Singapore investors explore opportunities in Botswana

FREDERICK KEBADIRETSE
Staff Writer | Wednesday September 22, 2010 00:00

 

The business delegation, which consisted of 26 delegates from 20 Singapore companies, visited Botswana as part of their Southern Africa tour that also took them to Angola and South Africa.

The visit is part of efforts by newly launched Africa Business Group (AfBG) and the Singapore Business Federation (SBF) as they try to foster new relationships for Singapore business with Africa.

Addressing the delegates at a hotel in Gaborone yesterday, SCB Botswana Chief Executive Officer (CEO) David Cutting said as the oldest bank operating in the country, SCB is better positioned to understand the economic climate of the country.

Cutting told the mission that they are coming at the right time as the country is seriously considering diversifying the country's economy from diamonds revenue, a thing that came as a lesson from the just-ended economic crisis.

'The economic crisis exposed Botswana's dependence on mineral wealth, especially diamonds. It has now put the country at liberty to explore ways of diversifying the economy in a more intense manner, and I can tell you this is the very best time to explore and invest here,' Cutting said.

He said even though the country is making efforts to intensify other sectors that contribute to its GDP like beef exports and tourism, there are still plenty of unexplored opportunities that can be identified by investors. Cutting added that the formation of the AfBG is a hugely positive development, which Standard Chartered is supporting wholeheartedly.

He said it provides an excellent opportunity for them to showcase Africa's tremendous potential for sustainable economic growth across the continent. Cutting said it is exciting times for businesses in both Africa and Singapore to tap growth opportunities across the company's business footprints.

For his part, leader of the Singapore delegation, Sumit Aggrwal, said due to its hub location, stable government, competitive workforce, forward-looking economic policies and pro-business environment, Singapore is a natural fit for Africa's international ambitions.

Aggrwal said Singapore established itself as the world's gateway to Asia by becoming a key regional trading centre, having the world's busiest port and by being a premier location for investment in the Asia Pacific.

Aggrwal, who is also Head of Transaction Banking at Standard Chartered Singapore, said they are more than happy to partner with SBF to facilitate the exchange between African and Singaporean businesses.

'With Standard Chartered's deep local knowledge of both Africa and Asia, we are uniquely placed to provide strategic advice and financial solutions to Asian companies doing business in Africa and vice versa while facilitating sustainable economic development in both regions,' he said.

The Botswana government has recently been forging for improved relations with Singapore.

Minister of Trade and Industry, Dorcas Makgato-Malesu, visited the Asian country with a delegation from the Botswana Export Development and Investment Authority (BEDIA) in March this year where a number of agreements were reached.

Her visit followed a visit by President Ian Khama in June last year where he witnessed a signing of a Memorandum of Understanding (MoU) between SBF and BEDIA. Botswana's trade with Singapore stood at only S$19.8m in 2008, a figure expected to rise sharply over the next few years as the agreements signed by the two countries boost trade between them.

Singapore companies have expressed interest in exploring opportunities in ICT, finance, education, healthcare, transport and logistics.