Everybody wants to talk about China in Africa. But what about Turkey, the UAE and…

February 6, 2023 – Clients I work with and audiences I speak to always ask a similar question: “what about China in Africa?” thinking that China is arch nemesis #1.

My response is always the same: “what about Turkey, the UAE, Saudi Arabia, Qatar, or Russia?”

People look at me confused so I explain…

Yes, China is a very present player in Africa. As is the UK, France and the USA. However, it is important to be aware of other countries operating across the continent with increasing presence and backed by substantial investments.

Let’s highlight two countries: the UAE and Turkey

The United Arab Emirates, particularly Dubai

The United Arab Emirates (UAE) became the fourth largest investor in Africa, after China, Europe and the US in 2021.

The emirate of Dubai is the most active of the UAE’s seven emirates. Dubai’s airline, Emirates Airlines, is known as “Africa’s airline” because it flies to so many destinations in Africa. Just take South Africa, where you can choose from 42 weekly flights from Dubai to Cape Town, Durban, or Johannesburg. In addition, Emirates’ low-cost carrier, Fly Dubai, takes you to 9 countries in East Africa. Another subsidiary profiting from Emirates’ growing network on the continent is airport services company dnata which is making inroads into more African airports with their ground handling, cargo and catering services.

It’s not just the airport that are of interest to the Dubai and the UAE.  The seaports are also a keen focus. Dubai Ports World (DP World) has operations in seven African countries. In 2022, they signed a partnership agreement with UK development finance institution CDC Group worth more than one billion US dollars to build and refurbish ports from East (Berbera, Somaliland) to West (Dakar, Senegal) and North (Sokhna, Egypt).

These developments go hand-in-hand with the opening of Dubai Chamber of Commerce offices and embassies across the continent.

Why this intense focus on growing the UAE’s presence across the continent?  Taking a cue from Singapore, the UAE has positioned itself as the center of trade and facilitated this through business and travel friendly policies, procedures and facilities.

Not only is the UAE a convenient hub for onward travel to Europe, North America or Asia, the UAE makes it easy for all nationalities to obtain visas on-line. This sends out a “please visit, you are welcome here” message where as the challenges to obtain visas in other parts of the globe sends a subliminal “prove why you are worthy to come into our country” message.  Which would you chose?

This ease of access is enhanced by ease of registering companies and setting up bank accounts. Free trade zones such as DPWorld’s JAFZA, make it easy to import and export via the UAE. Traders can buy items anywhere in the world, easily ship them via JAFZA to any destination in Africa and vice-versa.

Turkey’s rapidly growing presence

Turkey launched its “Africa Action Plan” in 1998 and has consistently grown its presence across the continent since. From 12 embassies in 2002, today Turkey has 43 embassies across the continent. Turkish Airways flies to over 60 destinations across Africa with President Erdogan having personally visited 30 of Africa’s 54 countries so far.

Turkey also has a strong focus on education via 175 schools they’ve built and operate in 26 countries and scholarships to African students to do their undergraduate and graduate degrees in Turkey.

Turkish construction companies are also making inroads as the quality of their work is seen as better than that of the Chinese. Known for their quick delivery – e.g. building the Kigali sports arena in 7 months or the Dakar International Convention Center in 13 months - they are winning projects from Chinese competitors. In a few cases, like the unfinished railway from Kampala to the Kenyan border, Turkish construction companies have finished projects originally awarded to the Chinese.

At the government level, Turkey has set up cultural centers in 10 countries, military attaches in 19 countries and its aid agency TIKA, has offices in 22 countries.

Turkey's trade with African countries has increased from $5.4bn in 2003 to $34.5bn in 2021. While this dwarfs in comparison to China’s trade volume, which hit a high in 2021 of $254bn, Turkey’s growth across Africa is note worthy.

Airlines and infrastructure grow mutually-beneficial trade lanes

Both Dubai and Turkey use a similar strategy: growing their presence and trade supported by their national airline. These newfound and growing trade opportunities and contracts drive economies on both sides of the tradelane. That translates into jobs; jobs offer income; income means more children go to school and families have a roof over their heads and food on the table; this in turn improves a country’s stability. Creating win-win-win scenarios.

Both the UAE and Turkey also realize the importance of helping Africa build the infrastructure to grow trade on the continent and are willing to invest without a lot of preaching or strings attached as to what – mostly social and cultural-related – laws should be passed or rescinded. They de-risk investments by being on the ground, partnering with local service providers, and hiring and training local staff. Again creating  win-win-win scenarios.

As I write in my book, Africa: Open for Business, starting and growing profitable and sustainable companies across Africa is more than having a product or service and some money.  It is having the appetite to be on the ground and learn the local nuances so you can build the bandwidth to identify the best market entry strategies, employees and local service providers.  Then you can invest your money not just in day-today business expenses but in the stuff that’s really going to make a difference: social (networks and relationships), cultural (values, experiences and knowledge), and economic (hard, soft and digital infrastructure) capital.

In upcoming pieces we’ll look at how food security and regional security factor in to the UAE and Turkey’s Africa strategy as well as delve into Saudi Arabia and Qatar’s growing interest and investment in Africa.