By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)-Singapore has emerged the largest investor in Africa amongst the Association of Southeast Asian Nations (ASEAN), according to the latest United Nations’ World Investment Report 2013 released on Wednesday.
The report said Singapore-Africa trade has increased, reaching US$11.1 billion in 2013, achieving a strong CAGR of 11.7% since 2009.
According to the International Enterprise (IE) Singapore, the government agency promoting trade and overseas investments, the Singapore economy strategically located in the heart of Southeast Asia is witnessing growing ties with Africa and as at the end of 2012, the country’s investments into Africa saw a compound annual growth rate (CAGR) of 11.2% over the previous five years, reaching US$15.9 billion.
IE says there are currently over 60 Singapore companies operating in over 50 countries in Africa.
It said the country has projects spanning a wide range of sectors from agri-business, food & beverage and oil & gas, to eGovernment services, information & communications technology, and transport & logistics.
G. Jayakrishnan, group director for Middle East and Africa, IE Singapore said Singaporean companies are taking concrete steps to participate more actively in Africa’s growth.
Jayakrishnan said given Africa’s significant development needs, his country see an opportunity to collaborate and develop long-term solutions in many areas including urban development & planning, eGovernment, oil & gas, transport & logistics, manufacturing & special economic zones, technical and vocational training, power, water and affordable housing. ‘’Singapore can contribute actively as governments across Africa look to diversify growth and improve both business and social infrastructure for their countries,’’ he said.
Commenting on the potential for increased Africa-Singapore partnerships, Jayakrishnan said despite Singapore’s limited domestic market and lack of natural resources, the country has progressed from a third to first world country and developed into a competitive and dynamic business hub.
‘’During its post-independence years, Singapore companies have accumulated extensive experience and capabilities in many sectors including eGovernment, urban planning and development, and oil & gas,’’ he said.
He advisedAfrican companies seeking to expand into Asia, to use Singapore as an ideal launch pad. ‘’We are the world’s easiest place to do business and Asia’s most competitive country. Over 7,000 multinational companies have set up in Singapore, with more than 50% using Singapore as their regional headquarters. To date, there are over 10 African companies present in Singapore. For example, African oil company Sonangol, has set up a Singapore office to facilitate its oil trade with Asia, leveraging Singapore’s good geographical location and pro-business environment,’’ the director for Middle East and Africa, IE Singapore said.
Jayakrishnan affirmed that Asia is enjoying a period of upward growth and remains one of the bright spots amid the current global landscape. ‘’To tap into this growth, we welcome African companies to partner Singapore companies, leverage Singapore’s position and connectivity to expand into the region,” he said.
To help African and Singapore companies to connect and identify joint business opportunities, IE Singapore has been organising the Africa Singapore Business Forum (ASBF). A premier business platform for fostering investment, trade and thought leadership between Asia and Africa, the third edition will be held in Singapore from 27-28 August 2014.
IE Singapore says that ASBF 2014 will address a wide range of critical issues on Africa’s economic landscape, provide insights into Singapore’s competitive advantages as well as identify opportunities for strategic collaboration between both regions. ‘’A highlight of this year’s programme is the keynote panel with Singapore’s Deputy Prime Minister and Minister of Finance, Tharman Shanmugaratnam,’’ IE Singapore said.
