Turkey’s Trade and Economic Enhancement Strategy towards Africa lies behind the gradual boom of the Turkey’s bilateral relations with the African countries since 2003. In response to the changing conditions and needs of the Continent, the Strategy has been updated during the Turkey-Africa Partnership Summit in Malabo-Equatorial Guinea in 2014 and its vision and objectives have been modified aiming to increase the Turkish FDI to Africa, job opportunities for domestic people and creating an environment conducive to economic development of African countries.
Major outcomes of the Strategy are as follows:
Legal Ground
1. The number of the countries with which Turkey signed Trade and Economic Cooperation Agreementincreased to 39 in 2015 while it was 23 in 2003. This agreement establishes a bilateral regular follow-up mechanism where several subjects stretching from trade, investment and finance to SMEs, health and technology.
2. Free Trade Agreementswith 4 African countries are in force now when it was literally none in 2003.
3. Reciprocal Protection of Investment Agreementswith 19 countries have been signed so far, however, Turkey had this agreement with only 6 countries in 2003.
4. Prevention of Double Taxation Agreementswith 10 African countries are effective today in comparison with that it was only 4 in 2003.
Institutional Capacity
1. The number of Turkish Embassiesin Africa recorded as 39 African countries and Trade Counselor Offices in 26 countries while they are 7 and 4 respectively in 2003.
2. TIKA (Turkey’s Aid Agency) Officesin the continent are operating in 15 countries.
3. Foreign Economic Relations Board has established Business Councilswith African counterparts in 31 countries.
4. As of present,Turkish Airlines fly to 48 destinations in 31 countries in the continent. In 2003, it was merely flying to North Africa.
Trade and Investment Figures
1. Turkey’s trade volume with Africa totaled USD 19.5 billion in 2015, up 16% from 2008 and 258% from 2003. Turkey’s export in 2003-2015 increased almost six folded and import has more than doubled in the same period.
2. Turkey’s share of Africa’s trade volume rose to 2.3% in 2014and the share of Africa in Turkey’s trade volume was 7% in 2015. In 2003, they were 1% and 4.5% respectively.
3. Turkish FDI (stock) in Africa has exceeded USD 6 billion in 2015whereas it was less than USD 100 million in 2003.
4. Turkish contractors have continued to build Africa in 2015 and the volume of the projects undertaken by Turkish companies has grown to USD 55 billionso far since the early 1970s.
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.
