Honorable Minister of Fisheries and Marine
Resources, Mr. Bernard Esau

Permanent Secretary of the Ministry of
Industrialization, Trade and SME
Development, Mr Gabriel Sinimbo

Deputy Permanent Secretary, Ms Bernadette
Artivor

Mr. Tara Shaanika, CEO of Namibian Chambers of
Commerces and Industries

Mr Hakan Karabalık, Chief Commercial Counsellor
of Turkish Embassy in Pretoria

Distinguished Representatives Turkish Exporters
Assembly,

Türkiye İhracatçılar Meclisinin Değerli
Üyeleri/Temsilcileri

DearGuests,

Ladies and Gentlemen,

• I amdelighted to be here with you today, and I would like to express my sincere
  appreciation to the Ministry of Industrialization, Trade and SME Development of
  Namibia and my gratitude to the Turkish Exporters Asssembly as well as the
  Turkish Ministry of Economy for this timely event.
• In my speechtoday, I will try to give you a brief picture of the medium- and long-term political and
  economic outlook of Turkey and also Turkey -Africa economic outlook. Let me
  highlight the fundamentals of the Turkish economy.
  • -Witha young and qualified work force, expansive domestic market, disciplined and
    regulated financial sector, highly developed infrastructure, competitive
    private sector, Turkey is rising as an economic powerhouse in its region and
    the world.
  • -Turkeyis strategically located at the epicenter of Eurasia. This has been an asset in
    forging cooperative economic partnerships with its neighborhood as well as on
    the global scale.
  • -Membershipin the G-20 platform indicates our firm resolve to become a responsible
    stakeholder in the world economic governance. Turkey assumed the rotating
    chairmanship of G-20 in 2015. Development is our main priority during our
    chairmanship, we would like to becomethe voice of the developing world. To that end we emphasize 3 I’s, namely,
    Inclusion, Implementation, Investment.
  • -Ourmembership in regional organizations such as BSEC, D-8, ECO is a reflection of
    multi-pronged character and regional orientation of the Turkish foreign policy
    in the economic sphere.

OUTLOOKFACTS SLIDES

-Turkey has diversified modalities of economiccooperation at its disposal. We have accelerated conclusion of Free TradeAgreements (FTA)

-We have given impetus to the conclusion of Agreementson Promotion and Protection of Investments as well as Agreements on Avoidanceof Double Taxation.

-The Turkisheconomy is the 18th largest in the world and 7th largest in Europe.

-Turkey has enjoyed a steady growth in the last 10years and an uninterrupted economic growth in the last 22 quarters. Turkish economygrew by % 5 on average between 2003-2014. In the first quarter of 2015 Turkisheconomy expanded by % 2,3. (SLIDE)

-Political stability has been the driving force andthe mainstay for the positive economic performance of the economy in thisperiod.

-Due to the comprehensive macro economic reforms,Turkish economy proved resilient against the shock waves of the global economiccrisis which has affected the world economy since 2008 onwards.

I.STRONG FUNDAMENTALS

A.FiscalPosition Remains Strong

• In a period when quite a number of countries aredealing with high fiscal deficit and debt stock, Turkey stands out with her strong public fiscal balances.

. We have also performed much better than many advanced andemerging market economies.

• General government deficit asa share of GDP was 0.7% in 2014 down from 10.8% in 2002.
• This is almost one sixth (¹/₆) of the OECD average (4.1%)
• This year, we project the deficit to fall to 0.5% of GDP.
• We aim for ageneral government surplus of 0.1%by 2017.
• Similarly, publicsector debt has fallen to 33.5%of GDP in 2014 from 74% in 2002

B.Banking Sector is Safe &Sound

• Turkish banking sector is well-capitalized and highlyprofitable.
• Capital adequacy ratiois 15.1%, twice the regulatory requirement. This ratio is one of thehighest among G20 countries. (Indonesia 18.8%, Germany 17.7%, Brazil 16.5% andUK 16.4%)

C.Export market iswell-diversified

• We have a well-diversified export market. The numberof export products over $1 billionrose to 37 in 2014 from 9 in 2002. Similarly, the numberof export markets over $1 billionrose to 34 in 2014 from 8 in 2002.
• Due tothe economic stagnation in the EU, one of major trading partners, our exportscontracted 9.4% in the first seven months of the year.
• EU is our main trade partner. Last year, the share ofEU in our trade was

ü43.5% in exports

ü49.9% in tourism

ü75.5% in FDI

Geopoliticaltensions in the region has been another drag on Turkish exports.

Steadfast implementation of structural economicreforms as well as pursuit of prudential monetary and fiscal policies in the2000’s strengthened macroeconomic fundamentals of the economy. Introduction ofregulatory and supervisory mechanisms created a sound financial system which inturn provided a strong buffer against external shocks.

-As a result, GDP per capita has reached around 10.400USD and gross domestic product amounted to around 800 billion USD at the end of2014. In purchasing power parity it stands around 19.000 USD.

-While many EU member countries are afflicted withdouble digit unemployment rates, we reduced unemployment ratio to below % 10 inan atmosphere of global economic crisis.

Job creation remains relatively positive

• Despitethe declining domestic demand, Turkey has been successful in job creation, but unemployment remains
  sticky around 9-10% due to therising labor force.
• Since2007, we have created employment for7 million people in Turkey whilemany countries could not even have compensated for their job losses so far.
• Wehave created employment for 675 thousandpeople over the last year.
• Inorder to support employment and toreduce the unemployment rate, we need to continue the reforms.
• Whatare those reforms? Let me touch uponthem namely bearing in mind that it might be useful for Namibia as well.

REFORM AGENDA TO BOOSTPOTENTIAL GROWTH

D.Ownership and Application of Reforms

• Over the past decade GDP percapita in Turkey has nearly tripled and exceeds $10,000.
• However, there has been asignificant slowdown since the global financial crisis.
• To put Turkey in a highgrowth trajectory, a comprehensive reform program comprised of 25areas of transformation have been designed and unveiled.
• The only way-out for sustainablehigh-growth is the prioritization of structural reforms.
• These are;
  1. Enhancing productivity
  2. Reducing import dependency
  3. Increasing domestic savings
  4. Deepening capital markets
  5. Rationalizing public expenditures
  6. Increasing quality of public revenues
  7. Improving investment climate
  8. Enhancing labor market flexibility
  9. Combatting shadow economy
  10. Improving statistics database
  11. Commercialization of R&D
  12. Leveraging public procurement to develop new
      technologies
  13. Reducing dependency on energy imports
  14. Improving energy efficiency
  15. Supporting water-efficient irrigation
  16. Structural transformation in healthcare services
  17. Incentivizing healthcare exports
  18. Transforming into a logistics hub
  19. Enhancing human capital
  20. Promoting skilled labor migration
  21. Healthy living program
  22. Protection of family and population growth
  23. Enhancing management capacity in local governments
  24. Urban renewal
  25. Improving coordination in international aid
• This comprehensive reform program is also to enhancetransparency and combat corruption.
• We will put in place a judicial reform toimprove the rule of law.

• Turkey hasmade a significant headway towards eliminating barriers to doing business, enhancing competitiveness,
  and combatting corruption.
• In the World Economic Forum’sannual Global Competitiveness Index,Turkey ranks 45th out of 144countries in 2014 compared to 71st out of 117 in 2005.
• According to the World Bank’s Easeof Doing Business Index, Turkey moved up to 55th out of 189 countries in 2014 from 84th out of 175 countries in 2006.

E.Deepening Capital Markets

• We adopted the New Capital MarketsLaw.
• Istanbul as a Financial Center project aims to transform Istanbul a regional and global financial hub.
• Our traditional banking sector and financial markets are relatively mature;
  
• Istanbul now ranks 44th out of 80 countries in the Global Financial Centers Index whileit used to rank 72nd out of 75 countriesin 2009.
• We aim to be among the top 25 by2018.

F.Energy as a Key Sector

• Energy is a key to competitiveness.
• Turkey is heavily dependent on energyimports.
• Hence one of the key reform areas is to increase energy efficiency and reduce energy import dependency.
• We are investing heavily in local and renewable energy.
• In September 2014, 40.4% of ourtotal installed electricity generationcapacity was comprised of renewableresources.
• With the completion of power plants that are now under construction, thisrate will reach 50%.
• We are alsoimposing regulation to increase energy efficiency.
• We willprovide incentives to get millions of dwellings heat insulated.
• We aim toraise this ratio to 3% in 2023.

• TheAfro-Eurasian geography where Turkey is situated is an area where manyopportunities and risks interact in a most intensive way.
• Our tradewith Africa now stands at 23 billion USD, up from less than 3 billion only in2002.
• We considerour G-20 Presidency this year as an important tool to make our contributions tothe global economic and development agenda.
  
• Within thisframework G20 Conference on EnergyAccess in Sub-Saharan Africa was held on2nd October in Istanbul and Namibia was represented by The Deputy Minister ofEnergy Kornelia Shilonga and herdelegation.

Ladies and Gentlemen,

One of the most tangible outcome of this economicsuccess story is observed in the reduction of poverty. Whereas % 30 of Turkishpeople was earning less than 4,3 USD in 2002, this rate declined to % 3 in2014.

-Improvement in macro-economic conditions, dynamism ofthe private sector as well as policies geared towards market diversificationare also reflected in the expansion of foreign trade volume. Thus Turkishexports reached 157,7 billion USD in 2014 whereas imports amounted to 242,2billion USD. Declining energy bill in recent months also helped close the gapbetween exports and imports. (Turkey’s energy imports amounted to 55 billionUSD in 2014. Turkey imports % 74 of its energy needs)

-In parallel with its important role in the domesticeconomy, Turkish private sector has made considerable headway in opening to theworld markets. Turkish contractors have undertaken 8611 projects in 104countries with a total value of 311 billion USD. At present 42 Turkishcompanies are included among the “Top 250 International Contractors List” withan annual turnover of 22,7 billion USD in 2014.

Privatization is anotherimportant aspect of a successful economy. We must lift up the burdens of thePublic Sector.

-Privatization effortsgained momentum in the last decade. Whereas only 8 billion USD worth of publicassets were privatized between 1985-2002, the value of public assets which wassubject to privatization was 58 billion USD in the 2003-2014 period. This alsohelped reduce public sector borrowing requirement.

-As a consequence of its rising economy and being aresponsible stakeholder in the international community, Turkey increaseddevelopment cooperation in the last decade. The amount of official development assistance (ODA)Turkey provided in 2014reached 3,5 billion USD. As such, Turkey became the tenth largest ODA providerin the world.

-Because of huge infrastructural investments, tourismrevenues also helped us reduce the current account deficit. 37 million touristsvisited Turkey in 2014 and we earned 34 billion USD. As such, Turkey ranks 6thin the world among the most favorite tourist destinations.

-2023 Vision sets out ambitious but attainable goalswe would like to achieve on the 100th anniversary of our Republic.

-Accordingly, Turkey aims at being among the top 10economies in the world with 2 trillion USD GDP and 25.000 USD GDP per capita,500 billion USD exports, 10 globally-known national brands. This list can beprolonged!!

LET’S TALK ABOUT AFRICA

The Continent has recorded an annual growth rate of 5% over the last decade and is expected to continue this trend in the comingyears. 6 out of 10 fastest growing economies in the world are now in Africa.

Trade between Africa and the rest of the world hasincreased by 200 % since 2000.

Most part of this wealth is because of economicreforms, increased productivity, urbanization and good governance while only asmall part of the revenue is derivedfrom usual commodities.

In social arena as well we see rapid developments. In1980, only about %28 of Africans lived in cities. Today, 40% lives in urbanareas. It is expected to rise to 47% by 2025. Over the past decade schoolenrolment in Africa has increased by 50%.

African countries have recorded significant progressin the field of regional cooperation.

The African Union, already celebrated 50^thanniversary of its establishment, stands out as a regional and international player.

All these economic and social trends, whichpermanently change the economic and political landscape of the Continent, alsodemonstrate the real potential of Africa.

Turkey became a strategic partner of the Continent in2008 at the 10^th Summit of the African Union.

Turkey-Africa Cooperation Summit was held in Istanbul2008 with the participation of 49 African countries.

Turkey-Africa Partnership Summit was held last year inMalabo.

TRADE with AFRICA

As I mentioned earlier, bilateral trade volume hasreached 23.4 billion USD in 2013 witl all Africa. It is 7.5 billion USD withSub-Saharan Africa. When we compare the figures in 2000 which was about 750Million USD and 2013, incease is 10 fold.

Turkish contractors are amongst the majorundertakers in the continent. Share ofAfrican countries in the overallinternational business volume of Turkishcontractors is around 19%. Turkish contractorshave undertaken projects in the amount of 39 Billion USD in Africa from 1972-2013.

Africa has a share of 31 % from Turkey’s Official Development Assistance in 2012 .

Turkish International Cooperation and CoordinationAgency (TIKA) has 13 Offices in Africa for development and humanitarinaassistance. 11th of these Offices wasestablished in Windhoek in 2014 as a regional programme Coordination Office andcovering South Africa, Angola, Botwana, Swaziland and Lesotho from Windhoek.

Turkey-Namibia
Economic Relations

Turkey and Namibiasigned the Trade Cooperation Agreement in November 2014.

Our trade volumereached 21.2 Million USD at first halfof 2015 by doubling itself since 2years.

Naturally this figure doesnot reflect the true potential between our countries. We have been laying thelegal and ample ground for that sincethe establishment of our Embassy here 3 years ago.

The graduallyincreasing frequent 2 way visits onvarious fields between Namibia and Turkey paved the way for today’s firstTurkey-Namibia Business Forum with the participation of 21 representatives from different sectors of business led by the Turkish Exporters Assembly with thevaluable support of the Turkish Ministry of Economy.

I believe we are just embarking on a fruitful journey togetherto boost the potential economic cooperation between our countries.

I would like to extendmy heartfelt thanks to the Honourable Minister of Industrialization, Trade andSME Development of Namibia, Mr. ImmanuelNgatjizeko and his staff , Honourable Minister Bernard Essau for inaugurating this event and being here withus, NCCI and the Investment Center for their tireless efforts. I also thankTurkish Exporters Assembly for their outstanding work s and close cooperation which made this BusinessForum possible.

I wish you all a veryfruitful event and B2B sessions.

Thank you.