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Old fears, isolationist attitudes take back seat
By Tasie Theodore
The desire to open new frontiers and tap into future market prospects are some of the reasons why firms from Morocco and France have presently set their sights on doing greater volumes of business in Africa, a new survey has revealed.
In its third edition of the International Development Barometer, which is organised in conjunction with the Moroccan Exporters’ Association (Asmex), the research consultancy, BearingPoint observes sustained growth in the turnover of Moroccan and French companies in sub-Saharan Africa
It hinges this development on fresh awareness of the unprecedented impetus of African economies and of the potential offered by the various national and sub-regional markets.
Consequently, Moroccan and French companies are furiously demonstrating new ambitions in Africa, which are expressed in their development strategies on the continent.
According to the third edition of BearingPoint’s International Development Barometer of international firms, “Developing in Africa: comparisons of Moroccan and French companies”, which is produced in conjunction with the Moroccan Exporters’ Association (Asmex), the five main countries where the 250 Moroccan and French companies surveyed are most established are Algeria, Cameroon, Ivory Coast, Mali and Senegal.
Broken down, Senegal, Ivory Coast and Gabon are in the lead for the Moroccan companies questioned, which are mainly present in West Africa. Ivory Coast, Morocco and Cameroon hold the first three places for the French groups questioned, which are also increasingly expanding their base into some English-speaking countries such as Nigeria, South Africa and Kenya.
Regarding the type of operations conducted by the companies in the group, over 60% of Moroccan responders export and distribute their production in sub-Saharan Africa, often through a network of partners, which represents the first step before considering setting up in the region. A step ahead, the French companies have more local sites, especially in the conversion and industrial sectors.
“We nevertheless see that Moroccan companies – which are in fact quite new on the continent compared with their French counterparts, some of which have been present for more than a hundred and fifty years – are starting to catch up. Afro-optimism is now a feeling which is widely shared by Moroccan and French company directors, and reflected in the growth strategies and the investments committed,” explains Jean-Michel Huet, associate at BearingPoint. Five years ago, 86% of Moroccan companies questioned said that Africa represented less than 5% of their turnover. In 2016, the continent accounts for more than 5% of revenues for almost half of the respondents, and 20 % of them believe that Africa will represent more than 50% of their global turnover in the next five years. “For some years now, we have witnessed a very strong drive from the Moroccan private sector towards the sub-Saharan region. Support from the authorities in the country and the successes achieved, in particular by finance departments and real estate, have accelerated this movement,” explains Mr Hassan Sentissi, President of the Moroccan Exporters’ Association (Asmex).
This optimism is also observed in France. Five years ago, 49% of the companies questioned said that Africa represented less than 5% of turnover. In 2020, this figure will have dropped to 14%. In ten years, Africa’s share of the total turnover of respondents will have increased by 75%.
“These Moroccan and French figures confirm a major trend: the ‘African risk’ relating to the political situations and the business environment no longer represents an insurmountable obstacle. The potential and opportunities on the continent – which will have 2 billion inhabitants in 2050, with over 900 million of these belonging to the middle class – are much more powerful parameters for companies when defining their international development strategies,” explains Jean-Michel Huet.
The potential of African markets (purchasing power and number of customers) is the first criterion accounting for the presence of French companies in Africa, and the second criterion for their Moroccan counterparts.
The Moroccan Exporters’ Association represents the exporting companies in Morocco.
The mission of ASMEX is to represent and promote Moroccan exports and carry out internal and external lobbying for efficient promotion of Moroccan exporters. All export sectors are represented, either directly or through their federations.
ASMEX represents 80% of Morocco’s export turnover.
President Muhammadu Buhari of Nigeria
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