Turkey’s expanding economic engagement with Africa reached a new milestone in October 2025 as Ankara formalized strategic partnerships with four African nations through comprehensive memoranda of understanding covering trade facilitation, infrastructure development, renewable energy cooperation, and industrial collaboration. These agreements underscore Turkey’s growing importance as an economic partner for the continent and reflect a deliberate strategy to deepen commercial ties beyond traditional European and Middle Eastern markets.
The formalization of these partnerships comes at a time when Turkey has dramatically transformed its economic relationship with Africa over the past two decades. Bilateral trade between Turkey and African countries has surged from a modest $5.4 billion in 2003 to over $40 billion today—representing nearly an eightfold increase that reflects both Turkey’s economic dynamism and Africa’s emergence as a major global growth pole.
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Turkish construction companies have become particularly prominent across the African continent, completing nearly $100 billion in projects spanning critical sectors including infrastructure development, energy generation and distribution, transportation networks, and residential and commercial housing. This construction footprint has established Turkish firms as reliable partners for African governments seeking to address infrastructure deficits that constrain economic development.
Direct Turkish investment in Africa has experienced even more dramatic growth, expanding from approximately $100 million in 2003 to more than $10 billion currently. This surge in foreign direct investment reflects Turkish companies’ confidence in Africa’s long-term economic prospects and their willingness to commit substantial capital to operations on the continent.
South Africa: Leveraging Free Zone Expertise
Turkey and South Africa formalized cooperation on special economic zones through a memorandum of understanding signed during a Bilateral National Commission meeting on October 15. The agreement was concluded between the two countries’ trade ministries and focuses specifically on developing South Africa’s special economic zones by leveraging Turkey’s substantial experience with successful zone models.
Turkey’s free zones program, administered by the Ministry of Trade, has been operating since 1985 and encompasses more than 20 zones across the country offering attractive incentives for manufacturing, logistics, and services activities. These zones have successfully attracted billions of dollars in foreign investment and facilitated Turkey’s integration into global supply chains, particularly in automotive, electronics, and textile sectors.
The MoU with South Africa aims to transfer this institutional knowledge and practical experience to help optimize South Africa’s SEZ program, which has faced challenges in attracting the scale of investment originally envisioned. The agreement focuses on multiple objectives including attracting increased investment flows, boosting manufacturing capacity, and building joint export pipelines that could give South African products better access to Turkish and broader regional markets.
In parallel with the free zones MoU, both countries signed a joint declaration establishing a Joint Economic and Trade Commission (JETCO). This institutional framework will provide a regular platform for government and business representatives from both countries to identify opportunities, address challenges, and coordinate policy approaches that facilitate bilateral commerce.
The free zones cooperation forms a crucial component of South Africa’s broader industrialization strategy, which seeks to move the economy beyond its historical dependence on mining and primary commodity exports toward higher value-added manufacturing and services. Turkey’s experience in developing competitive manufacturing sectors—particularly in automotive, appliances, and machinery—offers valuable lessons for South African policymakers.
Technical assistance from Turkish zone administrators and private sector operators will support South Africa’s efforts to improve zone governance, streamline regulatory procedures, enhance infrastructure within zones, and market investment opportunities to both domestic and international investors. The partnership could prove particularly valuable as South Africa seeks to position itself as a manufacturing hub for the broader Southern African Development Community market.
Libya: Addressing Contractor Payments and Future Infrastructure
Turkey and Libya concluded two significant memoranda of understanding on October 16 covering outstanding contracting receivables and participation in future infrastructure projects. These agreements address longstanding commercial issues while positioning Turkish firms for involvement in Libya’s reconstruction as the country gradually stabilizes after years of conflict.
The first MoU tackles the complex issue of overdue payments to Turkish contractors who completed projects in Libya before and during the country’s political instability. Turkish construction firms were heavily involved in Libyan infrastructure development during the Gaddafi era, and many companies have outstanding receivables for completed work. The agreement establishes mechanisms to facilitate recovery of these funds, providing clarity on payment schedules and dispute resolution processes.
The second MoU positions Turkish contractors to participate in upcoming development projects as Libya rebuilds infrastructure damaged or neglected during years of conflict. Turkish construction companies’ prior experience in the Libyan market, understanding of local conditions, and established relationships with Libyan entities provide competitive advantages as reconstruction accelerates.
Beyond infrastructure, both countries reaffirmed commitments to expand trade across multiple strategic sectors. The hydrocarbon sector remains central to Libya’s economy, and Turkish firms have capabilities in oil and gas services, refinery operations, and petrochemical production that could support Libya’s efforts to restore and modernize its energy infrastructure.
Renewable energy represents another priority area for cooperation. Libya possesses exceptional solar energy potential due to its geographic location and abundant sunshine, but the sector remains largely undeveloped. Turkish companies that have built expertise in solar power development could contribute technical knowledge and investment to help diversify Libya’s energy mix beyond hydrocarbons.
Mining sector cooperation offers opportunities in areas where Libya possesses mineral resources that Turkish industries require or could help develop for export markets. Banking sector ties could facilitate trade finance and investment flows between the two countries, while healthcare cooperation could involve Turkish hospital management companies and medical equipment manufacturers supporting Libya’s efforts to rebuild its healthcare infrastructure.
The establishment of a Joint Economic and Trade Commission will provide institutional architecture to guide implementation of these cooperation priorities, allowing both governments to coordinate policies, address obstacles, and ensure that bilateral economic ties strengthen in tandem with Libya’s political stabilization.
The Gambia: Advancing Renewable Energy Transition
Turkey and The Gambia signed a memorandum of understanding on renewable energy cooperation on October 17, marking an important step in the small West African nation’s energy transition strategy. The agreement was concluded between Alparslan Bayraktar, Turkey’s Minister of Energy and Natural Resources, and Nani Juwara, The Gambia’s Minister of Energy and Petroleum.
The MoU establishes a framework for developing joint renewable energy projects spanning multiple technologies including hydroelectric power, solar photovoltaic systems, and wind energy generation. The agreement explicitly encourages participation by both public sector entities and private investors, recognizing that mobilizing private capital will be essential to financing the substantial investments required for energy infrastructure development.
For The Gambia, a country of approximately 2.5 million people, the agreement supports crucial objectives including transitioning away from expensive imported fossil fuels, enhancing energy security through diversified domestic generation, and expanding electricity access to rural communities currently lacking grid connections. The country has historically relied heavily on diesel-fired generation, making electricity expensive and contributing to fiscal pressures due to fuel import costs.
Turkey brings substantial technical capabilities to the partnership. Turkish companies have developed significant expertise in renewable energy development, particularly in hydroelectric and solar power generation. Turkey’s domestic renewable energy sector has grown dramatically in recent years, and Turkish manufacturers produce wind turbines, solar panels, and related equipment that could be deployed in Gambian projects.
The MoU encompasses a comprehensive approach to energy sector development, including not just generation projects but also electricity transmission infrastructure, distribution network optimization, energy conservation programs, and efficiency improvements across generation and consumption. This holistic approach recognizes that successful energy sector development requires attention to the entire value chain from generation through end-use.
A centerpiece of the cooperation is a proposed 100 megawatt solar park to be located in Jarra Soma in The Gambia’s Central River Region. This facility would represent a transformative addition to The Gambia’s electricity system, potentially providing clean power equivalent to a substantial portion of the country’s current peak demand. The project could serve as a model for large-scale renewable energy development in small African economies.
Turkish technical assistance could prove particularly valuable in areas such as grid integration of variable renewable energy sources, regulatory framework development to attract private investment, and capacity building for Gambian energy sector institutions. Turkey’s experience navigating the transition from fossil fuel dependence to diversified energy systems offers relevant lessons for Gambian policymakers.
Ethiopia: Strengthening Business-to-Business Linkages
The Ethiopian Chamber of Commerce and Sectoral Associations (ECCSA) and the Turkish Chamber of Commerce and Industry concluded a memorandum of understanding on October 18 aimed at enhancing trade, investment, and industrial cooperation between the private sectors of both countries. This business-to-business focused agreement complements government-level cooperation by creating direct linkages between commercial entities.
The MoU establishes mechanisms to promote business-to-business connections, facilitate knowledge sharing between Ethiopian and Turkish enterprises, and develop joint investment initiatives that leverage complementary capabilities. Practical implementation will include organizing trade missions that bring delegations of companies from each country to explore opportunities in the other market, participating in trade exhibitions that showcase products and capabilities, and convening investment forums that connect potential partners.
For Ethiopia, Africa’s second-most populous nation with over 120 million people and one of the continent’s fastest-growing economies in recent years, the agreement forms part of a broader strategy to expand international trade relations and attract foreign direct investment that can support industrialization objectives.
Ethiopia’s economic transformation agenda emphasizes developing manufacturing capacity, particularly in sectors such as textiles and garments, leather products, agro-processing, and light manufacturing. Turkish companies have built globally competitive positions in many of these same sectors and can offer technical expertise, management know-how, and access to international markets through their established export channels.
The agreement creates a structured platform for sustained economic development cooperation between Turkish and Ethiopian business communities. By institutionalizing channels for information exchange, partnership formation, and joint problem-solving, the MoU aims to translate the general goodwill between the two countries into concrete commercial outcomes.
Turkish investors have shown particular interest in Ethiopia’s industrial parks, which offer infrastructure, utilities, and services specifically designed to attract manufacturing investment. Several Turkish textile and garment companies have already established operations in Ethiopian industrial parks, taking advantage of the country’s competitive labor costs, growing workforce, and preferential trade access to major markets including the United States through the African Growth and Opportunity Act.
The chamber-to-chamber MoU facilitates deeper engagement by creating networks of peer institutions that can provide market intelligence, help navigate regulatory environments, identify reliable local partners, and resolve commercial disputes through business association channels rather than formal legal proceedings.
Turkey’s Evolving Africa Strategy
The four memoranda of understanding concluded in October 2025 reflect the maturation of Turkey’s Africa engagement strategy, which has evolved significantly since the early 2000s when the Turkish government designated Africa as a foreign policy priority. President Recep Tayyip Erdoğan has made numerous visits to African countries and championed expanded ties through both economic and diplomatic channels.
Turkey’s approach to African engagement emphasizes several distinctive characteristics that differentiate it from some other external partners. Turkish cooperation tends to focus on commercially viable projects rather than concessional aid, reflecting Turkey’s position as an emerging economy rather than a traditional donor. This commercial orientation ensures projects are designed with sustainability and profitability in mind rather than as pure development assistance.
Turkish companies operating in Africa often bring cost-competitive offerings compared to European or North American competitors, while providing quality standards that exceed those of some other emerging economy competitors. This positioning in the “middle market” has allowed Turkish firms to win contracts across multiple sectors.
Turkey’s predominant Muslim identity and historical Ottoman connections to parts of Africa create cultural affinity in some regions, though Turkey’s engagements span the entire continent including Christian-majority and secular countries. The absence of a colonial history in sub-Saharan Africa removes baggage that can complicate European countries’ relationships with African partners.
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Broader Economic and Geopolitical Context
Turkey’s deepening Africa engagement occurs within a broader context of intensifying global competition for influence and economic opportunity on the continent. China has been the most prominent external actor in Africa over the past two decades, with Chinese investment and trade dwarfing other partners. However, various countries and regions including the United States, European Union, India, Japan, and Gulf Arab states have all increased their Africa focus.
For Turkey, Africa represents a strategic economic opportunity to diversify export markets, secure raw material supplies, and provide expansion opportunities for Turkish companies facing saturated domestic markets. Turkish Airlines’ extensive African route network—the carrier serves more African destinations than any other non-African airline—facilitates business connectivity and symbolizes Turkey’s commitment to African engagement.
The recent MoUs also reflect African countries’ own strategic interests in diversifying their economic partnerships beyond traditional colonial-era relationships and dominant powers. By engaging with middle powers like Turkey, African nations gain additional options for financing, technology transfer, and trade relationships, potentially improving their negotiating leverage with larger powers.
Infrastructure Development as a Strategic Priority
Turkish contractors’ $100 billion in completed African projects represents a substantial footprint that continues to expand. Turkish construction firms have earned reputations for delivering projects on schedule and budget while maintaining quality standards—attributes highly valued by African governments seeking to maximize returns on scarce infrastructure investment resources.
Infrastructure deficits constrain economic growth across much of Africa, with inadequate transportation networks, insufficient power generation capacity, limited water and sanitation systems, and shortages of modern commercial and residential buildings. Addressing these gaps requires hundreds of billions of dollars in investment over coming decades.
Turkish firms have demonstrated capabilities across the full spectrum of infrastructure sectors. In transportation, Turkish companies have built roads, bridges, railways, and airport facilities. Energy sector projects include power plants using various technologies, transmission lines, and distribution networks. Water infrastructure projects encompass dams, water treatment facilities, and distribution systems. Housing projects range from social housing for lower-income populations to commercial real estate developments.
The involvement of Turkish contractors in future Libyan infrastructure projects, supported by the October 16 MoU, exemplifies the ongoing opportunities for Turkish construction firms as African countries invest in rebuilding and expanding infrastructure networks. Similar opportunities exist across the continent as governments implement infrastructure development plans often supported by multilateral development banks and other financing sources.
Renewable Energy as a Growth Sector
The renewable energy MoU with The Gambia reflects growing opportunities for Turkish companies in Africa’s energy transition. Many African countries face pressure to expand electricity access while simultaneously reducing carbon emissions and avoiding the lock-in effects of long-lived fossil fuel infrastructure investments.
Turkey’s renewable energy sector has matured significantly, with wind and solar power comprising increasingly large shares of domestic electricity generation. Turkish manufacturers produce renewable energy equipment including wind turbines, solar panels, and balance-of-system components, providing a domestic supply chain that can support international projects.
Small African economies like The Gambia face particular challenges in energy sector development due to limited domestic capital, small market sizes that constrain economies of scale, and technical capacity constraints. Partnerships with countries like Turkey that possess relevant expertise and financing capabilities can help overcome these obstacles.
Solar energy holds exceptional potential across much of Africa due to abundant sunshine and rapidly declining technology costs that have made solar power economically competitive with fossil fuel generation in many contexts. The International Renewable Energy Agency (IRENA) projects that renewable energy could supply the majority of Africa’s power generation by mid-century if appropriate policies and investments are implemented.
Turkey’s engagement in Gambian renewable energy development could provide a template for similar partnerships across West Africa and other regions where Turkish expertise could support energy transition objectives. The involvement of both public and private sectors, as encouraged by the MoU, allows for innovative financing structures that blend concessional public finance with commercial private investment.
Trade Facilitation and Industrial Cooperation
The free zones MoU with South Africa and the chamber-to-chamber agreement with Ethiopia both emphasize mechanisms to facilitate trade and industrial cooperation rather than focusing solely on traditional exports and imports. This approach recognizes that sustainable economic partnerships require institutional foundations that reduce transaction costs, build trust, and create channels for ongoing collaboration.
Special economic zones and free trade zones have proven effective tools for attracting investment and promoting exports in many countries, though their success depends critically on design and implementation quality. Factors including location, infrastructure quality, regulatory environment, incentives structure, and management capacity all influence zones’ effectiveness.
South Africa’s SEZ program has underperformed relative to initial expectations, with several zones struggling to attract anchor investors and achieve planned employment and output targets. Turkish expertise in zone development, drawn from decades of practical experience, could help South Africa identify and address specific obstacles constraining its zones’ performance.
The chamber-to-chamber cooperation between Ethiopia and Turkey creates a platform for private sector actors to drive economic integration through commercial relationships rather than relying solely on government-to-government initiatives. Business chambers can facilitate information flows, organize sector-specific meetings, support dispute resolution, and advocate for policy changes that remove barriers to commerce.
Implementation Challenges and Success Factors
While the four memoranda of understanding establish promising frameworks for cooperation, successful implementation will require sustained effort from both Turkish and African partners. Several factors will influence outcomes:
Political stability in partner countries affects investor confidence and project feasibility. Libya’s ongoing political challenges, though improved from recent years, continue to create uncertainties that complicate long-term planning. Ethiopia has faced internal conflicts that have disrupted economic activity in some regions.
Financing availability determines whether planned projects advance from concepts to reality. While Turkish companies can provide technical capabilities and management expertise, large infrastructure and energy projects require substantial capital that often must be mobilized from multiple sources including commercial banks, development finance institutions, and equipment suppliers.
Regulatory environments in African partner countries impact project implementation timelines and costs. Streamlined permitting processes, clear legal frameworks for foreign investment, and efficient customs procedures facilitate successful project execution.
Currency fluctuations and foreign exchange availability present ongoing challenges in many African markets. Turkish companies and investors must manage exposure to local currency risks while African partners must ensure access to foreign exchange for equipment imports and profit repatriation.
Local capacity development ensures that cooperation generates sustainable benefits beyond individual projects. Technology transfer, skills training, and institutional strengthening create lasting impacts that support continued development after external partners’ direct involvement concludes.
Looking Forward: Sustained Engagement
The October 2025 memoranda of understanding represent significant milestones in Turkey-Africa economic relations, but they function as frameworks for cooperation rather than completed achievements. The coming months and years will reveal whether these agreements translate into concrete projects, increased trade flows, and meaningful development impacts.
Turkey’s track record in Africa over the past two decades suggests sustained commitment rather than ephemeral interest. The growth from $5.4 billion to over $40 billion in bilateral trade, accumulation of $100 billion in completed projects, and expansion of direct investment to more than $10 billion all demonstrate long-term engagement backed by commercial substance.
For African partners, diversified economic relationships with countries like Turkey complement rather than replace engagement with traditional partners and rising powers like China and India. The multiplicity of options enhances African countries’ agency in economic diplomacy and creates competitive dynamics that may improve terms for African development.
The success of these partnerships will ultimately be measured not just in project completion or trade volumes, but in whether cooperation contributes to structural economic transformation in African partner countries—the shift from primary commodity dependence toward diversified, higher-productivity economies that generate improved living standards for growing populations.
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By: Montel Kamau
Serrari Financial Analyst
24th October, 2025
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