Exporting to Africa

Due to the harsh climatic conditions and the presence of underdeveloped countries compared to other countries, trade in Africa progresses more slowly than in Asian and American countries. The African continent, located south of Europe, is situated to the north of the Indian Ocean and is the second largest continent in the world. Home to 1 billion people, the African continent speaks hundreds of languages and is inhabited by people from numerous ethnic backgrounds. This cultural richness is also reflected in economic activities, altering the product demand and purchasing behaviors of consumers. When exporting to Africa, these cultural changes must be recognized, a target audience must be determined, and all marketing activities should be shaped around these characteristics.

Africa includes politically and economically significant countries like Algeria, Nigeria, and Egypt. Overall, economic activities on the continent, where underdeveloped countries are found, remain below normal levels.

How to Export to Africa?

Despite being underdeveloped and having unfavorable lands, there has been a significant increase in trade in recent years, with a 40% rise observed in foreign trade. Many companies and investors from Turkey have started to turn towards key countries in Africa, driven by its rising economy. South Africa is the most developed country in Africa, while others include Egypt, Nigeria, and Tunisia. By tracking e-commerce sites in these countries, analyzing the products and sectors that the audience purchases the most, developing marketing strategies is one of the essential tasks for Turkish companies.

When trading with difficult and underdeveloped countries like Africa, important factors must be considered. As ODS Consulting Group, we assist you in your export endeavors to Africa, contributing to your market expansion.

What Companies Export to Africa?

In a continent like Africa, where even literacy rates are low, the e-commerce usage rate is also quite low. According to recent data, the internet usage rate is close to 29%, while about 14% of this reflects active regular internet users. Of this proportion, 12% are mobile users who are active on e-commerce sites. Given this situation, it is vital to make careful product selections on e-commerce sites. In Africa, where a limited number of consumers shop, the likelihood of your market growth is significantly reduced if you do not choose the right product. The northern part of the continent is more developed, and most internet users are located in this region.

The products we export to Africa vary from food items to chemical products and from the industrial sector to cultural products. We mainly send products from the machinery and equipment sector to Africa, which has an underdeveloped industry.

What Documents Are Necessary for Exporting to Africa?

• First and foremost, you must establish a company before engaging in any commercial activities. Your export activities should be carried out under this company.
• You need to prepare a commercial invoice. In this invoice, you must provide detailed information about your product to the relevant authorities.
• You must deliver the required international shipping and delivery documents to the specified courier companies.
• You should examine the customs practices of the country in Africa where you will be exporting and obtain the necessary documents. These documents may include certificates of origin, inspection certificates, etc.
• For some food and chemical products, you must obtain the necessary documents according to the standards and regulations set by the respective countries.
• If you wish to engage in micro-export, you must prepare an ETGB (Electronic Trade Customs Declaration). Under micro-export, VAT refunds can be obtained for products that fall within the limits of €500 and 150 kg.
• You must acquire the circulation documents required by the relevant countries. In some countries, these documents may not be mandatory, allowing free entry.
• Establishing an e-commerce and e-export site for your company is essential for displaying and selling your products.

What Are the Export Taxes to Africa?

All products are subject to tax in exports and imports with African countries that do not have customs agreements with Turkey. For example, the taxes applied in South Africa are either scaled or standard and vary based on commercial activity. While there may not be many agreements between Turkey and African countries, some agreements can exist, which can cover trade and economic cooperation, prevention of double taxation, and mutual encouragement and protection of investments. Generally, corporate tax ranges from 0 to 30 percent, and discounts may also apply in certain cases.

What Products Are Exported to Africa?

Data from 2021 sourced from Trademap TR, with values based on 1000 USD. The products exported from Turkey to the Republic of South Africa are as follows:
• Oils derived from petroleum oils and bituminous minerals = 193,876
• Parts and accessories for motor vehicles = 43,069
• Flat-rolled products of iron or non-alloy steel (width >= 600 mm) = 29,240
• Motor cars = 22,623
• Washing machines of the household or laundry type (including those combined with drying functions) = 18,674

The products exported from Turkey to Morocco are as follows:
• Semi-finished products of iron or non-alloy steel = 211,911
• Motor cars = 166,314
• Helicopters, airplanes, etc.; spacecraft (including satellites), launching vehicles, and suborbital craft = 155,626
• Profiles of iron or non-alloy steel = 117,278
• Motor vehicles for the transport of goods = 88,178

The products exported from Turkey to Algeria are as follows:
• Soybean oil and its fractions (chemically unmodified) = 112,503
• Milk, cream (concentrated, containing added sugar or other sweetening matter) = 53,980
• Parts and accessories for motor vehicles = 51,506
• Stoves and ovens made of iron or steel, barbecues, and related parts = 48,693
• Iron ores and concentrates = 39,363

What Is the Trade Volume Between Turkey and Africa?

The commercial relations between Turkey and Africa seem to be increasing as the countries develop. According to research conducted over the last twenty years, our export figures have improved significantly, and our trade figures with Africa approached nearly $35 billion in 2021. The target is to reach $50 billion.