Peninsula in African country refusing leader (6)

I believe the answer is:

iberia

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'peninsula' is the definition.
(peninsula including Spain and Portugal)

I can't explain the rest of the clue.

(Other definitions for iberia that I've seen before include "Spain's national flag-carrying airline" , "The peninsula incorporating Spain and Portugal" , "European peninsula comprising Spain and Portugal" , "W. European peninsula" , "European countries" .)

I've seen this clue in The Telegraph.

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