Türk Eximbank’s Experience in Sub-Saharan Africa

Overview of projects and activities of Turk Eximbank in Sub-Saharan Africa

The Turkish Government has adopted the African Initiative in the early 2000s. As a result of this Initiative, bilateral trade between Turkey and the Continent as well as the operations of contracting companies has increased significantly. Today, the trade volume has reached 23 billion USD from a merely 3.6 billion USD.

As for the Turkish contracting services, Africa’s share is around 17% of the total volume of 428 billion USD, corresponding to approximately 72-73 billion USD.  As the sole official Export Credit Agency of Turkey, Türk Eximbank has acted as an important policy tool in supporting Turkish overseas contractors’ operations in Sub-Saharan Africa. 

Türk Eximbank’s first transaction in Sub-Saharan Africa dates back to 2005 which was the construction of a bridge in Sudan by a Turkish company. Many important superstructure and infrastructure projects such as inter-city railway, water projects, stadium, sports arena, business hotel, expo center, conference center with various amounts in countries on both East and West side of the Continent, including Ethiopia, Ghana, Cameroon, Senegal followed in the following years under International Loans Program, which is a buyer’s credits scheme.

Hotel Expo Arena Project in Senegal

Water Project in Ghana

Railway Project in Ethiopia

National Interest Market Project in Senegal

Stadium Project in Cameroon

Conference Center Project in Senegal

Amongst those transactions, the railway project in Ethiopia became the largest single transaction Türk Eximbank has ever financed up to now, where the financing package also involved an eminent international commercial bank as well as leading ECAs from Europe.

Türk Eximbank’s support to Africa has reached 1,3 billion USD and it makes up approximately 40% of the overall support provided under the Buyers’ Credit since the inception of the program. All the mentioned support Turk Eximbank has provided in  Africa is in the form of direct loan to sovereigns or under sovereign guarantee.

Moreover, the Bank opted to use innovative solutions to manage its exposure and to overcome risk concentration in certain countries.  For instance, we have collaborated with ICIEC in member African countries through ICIEC’s Non Honoring of Sovereign Financial Obligations Policy which guarantees the repayment of the loans allocated to sovereigns in Africa.   

On the other hand, Türk Eximbank gives utmost importance to increase its activities in Africa by pursuing international cooperation and collaborating with prominent financial Institutions.  Turkey is already a shareholder of African Development Bank and Türk Eximbank  widens its network by cooperating with different African institutions such as Afreximbank, Trade Development Bank, Ecowas Bank, African Trade Insurance.  Cooperation means come in different forms, from risk sharing to the extension of credit lines to be used for the financing of Turkish exports.   

The Bank also cooperates through reinsurance agreements signed with other eminent ECAs around the World, such as US Exim, UKEF, Bpifrance, OeKB, MEHİB, EKF, EKN.  These agreements are ideal to increase the levels of support as EPC contractors make their procurement from several countries due to GVCs which necessitates ECAs to join forces. All these agreements also aim to form partnerships in Africa. 

Although our repayment experience in Africa have generally been positive, some of the borrowing countries in Africa have chosen to benefit from the DSSI Initiative as a result of the Covid-19 Pandemic. The negotiations between governments are going on regarding the restructring schemes.

It is also worth mentioning that apart from the buyers credit program, Türk Eximbank also supports Turkish exports to Africa through export credit insurance and short term working capital loan programs extended to Turkish exporters.

More BUlletin Publications

Digitalisation as a business leadership imperative


Digitalisation as a business leadership imperative

Technology-driven trade and client interaction are nothing new. But increasing investment in digitalisation of fundamental business processes and decision making is driving a new way of looking at trade finance and risk underwriting. Authors highlight successes and challen...

Mobilising Africa's Potential


Mobilising Africa's Potential

Despite the challenges there are many positive opportunities emerging for Africa today

Curated by the BU Sub-Saharan Africa Working Group, authors for this special edition of the BUlletin explore areas of growth and the role of different sources of international finance tapping this

Ripples and After-effects


Ripples and After-effects

exploring the multiple secondary impacts of both the pandemic and the war in Ukraine

from sovereign risk in Africa, to energy security, political violence and the private CPRI market

Shocks and Short Circuits: The Rewiring of Global Trade


Shocks and short-circuits: The re-wiring of global trade

The bright shoots of economic growth are under threat once again
Assailed by commodity supply shocks and political instability exacerbated by the war in Ukraine
Contributors this month look at the complex impacts on trade and investment across developed and...

Diverging Risk


Some predict that 2022 may finally bring us beyond the thrall of the COVID-19 pandemic

But the events of past two years have brought significant divergence of risk across economic and geographic boundaries

Authors this month look at how this is playing out in a range of cases

New Foundations


If the global economy is truly on the road to recovery how can we build the surest path to sustainable growth in our new net-zero world?

New foundations in tech, data, and cooperative frameworks may help guide us into the next phase

Illuminating Climate


Now widely recognised as an economic as well as environmental imperative
The momentum to tackle climate change is building
Changing perspectives, policy, products and processes across the export credit industry

In search of claims


Where is the avalanche of claims and insolvencies expected to emerge from COVID-19?
The picture so far is uneven across geographies, sectors and business lines
And for the future? Well, it depends...

Cross-roads for Africa's recovery


The economic impact of the COVID-19 pandemic on Africa has been considerable and the path of recovery depends on maintaining the support of local, regional and international stakeholders. But which approaches can best build upon the opportunities presented by growing intra-regional trade, and investment in sustainable infrastructure?

Navigating the Brave New World of Trade


With the wounds of the pandemic still under triage, a rebound in trade could the best hope for governments and businesses alike.
But trade is under immense pressure from myriad directions.
How can we maintain supply of finance, in the face of growing demand and irregular patterns of risk?

January 2020 BUlletin


Exploring the macro forces impacting trade, 2019 H1 Industry Data Snapshot + Analysis of the Economic Outlook for 2020

September 2019 BUlletin


This edition of the BUlletin juxtaposes themes of change and disorder with the celebration of a number of institutional anniversaries, symbolic of endurance.

• The new dynamics of 'trade in flux' • 100 years of UKEF • ICIEC on Partnerships for Development • Sector Spotlight: Shipping (GIEK) and Pharma (SE...

July 2019 BUlletin


Export Credit and Investment Insurance, Today and Tomorrow

We can see the seeds of the future in digitalisation, automation, applications of block-chain, or machine learning. But what will it mean in practice?

May 2019 BUlletin


Is international financing on target?

This edition of the BUlletin addresses the evolving role of various international financial institutions in generating sufficient risk capital for development projects and in particular investment in critical infrastructure and renewable energy.

Also featuring review of Bern...

2019 Spring Periodical


Spring Periodical with 2018 Year end statistics and commentary, plus results of the 2019 'State of the Industry Survey', conducted jointly with ICISA.

Berne Union Members covered a record USD 2.48 trillion of new business in 2018. At the same time, claims remained elevated at over USD 6 billion, for the forth consecutive year....

August 2018 BUlletin


Innovations in trade technology, e-commerce and insuretech | Rethinking local currency | LMA's new buyer credit facility 

Contributors this month explore diverse themes of innovation, from the foundations of trade in the form of smart ledgers through to new approaches to supporting e-commerce exports and the potential...

July 2018 BUlletin


IWG | 2H 2018 Risk Outlook | Trade Wars | Regulation and more...

Contributors to the July BUlletin explore the development of a new era in export credit, through the lens of proceedings at the IWG; trade wars; sustainability and export finance regulation

April 2018 BUlletin


Themes for this month focus on:

Linking Trade and Economic Growth / Collaborative approaches to Sustainable Development /Wind Financing / Digital Innovation / Venezuela / 

March 2018 Bulletin


By all accounts 2017 was an excellent year for Berne Union members

who once again made a tremendous positive impact on global cross-border trade and investment - providing a record USD 2.35 trillion in cover for cross-border trade and investment and now supporting 14% of total worldwide exports.

September 2017 BUlletin


"small business to big infrastructure – local currency to global economic policy"

Themes for September span the full scale of international finance in a bumper edition, with a selection of 12 articles from Berne Union members and industry experts, painting a telling picture of the relative pressures and priorities in ...

August 2017 BUlletin


"New Horizons: Changing Markets, Evolving Approaches"

This month’s contributors examine three economies seemingly at turning points – Argentina, Iran and the Côte d’Ivoire – considering in each case the forces actively influencing the trade environment and the approach of the financial ...

July 2017 BUlletin


"10 years of SERV, SMEs and Africa"

Commentators this month focus on support for small businesses, local contractors and risk in Africa - including energy sector and analysis of the Mozambique debt crisis. Detailed BU Data Snapshot on Africa and a member survey on approaches to SMEs set the scene...

May 2017 BUlletin


"Claims, Pricing and Regulation"

The first edition of the BUlletin kicks off with a 'State of the Industry' review from Berne Union Secretary General, Vinco David, where he considers three factors which could disrupt the status quo for the export credit and investment insurance industry...