(Ecofin Agency) - As part of the Ifrane Forum 2023, a summit for African trade and investment featuring entrepreneurs from across the continent, a call was made to establish national policies aimed at "building African economic champions." Following the discussions, the forum expressed its intention to submit recommendations to African Heads of State and Government, especially during the upcoming African Union Summit in Addis Ababa in February 2024.

Khadija Idrissi Janati, the forum's president, shared her insights on this 7th edition, focusing on the African Continental Free Trade Area (AfCFTA), intra-African trade, and Morocco's economic leadership in Africa.

Ecofin Agency: As the president of Ifrane Forum, the African trade and investment summit, can you tell us about the idea behind Ifrane Forum and the main theme of its seventh edition?"

Khadija Idrissi Janati: Ifrane Forum started from a simple observation. Back in 2016, there were very few economic forums in Africa. For years, Africa depended on the EU, the US, India, and China for economic summits. We felt the need to create a space where African stakeholders could meet, exchange ideas, and explore collaboration opportunities. Ifrane Forum is more than just an event; it's a philosophy of uniting Africans in a project of unity and co-construction, emphasizing the crucial role of mutual understanding for effective collaboration.

In this seventh edition, we're building on the work started in 2016, refining it over the years, and now focusing precisely on the African private sector. Ifrane Forum is solidifying its position as the go-to gathering for the African private sector, especially highlighting small and medium-sized enterprises. They have a dedicated space to connect, share ideas, and discover growth opportunities.

The theme draws inspiration from Morocco's success. About 15 years ago, Morocco initiated a strategy to foster national champions. Today, esteemed companies like Attijariwafa Bank and Saham Assurance (now Sanlam) not only thrive in Morocco but also across Africa. We aim to infuse this momentum into the African continent through the chosen theme of this edition. The significance of 2023 is underscored by the African Union designating it as the year of the African Continental Free Trade Area (AfCFTA), marking a historic opportunity for Africa to advance economic integration significantly.

Ecofin Agency: Many believe that small African businesses find it challenging to shine globally and expand into larger markets. In your experience, what factors contribute to this situation?

Khadija Idrissi Janati: Entrepreneurs naturally invest time and take risks, but in an increasingly uncertain environment, managing risk becomes essential. Small businesses may hesitate to step into the unknown due to the growing complexity. Forums like this play a crucial role, providing a platform for mutual discovery and knowledge sharing, aiding joint navigation in uncertain times.

Building connections opens doors to potential partnerships. While large companies were present, our discussions focused on small and medium-sized enterprises. We emphasize the responsibility of major players in supporting small businesses for their market integration.

This edition highlights the vital role of large companies succeeding in multi-country expansion in Africa, emphasizing their responsibility to support small and medium-sized enterprises. The goal is to showcase how these companies can create ecosystems in the countries where they operate. For example, OCP integrates into the local economy, encouraging local and small Moroccan businesses in host countries, and fostering partnerships and local subcontracting. This model, centered on expertise transfer, co-development, and wealth creation within communities, is the core theme of discussions in this edition.

Ecofin Agency: Do large companies genuinely embrace this vision?

Khadija Idrissi Janati: There has indeed been a significant shift in the perspective of large companies over the past decade. The approach to doing business in Africa has evolved beyond mere transactions, focusing on the concept of development on the continent. Large companies now recognize that for sustainable investment, a deep commitment to supporting the development of local communities is essential.

To be clear, not all large companies share this vision. However, a considerable number of them have become aware of this aspect and operate accordingly. Examples include Moroccan, Ivorian, Gabonese, or South African companies establishing their presence in other African countries, based on a regional approach.

Ecofin Agency: The AfCFTA aims to create a single market for African companies, but since its operationalization in 2021, there has been a perceived slowness in deploying the market and companies seizing the opportunities. In your view, what obstacles hinder the establishment of this market, and what makes it challenging for companies to seize the opportunities?

Khadija Idrissi Janati: Africa aims to establish a free trade area covering its 54 countries. Is this plan realistic? Imagine a company with 1,000 employees making significant changes, like updating their systems or HR strategy. Such changes take time and expertise. Now, think about applying this to a free trade area for 54 countries. It's a massive task with many steps, considering the differences in economy, politics, and society. The first steps involve getting all these countries on board, which isn't easy given past challenges. Despite this, progress has been made, with many countries agreeing to collaborate. Some have already started trading.

In the AfCFTA context, let's focus on the progress made and acknowledge the journey, even if the timelines weren't perfect. The most crucial work now is aligning legal frameworks. If we can do that, we'll make big strides in making the free trade area work. But, what's missing is spreading the word, especially to businesses, especially small ones. Big companies have experts, but smaller ones often don't. It's crucial to invest in information and communication to explain things to SMEs. It's a two-way street because the benefits are huge, offering endless opportunities in a market of over 1.5 billion people. Still, these companies need to get organized, define their vision, keep an eye on the markets they're interested in, and understand local cultures to adjust their products and services. The AfCFTA sets the stage for cross-border growth, but companies need to do the background work themselves.

Some countries worry about established economies dominating local markets through the AfCFTA, but it's all about perspective. Rather than 54 separate efforts, the AfCFTA is a single entry point for external trade. Shifting from a threat to an opportunity, it consolidates African value chains continent-wide. Take Morocco joining ECOWAS, initially met with caution. Still, with a complementary mindset, countries can leverage each other's strengths. For instance, Morocco's aerospace success could benefit the entire continent, turning competition into collaboration. This shift is vital, especially with tightening EU regulations, creating new barriers. Instead of always looking north, let's focus on building collaborations within Africa's 1.5 billion people market, fostering economic growth with fewer restrictions

Ecofin Agency: As you highlighted, Morocco has succeeded in developing one of the most dynamic economies on the continent, and now Moroccan companies are investing to expand across Africa. What factors contribute to this success?

Khadija Idrissi Janati: Two main factors explain this success: political will and vision. There's no mystery about it. Nearly 20 years ago, there was a political will declared directly from the top of the state. The King placed the continent at the top of the Kingdom's priorities. In the early years of King Mohamed VI's reign, a series of official visits were made to various countries on the continent, resulting in the signing of over 1000 partnership agreements in just 10 years. The rapid implementation of these agreements was closely followed. During each of his visits to the continent, the King was accompanied by significant delegations of business leaders, demonstrating the clarity of ideas and intentions: a strong ambition to promote the development of Morocco on a continental scale through economic initiatives.

This example confirms that when political will is present, supported by deep conviction, and backed by the necessary means for its concrete implementation on the ground, success is within reach. However, to increase the effectiveness of this approach at the continental level, it is essential to encourage more countries to embark on this path in a way that is adapted to their respective realities.

I would like to highlight a major project that, in my opinion, will contribute to changing the face of the continent, and unfortunately, it is not talked about enough. It is the GAS PIPELINE partnership between Morocco and Nigeria. This project will establish a direct connection between two regions of Africa and between two countries with different languages and cultures but sharing a common economic language. And so, you can imagine that the passage of this pipeline through each of the countries involved can anticipate not just a change but truly a paradigm shift. It is a deep understanding that collaboration is imperative and that it is entirely conceivable to connect these diverse countries.

I’m excited to see that Morocco is not only strengthening its ties with countries that have historical proximity, such as Senegal, Ivory Coast, and Gabon, but is also diversifying its partnerships across the African continent. This approach aims to seek multiparty partnerships to support the vision of an integrated Africa.

Ecofin Agency: Critics say forums like yours talk but achieve little. Can the Ifrane Forum become a key platform for African entrepreneurs, especially with the AfCFTA?

Khadija Idrissi Janati: Thanks for the question. We've been evolving the Ifrane Forum since 2016. If you survey participants, you'll find that 60% return regularly, some attending every edition. This continuity is reflected in ideas, thinking, and most importantly, action. Ifrane Forum is an economic gathering for the private sector, setting it apart from political or diplomatic forums. Our role is to create a space for action-oriented entrepreneurs. We act as catalysts, trusting that follow-up happens organically.

The key to fostering collaborations lies in our ability to unite individuals who share a committed vision of Africa. They see the continent not opportunistically, but with genuine commitment, feeling a responsibility to act for mutual benefit. They believe in the collective ability of Africans to transform their continent. At Ifrane Forum, we take pride in having a community that shares this sense of belonging and responsibility towards the continent.

What makes Ifrane Forum unique is its conducive space for in-depth exchanges. Participants take the time to connect, discuss, build relations, and decide on the next steps. These interactions generally materialize.