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Turkey to Deepen Trade Ties with Africa: Shining Chance for Nigeria

Istanbul, Turkey | May 27, 2008 by D-8 Secretariat

TSKMinisters from African countries and many other high level bureucrats participated in TUSKON’s third Turkey-Africa Foreign Trade Bridge, supported by the Turkish Foreign Trade Undersecretariat and was held earlier this month.

The Third Turkey-Africa Trade Bridge, organized by the Turkish Confederation of Businessmen and Industrialists (TUSKON), was officially opened by Foreign Trade Minister Kürşad Tüzmen at the İstanbul Wow Hotel.

The record number of participants and high-level representation marked the event as yet another indication of the growth business relations between African countries and Turkey have seen in recent years. “Our goal is to bring the total volume of trade to approximately $20 billion this year,” Tüzmen said, adding, “Our target for 2012 is $50 billion.”

TUSKON Chairman Rıza Nur Meral said, “Forty-five African countries, just 7 short from the total count on the African continent, are represented here, and 20 of them are represented at the ministerial level.” He added, “We would like to expand this number to include all African countries next year.” TUSKON also signed cooperation agreements with close to 30 African trade organizations yesterday. Meral called Africa a “rising star” and demanded that “more attention be given to developments on this continent from Turkish investors.”

The summit is sponsored by numerous organizations, including the Turkish Undersecretariat for Foreign Trade, and it has paved the way for exponential growth in trade opportunities between Turkey and African countries. Just in the first quarter of 2008, the trade volume between Turkey and sub-Saharan Africa increased by 200 percent. Organizers say the participation level exceeded their expectations this year, with 3,500 Turkish and African entrepreneurs taking part in around 40,000 business meetings. The gigantic exhibit hall also doubled from 5,000 square meters to 10,000 to accommodate increasing interest from both sides.

TUSKON aims to contribute to around $3 billion in trade between Turkey and Africa with this summit. Twenty African countries, including heavyweights such as South Africa, Egypt, Kenya and Senegal, sent their ministers for trade and economy to the summit this year.

In the last two years alone, the trade volume between Turkey and North African countries has increased by 78 percent both in exports and imports.

In his opening speech at the summit, Tüzmen suggested that Africa needs to take better advantage of its big potential in agricultural products, drawing attention to soaring food prices all over world. He compared the price hikes to a silently approaching tsunami and advised his African counterparts to take up the challenge by investing in agriculture and utilizing more technology. Conveying a warm message to the ministers and high-level officials from Africa in attendance, he told the audience of the famous 13th century poet and mystic Mevlana Jalaluddin Rumi’s saying, “You don’t need a mirror if you have a good friend.” Tüzmen said, “We are here to help each other,” adding: “We are not only friends but, beyond that, we are brothers. We have unity and common ground for sustainable economic development and common welfare.”

Minister Tüzmen argued in favor of much-needed financial incentives and long-term loans for African countries. He also said, “We need to implement new regulations intended to provide better access for African products into the world market.” He added, “The system should be based on equitable trade.” He stressed that Turkey, with a vision of free trade through fair commerce, can help African countries break the cycle of poverty and play a crucial role in expanding all kinds of commercial and economic ties. Henry Mane, minister of commerce and industry from African country Guinea-Bissau, responded positively to Tüzmen’s call for cooperation in overcoming the food crisis. He said, “We need to focus on enhancing production capacity,” adding, “The crisis hit Africa badly.” He noted, “Turkey can contribute greatly to the African continent by investing in our potential.”

Analysts say the volume of trade between Turkey and African countries has remained low for quite some time, but that the last few years have witnessed a positive trend. The numbers are quite surprising. The trade volume between Turkey and Africa was $5.4 billion in 2003. This number has shot up to $13 billion since then. The first quarter figures this year increased by 71 percent over the same quarter last year, reaching $4.6 billion. At this pace, the year-end estimates bring the total to $20 billion. Turkey is said to be developing a new program that caters to African countries, especially those in the sub-Saharan region, with direct foreign investment to boost trade. This week’s summit has seen many ministers from the African continent calling for investments by Turkish businessmen. South African Commerce and Industry Minister Mandisi Mpahlwa said, “The most important need for Africa is to increase production capacity, and Turkish businessmen can invest to enhance this capacity.”

Meral said yesterday, “Turkish companies can provide great contributions in the African market, especially in the construction sector.” He stressed, “Our construction quality is second to none,” adding, “Turkish companies come in third place in this sector after the US and China.” He also said, “African countries can find all kinds of goods on the Turkish market … at substantially lower prices.” He said, “With increasing trade with Turkey, African countries have started to buy more goods with the same amount of foreign reserves in the last few years.” He invited African traders to explore opportunities in many sectors, ranging from furniture to textiles and from appliances and electronics to packaging and construction.

One major obstacle to business relations between Turkey and African countries, especially in small and medium-sized business ventures, comes from the cost of transportation and logistics, experts argue. Asked what TUSKON can do in this regard, Meral said: “We are aware of this issue, and it obviously concerns us. We brought freight and logistics companies to this exhibition to address the problem.” He added, “Frankly, I think that as the trade develops between these countries, these companies will start offering better options and more competitive rates to the traders.”

Turkey is also trying to address the financial needs of the sector in that regard. Tüzmen said EximBank is ready to provide financial backing to projects between Turkish companies and their African trading partners. He said Turkey has applied to become a member of the African Development Bank and that they are working on common projects in cooperation with the World Bank and the Islamic Development Bank. Kenyan Deputy Minister of Trade James Omingo stressed Africa’s need for financing. “Africa has been an importer of raw materials for many years, but this was a bad experience for us. We have raw materials and cheap labor, but we are short of capital supply,” he said.

To complement infrastructural development on mutual trade, Turkey has, for some time now, been providing technical assistance and educational programs to African countries, and new projects are under way to enhance these programs. While the Turkish Foreign Ministry has decided to open new embassies and consulates in some African countries, the Trade Undersecretariat is also working to expand their representation at the attaché level in a number of countries. The Turkish Cooperation and Development Agency (TİKA) currently has three offices in the whole continent and they would like to open new ones to support technical education in African countries.

Tüzmen’s call for increased cooperation in controlling food prices and technology transfer echoed well among his colleagues from Africa. G. Bukenya Balibeseka, the vice president of Uganda, agreed that cooperation is important in overcoming the food crisis, especially in staples such as rice and wheat. Bukenya noted, “We have great potential in wheat and rice, but we need technology transfers to increase the value of these goods.”

Feedback from the floor

“The event was very impressive,” says Muhammed Bawa Gummi of Nigeria, comparing the level of progress with last year. This is his second year at this trade bridge between Africa and Turkey, organized by the Turkish Confederation of Businessmen and Industrialists (TUSKON). “[Last year's] was small, and we didn’t have much space,” he noted.

Gummi is a manager of foreign trade for Nigerian-based NBTS, a company dealing in textiles. “Turkish textiles are the best in the world,” he says, adding: “The quality you can find here is excellent. We are more interested in the technology that Turkish textile factories have today and looking at ways to transfer that to our factories in Nigeria.” Gummi points to the fact that Turkish textiles are not advertised much, saying, “Not many in the world know how good your textile products are.”

Another participant, Amin Jackson Opuku from Ghana, came looking for business partners in the construction field. Representing Millenium 2000 Complex Ltd, Opuku hopes to meet as many Turkish businessmen as he can to make his trip worthwhile. His friend Alhassan Clement Icezi is accompanying him and hopes to sell timber products to Turkish buyers. “We have plenty of teakwood we can sell to furniture producers,” he said, stressing the teak is much sought after timber material in the furniture business.

Yessoufou A. Aziz from the francophone African country of Benin came to the TUSKON event to look for electrical materials to sell in his country. As an import manager for his company, Ope Yemi, Aziz is searching for bargains at the TUSKON meeting.

Olujimi Adekanle is a Nigerian who works in the construction business in Nigeria’s capital of Abuja. He is looking for partners to build houses in his country. “The housing market is very much in high demand in Abuja,” he said, adding that the “government provides land and all the utilities such as water and electricity.” He also underlines that the profit margin is approximately a 70 percent return on investment. If he can sell his idea to a Turkish financier, he’ll be a happy customer on his way back home.

Source: TUSKON

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