22
Apr
President Joko “Jokowi” Widodo has said that economic cooperation between Asian and African countries has grown at a snail’s pace, 60 years after the historic first Asian-African Conference, during which the founders vowed to boost trade between the two continents.
Therefore, it was urgent for policymakers in Asia and Africa to implement new initiatives or breakthroughs to tap the unexplored business opportunities available on each of the continents, said the President.
Those would help find the solutions to economic issues in Asia and Africa, which are still grappling with a high number of poor people and daunting inflation rates, despite the fact that the two continents are blessed with vast natural resources and sheer economic size.
“I want to invite my colleagues in Asia and Africa to develop systems, rules and regulations that are friendlier to business,” the President said in his keynote speech at the Asian-African business summit on Tuesday.
Trade and investment growth in Asia and Africa was “yet to reflect their true potential”, Jokowi said. Business opportunities in Asia and Africa abound particularly in the manufacturing, agriculture, infrastructure and energy sectors, according to the President.
The rapid growth in consumption in Africa and Asia, which jointly account for 51 percent of the world’s gross domestic product (GDP), has bolstered the lagging global economic growth amid the broad-based slowdown experienced by Europe and the US.
From 2013 to 2014, the Asian economy grew 4.9 percent while the African economy expanded by 4.3 percent, well above the global growth average of 2.5 percent.
“This is the moment to strengthen our cooperation in economy, trade and investment,” said Jokowi.
Meanwhile, South African Vice President Cyril Ramaphosa said that as of last year, Asia accounted for only 26 percent of trade flow in Africa.
The trade came mostly in the form of raw resources, with oil and gas accounting for 58 percent of Asia’s total imports from Africa, while metals comprised 20 percent, Ramaphosa stated in his speech.
Ramaphosa said that Africa should no longer be seen as a “lost continent” and he invited investors to go there to tap its robust economic growth and rising purchasing power.
“Indeed, we have already seen a number of Asian countries participating actively in infrastructure development projects on the African continent. And we say: may this continue,” he said.
Trade Minister Rachmat Gobel said that Indonesian investors could learn from the success of Indofood, Wings, Kalbe Farma, Wilmar Nabati and Kedaung Indonesia, which are local companies that have reaped great business returns by investing in Africa and tapping its market.
“Indeed, Asia must realize that Africa is much closer than we think,” the minister said. “The fact that overall trade between Asia and Africa is still low reflects the fact that we need to get over the mental block.”
The President will open the two-day Asian-African leaders’ summit on Wednesday.
Source: http://www.thejakartapost.com/news/2015/04/22/asia-africa-cooperation-very-slow-jokowi.html