Press Release 2008

DGTI speaks at Business and Investment Opportunities in Africa forum
Friday, June 27, 2008

Hong Kong and Africa enjoy smooth and growing trade relations with an annual growth rate of over 8% in bilateral trade during the past five years, said the Director-General of Trade and Industry, Mr Joseph Lai, today (June 27) at a forum on "Business and Investment Opportunities in Africa".

Organised by the China-Africa Business Council, the forum aimed to provide a platform for business leaders and professionals to learn more about emerging markets in Africa.

Addressing the forum, Mr Lai said that some individual sectors had recorded a significant increase in trade. For example, re-export of telecommunications equipment enjoyed an impressive jump of over 100% in 2007 and an almost 20% increase in the first four months of 2008 over the same period last year.

Mr Lai also outlined the advantages of Hong Kong as a perfect platform in further enhancing China-Africa trade. "In 2007, $18.4 billion worth of goods traded between Africa and the Mainland of China were routed through Hong Kong. With the rapid growth of trade and investment ties among the Mainland, Africa and Hong Kong, these tripartite economic links are bound to develop and strengthen further in the foreseeable future," he said.

Noting that the Closer Economic Partnership Arrangement (CEPA) had given Hong Kong a leading edge over competitors in gaining access to the huge Mainland market, Mr Lai welcomed African investors to establish businesses in Hong Kong, or join forces with enterprises in Hong Kong to make full use of the tremendous opportunities provided under CEPA.

"One point worth noting is that CEPA rules are nationality neutral. That means foreign companies incorporated in Hong Kong may also enjoy the same benefits as local firms," he added.

Mr Lai also encouraged small and medium enterprises (SMEs) to make use of the department's several funding schemes, for example, the SME Export Marketing Fund (EMF) and the SME Loan Guarantee Scheme (SGS), as they expanded their business and explored or developed business opportunities in Africa.

Since 2001, the department has approved over 54,000 applications, involving a total grant of $890 million for EMF, and 20,000 loan guarantee applications, involving a total loan guarantee amount of $9.8 billion for SGS.

Mr Lai remarked that as a vast continent with a huge population and plenty of natural resources, Africa provided tremendous trading potential.

"I hope that the trade relations between Hong Kong and Africa will continue to grow and prosper in the years to come," he concluded.

Ends