Tamer Taşkın, Coordinator President of DEİK Turkey-Africa Business Councils made a call to Turkish Businessmen to “Visit Africa” to get a share of African market of 1 trillion dollars.
Taşkın stated that Africa became more attractive due to the economic crisis in Europe and underlined the fact the export figures increased from 4.3 billion dollars in 2001 to 20 billion dollar last year. He urged all Turkish businessmen to benefit from this opportunity. Taşkın also stated that Africa had a great potential and business was possible in all fields.
Taşkın noted that the total trade volume of 54 countries got near to 1 trillion dollars and the market had great business opportunities as well as difficulties. He added: “THY has direct flights to most of the African countries after its recent ventures. Africa consists of countries that have permanent growth based on mine revenues. There are giant infrastructure investments in progress. Any product from construction iron to furniture, from food to curtain can be sold in these countries”. Taşkın noted that Africa had a total population of nearly 1 billion people and many countries had a growth success of more than 20%. He emphasized that frequent visits must be paid to these countries.
Tamer Taşkın, Coordinator President of DEİK Turkey-Africa Business Councils made a call to Turkish Businessmen to “Visit Africa” to get a share of African market of 1 trillion dollars.
AFRICA’S POSITION IN THE WORLD ECONOMY
Population (2012) : 1.218.100.000
GDP (2012) : USD 2 trillion
Trade Volume (2012) : USD 1,14 trillion
Share in the World Trade (2011): 3,33 %
Direct Foreign Investments in Africa (2012): USD 45.8 billion
Share of Africa in Direct Foreign Investments in the World (2012): 5,6%
TURKEY-AFRICA INVESTMENT RELATIONS
BUSINESS OPPORTUNITIES FOR THE TURKISH COMPANIES
- Construction Services (Hospitals, Schools, Roads)
- Agricultural Industry, Agricultural Tools, Pesticides
- Food Industry (flour, attar etc)
- Fishery
- Textile and Ready Wear
- Leather Trade
- Construction Material (Cement – Iron – Steel)
- Energy
- Automotive (Tractor, Dumper Trucks, Garbage Trucks, Fire Extinguishing Vehicles)
- Electronic Goods
- Consumer Durables
- Pharmaceutical Goods
- Furniture
- White Goods
- Transformer
- Generator
- Ready door
- City illumination
- Sauce Factory
- Cable
- Steel Rope
- Spare Part
INVESTMENT AND TRADE POSSIBILITIES IN KENYA
There are investment opportunities in the country especially in areas like electrical energy supply, transformer production and maintenance, coal factory installation, coal search and operation, bio-fuel production, agricultural food and drink processing, animal husbandry, fertilizer production.
In 2012, Turkish companies made export of USD 138 million to Kenya especially in the sectors of textile, ready wear, leather clothing, leather shoes and bags, food industry, construction material, agricultural machinery, fertilizer, medicine and cosmetic products and automotive.
SECTORS IN KENYA
CONTRACTING SERVICES
Kenya economy is dependent on foreign loans and aids for the infrastructure and superstructure projects. In this sense, if our contracting and consultancy companies can provide their finance by themselves, there are many investment opportunities like construction of new road, improvement of existing roads, bridge construction, construction of mass houses, irrigation channels in agricultural fields, dam construction.
MANUFACTURING INDUSTRY
Industrial production in the country is very limited and inefficient and it cannot meet the requirements. Therefore, almost every type of industrial products is imported. Far eastern products are cheap but low quality while European products are quality but expensive. Therefore, Turkish products have a positive image in Kenya with their quality and affordable price. It is possible to make investment in the fields of construction material, medicines for human and animal health and cosmetic products.
FOOD INDUSTRY
Despite being an agricultural country, processed agricultural products like chocolate, candy, pasta, tomato sauce, cooking oil, vegetable oil, biscuits, corn starch, yeast and chewing gum are imported. It is possible to manufacture these products in Kenya with the transfer of necessary facilities, machinery, equipment and technology.
TEXTILE AND READY WEAR
Cotton production in Kenya has a serious potential but the production is not at the desired quantity and quality due to technological in capabilities. Labour costs are around USD 200. It is possible to manufacture textile and ready wear by making the transfer of necessary facilities, machinery, equipment and technology.
AUTOMOTIVE SECTOR
Total import of Kenya as main and side industry of automotive was USD 890 billion in 2010, USD 1 billion in 2011 and USD 1,2 billion in 2012.
Total export was USD 77 million in 2010, USD 54,5 million in 2011 and YSD 24,6 million in 2012 (estimate).
As agriculture and animal husbandry sector takes an important part in Kenya economy, there is great potential for our export of agricultural vehicles and machinery including tractor. It is believed that there is potential for our export with the commercial vehicles like bus, minibus and van in the automotive main industry and automotive spare parts, tube and tyre, and accumulators in the automotive side industry. In 2012, tractor export from Turkey to Kenya had a value of USD 1,868,000.
CONSTRUCTION SECTOR
If finance is found, there are projects like bridge, road, infrastructure and port that we can undertake. Currently, Nairobi Airport project with an annual capacity of 10 million passengers can be undertaken by Turkish contractors. There is a great need for a 5-star hotel which can address to upper segments and foreigners. On the other hand, there is a demand in the country for housing towers and a great business centre. Return period for such an investment will be very short. It is possible to find local partner investor in this area. There is a great demand for quality and branding. There is a leap of housing production in the country which has geared up in recent years, however, the greatest demand is for luxury houses and villas. Build-and-sell method is functioning very well in this area. There is huge potential of work for small and medium scale contractors and it is possible to find local partners in this field. There is also potential of investment and export for construction material, brick factory, PVC and aluminium joinery because of the house production.
AGRICULTURE AND ANIMAL HUSBANDRY
It is possible to rent large and fertile agricultural fields from the state, to produce and export products like corn, cotton, peanut, sugar cane, paddy and wheat, to install facilities to process meat, milk and dairy products, to establish factories for agricultural spraying, agricultural chemicals and fertilizers, to produce all kinds of agricultural device, machinery and equipment and to cover the spare parts and service requirements of the said products.
RENEWABLE ENERGY
There are important projects in this country which has an ever increasing demand of energy that cannot be met fully. Especially in the framework of build-operate models, there are concrete prestige projects. To give a concrete example, state carries out drilling for geothermal field and finds steam after which it delivers to the investors for power generation and issues production privileges with purchase guarantee. In addition, there is great demand and export potential in areas like drilling machinery and equipment, solar energy panel systems, generator, transformer and cable.
LEATHER PRODUCTION PROCESS
There are great business possibilities for leather industry especially in the fields of slaughterhouse and first processing of leather as there is significant level of animal husbandry in the country.
TEA AND COFFEE PACKAGING FACILITY
Kenya is a very important tea and coffee producer but it cannot make production in quality and packaging to offer to the world markets while it has great potentials in this field.
CHICKEN AND EGG PRODUCTION FACILITY
Since the chicken production is insufficient, chicken meat is more expensive than red meat. On the other hand, there is potential of production in this field since there is no problem in chicken feed.
FURNITURE
There is need for small and medium size businesses to manufacture house furniture and kitchen systems.
MEDICAL MATERIAL, MEDICINE AND HYGIENIC PRODUCTS
There are export possibilities for basic medicine, pharmacy products and medical material.
BREAD AND PASTRY BAKERY
The country urgently needs a bakery and an investor in this field can become a chain in a very short time.
ESTABLISHING RESTAURANTS
There are currently 2 Turkish restaurants but also a business opportunity for a Turkish restaurant to address upper segments in the country.
ENVIRONMENT AND NATURAL RESOURCES
Gold, limestone, soda, salt, hydro power, wild nature
