DR & AJU Participates in the Korea-Africa Business Forum Hosted by the Ministry of Foreign Affairs
The Korea-Africa Business Forum, co-hosted by the Ministry of Foreign Affairs (MOFA), the Korea-Africa Center, and the Korea Chamber of Commerce and Industry (KCCI), was held at the KCCI in Jung-gu, Seoul on October 25. The forum was attended by a total of 300 political figures and influential companies from Korea and Africa, including Foreign Minister Kyung Wha Kang, Democratic Party member and the Vice Chairman of National Assembly Africa’s New Era Forum Hoon Sul, and special advisor to the Minister of Investment and International Cooperation of Egypt Osama Toma.
In her opening remarks, Minister Kang stressed that “Korea recognizes Africa as a major cooperation partner for future growth,” and expressed that “Considering Africa’s huge potential, we need to look back on the fact that investment has not been active compared to other regions. In the near future, we plan to increase cooperation with Africa in various fields such as development, health, and education.” A total of 14 panelists participated in the forum including Timothy Dickens, a foreign attorney (admitted in the UK and SA) and the Head of the DR & AJU’s Africa Team, along with the EFG Hermes Frontier President Ali Khalpey, Executive Director and Chief Investment Officer of the Africa Finance Corporation Oliver Andrews, and Managing Director and Chief Executive of Olam International Venkataramani Srivathsan. They all made presentations based on an in-depth understanding of Africa.
The common emphasis of most panelists was on the advice for companies that intend to establish cooperative relationships with local African companies for the purpose of market grasp and smooth local business operations. The panelists advised that companies need to understand the unique environment of each region and must show a willingness to co-exist with local companies in the African continent with a wide range of languages, cultures, and consumers.
Mr. Andrews, Director of the Africa Finance Corporation (AFC), said that the establishment of a cooperative relationship with local companies that may share market risk and finance is critical in entering the market. Additionally, he cautioned that the traditional and outdated ways of entering the market through relatives of national leaders would no longer work in Africa. The panelists brought up various other discussions, such as the reality that the African market is highly dependent on corporate governance and South Africa ranked first in “Audit and Reporting” and “Protection of Minority Shareholder Interests” sections in the 2016/17 Global Competitiveness Index (GCI) released by the World Economic Forum.
Timothy Dickens, a foreign attorney (admitted in the UK and SA) and the Head of DR & AJU’s Africa Team, explained that for companies looking for asuitable local partner to enter the African market, law firms, by their nature, could be a reliable source provider because of their abilities to evaluate financial soundness and corporate value of companies in various fields. EFG Frontier President Ali Khalpey told businesses willing to invest in Africa that local African companies would also likely to forge partnerships with external companies with cutting-edge technology and know-how that may be transferred in the future, adding, “Capital is already gathering on the African continent.” He particularly emphasized the usefulness of local financing.
George Joseph, Vice President of Olam International, said, “It takes patience to establish oneself in the oasis of excellence that is Africa.” This oasis refers to the African market, which extends to industrial complexes, infrastructure, skilled technicians, and the EU and the US with secure access to energy resources. He also predicted positive future of Africa, which was once considered a remote place, saying that technological innovations such as renewable energy development capabilities and mobile phone banking are taking Africa to the next level from the past industrialization stage.
