Spin-off Deals from Africa-Singapore Business Forum
Ministry of Trade and IndustrySpeakers
Summary
This question concerns Mr Saktiandi Supaat’s inquiry regarding specific projects emerging from the 2016 Africa-Singapore Business Forum and strategies to strengthen economic ties with African nations. Minister of State Dr Koh Poh Koon highlighted the establishment of government-to-government frameworks, including bilateral investment treaties with Nigeria and Mozambique and an avoidance of double taxation agreement with Ethiopia. He cited successful initiatives by Singaporean companies such as Hyflux’s township development in Tanzania, CrimsonLogic’s electronic documentation platforms in Kenya and Rwanda, and YuuZoo’s e-commerce launch in Nigeria. For small and medium-sized enterprises, Minister of State Dr Koh Poh Koon identified specific growth opportunities in sectors such as agri-business, infrastructure, urban solutions, and information-communication technology. He further encouraged local businesses to participate in trade missions and leverage support from International Enterprise Singapore to better understand and access these diverse African markets.
Transcript
23 Mr Saktiandi Supaat asked the Minister for Trade and Industry (Industry) since the signing of several agreements at the Africa-Singapore Business Forum in August 2016 (a) what are some of the specific projects that will be taking off; and (b) how can we further strengthen economic ties with African nations.
The Minister of State for Trade and Industry (Dr Koh Poh Koon) (for the Minister for Trade and Industry (Industry)): Madam, Africa is a diverse continent of 54 countries. Positive demographics of a young population, a significantly large young population, growing middle class consumption and rapid urbanisation are driving growth in Africa. As a region, it has been forecast to grow faster than the global average over the next five years.
To promote greater awareness and understanding of Africa and its opportunities, we have been facilitating bilateral visits between Singaporean and African government officials, as well as business communities. The biennial Africa-Singapore Business Forum organised by International Enterprise Singapore is one such platform which brings together government, business and thought leaders from Singapore and Africa. The Singapore Business Federation has been active in organising regular business missions to different African markets. These exchanges create opportunities for Singapore companies to find opportunities for collaboration with African partners.
To support stronger economic ties with African countries, we have also entered into government-to-government agreements to establish frameworks that support trade and investment activity. In 2016, for example, we signed Bilateral Investment Treaties with Nigeria and another one with Mozambique. We also signed an Avoidance of Double Taxation Agreement with Ethiopia and an Air Services Agreement with Nigeria.
We are encouraged to see a number of Singapore-based companies undertaking significant projects in Africa. Where Singapore's experience and innovative solutions are a good match for Africa's needs, long-term partnerships are being forged. For example, Hyflux has embarked on its first township development project in Morogoro in Tanzania. E-government solutions company CrimsonLogic has implemented electronic platforms in Kenya and Rwanda to digitise trade documentation in these countries. One of our SMEs, YuuZoo, a digital platform provider, has also launched an SME-focused e-commerce platform in Nigeria. International Enterprise Singapore will continue to partner Singapore companies as they continue their internationalisation journey in Africa and elsewhere. I have led business delegations to sub-Saharan Africa last year and will continue to do so this year.
Mr Saktiandi Supaat (Bishan-Toa Payoh): I have a quick question for the Minister of State. Can the Minister of State share with us the extent of SME involvement, going forward, in terms of outlook? Will more Singaporean SMEs be involved in Africa and to what extent may they benefit from this bilateral trade with Africa?
Dr Koh Poh Koon: Mdm Speaker, I thank the Member for his supplementary question. There are opportunities in various sectors, including agri-businesses, infra-structure projects, urban solutions, logistics, info-communication technology as well as the oil and gas sector. These are opportunities where our SMEs have offerings and strengths. I do encourage our SMEs to look at these markets seriously and to join us on our trade missions to have a better understanding of these markets and provide solutions to countries that may need their services as well.
3.00 pm
Mdm Speaker: Order. End of Question Time. The Clerk will now read the orders of the day.
[Pursuant to Standing Order No 22(3), Written Answers to Question Nos 24-27 and 30-31 on the Order Paper are reproduced in the Appendix. Question Nos 28 and 29 have been postponed to the sitting of Parliament on 20 February 2017.]