As China continues to dig deep into
Africa’s trade and investment, Singapore, another Asian country, has
started wooing companies in Africa.
Africa’s trade and investment, Singapore, another Asian country, has
started wooing companies in Africa.
Singapore, an island city-state off
southern Malaysia and a global financial centre, has asked African
companies to sign in to access the rest of Asia.
southern Malaysia and a global financial centre, has asked African
companies to sign in to access the rest of Asia.
In continuation of its recent
sensitisation drive, more than 500 participants attended the
Africa-Singapore Business Forum 2018 held in August shortly before the
Forum on China-Africa Cooperation (FOCAC) which attracted more than
50 African leaders.
sensitisation drive, more than 500 participants attended the
Africa-Singapore Business Forum 2018 held in August shortly before the
Forum on China-Africa Cooperation (FOCAC) which attracted more than
50 African leaders.
The Forum on China-African Cooperation
held early September pegged on Chinese leader’s proposed initiative of
building the Silk Road Economic Belt with a view to integrating the
development strategies of partnering countries.
held early September pegged on Chinese leader’s proposed initiative of
building the Silk Road Economic Belt with a view to integrating the
development strategies of partnering countries.
But the Singapore’s Trade and Industry
Minister Chan Chun opened the conference which he said outlined the
importance of promoting economic integration and cooperation against a
backdrop of rising trade tensions and protectionism.
Minister Chan Chun opened the conference which he said outlined the
importance of promoting economic integration and cooperation against a
backdrop of rising trade tensions and protectionism.
“I would like to encourage African
businesses to engage Singapore as your partner in Asia, see Singapore
not just for our domestic market, but see us also as a platform, as a
launch pad for your business opportunities in Southeast
Asia and beyond,” said Mr Chan.
businesses to engage Singapore as your partner in Asia, see Singapore
not just for our domestic market, but see us also as a platform, as a
launch pad for your business opportunities in Southeast
Asia and beyond,” said Mr Chan.
“Singapore’s “strong connections at the
government and business levels make it a good base from which African
companies can explore and access Asia.”
government and business levels make it a good base from which African
companies can explore and access Asia.”
According to Singstat, foreign direct investment from Africa into Singapore amounted to S$27.4 billion in 2016.
Over 60 Singaporean firms operate in
Africa, ranging from food manufacturing to digital payment services, and
Enterprise Singapore – the government agency which helps businesses
internationalise – is working to increase that number.
It said a main challenge was managing risk.
Africa, ranging from food manufacturing to digital payment services, and
Enterprise Singapore – the government agency which helps businesses
internationalise – is working to increase that number.
It said a main challenge was managing risk.
Global Markets Director, Middle East
& Africa of Enterprise Singapore G Jayakrishnan said the agency
works with people on the ground, validate African counterparties, as
well as encourage companies to take up political risk insurance.
& Africa of Enterprise Singapore G Jayakrishnan said the agency
works with people on the ground, validate African counterparties, as
well as encourage companies to take up political risk insurance.
“We have programmes for (that), there are ways to mitigate it, and get around the risk element of Africa,” said Mr Jayakrishnan.
In 2017, trade between Singapore and
Africa amounted to S$9.78 billion according to data from Enterprise
Singapore, while Singapore investment into Africa reached S$18.5 billion
in 2016, making the republic its 7th largest trading
partner.
Africa amounted to S$9.78 billion according to data from Enterprise
Singapore, while Singapore investment into Africa reached S$18.5 billion
in 2016, making the republic its 7th largest trading
partner.
According to the United Nations, Singapore is Africa’s largest Southeast Asian trading partner.
Enterprise Singapore highlighted two
growth engines in the areas of deepening digital capabilities and
addressing Africa’s manufacturing needs.
growth engines in the areas of deepening digital capabilities and
addressing Africa’s manufacturing needs.
According to a McKinsey report, Africa’s
consumer spending is expected to reach US$2.1 trillion (S$2.86 trillion)
by 2025, and that its e-commerce purchases are projected to hit US$75
billion (S$102 billion) in the same year.
consumer spending is expected to reach US$2.1 trillion (S$2.86 trillion)
by 2025, and that its e-commerce purchases are projected to hit US$75
billion (S$102 billion) in the same year.
“Africa’s rapid growth and thriving
digital economy offers rich opportunities for Singapore companies
seeking higher growth and market diversification,” said CEO of
Enterprise Singapore, Mr Png Cheong Boon.
digital economy offers rich opportunities for Singapore companies
seeking higher growth and market diversification,” said CEO of
Enterprise Singapore, Mr Png Cheong Boon.
At the event, an Avoidance of Double
Taxation Agreement (DTA) between Singapore and Gabon was signed,
bringing the list of DTAs between Singapore and Africa to 13. A total of
five memoranda of understandings in areas of digital,
infrastructure and business services were inked between African and
Singapore companies.
Taxation Agreement (DTA) between Singapore and Gabon was signed,
bringing the list of DTAs between Singapore and Africa to 13. A total of
five memoranda of understandings in areas of digital,
infrastructure and business services were inked between African and
Singapore companies.
One is a tie-up is between media
analytics firm Graymatics, and IT company Crescentech to provide
security and surveillance solutions in Kenya, South Africa and Nigeria.
analytics firm Graymatics, and IT company Crescentech to provide
security and surveillance solutions in Kenya, South Africa and Nigeria.
President and CEO of Graymatics Abhijit Shanbhag said Enterprise Singapore has played a big role in the collaboration.
“Enterprise Singapore had organised a
mission within Africa which we participated in within Kenya and within
that, that was actually the start of a number of business engagements
that we had in Africa,” said Mr Shanbhag.
mission within Africa which we participated in within Kenya and within
that, that was actually the start of a number of business engagements
that we had in Africa,” said Mr Shanbhag.
Director of Strategy & Innovation for Crescentech, Dr Percy Opio, said
“Enterprise Singapore is very specific
about who they want us to partner with, they want us to partner with
organisations that have relevant solutions for our market.”
about who they want us to partner with, they want us to partner with
organisations that have relevant solutions for our market.”
“We believe that this process will not only provide solutions in Kenya, but Graymatics will also empower us,” he said.
Chan Chun’s speech:
Introduction
1. It is a pleasure
to join you this morning at the fifth Africa Singapore Business Forum. I
would like to begin by extending a warm welcome to our friends and
esteemed guests from
Africa. Thank you for your presence and for your support in building
stronger and deeper Africa-Singapore and Africa-Asia relationships.
to join you this morning at the fifth Africa Singapore Business Forum. I
would like to begin by extending a warm welcome to our friends and
esteemed guests from
Africa. Thank you for your presence and for your support in building
stronger and deeper Africa-Singapore and Africa-Asia relationships.
2. The Africa
Singapore Business Forum, organised by Enterprise Singapore on a
biennial basis, brings together leaders from the worlds of government
and business to participate in
a week of activities focused on Africa, Singapore, and Asia. This week,
Singapore is also hosting the third Singapore-Sub-Saharan Africa
High-Level Ministerial Exchange Visit organised by the Ministry of
Foreign Affairs, and the International Leadership in
Governance Programme organised by the Centre for Liveable Cities.
These are all valuable avenues to foster greater interaction between Singapore and countries of Africa.
Singapore Business Forum, organised by Enterprise Singapore on a
biennial basis, brings together leaders from the worlds of government
and business to participate in
a week of activities focused on Africa, Singapore, and Asia. This week,
Singapore is also hosting the third Singapore-Sub-Saharan Africa
High-Level Ministerial Exchange Visit organised by the Ministry of
Foreign Affairs, and the International Leadership in
Governance Programme organised by the Centre for Liveable Cities.
These are all valuable avenues to foster greater interaction between Singapore and countries of Africa.
Working together and integrating our economies
3. Today, all of us
are facing very challenging circumstances in the global economic
environment. While the economies of Africa and Southeast Asia continue
to work towards openness
and integration, we also see other countries retreating from
globalisation because of their domestic difficulties. In the news, we
hear of tariffs, trade tensions between major players, and protectionism
on a regular basis. We are already seeing the real effects
of such actions and rhetoric on the commercial decisions of many
companies- some of them have been directly impacted and are laying off
workers, others are relocating their facilities and reassessing their
strategies in response to such developments. Against
this backdrop, it is important that we continue to believe in, and
promote and support economic integration and cooperation, with a strong
conviction that open economies, connected economies, interdependent
economies, ultimately provide better jobs and better
income for our people.
are facing very challenging circumstances in the global economic
environment. While the economies of Africa and Southeast Asia continue
to work towards openness
and integration, we also see other countries retreating from
globalisation because of their domestic difficulties. In the news, we
hear of tariffs, trade tensions between major players, and protectionism
on a regular basis. We are already seeing the real effects
of such actions and rhetoric on the commercial decisions of many
companies- some of them have been directly impacted and are laying off
workers, others are relocating their facilities and reassessing their
strategies in response to such developments. Against
this backdrop, it is important that we continue to believe in, and
promote and support economic integration and cooperation, with a strong
conviction that open economies, connected economies, interdependent
economies, ultimately provide better jobs and better
income for our people.
4. Regional
integration has been taking place on the African continent for many
years and is also steadily taking place here in Southeast Asia. In
Africa, we are seeing important regional
integration efforts. The Continental Free Trade Area, an ambitious
effort to create a unified African market from Cape Town to Cairo, is
well on its way. In East Africa, trade facilitation efforts are in
progress to support a more efficient and fuss-free merchandise
trade. Notably, Singapore e-solutions company, VCargoCloud, piloted the
East African Community (EAC) Single Customs Territory System which
enables the seamless transmission and exchange of trade-related
documents between participating countries’ revenue and
port authorities’ systems. This would enable the more efficient
movements of goods within the EAC and ultimately reduce the costs of
doing business in the countries of EAC.
integration has been taking place on the African continent for many
years and is also steadily taking place here in Southeast Asia. In
Africa, we are seeing important regional
integration efforts. The Continental Free Trade Area, an ambitious
effort to create a unified African market from Cape Town to Cairo, is
well on its way. In East Africa, trade facilitation efforts are in
progress to support a more efficient and fuss-free merchandise
trade. Notably, Singapore e-solutions company, VCargoCloud, piloted the
East African Community (EAC) Single Customs Territory System which
enables the seamless transmission and exchange of trade-related
documents between participating countries’ revenue and
port authorities’ systems. This would enable the more efficient
movements of goods within the EAC and ultimately reduce the costs of
doing business in the countries of EAC.
5. Regional
integration efforts within ASEAN are also well underway. As the ASEAN
Chair this year, Singapore, together with our fellow ASEAN Member
States, are working towards the
full implementation of the ASEAN Single Window and the ASEAN-wide
Self-Certification regime to enhance intra-ASEAN trade, reduce trade
transaction costs and facilitate the digitalisation of trade procedures
within ASEAN.
We are also working hard to substantively conclude the
sixteen-party Regional Comprehensive Economic Partnership (RCEP)
negotiations with our dialogue partners this year.
When concluded, the RCEP will be the world’s largest trading
bloc, covering about one-third of the world’s gross domestic product
(GDP).
integration efforts within ASEAN are also well underway. As the ASEAN
Chair this year, Singapore, together with our fellow ASEAN Member
States, are working towards the
full implementation of the ASEAN Single Window and the ASEAN-wide
Self-Certification regime to enhance intra-ASEAN trade, reduce trade
transaction costs and facilitate the digitalisation of trade procedures
within ASEAN.
We are also working hard to substantively conclude the
sixteen-party Regional Comprehensive Economic Partnership (RCEP)
negotiations with our dialogue partners this year.
When concluded, the RCEP will be the world’s largest trading
bloc, covering about one-third of the world’s gross domestic product
(GDP).
Africa-Singapore Economic Engagement
6. With regional
integration taking place in both our regions, and with our shared desire
for greater openness, and for us to promote trade and investment
relations, there is much
scope for Africa and Asia to work more closely together.
Singapore has trade with almost every country in Africa. The
trades are in a diverse range of products from fruits such as oranges
and grapes to electronics and petroleum products; and in services such
as transport, logistics and IT services.
integration taking place in both our regions, and with our shared desire
for greater openness, and for us to promote trade and investment
relations, there is much
scope for Africa and Asia to work more closely together.
Singapore has trade with almost every country in Africa. The
trades are in a diverse range of products from fruits such as oranges
and grapes to electronics and petroleum products; and in services such
as transport, logistics and IT services.
7. In the early
years of Singapore’s independence, our leaders had made many business
missions to Africa to promote and advance trade and investment
relations. These business missions
continue to be an important way of introducing our companies to the
African market and helping African businesses develop an understanding
of Singapore. In the past 13 years, the Singapore Business Federation
has organised 39 business missions to Sub-Saharan
Africa and North Africa.
years of Singapore’s independence, our leaders had made many business
missions to Africa to promote and advance trade and investment
relations. These business missions
continue to be an important way of introducing our companies to the
African market and helping African businesses develop an understanding
of Singapore. In the past 13 years, the Singapore Business Federation
has organised 39 business missions to Sub-Saharan
Africa and North Africa.
8. Over the years,
we have also deepened our understanding of one another and we have seen
our respective companies – large and small enterprises alike – form
partnerships and pursue
market opportunities in various sectors.
Today, a number of commercial Memoranda of Understanding (MOUs) will be
exchanged, and the diversity of these MOUs are a reflection of the many
commercial prospects present in Africa.
we have also deepened our understanding of one another and we have seen
our respective companies – large and small enterprises alike – form
partnerships and pursue
market opportunities in various sectors.
Today, a number of commercial Memoranda of Understanding (MOUs) will be
exchanged, and the diversity of these MOUs are a reflection of the many
commercial prospects present in Africa.
9. In the digital
space, Graymatics, a Singapore company with scalable cloud platform
solutions, will exchange an MOU with Kenyan ICT specialist, Crescentech
to partner in verticals
such as security, banking, telecommunications, and retail. They hope
that their partnership will allow them to expand their presence beyond
Kenya into countries such as South Africa and Nigeria.
space, Graymatics, a Singapore company with scalable cloud platform
solutions, will exchange an MOU with Kenyan ICT specialist, Crescentech
to partner in verticals
such as security, banking, telecommunications, and retail. They hope
that their partnership will allow them to expand their presence beyond
Kenya into countries such as South Africa and Nigeria.
10. Singapore-based
design and construction company Well & Able is making its first
entry into Senegal. It has secured a contract with Senegal’s CSTT-AO to
design and build a multimodal
modern logistics terminal. This logistics hub will comprise a 7,500
square metre container terminal which can accommodate more than 1,000
TEUs and a warehouse for general cargo.
design and construction company Well & Able is making its first
entry into Senegal. It has secured a contract with Senegal’s CSTT-AO to
design and build a multimodal
modern logistics terminal. This logistics hub will comprise a 7,500
square metre container terminal which can accommodate more than 1,000
TEUs and a warehouse for general cargo.
11. Singapore
Cooperation Enterprise will also be signing an MOU with Mozambique’s
Investment and Export Promotion Agency to provide consultancy and
advisory services in the areas of
Ease of Doing Business, Urban Planning and Special Economic Zones, and
Technical and Vocational Education Training.
I hope that this cooperation will pave the way for more Singapore
companies to develop partnerships and explore the trade and investment
opportunities in Mozambique.
Cooperation Enterprise will also be signing an MOU with Mozambique’s
Investment and Export Promotion Agency to provide consultancy and
advisory services in the areas of
Ease of Doing Business, Urban Planning and Special Economic Zones, and
Technical and Vocational Education Training.
I hope that this cooperation will pave the way for more Singapore
companies to develop partnerships and explore the trade and investment
opportunities in Mozambique.
Engaging Africa for the long-term
12. We continue to
welcome more Africa-Singapore partnerships at the government, business
and people levels. Enterprise Singapore’s three overseas offices in
Africa in Accra, Ghana;
Johannesburg, South Africa; and most recently in Nairobi, Kenya, are
important linkages to strengthen our in-market networks.
welcome more Africa-Singapore partnerships at the government, business
and people levels. Enterprise Singapore’s three overseas offices in
Africa in Accra, Ghana;
Johannesburg, South Africa; and most recently in Nairobi, Kenya, are
important linkages to strengthen our in-market networks.
13. At the
government-to-government level, it would also be essential for our
governments to continue forging partnerships and create conducive
environments to support business-to-business
interactions between Africa, Asia and Singapore.
Trade-enabling agreements such as Bilateral Investment Treaties
and Avoidance of Double Taxation Agreements will go a long way in
encouraging companies to venture abroad. In recent years, Singapore has
been expanding our treaty network with African countries
to reassure our investors and lower the costs of doing business for our
companies. Recently in June, we signed a Bilateral Investment Treaty
with Kenya; and Avoidance of Double Taxation Agreements with Kenya and
Rwanda.
government-to-government level, it would also be essential for our
governments to continue forging partnerships and create conducive
environments to support business-to-business
interactions between Africa, Asia and Singapore.
Trade-enabling agreements such as Bilateral Investment Treaties
and Avoidance of Double Taxation Agreements will go a long way in
encouraging companies to venture abroad. In recent years, Singapore has
been expanding our treaty network with African countries
to reassure our investors and lower the costs of doing business for our
companies. Recently in June, we signed a Bilateral Investment Treaty
with Kenya; and Avoidance of Double Taxation Agreements with Kenya and
Rwanda.
14. Increasing
physical connectivity through various aviation agreements would also be a
practical enabler of greater business linkages. Ethiopian Airlines and
Air Mauritius are currently
the only two African airlines flying to Singapore and we hope and
encourage to see more African carriers do the same in future.
physical connectivity through various aviation agreements would also be a
practical enabler of greater business linkages. Ethiopian Airlines and
Air Mauritius are currently
the only two African airlines flying to Singapore and we hope and
encourage to see more African carriers do the same in future.
15. Beyond formal
government engagements, our research institutes such as the Centre for
African Studies, and our companies which are already in Africa, are all
important members of
the “Africa network” of partners and practitioners who can share their
experiences in Africa with others in Singapore. I also encourage our
partners from Africa to share your insights on Asia and Singapore with
your own networks, so that collectively, information
and awareness of one another continues to grow. Every bit helps in our
effort to build broader and deeper relations between Africa and
Singapore.
government engagements, our research institutes such as the Centre for
African Studies, and our companies which are already in Africa, are all
important members of
the “Africa network” of partners and practitioners who can share their
experiences in Africa with others in Singapore. I also encourage our
partners from Africa to share your insights on Asia and Singapore with
your own networks, so that collectively, information
and awareness of one another continues to grow. Every bit helps in our
effort to build broader and deeper relations between Africa and
Singapore.
16. I would also like
to encourage our African businesses to engage Singapore as your partner
in Asia, see Singapore not only for our domestic market, see us also as a
platform, as a
launchpad for your business opportunities in Southeast Asia and beyond.
Singapore’s stable and conducive business environment, eco-system of
foreign and local companies, coupled with strong support infrastructure
had made Singapore an ideal partner for African
companies such as Sahara Energy and Sasol Chemicals. Our strong
connections at the government and business level makes us a good base
from which African companies can explore and access Asia.
to encourage our African businesses to engage Singapore as your partner
in Asia, see Singapore not only for our domestic market, see us also as a
platform, as a
launchpad for your business opportunities in Southeast Asia and beyond.
Singapore’s stable and conducive business environment, eco-system of
foreign and local companies, coupled with strong support infrastructure
had made Singapore an ideal partner for African
companies such as Sahara Energy and Sasol Chemicals. Our strong
connections at the government and business level makes us a good base
from which African companies can explore and access Asia.
Closing
17. I would like to
congratulate Enterprise Singapore for convening this very timely and
important forum. The strong turnout of African and Asian political and
business leaders, and
the various agreements which will be signed today, are all strong
signals of our confidence in the opportunities in Africa and the
continent’s bright future.
congratulate Enterprise Singapore for convening this very timely and
important forum. The strong turnout of African and Asian political and
business leaders, and
the various agreements which will be signed today, are all strong
signals of our confidence in the opportunities in Africa and the
continent’s bright future.
18. I wish everyone a fruitful day ahead. Thank you.
Source: MTI
https://www.mti.gov.sg/NewsRoom/Pages/Speech-by-Minister-Chan-Chun-Sing-at-the-5th-Africa-Singapore-Business-Forum-2018.aspx
