Speaking at the
Third Iran-Africa Cooperation Summit, Seyyed Jafar Hashemi emphasized the
strategic role of the petrochemical sector in Iran’s economic growth. "POGC
encompasses a number of petrochemical and refining companies that play a
significant role in the production of petrochemical and refining
products," Hashemi said.
Hashemi noted
that Iran’s first petrochemical company was established in 1964 at Shiraz
Petrochemical Complex with the aim of producing chemical fertilizers such as
urea. Today, Iran’s petrochemical industry operates 12 production units with a
combined capacity of around 10 million tonnes annually, of which Parsian Oil
and Gas accounts for 5.5 million tonnes—equivalent to 58% of the country's
total urea production capacity.
Key subsidiaries
include Pardis, Shiraz, Kermanshah, and Khorasan petrochemical companies,
Hashemi added, stressing the need to align with global and regional trends in
petrochemical development.
On the global
front, Hashemi said urea production currently stands at 237 million tonnes,
with 70% originating from Asia. Major producers include Iran, India, Russia,
Qatar, Indonesia, Pakistan, and Saudi Arabia. The Middle East remains the
largest urea-exporting region, while China and India are the top consumers.
Hashemi forecasted
that global urea production would rise to around 300 million tonnes by 2030,
driven primarily by Russia, Iran, and India. However, he warned that older
facilities unable to meet environmental standards would likely shut down.
He also addressed
the volatility of urea prices over the past years, noting that prices surged
from about $250 per tonne in 2016 to nearly $900 during 2020-2021, before
stabilizing at $350–$400 per tonne due to declining global energy prices.
Africa: A
Growing Market for Iranian Urea
Hashemi
identified Africa as a critical market, citing the continent’s growing
population, urbanization, and rising agricultural needs. Despite having a
population of nearly 1.3 billion, fertilizer use in Africa remains low,
averaging only 20 kilograms per hectare compared to the global average of 140
kilograms.
"Africa’s
dependence on urea will continue to grow," Hashemi said, highlighting that
60% of employment in Africa is linked to the food industry. The continent’s
urea consumption was about 3 million tonnes in 2023 and is projected to reach
3.2 million tonnes by 2028, with an annual growth rate of 6.6%.
Africa’s current
urea production capacity is 7.7 million tonnes, with actual production at 6.7
million tonnes. Imports amounted to 1.3 million tonnes, while exports stood at
5.1 million tonnes in 2023, he said.
Hashemi noted
that African urea imports were valued at over $2 billion between 2020 and 2023,
with Ethiopia, South Africa, Zambia, Malawi, Tanzania, Ivory Coast, Benin,
Senegal, Kenya, Morocco, Mozambique, and Zimbabwe among the leading importers.
"Iran has a
strategic advantage due to its geographic location and competitive pricing,
making it well-positioned to expand its share in Africa’s growing urea
market," he said.
Boosting
Iran-Africa Trade Relations
Iran’s exports to
African countries exceeded $1.3 billion in 2023, with petrochemical products
playing a major role. Hashemi said that there is potential to increase this
figure sixfold in the short term, particularly by leveraging the quality and
competitiveness of Iranian products.
Most Iranian
exports to Africa have been conducted indirectly through foreign intermediaries
and African traders, he said. However, existing agreements between Iran and the
African Union could further strengthen direct trade and cooperation, Hashemi
added.
"Beyond
economic advantages, strengthening these relations could offer broader
strategic benefits," he concluded.