Alexander Tah-ray Yui
Vice Minister of Foreign Affairs
Republic of China (Taiwan)
January 6, 2022
(As Delivered)
Ladies and gentlemen:
Greetings from Taipei!
The COVID-19 pandemic has significantly impacted and altered global business activities over the past two years. Trade delegations between Taiwan and Nigeria originally planned for last year had to be canceled after deliberations regarding epidemic prevention and control.
To overcome restrictions brought about by the pandemic and continue to explore opportunities for bilateral cooperation, MOFA has collaborated with the CIECA and the Nigeria Trade Office in Taiwan to organize today's event. Officials representing the Nigerian Investment Promotion Commission, the Nigerian Export Promotion Council, and the Taiwanese Chambers of Commerce in Nigeria have been invited to share the latest business information in Nigeria, highlighting the many potential fields for bilateral cooperation in trade and investment. As we approach the postpandemic era, I believe today's event will do much to assist Taiwanese companies in entering Africa's promising markets.
In terms of advancing bilateral trade between Taiwan and Nigeria, I would like to suggest cooperation in three fields:
In recent years, many African countries have sought to encourage local production so as to boost economic growth through their manufacturing sectors. With its world-renowned reputation for high-quality, good-value, competitive machine tools and equipment, Taiwan can provide Nigeria's manufacturing and oil industries with the equipment they need. This is already the second-biggest sector for exports from Taiwan to Nigeria. Indeed, an online exhibition for the procurement of machinery held in Taiwan last year saw purchase orders from Africa increase significantly, highlighting a great appreciation for Taiwanese products.
In response to the rise in young cellphone users and the development of e-commerce, which has been accelerated by the pandemic, the Nigerian government launched its National Digital Economy Policy and Strategy and the National Broadband Plan. In 2021, the number of online consumers rose by 20 percent, and now exceeds 77 million. Major online platforms such as Jumia and Konga have attracted worldwide attention, and Jumia has become Africa's largest e-commerce website. E-commerce platforms can serve as an effective new means of expanding business for Taiwanese companies interested in entering the African market. By taking advantage of today's event, both sides can further explore opportunities for future cooperation.
Last September, the Nigerian government held the first Halal Expo Nigeria to promote its goal of having Nigeria become Africa's halal hub. A Taiwan pavilion promoting halal processed food, health supplements, and cosmetics earned much recognition from Nigerian buyers. I believe that matchmaking between the Nigerian and Taiwanese halal supply chains will help both sides take advantage of the African market, which boasts 480 million Muslims and offers business opportunities worth up to 2 trillion US dollars.
In recent years, the Nigerian government has proactively introduced investment incentive measures and tax exemptions to attract inbound investment. On this basis, and given that Taiwan and Nigeria are well matched in terms of industrial development, I would like to suggest two areas for industrial matchmaking and investment cooperation:
Nigeria has long been a net importer of agricultural products. It also has a fast-growing population and has faced increased shipping costs due to the pandemic. To this end, the Nigerian government has actively sought to develop Nigeria's domestic food processing industry. There is great potential for Taiwanese companies to invest in Nigeria by harnessing our well-developed food processing technologies and equipment. Certain products would also be eligible for duty-free export to the United States under the African Growth and Opportunity Act.
Nigeria is one of Africa's top five importers of auto parts and accessories. In recent years, demand has accounted for 10 percent of Nigeria's total imports. Considering that Taiwan has developed a comprehensive industrial supply chain in this sector, there is great potential for us to invest in Nigeria and provide aftermarket services. Moreover, Taiwanese companies could use Nigeria as a base to expand into Africa's auto parts and accessories markets, which are worth over 20 billion US dollars. Indeed, having spotted opportunities due to Nigeria's industrialization and industrial localization promotion policies, Taiwanese companies such as Maxxis and Chain Rail Group have already been investing in Nigeria for many years.
Ladies and gentlemen, as you may know, Africa's 54 nations have already signed the Agreement Establishing the African Continental Free Trade Area. With the gradual elimination of tariff and market entry barriers within the region, intraregional trade is expected to increase by 80 percent, creating export opportunities worth over 560 billion US dollars. Through today's event, I would like to encourage you to take this opportunity to enter this emerging market of Africa, which is replete with opportunity.
In addition, I look forward to our governments expediting the update to our 1994 agreement on the promotion and protection of investments. Establishing a good legal framework will protect Taiwanese businesses investing in Nigeria. Finally, I would also like to suggest that a Nigeria-Taiwan Business Forum be held once a year, to be cohosted by vice ministers from both sides. This would encourage even more bilateral trade and investment cooperation, bolstering the mutually beneficial partnership between Taiwan and Nigeria.
And with that, I wish today's event every success. Thank you, and happy New Year!