: Singapore firms encouraged to enter Africa as treaties with Cote d’Ivoire, Nigeria come into force
[SINGAPORE] Two bilateral investment treaties with Cote d’Ivoire and Nigeria have entered into force, while five collaborative agreements were exchanged on Tuesday (Aug 26), at the eighth Africa Singapore Business Forum, organised by Enterprise Singapore (EnterpriseSG).
Singapore is also negotiating a bilateral investment treaty with Ghana and hopes to conclude discussions soon, said Minister-in-charge of Trade Relations Grace Fu.
Ghana has seen a growing base of Singapore investors – 69 registered companies with cumulative investments of more than US$2 billion, noted the country’s President John Dramani Mahama at the forum.
“Africa’s vast resources and young population, combined with South-east Asia’s growing consumption and manufacturing capabilities, create immense potential for collaboration,” said Fu, who is also minister for sustainability and the environment.
Singapore’s treaties with Cote d’Ivoire and Nigeria are legally binding agreements that establish rules on how the two countries should treat investments from Singapore, and vice versa. The Republic now has seven such treaties with countries in Africa.
“These agreements will provide greater certainty and protection for investors, laying the groundwork for deeper and more sustainable economic partnerships between our regions,” added Fu.
The treaty with Nigeria was signed in 2016 and entered into force this Aug 22, after being ratified by both countries. The treaty with Cote d’Ivoire was signed in 2014 and entered into force on Tuesday.
Singapore has also had “encouraging discussions” with the East African Community on a potential free trade agreement, and hopes to begin formal negotiations once the inter-governmental organisation is ready, said Fu.
“This agreement would be a significant stepping stone in promoting open markets between our regions and creating new pathways for trade and investment,” she added.
Opportunities ahead
Bilateral trade between Singapore and Africa has grown steadily from US$9 billion in 2020 to over US$13 billion in 2024, said EnterpriseSG executive chairman Lee Chuan Teck in a welcome address at the forum.
Since 2020, the annual growth rates have been around 14 per cent for merchandise trade and 17 per cent for services trade, noted Fu.
Singapore is the eighth-largest investor in Africa, with more than US$20 billion invested across sectors such as manufacturing and infrastructure development.
At the forum, five agreements were exchanged for collaboration in sectors ranging from financial services to sustainability. These included a memorandum of understanding between EnterpriseSG and the Ghana Standards Authority for cooperation on standards, including the adoption of Singapore’s mass flow meter and associated standards in Ghana for greater transparency in petroleum transactions.
Africa presents exciting opportunities for Singapore companies, said Lee, given its large population, young demographics, expanding consumer class, rapid urbanisation, growing digital economy and natural resources. More than 100 Singapore companies now operate across 40 countries in Africa, he noted.
Through its offices, EnterpriseSG offers advice and networks to help Singapore businesses enter Africa. This October, it is holding a trip to Lagos in Nigeria and Johannesburg in South Africa, to connect Singapore companies with potential partners.
This year’s Africa Singapore Business Forum takes place from Aug 26 to 28, and is expected to gather more than 700 business and government representatives from around 40 countries.
Participants can learn about topics such as Africa’s built environment sector, consumer markets and role in the global energy transition, as well as attend country investment panels.
Ministers and deputy ministers from 14 countries in Africa are attending the forum while in town for the fifth Singapore-Africa Ministerial Exchange Visit. This biennial platform, hosted by Singapore since 2014, aims to strengthen links and encourage the exchange of development experiences between Singapore and Africa.
Apart from attending the forum, the ministers will visit the Singapore City Gallery, PSA, Marina Barrage, the Sustainable Singapore Gallery, Gardens by the Bay and the National Museum of Singapore to understand the country’s experiences in water management, urban planning, port management and sustainable development.
