unreal figure because some of the exchanges between the two countries are not registered due to the sanction condition.

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Addressing the webinar, Head of International Affairs of Iran Chamber of Commerce, Industry, Mine and Agriculture (ICCIMA) Mr. Mohammad Reza Karbasi first pointed to the economic capacities of Kenya and added that Kenya is developing country in East Africa and the country is mainly dependent on agriculture, minerals and aquatic animals. He added that Kenya enjoys a special position in East Africa which provides Iran’s access to its neighboring countries like Uganda, Tanzania, Burundi and Rwanda and Kenya’s capacity for cooperation with its neighboring states is high.

Karbasi reiterated that ICCIMA has special view on trade with African states and it wants to use all capacities of economic activists, Iranian ambassadors in African countries as well as the Foreign Ministry to broaden presence in the African countries.

He stated there is good capacity for bilateral cooperation in the oil derivatives and bitumen, adding that if Iran wants to expand its trade with Kenya’s neighbors it can enter those markets through Mombasa Port and the export volume to that region via Kenya will increase. He also pointed to motor equipment, machineries and ago equipment, medicines and medical equipment, petrochemical and food stuff are the other fields for bilateral cooperation.

Karbasi reiterated major consuming products in Kenya are imported and Iran needs Kenyans to ease the process for Iranians to register its produced medicines in Kenya and its exports to Kenya’s neighboring states as well as to meet Kenya’s needs.

On imports from Kenya, he said Kenya can also provide Iran with feedstock, adding that of course this country can also provide Iran with cacao, grain and tropical fruits.

He added that despite huge capacities for cooperation between Iran and Kenya, their trade volume is unacceptable and the trade balance between the two countries was just $60m last year.

Karbasi then pointed to the obstacles in way of boosting trade between Iran and Kenya and said lack of banking relation is one of the main problems of Kenyan traders for trade with Iran which should be resolved and the launch of trade barter mechanism can be a solution which can help the trade between Iran and Kenya to increase.

He also reiterated that signing trade tariff agreement between Tehran and Nairobi is necessary for developing trade relations. He also pointed to the direct flight between Tehran and Nairobi and said despite the existing capacities, no direct flight between Iran and African states has been launched and the ground for its launch should be prepared for using all capacities of African markets.

Then Iran’s Ambassador to Kenya Mr. Jaafar Barmaki, for his part, briefed the participants in the webinar on the economic opportunities in Kenya and said Kenya is the only country among the six East African states which has access to the free water which helps other countries to have access to the free waters via this country.

He stated that talks for the launch of direct cargo flight between the two countries have begun and it is expected to be launched by the end of 2021.

Barmaki reiterated that for having a strong trade, one should both focus on imports and exports because trade is a reciprocal issue and Iran should not just focus on exports and in case it disregard imports, it may very soon lose its position in the market of Kenya.

Then Karbasi said the news of the launch of direct cargo flight between the two states is good news for Iranian traders and expressed hope soon the direct passenger flight between the two states would be launched.

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