Singapore strengthens economic ties with Africa, aims to become continent’s gateway to Asia

The number of Singaporean companies doing business in Africa has soared from only 60 in 2018 to more than 155 companies today, which demonstrates that the wealthy city-state increasingly views Africa as a very important market that should not to be ignored.

In a sign of this deepening connection, Singaporean Prime Minister Lee Hsien Loong embarked on a symbolic journey to Africa in May this year. His visit, marked by substantial agreements and tangible demonstrations of commitment, testified to the burgeoning ties between Singapore and Africa. This growing liaison, with Singapore standing as a top-ten investor in Africa, has sparked a charm offensive that seeks to demystify perceived risks associated with Africa’s markets. In short, Africa, a continent marked by its youthful dynamism and promise, has captivated the strategic interest of Singapore.

Singaporean companies looking to invest in Africa and other somewhat unfamiliar regions can seek additional help from a new office set up by the Commonwealth Enterprise and Investment Council (CWEIC). With offices, among others, in Ghana and Kenya, the new center aims to connect businesses to trade and investment opportunities across the 56 member nations of the Commonwealth by facilitating connections and partnerships.

Speaking ahead of the 7th Africa Singapore Business Forum (ASBF) that will be held on 29-31 August in Singapore, Rahul Ghosh, a Director at Enterprise Singapore, has called for a strong collaboration between Singapore and Africa to establish global firms for mutual benefits.

Ghosh said that Africa was a very important market that should not to be ignored, especially in the context of the African Continental Free Trade Area (AfCFTA) that has created the largest free trade area in the world with a combined gross domestic product (GDP) value of $3 trillion. He explained that Singaporean companies were drawn by Africa’s potential and were eager to explore new opportunities for collaboration in areas such as manufacturing and digital solutions. While Singapore companies can share knowledge and innovative solutions with Africa, contributing to the continent’s development, African companies may consider using Singapore as the gateway to reach consumers in Asia.