Turkey-Africa Economic and Business Forum: Any win-win arrangement?
The Turkey Africa Economic aid business Forum which was held in the traditional and beautiful city of Istanbul from the 2nd November to 3rd November, 2016 brought together 1,200 Africans from 42 countries.
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African entrepreneurs, business executives, importers among others were present. In all, 1,800 business people participated in the economic conference.
The President of the Republic of Turkey, Recep Tayyip Erdogan, delivered a brief but well convincing and passionate speech about his vision to do business with Africa for a win-win deal. In fact, I was humbled and touched by the clarity and sincerity he expressed.
He was able to convince us that Africa and for that matter Turkey shared the same destiny and there was the need for us to foster and enhance bilateral trade for mutual benefits.
IMF growth models for developing countries
President Erdogan expressed concern about the kind of growth models that the International Monetary Fund (IMF) had over the years prescribed for developing economies, especially Africa.
He stated: “The economic policies of growth, which are based on the International Monetary Fund and World Bank’s prescriptions alone, have failed, with developing countries beginning to question them.”
He further contended that conventional and uniform monetary and financial policies which ignore the social and economic differences of countries have not yielded the desired result for developing economies, including Africa.
He used the occasion to make a compassionate appeal for Africa to seriously partner Turkey for shared growth and prosperity. President Erdogan stated, “we are in for a win-win situation. Should there be any loss, we will share together.”
He made it clear that his interest was not about Turkish companies exporting their products to Africa but rather establishing enterprises on the continent which will create sustainable jobs and income for the people.
Any win-win deal
The fact that the President of Turkey was personally involved in ensuring that the bilateral partnership between Africa and Turkey is enhanced and moved to a higher level doesn’t mean African countries should fold their arms expecting it to happen on a silver platter. The Turkish are serious business-minded people and government is investing so much money in supporting Turkish businesses.
Africa must position herself strategically to benefit from such a bilateral deal. In my professional opinion, we must encourage Turkish firms to invest in infrastructural projects. My research revealed that the Turkish construction sector is the second in the world after China. In Ghana for example, we have gold, but without a massive gold refinery plant. On the other hand, Turkey, without a gold deposit, has factories producing jewellery. Our governments should engage local experts to assist them have an in-depth analysis about areas where we may need massive support from the Turkish government. Almost every African country, on a daily basis, is discovering oil and gas yet such countries are not making any serious effort to attract investment into the petro-chemical industries were products such as fertilisers, plastics etc. could be produced to create meaningful jobs for the people and also to help their governments beef up their revenue through taxation.
The future will be in Africa
The Turkey-Africa Economic and Business Forum was jointly organised by the Turkish Ministry of Economy, The African Union Commission, the Foreign Economic Relations Board (DEIK) and the Turkish Exporters Assembly (TIM).
On the eve of the second day of the conference, Hon. Nihat Zeybecki said the future is in Africa for Turkish businesses. His statement reminds me of the rising interest others have shown in Africa. In October 2015, there was India-Africa Summit with the aim to challenge China’s dominance in Africa, On August 25, 2016, there was Singapore-Africa Business Summit, and in October 2016, the 6th Nordic-African Business Summit took place in Oslo in Norway.
Mr Nihat noted that Turkey was ready to support Africa with regard to financing infrastructure investment projects necessary to stimulate growth and trigger development. He further stated that Turkey would assist Africa to develop technology and know-how.
At the end of the conference, a joint communiqué was declared, “In the spirit of closer relations between Turkey and African countries, and considering the substantial momentum in Turkey-Africa relations, particularly since the declaration of Turkey as a strategic partner of the African continent in 2008 and in Malabo in 2014, it was agreed that it is to advance African-Turkey cooperation and build on what has been accomplished thus far.”
In Ghana, H.E Nesrin Bayazit has been working very hard to ensure that bilateral trade between Ghana and Turkey is further enhanced. She told me in official discussions that her desire is to see Ghanaian businesses establishing their presence in Turkey for more competitive advantage. H.E Nesrin’s desire is to increase trade volume to about $1billion by the year 2020. Currently, the bilateral trade volume between Ghana and Turkey stands at $400 million.
Conclusion
I wish to take this opportunity to remind the African Union and for that matter the various African countries that the Agenda 2063 will not materialise if concrete efforts are not made to ensure its realisation. Africa must position herself strategically to benefit from any bilateral partnership.
The Turkish government is serious, Turkish businesses are strategic in nature and we must equally be serious in order to benefit from such partnership. I personally believe our partnership with Turkey will indeed benefit Africa.
The writer is the Country Director for the Institute of Financial Consultants (USA & Canada)
He is the Lead Consultant at Nene Banks Management and also the Chief Economist at ICEG.
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