AFRICA is the next frontier for Singapore business to conquer, and the Singapore government is playing a big part in facilitating access to the countries there.
One of its initiatives is the recent
appointment of businessman Tan Puay Hiang as the non-resident ambassador
to Tanzania. Tanzania, with its population of 52 million, can be the
gateway for East Africa, says Mr Tan.
He notes there is growing business
interest from Singapore there. “Tanzania is one of the safest countries
in Africa with a very stable government and a friendly, efficient civil
service.
So there are plenty of opportunities for
Singapore businessmen,” Mr Tan assures. In April, Minister of State for
National Development, Trade & Industry, Koh Poh Koon will head a
delegation comprising businessmen and officials from the Ministry of
Foreign Affairs, Ministry of Trade and Industry and International
Enterprise (IE), Singapore to Tanzania to acquaint themselves with the
new President and Cabinet and to strengthen trade and investment ties
between the two countries.
Singapore’s main investors in Tanzania
are Temasek Holdings subsidiaries Pavilion Energy and Olam
International. Others include energy player Intrasia and listed
hospitality companies Bonvest Holdings and Hotel Properties.
Pavilion, in its quest to be a leading
LNG (liquid natural gas), player and to bolster Singapore’s position as
an LNG hub, made Singapore’s single biggest investment in Africa by
plonking a whopping S$1.8 billion for a 20 per cent stake in three gas
blocks in Tanzania.
To aid Tanzania’s urbanisation efforts,
Singapore Cooperation Enterprise (IE Singapore’s commercial arm) and
Surbana International Consultants are helping draw up master plans for
Arusha and Mwanza townships. Tanzania has also sought help from the
Singapore Supreme Court which is now assisting the country in the area
of e-filing.
Mr Tan also points out the enormous
opportunities for the hospitality business as Tanzania is home to seven
Unesco heritage sites including Africa’s highest mountain Mt
Kilimanjaro, its deepest crater Ngorongoro, its deepest, Lake Victoria
and the Serengeti National Park, believed to be a leading safari
destination.
He also feels as a coastal state,
Tanzania with a land area of nearly 950,000 sq km and with its strategic
location within the Indian Ocean Basin provides easy access for trade
and investments to African countries for Asia.
“The main city Dar es Salaam is a
promising port and logistics hub that can be substantially developed as
the main outlet for the East African region. Singapore can in time look
to developing industrial Parks in Tanzania as we did in Suzhou and
Chennai,” Mr Tan says.
Jayakrishnan Gopalakrishnan, group
director for Middle East and Africa at IE Singapore, points out the
government here is asking African countries to ease their visa
requirements to facilitate travel to these countries. It is also working
on getting more avoidance of double-taxation agreements to incentivise
investments.
To make it easier for their nationals to
visit each other’s countries, Tanzania and Singapore have reached an
agreement to mutually abolish visa requirements. Both countries have
also signed an open air agreement.
Trade between sub-Saharan Africa and
Singapore is currently small, accounting for just 1.4 per cent of the
Republic’s total trade. But in the last three to four years, it has been
growing at over 12 per cent per annum, says Mr Jayakrishnan.
At present, refined oil products,
electronics and telecom equipment form the bulk of exports from
Singapore while soft commodities, other food produce and resources are
Africa’s exports to the Republic.
“But moving ahead, there are lots of
opportunities for Singapore companies to invest in services like in
hospitality, engineering and water treatment,” Mr Jayakrishnan says. He
also notes that Africa is one of the fastest urbanising areas of the
world.
“And with that comes its antecedent
needs like water, power, housing and transport. It’s already there but
the problems to overcome are to find good partners and to have a viable
business model.” One way, Mr Jayakrishnan points out, is to work with
African government bodies, both at the federal and state level.
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