IT'S TIME TO EXPORT TO AFRICA
AOSB BOARD CHAIRMAN SÜTCÜ:
"NEW MARKETS OFFER NEW OPPORTUNITIES IN A PERIOD OF DIFFICULT INTERNATIONAL COMPETITION"
The business world showed great interest in the 'Export Opportunities to Africa' event hosted by Adana Hacı Sabancı OIZ. At the event, ways to export more to the continent, which imports 700 billion dollars annually, were explained.
Bekir Sütcü, Chairman of the Board of Directors of Adana Hacı Sabancı Organized Industrial Zone, emphasized the importance of alternative markets for more production and exports in his speech at the opening of the event on 'Opportunities to Africa' organized by 2blackdot Consultancy at AOSB Seyhan Hall.
Stating that new markets offer new opportunities in a period of difficult international competition, Sütcü said that they attach importance to the organization of such events. Sütcü said, "I would like to thank all of you who filled the hall. As the OIZ Management, we stand by the industrialists not only in terms of infrastructure but also in every conceivable field. More than half of Adana's exports are realized from our region. But we say it is not enough and we are making efforts to increase it even more. We also care about Africa as a market where we need to further develop our relations."
Moderated by journalist Mehmet Ulturkan, the event was held in an interactive environment with the participation of Utku Bengisu, President of the World Inter-Sectoral Cooperation Forum and Africa Expert Utku Bengisu, Çağ University Faculty Member Prof. Dr. Murat Koç and Foreign Trade Expert Turan Akın as speakers.
EVERY PRODUCT AND EVERY SECTOR HAS EXPORT OPPORTUNITIES
Utku Bengisu, President of the World Inter-Sectoral Cooperation Forum, started his presentation by drawing attention to the fact that Africa is drawn smaller than other continents in atlases and said that the continent, which has 54 countries, is valuable enough to make Turkey's foreign trade move.
Emphasizing that Africa, known for its geographical and historical proximity, imports more than 700 billion dollars every year, Bengisu said, "With focus and small steps to be taken, we can increase our exports of 35.5 billion dollars to triple digits."
Bengisu explained that China is one of the most important exporters in Africa and today it has become an exporter worth 288 billion dollars:
"It is possible to understand China's figure. Because it has money. It went to Africa with its financial power and now it is reaping the fruits. But what about India? In 2005, India exported 6.1 billion dollars to Africa, while we were sending 5.5 billion dollars worth of products and services. India increased its figure to 188 billion dollars, while we remained at 35.5 billion dollars. We should work on the reasons for this. India cared about Africa, it was there with close markage. We also need a trade move in this continent. Regardless of the sector, our business people need to get out of their comfort zone and go to Africa. We can also succeed. As WCI, we have focused on the continent for 12 years. We organize fairs, sectoral bilateral business meeting organizations. We are ready to share our experience, insights and network."
AFRICAN DIASPORA CAN OPEN NEW DOORS
Stating that the population in many regions, especially in Europe, will not increase as much as in Africa, Bengisu said, "In 2050, there will be an Africa with a population of 2.5 billion. Every product produced from needle to thread has a chance in this market. My suggestion to our business people is to target the African market with whatever you produce. Go to the French-speaking countries of the continent in French, to the English-speaking region in English, to the Arabic-speaking part of the continent in Arabic with your brochures and labels. Utilize social media in these languages and regions. Also remember that there is an African diaspora around the world. Your customer in Africa can open the door for you to export to another country in the world."
Stating that 370 thousand African students are studying and are students in Turkey, Bengisu said, "I learned that there are 1,200 African students at universities in Adana. This is an important value for Adana and regional companies. You can contact these students and assign them as trade ambassadors. To be successful in the African market, you only need to focus."
VERIFIED ACCREDITATION COULD BE THE SOLUTION
Foreign Trade Expert Turan Akın pointed out that achieving competitiveness in exports also depends on affordable raw materials. Pointing out that Africa can be evaluated more effectively in this framework, Akın continued as follows:
"As it is known, if raw materials can be purchased at affordable prices and with favorable terms, it is possible to get ahead of the competition. Most SMEs finance raw materials with cash or cash-payment letters of credit, but they can obtain tax and customs advantages within the scope of the document. With various trainings and seminars, they can become more knowledgeable in foreign trade financing and with this power, they can negotiate with suppliers and turn to credit purchases.
Import payments should be covered by export revenues as much as possible. For example, Saudi Exim Bank makes special agreements with 3 banks for many of Turkey's input products and offers 25-month loans to buyers, but there are not more than a handful of companies in our region that know and use this. If we do not have a good command of international payment methods, the order may escape to another city or even another country while we are waiting to sell in cash, and if we can take a 15 percent down payment and the rest can be guaranteed with solid methods, of course, exports should be considered. In fact, in order to get a down payment, if necessary, trust can be provided with advance payment guarantees, especially in the first jobs.
Due to the country risks and company structures in Africa, it is very difficult to obtain a factoring limit or a sufficient credit limit from Eximbank, but confirmed letters of credit approved by the exporting bank are the most solution-oriented collection model. There are many correspondents and even group banks of many Turkish banks in Africa, as long as we research and consult."
BEING IN THE MARKET BY KNOWING THE RISKS GIVES YOU AN EDGE
Çağ University Faculty Member Prof. Dr. Murat Koç, an influential name in the fields of international security and strategy, pointed out that business people can be more successful in the African market by knowing the risks and following the developments, and shared the following information:
"There is an Africa with security parameters consisting of global competition, regional and local actors, political instability, coups, civil war, uprising, terrorism, chronic poverty and corruption. Being in that market by knowing these brings about being more effective and permanent.
North Africa includes countries such as Egypt, Libya, Tunisia, Algeria and Morocco. Their security situation is often affected by factors such as terrorism, internal conflicts and political instability. West Africa includes countries such as Nigeria, Ghana, Ivory Coast, Senegal and Mali. This region is characterized by the activities of Boko Haram and other armed groups, cross-border crime and political instability.
East Africa includes countries such as Ethiopia, Kenya, Somalia, Uganda and Tanzania. Security challenges in this region include terrorism, especially groups such as al-Shabaab, ethnic conflicts and political instability. Southern Africa includes countries such as the Republic of South Africa, Zimbabwe, Zambia, Mozambique and Namibia. In terms of security, this region is generally considered more stable, but crime rates, economic inequalities and political tensions are major challenges. Each of these regions can be further subdivided into more detailed sub-regions and the security situation can change over time."
250 MILLION DOLLARS OF EXPORTS FROM ADANA TO AFRICA
Journalist Mehmet Ulugturkan, who moderated the event, stated that Adana exports nearly 250 million dollars to Africa, which has 54 countries, and said, "There is an Adana that exports to 46 African countries, with Morocco, Egypt and Algeria being the most, respectively. This means that we are a city with a strong economy. But we can do better. We want today's event to be the milestone of the process. As Refleks newspaper, the first and only economic publication of the business world in the region, we gave the issue a headline in 2008 and said 'Africa is the solution'. If only we had given more importance to trade with Africa since those years, maybe we would be in India's place today and Adana's exports to this continent would have reached the level of billion dollars. Let's keep the past aside, let's focus on this market more effectively from today onwards."
At the 'Export Opportunities to Africa' event, which attracted many business people, Adana Hacı Sabancı Organized Industrial Zone President Bekir Sütcü, MÜSİAD Adana President Ömer Tekdemir, Entrepreneurship Ecosystem Association President Esra Özden, 2blackdot Consultancy managers Dr. İbrahim İnan, Hakan Çalışkantürk, AOSB Regional Director Ersin Akpınar and many business people attended.
