FOREIGN INVESTMENT IN AFRICA AND TURKEY’S POSITION

Abstract

The developing energy and production technologies have been succeeding to introduce an ever-increasing number of new products to the usage of human lives, with the help of boosting research and development budgets as a consequence of capital accumulation, as well as today’s management philosophy of searching for the best, while the rapid developments in transportation and information technology have been lifting the physical and intellectual barriers. The continuity of this outstanding development in the production site would be possible only with the existence of a consumption demand that will encourage production. However, this is not that much easy. First of all, the demanding rich and developed nations of Northern hemisphere especially Europe and America is not increasing but losing their consumer population. Further, the consumers of these nations whose median age is over 40 and increasing so after, has been mainly saturated and have a decreasing consumption demand due to ageing. Besides, there have been many rivals targeting the same rich groups. On the other hand, the consumers of medium income countries, have been surrounded by protectionist policies or by the producers using the cost advantage of economies of scale. The increased household debts because of pumped consumption stand as an obstacle before the new consumption development. One of them or the best option to exit from this closed cycle is regarded as the search for unsaturated new markets. The direct investments of those countries which want to take a part in the Continent’s future by today reveal certain hints of this power struggle. Being part of the struggle in Africa is an inevitable must for Turkey as a developing country which tries to reach the target of climbing to the list of top 10 economies of the World. Turkey which has deep relations with the Continent starting early as 15. Century and has no shame of colonisation, definitely has benefits to investigate the potential and rivals investing in Africa.