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15 July 2010 | By: Mohamed Hairul Borhan
- Rapid urbanisation brings about numerous opportunities
- Three initiatives launched to increase business links
Singapore companies would be foolish to discard Africa from their expansion plans as the continent is now among the fastest growing region in the world. With 52 cities of over one million people, Africa today is almost as urbanised as China, and provides numerous opportunities for local companies to tap into.
“The continent’s rapid urbanisation, supported by abundant natural resources; improved political and macroeconomic conditions, and a market of close to one billion, signals promising long term growth prospects. These are important drivers that our businesses cannot ignore,” said Lee Yi Shyan, Singapore’s Minister of State for Trade and Industry and Manpower.
He was speaking at the inaugural Africa Singapore Business Forum (ASBF), which aimed to shed light on the business opportunities that Africa presents. The gathering, which was jointly organised by International Enterprise (IE) Singapore and the Singapore Business Federation, also served as a networking platform for government officials, business and thought leaders.
In his keynote address, Mr Lee said that Singapore has collectively accumulated experiences in many areas that may help shorten Africa’s learning curve. These include expertise in urban planning, industry development, transport & logistics, public housing, environmental protection, water preservation and regeneration, healthcare and education.
Chong Lit Cheong, chief executive for IE Singapore, said, “Over the last decade, Asia’s trade with Africa has grown rapidly. Similarly, Singapore’s trade with Africa has been increasing year-on-year. Yet we realise how little we know about each other; that a lot more awareness building is necessary if we are to realise the full potential between us.
The ASBF aims to do just that - be a key platform fostering trade and investment between our [Singapore and Africa] business communities. By bringing together top business and government leaders, ASBF provides a dialogue to highlight a diversity of sectors for mutual collaboration.”
Singapore companies already present in Africa
Although Africa is a relatively new destination for many Singapore firms, some early birds have already established a presence in 23 of the continent’s 53 states. They have provided solutions in wide range of industries such as the development of ports and airport management. Based on a report by the United Nations, Singapore is the largest investor among all ASEAN countries in Africa.
Singapore’s trade with the continent amounted to S$8.4 billion in 2009, averaging an 11 per cent year-on-year increase since 2002. To date, a total of S$9.6 billion in projects have been secured by Singapore-based companies in Africa, in the industrial, consumer products and construction sectors.
And with the World Bank expecting Africa to grow between 4.5 per cent to 5.2 per cent in the near term, a figure comparable to other fast growing regions such as emerging Asia, and the Middle East, Africa is set to continue to look for investors to develop its infrastructure and grow its economy.
“Macro-economic stability, implementation of regional cooperation and custom union, rising energy and commodity prices, improving infrastructure and a common desire to modernise have set many [African] countries on sustained growth paths,” said Mr Lee.
Three initiatives to increase business links
He also announced three initiatives to encourage more business interaction between the Singapore and African business community. The first is a new partnership between the Africa Development bank and IE Singapore to explore cooperation in areas such as water and sanitation, urban development, airports and seaports, technical and vocational training, and e-government.
The second is the signing of a Memorandum of Understanding (MOU) between the Singapore Cooperation Enterprise and the Togo government for the development of Togo’s industrial and education sectors.
The third initiative is the launch of the Africa Business Group by the Singapore Business Federation. It will be a business-to-business platform that aims to enhance interaction between the business communities in Africa and Singapore with the ultimate aim of bringing more Singapore investments to Africa.
IE Singapore will also organise more seminars and business missions to Africa. According to Mr Chong, “We [IE Singapore] will engage in B-to-B matching; to match Singapore companies with the opportunities in African countries. We will work closely with the embassies and trade associations to facilitate exchange of information.”
In total, about 400 participants attended the opening of the ASBF, with roughly a third of them coming from 17 out of Africa’s 53 countries. Eight African ministers from Angola, Cameroon, Republic of Congo, Gabon, Mauritius, Nigeria and Togo were also present. |
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