Minister of State Lee Yi Shyan leads largest ever delegation of Singapore companies to Sub-Sahara Africa
Singapore, Monday, 19 October 2009 - The Singapore Business Federation, International Enterprise (IE) Singapore and the Singapore Chinese Chamber of Commerce & Industry (SCCCI), jointly organised a business mission to Sub-Saharan Africa led by Minister of State Lee Yi Shyan, 12-18 October 2009.
The largest ever delegation of Singapore companies, made up of 44 representatives from 31 companies, to Sub-Saharan Africa made their first stop in Nigeria, Thereafter, the SCCCI and SBF delegations head separately to South Africa and Ghana respectively, with MOS Lee accompanying the delegation to South Africa. H.E Giam Chin Toon, Singapore's High Commissioner to Ghana; H.E. Shabbir Hassanbhai, Singapore's High Commissioner to Nigeria; accompanied the delegations in both countries.
MOS Lee Yi Shyan said, "The rise of Asia has placed sustained demand for resources and commodities. Africa, being resource-rich, is attracting more foreign direct investments than ever. Its trade with Asia has also been growing steadily. Meanwhile, our firms in sectors such as port & logistics, environmental services, offshore marine, oil & gas, ICT, urban & infrastructure and commodities are observing new demand patterns. This business mission will help our firms find out more about the promises of the African market."
Foreign direct investment into Africa has grown at an average of 146 per cent a year over the last 22 years to reach US$36 billion in 2007, while trade between Africa and the rest of the world has been steadily increasing. In particular, bilateral trade between China and Africa jumped 45 per cent in 2008 to reach US$107 billion, of which less than 1 per cent goes through Singapore.[1]
Nigeria
The visit to Nigeria comes shortly after Singapore organized the Nigeria-Singapore Business and Investment Forum in August 2009.
In Nigeria, apart from a full day seminar programme facilitated with presentations from McKinsey and KPMG, the delegation also had a fruitful business matching session with close to 150 Nigerian companies.
In the later part of the mission programme, the delegation had the opportunity to meet up with Mr. Rong Yang Song, Chinese Economic Counsellor in Nigeria and a group of 15 Chinese businessmen in Nigeria for their experience sharing and networking session and thus the businessmen were able to gain access from the Chinese company presentation on their level of engagement in the business environment.
Nigeria's population of 149 million points to a healthy demand for consumer goods and services that will spur growth, aided by its rapidly emerging middle class. Nigeria is currently the world's 12th largest oil producer and holds the 7th largest proven natural gas reserve, presenting many opportunities for Singapore companies in the oil and gas industry.
On the bilateral front, Nigeria was Singapore's 68th largest trading partner in 2008, with total trade of $613 million, an increase of over 50% from $391 million in 2007. Singapore companies who are already present in Nigeria include Tolaram Group, Informatics Education Limited, and G and W Trading Pte Ltd.
Ms Loi Eng Koon Founder and CEO of G & W Trading Pte Ltd who ventured into Nigeria in 1997 and who now commands an annual turnover of close to S$30 million commented, "Having travelled to more than 20 African countries for business, I have learnt a lot of this continent and its people. My business in Nigeria literally grew with the development of the country. Opportunities are plentiful, and local knowledge gained from the primary electronics business helped me to diversify successfully into new business areas."
"While the market information is limited, and many parts of this continent are frequently cast in bad light by the media, one should persevere and get acquainted with the region. Our companies would be pleasantly surprised that many of these markets are quite similar to developing countries in our region where Singaporeans are generally successful in," she observed.
Opportunities for Singapore Companies in Ghana
In Ghana, the delegation also had the opportunity to have short briefing session with Mr John Dramani Mahama, Vice President of Ghana and was able to discuss on the merits of strengthening skills and knowledge in Ghana through an understanding and engagement of the Asian experience in particularly thru Singapore development experience sharing throughout its early years. With Ghana joining the ranks of oil-producing countries in the near future, receipts from the oil sector would be able to finance various infrastructure projects and His Excellency has urged Singapore companies to leverage on the GIPC for their exploration in those projects.
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