IORA business summit to promote trade opportunities between member states |27 March 2017

The Indian Ocean Rim Association (IORA) organised a Business Summit on March 6 in Jakarta, Indonesia, as a parallel event with the aim of promoting business opportunities, investments and business partnerships between member states.

It was attended by members of the Indonesian government, representatives of various businesses and private sector leaders from member countries.

IORA remains committed to building economies of Small & Medium Enterprises (SMEs) within member states especially in empowering women and youths. Special Envoy for Seychelles to Asean, Ambassador Nico Barito, who also serves as Secretary General of FORSEAA, confirms FORSEAA commitments to support the IORA member countries in the forum of SME, especially by empowering the role of women for community economy and the youth to realise young entrepreneurship.  FORSEAA is Forum of Small Medium Economic Africa Asean, founded by Seychelles and Indonesia in 2014 together with the 14 countries from Africa and Asean.

Seychelles was represented at the summits by Vice-President Vincent Meriton, who was deputising for President Danny Faure.

The business summit was expected to produce details on how the region could break through the aspiration of the local businesses to tap the opportunities in countries currently tended to be overlooked in the Indian Ocean regions. Some 2,7 billion people live in the area, which account for only 12 percent of the world’s export market and 10 percent of the global gross domestic product, while only 13 percent of the world’s foreign direct investment goes in the region.

It was highlighted during the business summit that trade agreements in many member countries are at bilateral level. IORA business summit will be pushing for the unity, possibly on preferential trade agreement or even free trade agreement.

The business summit has set up forums in which countries can work out their differences to enter into a multilateral agreement that faces hurdles in the form of huge disparities between countries in the region, with 10 countries already members of the G-20, while others are poor or ravaged by wars and local conflicts.

Giving an overview of the leaders summit during a press conference at State House upon his return, Vice-President Meriton also explained the ‘raison-d’etre’ behind the business summit.

“The summit was aimed at attracting businesses to come see what business opportunities are available between member states of the region, that they can be promoted so that ‘doing business’ stays in the region instead of going elsewhere,” said Mr Meriton. There was also an exhibition of Indonesian products by the country’s businesses.

Another aspect, he said, was to reinforce links between partners and chambers of commerce of member states in line with Concord agreement on the people to people connection, through which modern technology and the movement of people between countries are mentioned, countries can determine how to increase trade between them.

“So there is a necessity our Chamber of Commerce, after receiving a report from our envoy for Asean, link up with our commerce centres to look into those business possibilities as there are potentials to develop,” said VP Mariton.

These are goods, Mr Meriton said, that are relatively cheap but the country needs to check its freight costs, tax regime so in the end they are affordable for the local population.

President Jokowi of Indonesia criticised Indonesian exporter for not looking at the African markets, despite the region’s huge population and the fact that Indonesia products are well received in the area. The African market for instance, has a potential for USD 550 billion worth of exports from Indonesia of which just USD 4,2 million is currently realised.

Regional participation in recent business expos held in Seychelles. The IORA business summit was aimed at promoting business opportunities between IORA member states