New market opportunities attract all types of businesses, but in a globalised economy intellectual property is an asset to be taken care of. The African Continental Free Trade Area represents a great attraction for EU businesses wishing to export to 54 African nations with $3 trillion estimated opportunities. While many EU businesses are ready to explore new opportunities in Africa, the protection of intellectual property rights may be more important than expected for success.

With market opportunities opening up globally, many EU businesses are willing to venture into untapped markets. However, investments require protection, including for intellectual property, such as trademarks, patents, or geographical indications. After all, today as much as 82% of all EU exports is generated by sectors which depend on intellectual property.

The African Continental Free Trade Area that came into being in 2021 created a single market for goods and services in Africa, translates for many European businesses into new opportunities, as well as new investments. 

The EU already constitutes the most important trading partner for Africa: EU exports increased in 2021 to EUR 288 billion from a low value of EUR 225 billion in 2020 as a result of the COVID-19 pandemic.  In 2021, 68 % of goods exported from the EU to Africa were manufactured goods. France (€ 24 billion), Germany (€ 23 billion), Spain and Italy (both € 18 billion), the Netherlands (€ 17 billion) and Belgium (€ 16 billion) were the largest exporters of goods to Africa in 2021.

The protection of intellectual property rights is of definite importance for those EU businesses wishing to operate in Africa. It provides exclusive rights to manage and market an invention, preventing imitators from benefiting from it and helps avoiding accidental infringements of someone else’s intellectual property rights. As one of the main ways for companies and inventors to generate returns on their investments in creativity, intellectual property is a key driver for innovation and economic growth.

However, not all Small and Medium-sized Enterprises (SMEs) in the EU know that when accessing new markets, licensed inventions also give leverage for negotiating business arrangements with importers and distributors, as licenses are an asset to put on the negotiating table. To date, SMEs are the backbone of EU economies, representing 99% of all businesses in the EU, yet less than 9% own intellectual property rights.

Whereas firms that own them have 68 % more revenue per employee than firms that do not; and companies owning at least one patent, registered design or trade mark generate on average 20% higher revenues per employees than those that do not own any of those IPRs.

The EU’s action plan on intellectual property looks into getting businesses, especially SMEs, to use IP protection. For Africa, it provides a dedicated Africa IP SME Helpdesk staffed by experts who provide free advice and training sessions on IP issues. It was launched in 2021 under the management of the EUIPO and is part of the Intellectual Property Rights & Innovation in Africa (AfrIPI) project.

In its first year of activity, the HelpDesk has provided first-line IP assistance to entrepreneurs and business leaders that operate or intend to access the African market. It has offered updated information on the status of IP rights in individual African countries, tailored training sessions and live webinars, country factsheets with concrete examples and case studies and an Academy Learning portal.

The Africa IP SME Helpdesk has supported hundreds of EU companies in creating, protecting, managing and enforcing their IP rights, such as patents, trademarks, industrial designs, copyrights, in less than 12 months.

IP rights registration procedures are complex and costly and a financial burden to businesses, even more for small business. The EU, with its European Patent Office has simplified the burdensome procedure introducing a single procedure that can potentially get business a patent valid in all the EU countries. The Africa IP SME Helpdesk provides free-of-charge supports to SMEs, boosting new business for EU companies in Africa.