Mutual commerce between Turkey and African countries has reached 25 USD billion. So as to grow this volume Turkish entrepreneurs make frequent visits to Africa. Then, what sort of opportunities await them in Africa?

We had been manufacturing for giant multinational companies. These companies had been coming up with the bids offered from India and/or China but intending to work with us even with a 3 to 4 percent higher margins. However, even at this rate we were to operate at a loss. Thereupon, I start seeking for countries with lower production costs.” This is quoted from Seyfettin Koçak, the owner of Else Tekstil. In an interview related to his investments in Ethiopia he enounces the company’s yielding organic cotton cultivation. On a 10.000 hectare field, along with a full blown factory to be established in 2018, the total cotton, fibre and fabric revenues of Else Tekstil is forecasted to reach to 600 USD million.

Apparently, many Turkish firms like Else Tekstil are quite solicitous about African market. Figures also support this fact. According to the Secretariat of Treasury Foreign Economic Relations President Hakan Tokaç, by 2015, Turkish direct investments in Africa mount up to 6,2 USD billion. In accordance with the growing Turkish investments in Africa, volume of trade is also on the rise as a matter of course.

Trade volume between Turkey and Africa climbed from 3 USD billion in 2002 up to 25 USD billion in 2015. No doubt this progress is not achieved by a campaign of a couple of months. The declaration of the “African Year” in 2005, Turkish-African Cooperation Summit in 2008, Africa Strategy Muniment in 2010, and Turkey-Africa Forum in November 2016, are all milestones in Turkish- African economic relations. As the figures indicate, economic interaction between Turkey and Africa is growing continuously and new opportunities loom on the horizon.

There are forty-one Turkish embassies in Africa. Likewise, thirty-four different African countries have embassies in Turkey. Accordingly, Turkey’s diplomatic and economic relations with many countries in the continent is growing. Tamer Taşkın, the Coordinator of the DEIK Africa Business Council, remarks “Via more than 150 sectors, by our European quality within Asian costs, 150 USD billion worth export and 220 USD billion worth import transactions, with our engineering and knowhow capability, and with respect to Africa’s need on investments, six to seven hundred million dollar import is no big deal. 10 million dollar export is nothing.”

Emphasizing the African countries need on infrastructure, Taşkın indicates, “Investments such as 1,3 USD billion worth airport and highway construction in Senegal, and expansion of Dakar Harbour and power plant construction are contracted by the companies such as Bouygues, Eiffage, Dubai Port with the funds of African Development Bank.” According to the records of DEIK, African Development Bank has a capital of 90 USD billion. In its 50 years past, the bank cumulatively granted nearly 100 USD billion loan in total. Annual amount of loans provided by the bank to its members is 7 USD billion.

Turkey’s capital share in the African Development Bank worths 300 USD millions with a share of 0,33%. Hakan Tokaç, President of the Secretariat of the Treasury Foreing Economic Relations expresses, “With the comprehension of the Africa and related financing opportunities, we expect Turkish companies to get a higher share of the tenders contracted by the African Development Bank in the future”.

Regarding the Turkish entrepreneurs, it is possible that the construction industry in Africa come into prominence. Ali Kartal Usluer, Member of the Chair of Turkish Contractors Union indicates that the 90% of Turkish construction projects are completed in Middle East, North Africa and African Independent States Region and worth 50 USD billion. Usluer states that some other projects are in progress in Libya, Algeria and Morocco.

Usluer emphasizes that in Sub-Saharan Africa, Turkish construction companies undertake important projects particularly in Ethiopia, Sudan and Nigeria. In contrast to its existing export markets in which Turkey struggles, Africa stands out as a high potential alternative. Besides with the emerging consumer markets in Africa, the low costs of production in the Black Continent bestow great opportunities for Turkish entrepreneurs.