HUGE INVESTMENT POTENTIAL FOR M'SIAN COMPANIES IN RESOURCE-RICH AFRICA

by WAN NOR AZURA

KUALA LUMPUR, June 18 (Bernama) -- Africa represents a "gold mine" for
trade and investments for Malaysian companies to capitalise on, joining the
ranks of companies from China and India.

Malaysia has a lot to offer African countries based on its expertise in
areas such as infrastructure development, construction, downstream petroleum
activities, power generation as well as innovative financing and banking.

Malaysia External Trade Development Corporation (Matrade) chief executive
officer Noharuddin Nordin said Malaysian companies involved in 93 projects
are currently operating in 27 countries in Africa.

Africa's economy is growing despite the recent global financial crisis, he
told Bernama after addressing the Langkawi International Dialogue 2011 (LID
2011) business networking forum on "Malaysia and Africa: Trade prospects".

"The most important thing now is for us to entice the business fraternity
about Africa as there are other alternative markets such as India and China for
them to explore," he added.

On question whether the growth is sustainable, he said Africa's growth was
not by chance but was due to relentless efforts by the governments in improving
its banking and education systems, thus creating opportunities for investors.

Trade and investments between Malaysia and Africa increased over six folds
from RM4.28 billion (US$1.13 billion) in 2001 to RM25 billion in 2010.

He said Africa accounted for only 2.1 per cent of Malaysia's total trade
while Malaysia made up only 1.6 per cent of Africa's total trade.

The countries with the largest record of Malaysian investments are South
Africa, Kenya and Nigeria, said Noharuddin.

The expansion of the African consumer market will also continue to drive
increased demand and translate into huge potential for other countries as well
as Malaysian businesses.

Among potential sectors worth exploring are oil and gas, education,
franchising, healthcare, construction, and energy.

Major imports from Africa include crude petroleum, iron and steel products
and metal ores.

According to the 2011 edition of the African Economic Outlook, Africa's
economies have weathered the global crisis relatively well and have rebounded in
2010.

Recent political events in North Africa and high food and fuel prices are
likely to slow down the continent's growth to 3.7 per cent in 2011.

This year, sub-Saharan Africa will grow faster than North Africa and is
expected to rebound to 5.8 per cent in 2012.

-- BERNAMA