An array of opportunities for Polish companies

In 2021, the commodity structure of exports from Poland to Nigeria was dominated by machinery, mechanical and electrical devices and spare parts, grains and non-precious metals. The primary good imported into Poland from Nigeria was crude oil (the value of imports amounted to nearly EUR 500 million, based on Polish Investment & Trade Agency data).

The Republic of South Africa is Poland’s supplier of mineral products, iron, steel and vehicles. Polish exports to the country include machinery and devices, vehicles and food products. “Another area worth noting is definitely the medical sector. Poland enjoys excellent recognition abroad in terms of its product offering. Domestic manufacturers are constantly on the lookout for new markets and business partners. Taking into account Africa’s enormous demand for medical products, the continent may become a new prominent partner for Poland in terms of exports. I am thinking not only about North Africa but also the Sub-Saharan part of the continent. The advantages of the Polish offering are the high quality of products and their competitive price. All this, paired with the reliability and compatibility of Polish products with the products of other manufacturers, allows Poland to respond to the needs and expectations of African customers,” explains Krzysztof Drynda, President of the Polish Investment & Trade Agency.

Shipyards, automotive, food

Navimor International was founded in March 1991 and specialises in the export of ships, shipbuilding and ship furnishings, primarily for Africa-based business partners. The company has established a prominent position on the continent. Owing to this, new clients from Western Europe, Scandinavia and the Middle East have begun to emerge. Navimor International was responsible for the construction of the Academy of Fisheries and Marine Sciences in Namibia. The project was executed in collaboration with the Ministry of Fisheries of Angola. “The largest educational venture of EU member states in Africa,” read headlines in African press coverage of the academy’s construction. Together with the Gdańsk Remontowa Shiprepair Yard, Navimor constructed a shipyard in Lagos, Nigeria’s largest city.

Białystok-based company AC signed a contract in 2021 for the supply of 40,000 STAG LPG fuel systems for cars to go to Algeria. The contract value is PLN 25 million. The other party to the contract is Naftal, a company that belongs to the largest crude oil and liquid gas company in Algeria and in Africa.

Wielton Africa is owned by the largest trailer and semi-trailer and lorry body manufacturer in Poland. The company office is based in Abidjan, the largest city in the Ivory Coast. WKS is part of the West African Economic and Monetary Union (UEMOA), which has allowed Wielton to broaden its expansion options and the potential for sales of its products across the continent. Wielton is one of the 10 leading manufactures in Europe in its field.

The food industry has been cooperating with African partners for many years now. Mlekovita of Wysokie Mazowieckie is the main supplier of skimmed milk to Algeria. To become a key player on the market, the domestic company invested in unconventional promotion ventures. “Africa is our priority market for further expansion. For a business to establish itself and become a key player, it must opt for unconventional advertising methods. We must not forget, however, that Africa is also the poorest continent in the world. This is why, in addition to developing our business, we have been providing support to people in need,” says Dariusz Sapiński, CEO.

Senegal, Morroco, and Mauretania are just some of the countries where Mlekovita’s products are purchased by shoppers on a daily basis. Recognition of the Polish brand and what Polish quality represents is growing year-on-year. “Mlekovita has no intention of resting on its laurels yet. We want to become number one. The same can be said for Poland. West Africa alone is inhabited by approx. 100 million people, hence the enormous sales potential,” explains Dariusz Sapiński. “One way of reaching clients is raising awareness of our brand via sports events. This is the reason behind our idea to set up the star-studded Mlekovita DUUST RallyTeam.”

Polish teams participated in the Africa Eco Race. The drivers conquered the wilderness of North Africa and crossed the finish line in the capital of Senegal, Dakar. The sporting challenge benefited a charity. The Polish team competed in a rally held under the motto “The Mission: I Will Save You.” Alongside the drivers who travelled to Africa, we shipped supplies of powdered milk for sick and malnutritioned children. The aid was intended for a mission centre in the suburbs of Dakar headed by Ursuline Sister Ksawera Michalska.

Agriculture and the construction industry

Africa has been a source of crucial business partners for one of the most well-known Polish brands, Ursus. In 2013, the company sold tractors to Metec, a company belonging to the Ethiopian army, for a total of USD 50 million. Two years later, Ursus earned another USD 55 million for the sale of farming vehicles to the United Republic of Tanzania. More transactions followed, but the bankruptcy of the domestic brand put a stop to this lucky streak.

Despite this, other entities operating on the agricultural market continued to do business in Africa. For example, Unia Araj Realizacje, a Polish company dealing in the sector of large drying and storage systems, developed the infrastructure for the Tanzanian agricultural sector.

In 2018, Feerum’s CEO received an award from the Polish Investment & Trade Agency in the Foreign Expansion category for the investment of USD 33.1 million it executed in Tanzania. “Tanzania is a country with enormous potential. We are currently developing warehousing infrastructure to store 190,000 tonnes of grains and the entire market can accommodate millions of tonnes,” said CEO Daniel Janusz, stressing the importance of the support received from the Polish Investment & Trade Agency, both financial due to shortages of capital in Africa and operational in handling administrative procedures, finding the right locations, partners, and suppliers.

Diverse markets

Polish company F.B.I TASBUD has been operating in Africa for over 35 years now. The first pioneer investments consisting in the development of a cement plant and residential properties were executed in Libya. “Thanks to the social, economic and political transformations that took place on the African continent at the turn of the 20th and 21st centuries, today we should be talking about different individual markets across Africa and not a single consolidated market. Africa is very diverse in terms of politics and economy,” says Andrzej Czapczuk, General Director and Vice President of the Management Board of F.B.I Tasbud, Chairman of the Polish Cluster of Construction Exporters.

The F.B.I. TASBUD Group is particularly involved in projects carried out in Congo and Senegal, executed as part of the “Sénégal Emergent” project focusing on the construction of Diamniadio, the new capital, which will take over the administrative functions of the exceedingly busy and not very functional Dakar. “Interest in African markets is driven by growing stability and economic potential on the continent, which is also recognised by domestic financial institutions, including Bank Gospodarstwa Krajowego and KUKE from the PFR group. Despite appearances, the product offering of Polish companies is constantly monitored by trade representatives of African countries in terms of effective implementation of Polish technological solutions in the construction sector,” Andrzej Czapczuk explains.

Representatives of Senegal and the Democratic Republic of Congo attended the opening of the Proecological Module and Prefabricates Plant of F.B.I. TASBUD in Michałówek near Warsaw. “African markets are still considered to be developing markets, which by definition have always involved turnover stability risk; however, this belief needs to be re-evaluated. The financial markets and economic reality currently allow for safer investment of Polish capital in trade relationships with African partners. Provided that the right export loan security is ensured, African markets are a safe platform for the expansion of Polish exporters, if only from the perspective of the diversification of risks of economic operations that we have to face in the existing war-stricken reality of Central and Eastern Europe,” said Andrzej Czapczuk.

He added that, to date, the primary threat in business relations with African markets has been the instability of local currencies. This is why the assistance of domestic financial institutions such as BGK in the verification and securing of transactions effected by Polish businesses is so essential.

Karol Wasilewski