Our Terms & Conditions | Our Privacy Policy
LAC Global and Valency International are among a growing wave of Singapore businesses pursuing expansion in Africa, the world’s second-largest and second-most populous continent after Asia.
They are drawn by the region’s long-term growth potential that is driven by rapid urbanisation and a rising middle-income population.
SG BUSINESSES IN AFRICA
Today, more than 100 Singapore companies are operating across 40 African nations, with a total investment of S$27 billion (US$21 billion), said Enterprise Singapore (EnterpriseSG).
“There’s a lot of potential for collaboration because Singapore companies and the products and services that they provide are very well regarded in Africa,” said the statutory board’s Middle East and Africa director Rahul Ghosh. “We can take it forward even more.”
EnterpriseSG and its subsidiary Singapore Cooperation Enterprise (SCE) help domestic companies set up and expand overseas through financial and advisory support.
In 2024, they backed four times as many new market entry projects into Africa compared to 2020.
EnterpriseSG Chairman Lee Chuan Teck said that since SCE’s formation in 2006, the agency has delivered 38 projects across 23 African countries.
“(They are) in diverse areas spanning economic positioning studies, technical and vocational training development, public services and pension reforms,” he said during the Africa Singapore Business Forum.
Held from Aug 26 to 28, the forum serves as a platform for business exchange and trade promotion between Singapore, Africa, and Southeast Asia. The event drew about 600 business and government leaders from over 30 countries.
VISIT BY GHANA PRESIDENT
Among the delegates from Africa was Ghana President John Dramani Mahama, in the first-ever state visit by a Ghanaian president to Singapore
He also called on President Tharman Shanmugaratnam and Prime Minister Lawrence Wong, reaffirming strong ties between the two nations. The leaders inked two deals in bilateral cooperation and investment.
“Singapore stands at the nexus of global finance, fintech, logistics and green innovation,” said Mr Mahama.
“(Singapore’s) excellence in project preparation, blended finance, risk management, standards and dispute resolution is precisely what African projects need to move from pipeline to bankable builds.”
SG-AFRICA ECONOMIC TIES
Singapore is the eighth largest investor in Africa, with over US$20 billion invested across sectors like manufacturing and infrastructure development.
Since 2020, merchandise and services trade have grown annually at about 14 per cent and 17 per cent respectively.
At the forum, Minister-in-charge of Trade Relations Grace Fu said that more Singapore companies are seizing opportunities in high-growth sectors like green economy, agribusiness and digital services.
Ms Fu added that African companies are leveraging Singapore’s connectivity to access markets across ASEAN and beyond.
“As two similarly large, young and fast-growing regions, Africa and Southeast Asia can work together and play to our complementary strengths,” she said.
“Africa’s vast resources and young population, combined with Southeast Asia’s growing consumption and manufacturing capabilities, create immense potential for collaboration.”
To date, Singapore has seven bilateral investment treaties with Africa, with the latest two being with Nigeria and Ivory Coast.
The Ministry of Trade and Industry said the total trade in goods between Singapore and Nigeria reached more than S$900 million in 2024, almost double the year before. Total trade in goods between Singapore and Ivory Coast was around S$180 million last year, S$40 million more than in 2023.
A potential Free Trade Agreement with the East African Community, a bloc of eight partner states, is also on the table as Singapore explores deeper ties with the region.
SOME CHALLENGES
EnterpriseSG’s Mr Ghosh said business opportunities in Africa are similar to those in Southeast Asia, with opportunities in industrialisation, infrastructure, digitalisation and the green economy.
“For any Singapore company that has operated and done well in Southeast Asia, Africa is quite an easy market now,” he told CNA’s Singapore Tonight.
“African companies (want) to collaborate with Singapore companies, and that makes it even easier for (us) to be able to land and scale in on the continent.”
Still, he warned that challenges persist, including a lack of quality data, currency volatility, high inflation and unclear policies.
“Some of those uncertainties means that companies must factor into their margins a higher price to account for these risks,” he noted.
He also emphasised that EnterpriseSG has offices in the continent to help Singapore businesses navigate complexities.
Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.
Aggregated From –
Comments are closed.