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Find all the economic and financial information on our Orishas Direct application to download on Play StoreFORPECTIVES OF FOREIGN MARKETS. The African continent remains largely unexplored by Quebec exporters. With a very young population and several countries experiencing good growth, it nevertheless has interesting potential.
Africa as a whole posted GDP growth ranging from 3.2% to 3.7% between 2011 and 2019, according to the African Development Bank (AfDB). In East Africa, it has even regularly exceeded the 5 per cent mark. The pandemic is expected to drop this growth to -3.2% for 2020 across the continent, according to the AfDB. Nevertheless, it predicts that countries such as Rwanda, Ethiopia, Tanzania and Côte d'Ivoire will continue to record growth rates of more than 3 per cent.
Africa's population is much younger than elsewhere, with a median age of 19.7 years, compared to 32 years for Asia, 38.6 years for North America and 42.5 years for Europe, according to the United Nations. barks. This is far too little," says Catherine Frenette, president of the Quebec-Africa Chamber of Commerce (CHAQUA). In 2018, Quebec exported $779 million worth of goods.
She adds that we must stop seeing the African continent as a simple supplier of natural and human resources "A large consumer market is emerging there," she says. Cars, aerial vehicles, dairy products, newsprint and turbojet engines, turboprops and other gas turbines are among the main Quebec products exported to Africa, according to the Quebec Ministry of Economy and Innovation. Intelcan Technosystèmes, a Montreal-based manufacturer and integrator of communication, navigational aid, surveillance and air traffic management systems, exports to many countries, including Tunisia, Liberia and Nigeria.
"Quebec companies are more likely to be found in about seven to ten countries, including of course French-speaking states such as Morocco, Senegal, Cameroon or Côte d'Ivoire, but also in South Africa and Rwanda," says Alain Carrier, Expert advisor africa, Exports and internationalization at Investissement Québec International (IQI).
Several African states invest heavily in their infrastructure, often through projects often financed by the World Bank or the AfDB. This opens up interesting prospects for Quebec civil engineering firms, which are very active in feasibility studies and environmental studies. "However, we are less present in the construction of infrastructure, a sector that we would benefit from developing," notes Alain Carrier.
The information technology and renewable energy sectors also have great potential in Africa, not to mention mining, which is the most impactful sector in Canada. Québec is mainly active in the mining-related equipment and professional services market. Some Quebec SMEs also work in training, environmental, legal or financial services. For example, CAE has an airline pilot training service in Johannesburg, South Africa. As for the consulting firm C2D Services, it supports institutional reform projects in some twenty countries, aimed at promoting economic growth, good governance, technology deployment, gender equality and inclusion.
"Africa is not necessarily for all entrepreneurs," warns Alain Carrier. According to him, to succeed it is important to love this continent, to be patient and persevering and above all to prepare well. Each country displays its cultural and organizational particularities.
Contracts financed by the World Bank or the AfDB and those awarded by mutual agreement by States do not approach in the same way either. You need to be familiar with the circles of decision-makers based on the project, which will become easier if you choose the right trusted partner on site.
This is the role that CHAQUA is trying to play. "We seek to connect companies on the two continents that share objectives," says Catherine Frenette. We also offer orientation programs for Quebec companies that want to export to Africa and networks of partners on site, particularly in West Africa. »
The Government of Québec has a General Delegation in Dakar, Senegal and offices in Abidjan, Côte d'Ivoire and Rabat, Morocco. Canada also maintains embassies and consulates in several African countries. In addition, the creation of IQI on June 18 – notably through the integration of Export Québec into the Crown corporation – increased Investissement Québec's expertise in supporting entrepreneurs in the African market.
For Catherine Frenette, the biggest challenge for entrepreneurs is cultural intelligence. "We have
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