By Francis Chan

WARY of doing business in Africa? Relax, it is no longer a jungle out there.

With growing international trade hubs as well as areas rich in commodities such as gold, oil and gas, the continent is fast emerging as a market with new business opportunities.

Last month, 31 Singapore-based firms took part in a business mission to Sub-Saharan Africa and returned with about $66 million worth of deals under negotiation.

Yesterday, Minister of State for Trade and Industry, and Manpower Lee Yi Shyan, who led the business mission, said he believed concerns about venturing to Africa were now a thing of the past.

'Through the trip, and after speaking with Singapore companies with existing business in Nigeria and South Africa, I am encouraged that doing business in this region is not as daunting as it may appear,' he said.

Jointly organised by International Enterprise (IE) Singapore, the Singapore Business Federation, as well as the Singapore Chinese Chamber of Commerce & Industry, the mission included visits to oil-rich Nigeria, South Africa and Ghana between Oct 11 and Oct 18.

Rich in natural resources, Africa has been attracting more foreign direct investments (FDI) in recent years. Latest trade figures show that FDI in Africa has shot up by an average of 146 per cent a year over the last 22 years to US$36 billion (S$50 billion) in 2007.

Africa's trade with Asia has also been growing steadily, especially between firms in the business of port and logistics, environmental services, offshore marine, oil and gas, info-communications technology, urban and infrastructure building, and commodities trading.

For example, trade between China and Africa jumped 45 per cent last year to reach US$107 billion, of which less than 1 per cent goes through Singapore.

'Trade and investments between Africa and Asia will grow, and Singapore companies will be wise to position themselves early to ride this wave,' said Mr Lee.

Jurong Consultants, which is developing a 300ha industrial park in Nigeria's Delta tate, says Singapore firms need to wise up fast to Africa.

'If Singapore firms do not start to open their eyes to Africa, they might just miss the boat, just like how many missed out on opportunities in the Middle East,' said Jurong Consultants business development director Raymond Kwok.

'There are over 50 markets in Africa and a handful like Nigeria and Ghana that present good opportunities for growth.'

Mr Kwok says visiting Africa and seeing the sheer number of larger Chinese firms operating in Nigeria cleared up the misconceptions that the country was unsafe and risky for local businesses.

'There are about 6,000 Chinese in Nigeria and only about 20 of us,' he said. 'If state-owned firms from China are there, why not Singapore firms?'