Business leaders accompanying President Chen Shui-bian (陳水扁) on his four-nation Africa tour called on Taiwan's small and medium-sized companies to invest more in Africa, encouraging them to capitalize on the continent's tax-free export quotas for US and EU markets.
"Taiwanese companies must diversify their global investments. They should not put all their money in one place. It's too risky," Far Eastern Group (
"With some creative thinking and low-cost production techniques, Taiwan businesses can capitalize on commercial opportunities in Africa," Hsu said.
"What these African countries need to boost economic growth is some Taiwanese entrepreneurial spirit," he said.
Hsu is part of a trade delegation currently accompanying Chen on a 10-day African tour, which also includes Sao Tome and Principe, Senegal and Malawi. The delegation also included Wang You-tseng (王又曾), chairman of the Rebar Group (力霸集團), Lin Kun-chung (林坤鐘), chairman of Chinese National Federation of Industries (工業總會), Lee Chen-chia (李成家), chairman of the Taiwan Federation of Industry (工業協進會), Day Sheng-tong (戴勝通), president of the National Association of Small and Medium-Size Enterprises (中小企業協會), and Shea Jia-dong (許嘉棟), chairman of China External Trade Development Council (外貿協會).
Rebar's Wang said that the first step was for poor nation's in the region to develop their infrastructure.
"The willingness of Taiwan businesses to invest in Africa will increase if our African allies can work to improve their investment environment, such as improving their harbor facilities," Wang said.
Tax incentives would also work to attract Taiwanese investors.
Taiwan Federation of Industry's Lee said Taiwan's major business and industrial organizations were making investment proposals during meetings with their African counterparts.
Since the US absorbs about 35 percent of the world's exports, Taiwanese manufacturers should invest in Africa and re-export products to the US, Day said.
"The US has awarded tax-free and beneficial import quotas to African countries, which it previously gave to Latin American nations. Taiwanese companies should take advantage of those quotas by investing in Africa," Day said.
Taiwanese companies could shift dated machinery or idle factories to Africa, he said.
For companies interested in investing in Africa, the governments of Senegal and Sao Tome and Principe have agreed to offer preferential treatment on investments ranging between US$2 million and US$3 million, Day said.
Asked whether investing in Africa is better that in China, both Lin and Hsu said that while China is closer to Taiwan geographically, Africa is full of potential business opportunities.
With fewer investors in Africa, competition is much less than in China, Hsu said.
"Taiwanese companies can also cater to local African markets in sectors such as electronics, hardware and daily necessities," he said.
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