Singapore and Africa are witnessing remarkable growth in their economic relations, with bilateral trade surging to $14.5 billion in 2022, fueled by a 15 percent annual increase since 2019.
Singapore companies’ investments in the African continent cumulatively reached US$23.7 billion as at 2021.
As testament to the robust interest to participate in Africa’s growth opportunities, five agreements were inked at the 7th edition of the Africa Singapore Business Forum (ASBF) 2023 organised by Enterprise Singapore (EnterpriseSG).
These agreements span manufacturing, digitalisation and technology, sustainable development, transport and logistics sectors.
To facilitate further growing ties between Singapore and Africa, the Kenya-Singapore Bilateral Investment Treaty was also ratified by both countries and formally entered into force on 20 August 2023.
The Treaty will promote greater investment flows between Singapore and Kenya by protecting the interests of both Singapore and Kenyan investors. The Treaty provides certainty and signals the commitment of both governments to create favourable conditions for business to thrive.
These were disclosed at this year’s Africa Singapore Business Forum (ASBF) taking place from 29 – 31 August, on the theme “Driving Africa’s Growth through Digitalisation, Manufacturing and Sustainability”.
The event gathered over 500 business and government leaders from 40 countries in Nairobi.
They discussed how businesses and governments can navigate and take advantage of the transformative shifts taking place in Africa through deeper and longer-term collaboration.
Over the conference days, participants got glean insights from industry leaders on three of Africa’s fastest-growing segments, including manufacturing, digitalisation and the green economy.
Mr Tan Soon Kim, Deputy CEO of EnterpriseSG, noted, ‘Singaporean companies recognize the value of expanding into Africa and are responding positively to our call to explore these markets.”
“This year, we have organised over 10 activities including business missions, webinars and workshops in sectors such as retail, healthcare, fintech, information and communications technology (ICT) and logistics, benefiting close to 400 companies,” he affirmed.
In 2023, he noted, the number of projects facilitated by enterpriseSG to date exceeds that of 2022. “These are projects where we provided support, including helping companies clinch new projects and set up offices in Africa.”
Demand for domestically produced goods will grow, as the African Continental Free Trade Area (AfCFTA) is set to boost intra-African trade by 52 percent.
Singapore brand owners and manufacturing services companies are keen to partner Africa to address demand in food manufacturing, agro-processing, pharmaceuticals and automotives.
The digital economy is turbo charging Africa’s growth and is expected to reach US$712 billion in 2050, accounting for 8.5 percent of the continent’s GDP – up from 4.5 percent in 2020.
Singapore firms have been providing digital solutions across a wide range of verticals, from agri-tech to logistics tech, retail tech and fintech, to digital trade and smart urban infrastructure.
Adatos and Tramés are two such firms which, through EnterpriseSG’s facilitation, have signed an MOU with Singapore global commodity player Robust International to deploy their solutions in Africa.
While Adatos’ AI solutions provide Robust farmers with agricultural insights such as weather prediction, yield forecast and nutrients usage to improve crop yield, Tramés’ bespoke logistics management solutions will help Robust optimise its supply chain planning in Africa and globally.
Africa’s green economy has also emerged as an area for partnerships alongside Africa’s urbanisation drive and commitment to reduce greenhouse gas emissions.
In northern Ghana, for example, Singapore-based food company WhatIF Foods has partnered Pond Foundation, a global non-profit organisation, to trial and scale the production of biochar – a sustainable alternative to traditional fertilisers that will improve soil quality and yield of Bambara groundnuts for more than 30,000 partnering farmers.
“As Singapore and Africa deepen their economic collaboration, there is great promise for increased trade, investment, and sustainable partnerships between these dynamic regions,” said Mr Tan.