Economic vibrancy in Africa is not limited to investments for production and manufacturing. Turkish businessmen rely on different projects to revive the overall economy in the continent. One such project is the construction of a trade center that Mustafa Erkan, a businessman from İstanbul is in the middle of preparing in Mogadishu, the capital of Somalia. The facility, which will be named the İstanbul Bazaar, will host wholesalers of furniture, carpet and dry foods. The bazaar, also known as a bedesten, will likely make a $500 million contribution to Turkish exports every year.
Noting that they have been doing business in South Africa for many years, Erkan says they are familiar with the continent. Erkan, recalling that Somalia is one of the best places to do business, stresses that the sources are scarce in the country and that it is not possible to find most products. Erkan further said: “It is almost as though there is no toothpick or needle in this country. This is also the case for the construction industry. The cement factory is idle. Iron is brought from other countries. The products imported from China are of low quality. In addition, the goods imported from Dubai are expensive.” Security is the greatest problem in Somalia. For this reason, the investors are hesitant to start business in the country. The İstanbul Bazaar offers a reliable and secure environment for investors.
Noting that the Bazaar will serve the interests of both Somali and Turkish businessmen, Erkan says: “No VAT tax is levied on our products in places like Mogadishu. There isn’t a significant amount of transport cost because we are wholesalers. The profit margin is not so big. But because we are not retailers, we will not have to deal with the complaints by the local people.”
So far, $15 million have been invested in the İstanbul Bazaar. In addition to contributing to the development of the Somali economy, the bazaar, which will open its doors in 2013, will also improve the overall employment in the country. Erkam Meriç who was assigned as general manager of the bazaar says that they will follow the traditional code of business inherited from the Ottoman times and they would like to revive the ethical code of the time.
Details about the second phase will be announced after the construction of the first phase of the bazaar. Erkan says that further details can be obtained at www.istafbazaar.com
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