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Africa-France: “french companies are not quitting Africa”

Despite the clouds in the sky over Africa-France relations, on the political front France is maintaining its appetite for the continent and defending a new economic strategy.

By Mérième Alaoui, in Paris

In twenty years, the market share of French companies in Africa has halved, from 10.6% in 2002 to 4.4% in 2022, according to estimates by COFACE (the French foreign trade insurance company). At the same time, African imports have quadrupled, to the benefit of emerging countries such as China and Turkey. Admittedly, France has lost some of its influence, as the figures show. But Bruno Le Maire, the French Minister for the Economy, Finance and Industrial and Digital Sovereignty, is adamant: « French companies are not withdrawing from Africa ». This statement was repeated in a video broadcast at the Ambition Africa conference held in Paris on October 17 and 18. With 1,800 registrations, including 300 French companies and 800 African organizations, and more than 2,000 B2B meetings, according to the organizer, Business France, the largest economic meeting of the autumn between the two shores of the Mediterranean lived up to its promises.

France, again through the voice of its minister, would like to focus on other figures. For example, the number of subsidiaries of French companies on the continent, which now stands at 4,200: « This number has doubled in ten years, » said Bruno Le Maire. And these subsidiaries have directly created 500,000 jobs. There seems to be a new positive dynamic at work between the continent and France, one that is more visible on the ground, far from the image propagated by the media and social networks. « The media treatment [of Africa] from France is very far from reality. (…) There is no anti-business or anti-French sentiment, » says Arnaud Floris, head of West and Central Africa for Bpifrance (the French public investment bank). Mohamed Diop, regional director for sub-Saharan Africa at Africa Global Logistique (AGL), the new MSC subsidiary resulting from the acquisition of Bolloré Logistics, agrees: « There is no anti-French sentiment ». But he adds a warning: « France needs to improve the reception of African students in France. Most of them now prefer to go to America ».

Business France claims €4.2 billion in funding by 2022

With 1,800 registrations, including 300 French companies and 800 African organizations, and more than 2,000 B2B meetings, Ambition Africa lived up to its promises@Ambition Africa 2023

Without denying the difficulties caused by the political crises in several West African countries and their impact on business relations, the French are defending a new strategy. It starts with the creation of a « Team France Export » with ambitions focused on Africa. Business France has twelve offices abroad and employs eighty people, most of whom are local experts. Through its referenced partners, the organization can operate in 31 countries. Its managing director, Laurent Saint-Martin, is proud of the growth of its activities: 3,000 companies were supported last year. 

By 2022, Business France aims to provide €4.2 billion in financing, half the amount of the French Development Agency (AFD). Most of its agency network is concentrated abroad. This collaboration continues throughout the year, according to the first assessment of the online platform for entrepreneurs in Africa, France. Contact points have been set up in 44 African countries with the aim of developing long-term relationships with entrepreneurs. French President Emmanuel Macron, who is keen to mobilize the Diaspora, announced at the Mediterranean Forum in Marseille that he would release 100 million euros to help French companies set up projects on both sides of the Mediterranean. This strategy seems to be working: according to Bercy, trade between France and African countries reached 67 billion euros last year.

New French impetus backed by European Union funding through the Global Gateway initiative

At the European level, this new French impetus is accompanied by the Global Gateway initiative, which provides for the allocation of 300 billion euros for the development of sustainable infrastructure in developing countries, half of which will be allocated to the African continent. The African Development Bank (AfDB) estimates that $100 billion a year is needed to develop the continent’s infrastructure.

« That is the paradox. There’s no shortage of money, but it’s hard to get it out. Many financiers are willing to invest. Infrastructure projects are missing. It is our collective responsibility to come up with serious projects and to organize an industry so that we can offer sufficient guarantees to lenders, whether public or private, » explains Marc Debets, CEO of APEXAGRI, a consultancy firm specializing in the development of agricultural industries. To stand out from the crowd, it’s important to focus on partnerships. « It’s important to remember that it’s not Europeans or Chinese who should be doing these projects, but Africans. And we are absolutely committed to that, » he adds. The opening of the AfCFTA (African Continental Free Trade Area), with a combined GDP of $3.4 billion and a potential market of 1.4 billion consumers (which would make it the largest free trade area in the world since the creation of the World Trade Organization), is also a game changer. To support this revival, Paris has set itself the goal of helping African companies set up in France. Ivorian chocolate maker Philippe Metch, CEO of Pemms, is working hand in hand with BPIfrance to open the first shop in France for his Ivorian-made confectionery by the end of next year.

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