Turkiye aims to become a major player in African economies by establishing deep and lasting diplomatic relations based on solid foundations and mutual respect in all fields.
The partnership with the African continent has undergone an evolution reflected in the growth of Turkish investments in the continent. The latest data is very encouraging in terms of the Africa-Turkiye partnership, based on the principle of win-win in a spirit of unity.
Growing volume trade between Turkiye and Africa
President Recep Tayyip Erdogan, since coming to power, has been working in this spirit to strengthen friendly relations with the whole of Africa without any discrimination. Speaking at the recent Turkiye-Africa Economic and Business Forum, Erdogan encouraged African countries to use their local currencies while doing business with Turkiye. He also wants his country to deepen cooperation with Africa in the field of investment and mutual trade.
The volume of trade between Turkiye and Africa has grown over the last 20 years from $5.4 billion to $25.3 billion in 2020. In the first 11 months of 2021 alone, it reached $30 billion. Its target is to reach $75 billion. To date, 39 of the 54 African signatory countries have already completed the formal process to join the African Continental Free Trade Agreement (AfCFTA).
Turkiye had invested more than $6 billion in Africa, creating jobs for 25,000 people, despite the coronavirus pandemic and the global economic crisis Turkish entrepreneurs have carried out 1,686 projects worth a total of $78 billion. For the free trade area, Turkiye showed a willingness to support Africa in the process of successfully launching the AfCFTA, ensuring that both sides have an obligation to develop their relations to move forward together.
Turkiye's free trade agreements with African countries
In terms of trade on the continent, Turkiye currently has free trade agreements with Algeria, Mauritius, Egypt, Morocco, and Tunisia. In addition, free trade agreements are being negotiated with Ghana, Sudan, Djibouti, the Democratic Republic of Congo, Cameroon, Chad, and Libya. Turkiye took part in the trade and investment cooperation agreement with the West African countries: Benin, Burkina Faso, Cape Verde of Côte d'Ivoire, Gambia, Ghana, Guinea, Guinea Bissau, Liberia, Mali, Niger, Republic of Nigeria, Senegal, Sierra Leone, and Togo.
The Turkish government negotiates free trade agreements in new markets, such as Ghana, Sudan, Djibouti, and Cameroon. According to the Turkish president, Turkiye has made big progress but the objectives are even more important with the goal to make the country one of the largest economies in the world.
Turkiye is the leading investor in Algeria
For Algeria, Turkish exports are focused on building materials, machinery, and vehicles. There are well-established Turkish companies in Algeria, and new investors can find opportunities in building materials and machinery products. Relations between Algeria and Turkiye can be considered not only from a political point of view but also from an economic, social, and cultural perspective. As for economic and trade relations, the volume of trade between the two countries amounted to more than $4 billion in 2020. Turkiye is currently Algeria's fifth-largest trading partner, while Algeria is Turkiye’s second-largest trading partner in Africa.
Both sides have expressed their intentions to increase the volume of bilateral trade to more than $5 billion in the near future. In the field of investment, Turkiye is the leading investor in Algeria, excluding in the hydrocarbon sector, with more than 800 Turkish companies active in Algeria, providing nearly 30,000 jobs, with a total investment of more than $3.5 billion in 2020.
As for Algerian investments in Turkiye, on November 28, 2018, the national hydrocarbon company Sonatrach signed a contract with the Turkish company Rönesans for the establishment of a petrochemical complex in Ceyhan in the state of Adana in southwestern Turkiye, with an investment of $1.4 billion.
For Turkiye, President Erdogan considers Algeria as a strategic partner and not only a market for the export of its products. On the other hand, in order to push relations to stronger levels, Algerian President Abdelmadjid Tebboune ratified on May 5, 2021, the maritime navigation agreement with Turkiye, covering the transport of passengers and cargo as well as technical cooperation in shipbuilding, repair, and port construction.
AA/Amine BoutalbiGüncelleme Tarihi: 26 Mayıs 2022, 18:29