Africa Offers Thailand Good Potential For Trade

[george]

Africa offers Thailand good potential for trade and investment

BANGKOK: -- A major Thai think-tank believes Africa offers Thailand good prospects for trade and investment.

Thailand should be able to significantly expand trade and investment in Africa after it signs the strategic partnership convention at the forthcoming Asia-Africa Summit in Indonesia, according to the KASIKORN Research Centre (KRC).

Thailand’s Prime Minister Thaksin Shinawatra is scheduled to attend the summit in Jakarta between 22-23 April, along with the leaders of the 55 countries of the two regions.

The summit is regarded by observers as one of the most important international meetings of the year as the two regions’ leaders will jointly sign the strategic partnership convention.

The meeting will be a milestone for both regions and will help forge closer economic, social and political relations between them, according to the KRC.

The agreement will provide Thailand with a good opportunity to invest in Africa's production and service sectors, to expand export markets and use the region as a production base and a distribution channel, the KRC suggested in its latest report released on Thursday.

There is substantial potential for many Thai exports in Africa, including rice, according to the KRC. Although Thai rice prices are higher than the average in Africa, it is popular among Africans because of its high quality.

Other products which have a good export potential include automobiles and parts, plastic pellets, steel and iron.

Thai businesses could make Africa a trade gateway to other nearby regions including Europe and America. Thai entrepreneurs could invest in the service sector where they have an existing advantage, including restaurants, traditional massages and spas, the KRC report said.

However, Thai businessmen must also realise there are many unfavourable factors to investment in Africa, the KRC warned. These include political instability in some African countries, out-of-date banking and financial systems, constraints on credit card payments and the limited availability of automatic teller machines or ATMs.

--TNA 2005-04-21