NTU, SBF set up new centre to deepen Asia-Africa ties
More help is on the way to support Asian firms that are seeking to expand into Africa.
Set up at an initial cost of S$5 million, the Centre for African Studies -- a first in Southeast Asia -- aims to address challenges hindering stronger partnership between the two regions.
Jointly set up by Nanyang Technological University and the Singapore Business Federation, the Centre on Africa Studies, which will be launched next June, is expected to help Singapore companies better understand the markets in Africa.
It will also provide executive programmes for African and Asian business leaders.
The five Singapore companies that have chipped in to fund the centre include Olam International, Pacific International Lines, Tolaram Group, Indorama Group and Wilmar International.
Speaking at the inaugural Africa Asia Oil and Gas Summit on Wednesday, Senior Minister of State for Trade and Industry Lee Yi Shyan encouraged firms to tap opportunities in Africa.
Singapore's total trade with Africa rose from S$7.7 billion in 2009 to S$13.2 billion in 2012.
Mr Lee said: “Traditionally we are more connected to the East Coast and South Africa, purely because they are facing the Pacific/Indian Ocean. Now we are also increasing (connections) with West Africa.
“Singapore companies should look at the market seriously. You can't be postponing your decision for another decade. If you think that we are early, actually we are not. I was told that there are 200,000 Africans in Guangzhou -- they are ordering small items in containers and getting them together to Africa to sell. So this is already happening."
While there are risks, industry players said there are many forces working to Africa's advantage.
In a keynote address, the chairman of Keppel Corporation Lee Boon Yang said Africa's population is projected to double in 30 years from over a billion currently.
Mr Lee said: "With competitive and abundant youthful workers, readily available energy and huge domestic markets, Africa promises to be a global economic powerhouse."
Singapore-listed Keppel Corp has delivered seven rigs in Africa, on top of other vessels that produce and store oil and gas.
Besides exploration and production in Africa's oil and gas industry, market players also see opportunities for processing and purifying raw natural gas in the continent, which is experiencing the fastest economic growth outside of Asia.
Some participants at the summit also noted that Temasek LNG unit acquiring gas assets in Tanzania for S$1.3 billion has also created more opportunities for Singapore's oil and gas industry, particularly in the exploration and production sector.
But with infrastructure still underdeveloped, some African business leaders say it could crimp business growth.
Folorunso Alakija, executive vice chairman of FAMFA Oil, said: "It took FAMFA oil, my company, 10 years to move from first well to profit oil. Fourteen drilling projects are held up in Africa in view of the high demand for rigs. Some have to wait for up to two years. And we can imagine how that kind of wait can do to an exploration and production company, particularly to their bottom lines.”
Industry players said the rising demand for rigs in Africa will benefit rig-builders Keppel Offshore & Marine and SembCorp Marine, which produce 70 per cent of the world's jack-up rigs.
~News courtesy of Channel Newsasia~
More help is on the way to support Asian firms that are seeking to expand into Africa.
Set up at an initial cost of S$5 million, the Centre for African Studies -- a first in Southeast Asia -- aims to address challenges hindering stronger partnership between the two regions.
Jointly set up by Nanyang Technological University and the Singapore Business Federation, the Centre on Africa Studies, which will be launched next June, is expected to help Singapore companies better understand the markets in Africa.
It will also provide executive programmes for African and Asian business leaders.
The five Singapore companies that have chipped in to fund the centre include Olam International, Pacific International Lines, Tolaram Group, Indorama Group and Wilmar International.
Speaking at the inaugural Africa Asia Oil and Gas Summit on Wednesday, Senior Minister of State for Trade and Industry Lee Yi Shyan encouraged firms to tap opportunities in Africa.
Singapore's total trade with Africa rose from S$7.7 billion in 2009 to S$13.2 billion in 2012.
Mr Lee said: “Traditionally we are more connected to the East Coast and South Africa, purely because they are facing the Pacific/Indian Ocean. Now we are also increasing (connections) with West Africa.
“Singapore companies should look at the market seriously. You can't be postponing your decision for another decade. If you think that we are early, actually we are not. I was told that there are 200,000 Africans in Guangzhou -- they are ordering small items in containers and getting them together to Africa to sell. So this is already happening."
While there are risks, industry players said there are many forces working to Africa's advantage.
In a keynote address, the chairman of Keppel Corporation Lee Boon Yang said Africa's population is projected to double in 30 years from over a billion currently.
Mr Lee said: "With competitive and abundant youthful workers, readily available energy and huge domestic markets, Africa promises to be a global economic powerhouse."
Singapore-listed Keppel Corp has delivered seven rigs in Africa, on top of other vessels that produce and store oil and gas.
Besides exploration and production in Africa's oil and gas industry, market players also see opportunities for processing and purifying raw natural gas in the continent, which is experiencing the fastest economic growth outside of Asia.
Some participants at the summit also noted that Temasek LNG unit acquiring gas assets in Tanzania for S$1.3 billion has also created more opportunities for Singapore's oil and gas industry, particularly in the exploration and production sector.
But with infrastructure still underdeveloped, some African business leaders say it could crimp business growth.
Folorunso Alakija, executive vice chairman of FAMFA Oil, said: "It took FAMFA oil, my company, 10 years to move from first well to profit oil. Fourteen drilling projects are held up in Africa in view of the high demand for rigs. Some have to wait for up to two years. And we can imagine how that kind of wait can do to an exploration and production company, particularly to their bottom lines.”
Industry players said the rising demand for rigs in Africa will benefit rig-builders Keppel Offshore & Marine and SembCorp Marine, which produce 70 per cent of the world's jack-up rigs.
~News courtesy of Channel Newsasia~
