In our new, we examined the countries assumed as Sub-saharan countries located in the south of Africa, Democratic Republic of Congo, Namibia, Zambia, Mozambic and Tanzania. We searched the economic potential of these countries.
Many infrastructure and superstructure projects like house, barrage, motorway, hospital will be actualized. From food to furniture, from flooring to stationery equipment… Democratic Republic of Congo,Namibia, Zambia, Mozambic, Tanzania… There are serious inducements for almost all sectors in these countries which will be production centre especially for the KOBİ’s. You can sell proporties to their neighbor countries without paying customs.
Many infrastructure and superstructure projects like hause, barrege, motorway, hospital will be actualised. There are markets for all sort of products from food to furniture, froom floorings to stationery equpments. Trasnportation to these countries in which we have embassies is quite easy, Furthermore there is no visa problem. Most 5 untouched markets in Africa Democratic Republic of Congo, Namibia, Zambia, Mozambic, Tanzania… There are serious inducements for almost all sectors in these countries which will be production centre especially for the KOBİ’s. Demand for all sort of productsfrom food to furniture are intense. Trasnportation to these countries in which we have embassies is quite easy , Furthermore there is no visa problem .
IN THE WORLD, while Western countries especiall the developed ones, deal with economic stability, Turkey keeps on growing. Recently, the credit ranking establishment S&P (Standard and Poor’s) ‘ increasing our degree is the sign that there is a general view that this growing may continue. The engine of Turkey economy is undoubtly exportation. By the March, last one-year exportation reached 153.7 billion dollar. However, this number is seen as inadequate. Economy management is putting into words on all occasions that technological products must be given weight in order to reach the exportation number 500 billion dollar aimed for the year 2023. Private sector has advanced in recent years in this matter. However, it is true that The KOBİs that produce low value edit products shoulder at least outbalanced ones. One of the most important markets for these firms which sell proporties to the four corners of the world is undoubtly Africa. The dark continent holds big opportunities for Turkey business word. African countries which start to redound underground sources to economy can be an important production centre. There are so attractive inducements for investors in these countries which can make production in most sectors from automotive spare parts to the machines which are used for agriculture and mining, rom food to furniture. In our new ,we examined the countries assumed as Sub-saharan countries located in the south of Africa, Democratic Republic of Congo, Namibia ,Zambia,Mozambic and Tanzania. We searched the economic potential of these.
DEMOCRATIC REPUBLIC OF CONGO
Democratic Republic of Congo whose old name is Zaire; is neihbour with Sudan, Central African Republic, Congo Republic, Uganda, Ruanda, Burundi, Tanzania, Angola and Zambia. The country, which has 37 kilometers shore to the Atlantic ocean is located in the Equatorial Zone. In addition having fertile lands, it is one of the richest country of Africa with respect to its underground sources It has a voice in cooper, diamond,coal,uranium and coltan mine used in defense industry. One of the world’s biggest rain forest is again located in this country. However, in spite of all these richness, per capita income is just about 180 dollar. This country which has deficiencies in infrastructure and superstructure from motorway to electricity from hause to drinking water offers job opportunities to small-big companies despite its situation mentioned. Democratic Republic of Congo whose ecenomy has started to reviving in the last years has been growing overally % 6 per year since 2001. This year % 7 growth is expected. Its GDP has been estimated as 16.3 billion dollar by increasing % 26.4 in 2011 when compared to the former year.
We have embassy for 35 years
Political relations between Democratic Republic of Congo quite date back to old times when compared with most of the other African countried. Turkey has an embassy in the capital Kinshasa since 1976 while Congo has opened up its Ankara embassy in 2011 august.
Belkis Gümüş, consular agent of the Democratic Republic of Congo since 2002, endevours to improve political and economic relations between two countries. Gümüş who frequently gets together with the directors of establishments such as Istanbul Chamber of Industry, Istanbul Chamber of Commerce, Turkish Contractors Association, Turkish Exporters Assembly to attract the attention of these establishment to these countries always complains about the indifference by both the politicians and business world though.Last year, only 100 visa request have been made to Gümüş, who also has the authority to give visa.Gümüş, who considers to organise “Congo day in the date 30 June, the independence day of Congo, in Istanbul says these: “Democratic Republic of Congo is the old colony of Belgium. There has been no restoration even a repairment after Belgium.There is only three hotels in Kinshasa which has 8 Million population. Many investments from hause to otel,from motorway to electricity from hospital to airport are needed to be fulfilled.Even there is no fixed phone in many regions because there have no necessary infrastructure.”
She isprepering a report for the president
Gümüş remarking that she would prepare a report including economic potential of the country and present it to the president Recep Tayyip Erdoğan, says that government has a great duty in order that the Turkish firms will be able to take jobs in this country. An important deficiency is that there is not any Turkish Banks in there according to Gümüş: “Turkish banks should’nt wait until our foreign trade reaches a definite extent. There are Turkish enterpreneurs managing restaurant, opening ready clothing shop in there. There are trade firms of us who trade this country. European banks opened their departments years ago. Money transfer is carried out by these banks in any case. ”Belkis Gümüş, the owner of Zeta Ltd established in Belgium and Turkey, exports to Democratic Republic of Congo. Gümüş ranges the products which can be sold to this country : “Initially pasta and tomato paste, all sorts of food productions can be sold. However, they must be kept in small packs as there is a quite hot climate in there. Using refrigirator is quite limited due to iadequate electricity. There is so much need for doorhandle,window, floorings, all sort of kitchen staff, furniture, cosmetic staff, baby clothes,stationery equipments and generators. Also it is the country which consumed much more beer in Africa when compared to its population.” We should denote that there is no problem about trasporting to the country. Hence, THY started to flights between Istanbul and Kinshasa in last august. Property transfer to the country is provided thanks to these flights arranged 5 days in week. Belkis Gümüş stresses that logistic firms such as Yurtiçi Cargo, Aras Cargo and MNG should definitely join to African markets.
Namibia, located in southwest of Africa in the shore of Atlantic Ocean is neigbour with Angola, Zambia, Botsvana and South African Republic. Namibian desert comprises the complete 1500 –kilometer- seaboard and in any case it takes its name from this desert meaning “huge”.
Namibia whose population is 2.3 million is one of the safest countries of Africa also it leads the countries which have low level of corruption. The country, politically stable, recently has been in progress as economically. Namibia whose yearly exportation cost 4 billion dollar, earns tourism income yearly cost 350 million dollar.
Few Turkish business people carry on a business in Namibia which has not been discovered by the investors yet. One of them is Hatem Yavuz. Hatem Yavuz, the boss of Yavuz group, who has tanyard in Tuzla operating in leather sector, also has been working as the Istanbul consular agent of Namibia for two years. Yavuz went to Namibia 12 years ago The enterpreneur hired a gold mine area for 32 years. He looks for the investor to open up operating this mine. Yavuz, remarking that Namibia has one of the most developed infrastructure among African countries says this stiuation emerges from the fact that it is an old colony of Germany. Yavuz reminds: “They used to call this country as Southwest Germany. Germans still comprises % 5 percent of the population.
Potential in construction is high Hatem Yavuz denotes that although Namibia is ahead of most African countries on the infrastructure matter, there is an increasing need for especially hausing and barrages. Yavuz speaks of establishment new railway line is remain on the agenda and the Turkish may take part in these projects.
There is a need for hospitals according the information given by Yavuz. Namibia is rich in underground sources like most of the African countries. The most qualified uranium with respect to radioactive density is in this country, again He is forth in the world with respect to reserve of this mine.Furthermore, it is on the status of one of the biggest diamond productors in the world.In Namibia which has a big reserve on gold and zing, also petrol and natural gas were found two years ago. Yavuz denoting that there is a plan for establishing refinery keeps on his sayings like this: “ There is a search for investor. Turkish Petroleum Corporation can operate in there (TPAO) I am waiting for the information about the matters ; both extracting the petrol and natural gas and instilling from Namibia Ministry of Energy. After these are determined, I will have meetings for the purpose that Turkish investors make investments in there. The centres of leading firms in the world stay here. Belgium De Beers operates % 50 corporate gold mine with the Namibia state.”
Member of SADC
In addition to mining, there is a serious job potential in country on fishery and husbandry sectors Yavuz remarking that both leather and curly wool might be imported from the country in which lamb and calf stockfarming is widespread says these about the exportation : Namibia trades most of its foreign trade with South Africa Republic. Turkish products sold in this country come over South Africa. They do not know Turkey enough. The firms considering exportation to this country should not only think domestic market. Hence, Namibia is the member of Soutg Africa Development Community. Properties can be sold to neighbourhood countries like Angola Botsvana without paying customs. Most of food production can be done in this country, namely chocolate and biscuit. Many inducements are given to investors. There are serions discounts on the social insurance taxes of the labours. Income tax is quite low. For example, % 5 in mining sector. There is an increasing attention of Turkish firms for this country. Businessmen about 10 have visited the country in the last 6 months to examine the market.
THY (Turkish Airlines) will install flight
Turkey opened an embassy in the capital city of Namibia, Windhoek last year while Namibia has not had an embassy in Ankara yet. Turkish citizens going this country are able to ge their visas from agent counsalor.Hatem Yavuz explains that they gave visas approximately 300 people last year,while this number is 30 in 2011.
There has been no direct flight of Thy to Namibia.That’s why, it is necessary firstly to go Johannesburg, The South African republic by THY.People can arrive Windhoek by 1.5 hour-flight from there. Hatem Yavuz reminds that They have been meeting with THy for direct flight and a new flight line to Luanda, capital of Angola and from there to Windhoel has been recently the topic of THY.
Tanzania, located in southeast of Africa is neigbour with Kenya,Uganda, Ruanda, Burundi, Democratic Republic of Congo,Zambia,Malavi and Mozambic.It has the shore to the Indian ocean. The population is 41 million but lands are three times bigger than Turkey. The Nile Rives, lifeblood of Africa grows out of lands of this country. The mountain Klimanjaro and Zanzibar Island are located in this country again.
Economy is mostly depended on spice production.It earns almost all tourism incomes by the tourist participating safari tours. The mountain Klimanjaro and capital Darusselam district are among the prominent safari regions of Africa. There are the Turkish among the tourists interested in safari tours.Approximately 1000 people from Turkey participate in safari tours each year. There is an international hotel chain including Sheraton, Holiday Inn and Kempinsk in Tanzania, however, these premises are far from providing the demands. Tanzania agent Counsalor Mustafa Çıkrıkçıoğlu remarks that especially Zanzibar is a holiday paradise however the need for hotels is much more felt in this region.
Tanzania is among the assertive countries on producting cashew and jathtropa.Teakwood especially demanded in furniture sector as it is hard and sturdy, also grows up in this land.
Lands are avilable for agriculture
Tanzania’s economic potential is not limited to these. shores of The Nile river covering a distance hundreds of kilometers in Tanzanian lands, are availible for most of agricultural products namely long loahf cotton. However We shall denote that this potential is not evaluated enough. There is a Turkish businessman named Muammer Öksüzhan among the investors moving to evaluate arable lands of the country. Öksüzhan cultivate corn in 30 thousand decare land which he hired for 99 years. Özendi Furniture belonging to Mehmet Özendi and Ahmet Tavukçuoğlu’s firm named Atlas Group manifactures furniture and Turkish businessman named İsmail Dağlı has a company operating in cosmetic area in Darusselam named ADT limited. The Chinese are quite active in Tanzania markets like in almost everywhere. Textile and garmenty especially are in the hands of Chinese.This situation emerges from low purchasing power of Tanzanian people. Despite this, Turkish textile and garment firms have the chance to get into market with cheap but qualified products.However, it is definitely necessary to found a company in Tanzania for this.
Founding a company in Tanzania costs about 2500 dollar but you need to have 50000 dollar fund.Turkish textile firms can make production in there by extracting their old machines in Turkey.
There are lots of job opportunities for contractor
Political and economic relations between Turkey and Tanzania are rapidly improving. Establishments like TUSKON (Turket Businessmen and Industrialists Confederetion ) and TIM ( Turkey Exporters Assembly) have organized business commitee travels a while ago to improve relations with this country.
Recently in january, Çelik Exporters Association has taken a commitee consisting of businessman to Darusselam. Mustafa Çıkrıkçıoğlu remarks that one of the leading high potential sectors is construction sector and contractors have started to carry out projects in here : “Establishing an international airport is considered. This project will most probably given to Turkish firms.We fulfilled a business travel to Tanzania as Çelik Exporters Association. Many business connections were founded during this trip. Out steel exportation to this country has increased by % 32 as annual basis when compared to last year. There is a big dynamism in construction sector. Many infrastructure and supersturcture projects like motorwat,hospital,hause,villa will be made true.” Turkey’s Darusselam Embassy was opened in the year 2007. Turkish citizens going to this county are able to get their visas while entering this country.
The eastern Africa country, Mozambic is located in the south of Tanzania, in northwest of Malavi and Zambia and in the east of Zimbawe, in northeast of Swaziland and South African Republic.The country which Indian Ocean is located in its east, has a 2.515 –kilometer-shoreline. 2.5 million of 23 millionpopulation live in capital Maputo. Mozambic that was once an important trade centre due to the fact that it has lots of natural ports, takes its name from the prominent Arabian trader of that time, Musa Bin Bend. This name changed into Mozambic in time. The official language is still Portuguese in this country which was the colony of Portugal until 1975. Mozambic is on the 25th order in Africa continent with its 9.6 billion dollar gdp per capita. One of the biggest coal reserve in the world is located in this country. Especially Tete region has a complete coal formation. In recent years, natural gas has been found in the country.
Thanks to this, It is expected that the country will illustrate a rapid growth as economically in the forthcoming years.
There is a free charged land for agriculture
Yusuf Kaya, İşkaya Companies Group board chairman and Mozambic Izmir agent counsalor, says that construction and agriculture are leading sectors which have high economical potential.According to information Kaya gave, many projects like hotel,villa,shopping centre are on the topic. The country is a paradise for agricultural production because there is no heath difference throughout the year and the climate is same. The government allocates free charged lands to the firms investing in agriculture. Trade volume between Turkey and Mozambic tends to increase.
We remind that Economy Minister Zafer Çağlayan visited this counry in 2012,November. In 2011, Exportation from Turkey to Mozambic cosr 102.5 million dollar while importation from this country cost 71 million dollar.Turkish companies mostly sell fertilizer, cement,cleaning stuff,refrigirator and deepfreezers,furniture and electricity staff. Yusuf Kaya says that many nourishment products namely fruit juice and wingy meats. There are 150 Turkish firms in Mozambic now. Firms expecting to found exportation connection should not miss 49th Maputo International Trade Fair on the next August.Over 40 Turkish companies participated in the last year’s fair.
Exportation to USA without customs
Mozambic applies customs between %0 -20.Value added tax rate is % 16. It can sell with the rate of %0 customs to many countries as it is a member of South African Developmet Community(SADC) Also, In Compliance with African Growth and Opportunity ActAGOA and GSP- Generalized System of Preferences, many products experted from Mozambic can enter to a USA without customs.
Transportation is easy
There has been no direct flight from Istanbul to Maputo but Air Transportation Agreement was signed in civil aviation negotiations between Turkey and Mozambic Civil Aviation Commitee in Istanbul dated 18 September 2012. According to this agreement, assigned airline firms will be able to arrenge fourteen times scheduled passanger flight in a week and scheduled cargo flights without limitations by passing from all points from Turkey to Maputa Beira and Nampula and Mozambic’s assigned airline firms firstly will pass to Istanbul and Ankara from same cities. There is direct flight of THY from Istanbul to South Africa Johannesburg. It can arrive in 1.5 hour by South African Motorways from there to Maputo. We remind that Turkey’s Maputo embassy was opened in March 2011. Mozambic gives a 30 –day tourist visa and it can be taken when passing to the country.
Located in south of Africa, Zambia is neigbour with Democratic Republic of Congo, Tanzania, Malavi,Mozambic, Zimbawe,Botsvanaer.,Namibia and Angola. It takes its name from Zambezi river.The official language in country is English where 13.5 million population live and speak 45 separate local languages.It is accepted as one of the most democratic countriesin Africa. The country is rich in undetrground sources namely cooper.Apart from cooper, the country has petrol,natural gas, diamond,gold.zinc, lead,nickel,tin and coal mines. Zambia which has many regions for safari tours, attracts thousands of tourists thanks to worldwide famous Viktoria Falls. Because of its high tourism potential, the government include the invesments in this sector into inducement extent. In agriculture, mostly corn, soya bean,cotton and sunflower are cultivated.
There is no visa problem
Turkey’s Lucasa embassy was opened in 2011.This embassy carries out the relations between Turkey and Malavi. Workings on opening Zambia’s embassy in Turkey have been processing. Elected as president of republic, Michale Chilufya Sata will make an official visit to Turkey in forthcoming months as Abdullah Gül’s visitor. Turkey-Zambia Business Council’s establishment process have started under Foreign Economic Relations Council (DEİK).Furthermore, a visit of commitee consisting businessmen organized by TİM, TUSKON AND ZAMBIA AGENT COUNSALOR is planned to be fullfilled in this year.
There are a few Turkish companies facilitating in Zambia.The most serious investment has been made by Mineks International.Mineks International facilitating in many sectors has many investments on the areas ;petrol,natural gas,mining and health. Bülent. göktuna has been carrying out the duty of agent counsalor since 2007. Göktuna is the bos of Istanbul Surgery Hospital and Mineks International.
They apply YID MODEL (MMA)
Bülent Göktuna says that many projects in the sectorslike energy, tourism, mining will be carried out by the make-manageassign model (YID_MMA) In addition to this, motorway and railway lines will be renewed again by the same model. Göktuna remarking that world leader country Zambia in mining demands to sell this mine after processing it expresses that serious investments are planned in this area. Another business potential in Zambia is health sector. Göktuna explains that an agreement about health sector between Lusaka Embassy and Zambia government was
signed in the previous days.In according with this agreement, many specialization hospitals’ construction is planned. On the other hand, Zambia government wants to fulfill an organized industry district(OSB) model similar to Turkey’s. A Zambian committee fulfilled examinations in Gebze OSB last year.
Necessity for cheap housing
Bülent Göktuna remarks that Zambia government plans to have built not high-rise but cheap houses in order to improve life standarts of the public. Gross national product in Zambia is approximately 20 billion dollars while per capita income is approximatelyy 1500 dollar.A project for providing economic development of the country has been started. Bülent Göktuna remarks that serious enducements especially on the sectors agriculture and tourism : “Zambia has the % 43 of complete water sources of South Africa region. That is why there are many investment opportunities on the matters of cultivating many agricultural products and packing them. Richness of water sources makes the establishment of hydroelectric power stations possible. The country is an appropriate market in terms of contstruction material exportation.I think that, If Turkish Eximbank make loans available for our construction companies, our firms will be able to take place in hausing and infrastructure projects. Mining sector namely cooper
is among the high potential investible areas.There are many investment opportunities in hotel and tourism areas namely Victoria Falls located in the south of the country and being a big tourism centre of the country. Even if it has no border with sea, location makes Zambia an ideal centre for improving business relations.” There is no direct flight from Turkey to Zamibia. The easiest transportation is by connecting from capital of Tanzania, Darusselam and South Africa Johannesburg to Zambia. However, THY has been carrying on the studies to open Istanbul- Lucasa line.Flights are expected to be opened this year.
What can be sold to these countries?
Accumulator, fishing tackle, biscuit, fridge, sheet, cement soak, iron and steel,pharmacy staff, electrical machine and devices, solar energy board, ready clothing, generator, timber drying owens, air conditioner, canned foods, cloth, poultry meat,pasta, machine-made carpet,yeast,furniture, motor land vehicles,plastic products, tomato paste, oil, drilling machines, candy, pesticide,cleaning materials,flour, bedcover.
Yelkenler Poultry, Board Chairman
“We export to Africa the chickens which stop laying egg. We fulfilled exportation costing 6.5 billion dollar last year. We cut the chickens in our own slaughter house by picking them from many districts of Anatolia.We gice these products to French, Belgian, Spanish and Italian foreign trade companies. The chickens are sent via these countries. We make our sales by “Yelpi” brand.It has a big market in Africa as the chicken is % 50 cheaper than pullet. Our brands is gradually getting known in Africa. That is why, We will directly export our products. We plan a visit to Angola, Democratic Republic of Congo and Republic of Congo to meey wholesalers and to build exportation connection. There is big demand for food product in Africa. We would like to have a voice in Africa, We will export processed meat products like salami and soudjouk apart from chicken.”
Akaş Dace Food, Board Chairman Member
“We produce candy, granulated drinks and chewing gum since 1989.Our premises is in Manisa Akhisar. We have private label productions for many European firms.Furthermore, we make productions ny our own brands. We have exportations to many countries. We have just entered the African market. We export lolipop to Democratic Republic of Congo.We’d like to enter the other countries in this region. We will participate in the fairs organised in Africa. Chinese firms are our rivals in these countries but we have big expactations about African markets.”
Prof. Dr. Orhan İDİL
Hayat Chemical, General Coordinator
“We export detergent, napkin, sanitary pad, cleaning paper by zero customs thanks to detergent factory of us in Algeria and Hygen Thesis in Egypt to all Africa. Africa’s share in our complete exportation is by % 18. African countries are efficient because of the positioning of the rivals in region and deficiency of African consumers in terms of current cleaning means. There is usually no production in these countries.Economy based on importation exists. So, rapid progress by entering the market easily by suitable price and quality product. Transport is a big problem according to country and high transportation price exists. Importer firms want to work with high margins and this requires low level of ex-factory cost.Another problem is that the obligatory subvision process before delivery in definite countries.This both leads to loss of time and increasing cost. That’s why price analysis must be done carefully.”
Bolu Kalite Feed, General Manager
“We produce turkey by Bolca brand since 1995.Our yearly production capacity is about 30 thousand tonne. We export to Angola,Kenya, Nigery, Democratic Republic of Congo and Benin since 2006.We gained these markets from fairs. We do not make any special products for these countries but products we send are a bit cheaper and they appeal to their taste. We comfortably sell the products which are net preferred by other countries to these countries. The most important problem is we cannot directly export to these countries. There are resellar trading firms between. Who to sell these countries must find reliable trading firms. They must keep their promises on time. They must work with letter of credit. We want to increase our exportation to Africa. We have doubled our exportation in last two years by humble works as firm. Most countries support their exporters. If adequate subvension is provided, we can more and more increase our exportation.”
Gala Furniture, Exportation Manager
“We export many countries from Ivory Coast to Mauritius, from Mozambic to Zambia in Africa. We entered these markets by means of fairs in 2002. We participate in these fairs every year.The country visits we make every year have a big effect on gaining continuity of our exportation. We exchange information with our customers before and after order.This increases our crediblity.African countries grow by the rate of % 6-7 each year.Most furniture factories stood still thanks to African countries in 2012.While the exportation of sector to other countries regresses, the rapid rise of African countries continues.The people who want to sell products to these countries must be patient.It is necessary to sell the right products which can satisfy the expectations by considering life conditions of the people living there and by exact prices and by giving cconfidence.”
eBaltaş, Founder partner
If a company in the region demands you high amounts of product by saying that there is public procurement and says that it will give you half of the high amount of money on the condition that you will pass it to Turkey, most probably it tries to launder money. There are big commercial opportunities in the region. You may earn the money which you can’t earn by any business. However, We shall warn the people who will work with local distrubutors.We shall remind that some of them even if a few are mafias but do not be afraid!…You will not face any trouble as long as they earn money. You can get information about the business you will make from offical web sites of the goverments (You can access them by searching the related country’s name and gov word from Google ) Also, You can demand support from Organization of African Unity (OAU) and Economic Community of North African States. Do not forget to be vaccinated before going !
This article was taken from “Africa Time” magazine by demanding all necesary permissions for copyright.