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Africa is closer than we think
๐Ÿ‡ต๐Ÿ‡ฑ Poland /Economy & Trade

Africa is closer than we think

From Rzeczpospolita · () Polish

Translated from Polish, summarized and contextualized by DistantNews.

At a glance

Interview Sources not specified Context piece
  • Polish exports to Africa remain low at around 1% of the total, similar to previous years.
  • Experts cite Polish entrepreneurs' comfort with the EU market and a lack of knowledge and effort regarding African markets as reasons for the low export figures.
  • Africa offers significant potential for diversification, but requires greater logistical and business effort, emphasizing the need for on-the-ground presence and relationship building.

Polish exports to Africa hover around a modest 1.3% of the total, a figure that has remained largely unchanged for years. This limited engagement stems from Polish entrepreneurs' deep-rooted comfort with the European Union market, which absorbs three-quarters of the country's exports. For over two decades, the EU has offered predictability, cultural familiarity, and established business practices, making diversification beyond its borders seem unnecessary for many firms.

Polish entrepreneurs have become accustomed to doing business with the EU. Three-quarters of Polish exports go there. For over 20 years, there have been no barriers, there is predictability, knowledge of the culture and way of doing business. Many companies simply did not need to think about further directions.

โ€” Piotr KuffelExplaining the reasons behind low Polish exports to Africa.

However, recent economic slowdowns in Germany and the closure of Eastern markets have highlighted the critical need for export diversification. Africa, with its population exceeding 1.5 billion, presents a vast, untapped potential. Yet, engaging with the continent demands significantly more logistical and business effort. It is not a monolithic market; success hinges on on-the-ground presence, building relationships, and extensive discussions before securing the first contract.

Entrepreneurs still treat Africa as an exotic, difficult, and inaccessible market. This is mainly due to a lack of interest and knowledge about how this market works. The stereotype still functions: 'Africa is a safari'. Meanwhile, it is a huge, absorptive market.

โ€” Maciej ChamerskiDescribing the perception of the African market among Polish businesses.

Many Polish businesses still perceive Africa as an exotic, difficult, and inaccessible market, largely due to a lack of interest and understanding. The persistent stereotype of "Africa is a safari" overshadows its reality as a large, absorptive market. This mindset, coupled with a hesitancy to venture beyond Europe, keeps exports at a symbolic 1%.

This is, among others, the Maghreb countries, Sub-Saharan Africa. Each market has a different history, culture, and way of doing business. What is common, however, is the huge emphasis on relationships. It is difficult to do business there without being present on site.

โ€” Piotr KuffelHighlighting the diversity of African markets and the importance of local presence.

Despite these challenges, there are signs of engagement. Polish companies possess the expertise for significant infrastructure projects, having undergone their own substantial transformations. While large-scale projects require substantial financing and time, numerous smaller opportunities exist. The development of infrastructure, such as new railway lines in Tanzania, where Polish subcontractors are involved and BGK is providing financing, demonstrates tangible economic growth and offers avenues for Polish firms to participate.

Of course. Poland has undergone a huge infrastructural transformation and we now have know-how in building roads, railways, or public infrastructure. We are 'seasoned in battle'. However, what is important is that large infrastructure projects in Africa require huge financing and are stretched over time, but apart from them, there are plenty of smaller ones.

โ€” Maciej ChamerskiDiscussing Polish companies' capabilities in infrastructure development for African projects.
DistantNews Editorial

Originally published by Rzeczpospolita in Polish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.