Director General for International Trade and Investment: "It is essential to strengthen Spain's institutional presence in Africa"

Maria Paz Ramos, Director General for International Trade and Investment at the Secretary of State for Trade, is passionate about Africa. One of her objectives at the head of the Directorate General for International Trade and Investment is to transmit this enthusiasm to Spanish companies so that they see African countries as reliable partners. To explain the details of the Horizon Africa Plan, promoted by the Secretariat of State for Trade, Ramos received Atalayar in her office and explained the keys to boosting Spanish investment in the African continent. 

What are the fundamental lines of the Horizon Africa Plan? 

For Spain, Africa is a region of special interest, not only for commercial or economic reasons, but also for political, migratory or security reasons. Achieving a better position in the region, with a view to increasing participation in the development and future investment of the continent is, therefore, an objective to pursue in our foreign trade policy. 

From the Secretariat of State for Trade we have developed a commercial and financial strategy for Africa, called " Horizon Africa ". The aim of this strategy is to support the internationalisation of Spanish companies in the African market and to promote a growing and solid Spanish presence on the continent.

The strategy proposes the adoption of concrete public support measures to help strengthen the competitiveness of Spanish exports and investment in the region. The concrete measures proposed are based on two axes: financial and institutional. 

The fundamental lines that we wish to follow with this programme is the strengthening of the institutional presence in Africa and of Spanish economic operators on the continent. There are very important economic, political and commercial ties with Morocco, but we have less of a presence in the rest of Africa. More visits, exchanges and contacts are needed throughout the area to better support economic operators. To this end, we want to expand and strengthen the network of economic and commercial offices. Those that exist at present have to cover very large areas of the territory and that is not enough. The next one we are going to open will be in Addis Ababa (Ethiopia).  

In addition to this, we would like Spanish companies to have more funds available for their internationalisation in Africa. Therefore, we have extended our different instruments of bilateral official financial support to internationalization through CESCE, FIEM, FIEX-FONPYME. Spanish operators also have to apply for more funds and projects to boost their exports. We are working to grant untied loans in some African countries with the aim of attracting funds from the European Union or other multilateral mechanisms to finance new projects.  

And it is not only a question of economic relations; the Ministry of Foreign Affairs has also shown its willingness to strengthen relations with Africa in order to fight against terrorism, manage immigration and expand cooperation projects in Africa. We are also coordinating to gain positions in multilateral partnerships such as the African Development Bank.  

What space is there for SMEs in this Horizon Africa Plan?

We would also like them to benefit from this programme so we have taken their needs into account. We have worked from the bottom up to develop it. We have started with an analysis of the countries that may be of greatest interest to Spanish exports and we have also asked the economic and trade advisors to find out what the Spanish business presence in Africa is like. We have realised that there are many SMEs working on the continent and we have to count on them. ICEX, the Spanish Institute for Trade and Investment, is also programming a series of activities and forums to promote Spanish investment in Africa as part of its support for the Horizon Africa Plan.  

What are the objectives with which Horizon Africa's expectations would be fulfilled? 

There are three fundamental objectives. The first is for Spain to be a significant economic and commercial institutional interlocutor throughout Africa, as well as in Morocco and Algeria. The second is to strengthen our participation in European cooperation and investment projects in Africa. And finally, to increase our economic visibility as an actor throughout the continent.  

What strategies does the Horizon Africa Plan contain to encourage Spanish companies to invest in sub-Saharan Africa? 

Mainly a task of information. There is still a perception among business people that Africa is a sea of uncertainty, instability and coups d'état. This reality only exists in some areas of the region, but we must distinguish and select those markets that are growing and where real business opportunities exist. In North Africa we have Morocco, Algeria or Egypt. Kenya, Ivory Coast or Senegal are also very interesting markets. In South Africa and Angola there are already Spanish companies operating and these are two countries with great potential. Nigeria is a great market, but it is very difficult to do business there because of its federal structure. Furthermore, in the northern states there is a problem of radical Islamism arising from instability in the Sahel region. 

Does Spain plan to reinforce the military presence in the Sahel in order to preserve commercial interests in the area?  

It is essential to pacify the Sahel area. Minister of Foreign Affairs, Arancha González Laya, has been strongly involved in this issue and has been appointed president of the Group of Five for the Sahel. Terrorism is spreading throughout the area very worryingly. Even Benin and Burkina Faso, traditionally very peaceful countries, are also suffering the brunt of terrorist attacks. This is a major problem and needs to be resolved.

What is it necessary for Spanish companies to think more about Africa than Latin America when it comes to internationalisation? 

It should be noted that in 2019 Spanish exports to Africa exceeded those of Latin America by 3 billion euros. Despite this, it is true that the presence of Spanish companies in Latin America and their investment is very large; in contrast, in Africa the role of companies is much more modest. We must take advantage of the plans that the European Union is going to launch to strengthen business projects in Africa. Furthermore, it is essential to offer more information and strengthen the specialists on the ground so that they can detect opportunities and advise entrepreneurs on investments, and we are working along these lines.  

What role do the Canary Islands play in the Horizon Africa Plan? 

The Canary Islands are a very important platform for doing business with West Africa. There are international investors who set up their office in Las Palmas de Gran Canaria to operate in Africa. Small and medium-sized Canary Islands companies are also looking to Africa to internationalise thanks to its proximity to the continent. 

Is it necessary to strengthen the schooling of women in Africa for the economy? 

It is very necessary. You cannot do without half the population. Moreover, African women are very enterprising. In Benin, there are real women's emporiums based on the textile trade. And all this despite the fact that they are faced with very complex institutional contexts, they have many problems in gaining access to land ownership because inheritance is patrilineal, for example. Even so, it is necessary to strengthen business projects led by women.  

China is investing in Africa and playing a crucial role. What should Europe do?

China is investing heavily in Africa. It is investing to get hold of raw materials in Africa and many countries are going into a lot of debt with them. They are a major competitor to the European Union and they are so unfairly because they do not participate in multilateral organisations or in consensus decisions. Even so, France and Germany also have a very strong presence on the continent. They have provided many resources to play an important role in Africa and take many of the European projects with them. Spain cannot yet be compared with these nations, and for this reason we still have to work a lot in this region.  

How can the paralysis of the free trade area intended to be set up this year affect the plans of the Ministry of Trade? 

The more liberalised the borders are, the better it will be for trade. African economies are substitutes and the removal of tariff barriers between them depends on very fine negotiations. While there is an intention to remove the barriers, it must be borne in mind that this is a long-term plan.  

How does the conflict in Libya affect trade in the region? 

The conflict in Libya is a humanitarian disgrace and is straining relations throughout the North African region. We have a trade adviser post in Tripoli, which is currently deserted under the present circumstances. Libya is an oil power and this will lead to a much more complex resolution of the conflict. The prospects for a solution are very difficult to assess.