Stronger focus on North African markets

German exhibitors and organisers are showing increased interest in exhibitions in Algeria, Libya and Sudan.

The interest of the international business community in the markets of North Africa (Algeria, Libya, Morocco, Mauritania, Sudan and Tunisia) is growing. While inaccessibility to several countries in this region has been an obstacle until recent times, there have been some notable changes of late. In particular, the big oil and gas producers Algeria, Libya and Sudan are now recognised as new markets for international investment and trade.
More and more salespeople in German companies are turning to the trade fair as an instrument for finding new customers and maintaining old contacts in these countries. While many of the conventional methods of establishing and maintaining contacts are still deemed impracticable due to the lack of printed or electronic information and a very personalised business culture, an exhibition is often the fastest and cheapest way of successfully presenting products to a wide potential market.
Although the extent of development and purchasing power of the aforementioned national economies varies considerably, all of them have enjoyed considerable economic growth in recent years. Average growth has been 5 % per annum. Germany's economy has a good competitive position. With a bilateral trade volume of nearly 9 billion and more than 350 companies having already invested directly in the region, Germany currently follows France and Italy as the third most important business partner in the region.
Exhibitions have flourished in Morocco and Tunisia for many years, but now Algeria and Libya are also seeing the emergence of new and internationally attractive trade fair events. The necessary infrastructure is now in place. Personal safety and medical care are assured, new hotels mean that visitors can expect comfortable accommodation, and exhibitors and/or visitors can now stay in contact with their company at home via mobile or the Internet in almost all cases.
Initially German companies can make use of the successful involvement of the Federal Ministry of Economics and Technology. This year, again, the ministry will be participating with joint stands at the big multi-sector exhibitions in Algeria (FIA, June 1 to 8), Libya (TIF, April 2 t 12) and Sudan (KIF, January 25 to February 3). Some of the German Länder also run their own participation programmes.
The FIA is living proof of the dynamism of the Algerian market we have observed for several years now. A total of 1600 exhibitors, over 1000 of them from abroad (with around 70 from Germany) will be presenting their products and services to a broad public of more than 500,000 (specialist) visitors. The TIF is still far and away the most important exhibition on Libyan soil. Annual exhibitor figures for this fair staged at the Tripoli Fair Ground have again topped 1000, the vast majority of them hailing from outside Libya. German business regularly participates with 40 to 50 companies. In 2005 the fair proved so popular that several companies had to be turned away.
For many years the political situation obscured the new dynamism of the Sudanese market. But a campaign of economic reform, 500,000 barrel-a-day oil production, the peace agreement between the north and the south and financial aid promised over the next few years have significantly helped to boost the number of contracts in the country in recent times. This new appeal is evidenced by the development of the KIF. Nearly 400 foreign exhibitors, 20 to 25 of them from Germany, show at this fair, making it plain that this country of over 30 million inhabitants is once again an interesting trade partner.
Next to these established multi-sector exhibitions, the trend in these markets is undeniably moving towards the specialist fair. Many have already been established in Morocco and Tunisia and in Algeria and Libya this segment is either being expanded or set up. There are new areas of activity not just for exhibiting companies but also for the organisers who want to stage trade fairs either on their own or in collaboration with local companies.
German companies like expotec, IMAG or GIMA have managed to gain a foothold in Algeria, Libya and Sudan. expotec successfully organised a trade fair in Algeria, GIMA staged a comparable event in Libya. The former is planning a water, air-con and heating exhibition for spring 2006. Other new fairs are to follow for North Africa. Industrial sectors worth mentioning in this context next to the building industry are water management, petroleum & natural gas, environmental technology, transport and health. The increasing number of German exhibitors and involvement of German trade fair organisers are proof of the dynamism of North Africa’s new exhibition locations. The results are almost entirely good; the vast majority of company representatives are more than satisfied with their involvement. So it is hardly surprising that competition is getter tougher not only from Germany but also from the wider international business community. Walter Englert

m+a report Nr.3 / 2006 vom 28.04.2006
m+a report vom 28. April 2006