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The seventh edition of the Africa-Singapore Business Forum brought together leaders from Africa and Asia, emphasising the importance of building robust ties between these two dynamic regions. The forum serves as a platform for industry leaders to share insights into Africa’s growth story, facilitate partnerships, and connect Southeast Asia and Africa.
Digital connectivity was at the forefront of discussions as Minister Gan Kim Yong, Singapore’s Minister for Trade and Industry highlighted its pivotal role in shaping the future of economic collaboration citing that in today’s interconnected world, digital infrastructure forms the backbone of international trade and investment. The forum recognised that leveraging digital connectivity can drive economic growth, enhance trade, and promote innovation.
The Minister added that the African Continental Free Trade Area (AfCFTA) stands as a testament to Africa’s commitment to integration and economic expansion. By creating an integrated regional market, AfCFTA aims to become the fifth-largest market globally by 2050.
While this ambitious project promises significant opportunities within Africa, it’s equally important to maintain open connections with the rest of the world. This openness will ensure that Africa remains a dynamic player in the global economy, benefitting from trade partnerships beyond its borders.
Similarly, Southeast Asia, with its 10 ASEAN member states, constitutes the world’s fifth-largest economy, offering substantial trade and investment prospects. The region is actively pursuing the ASEAN Economic Community, marking a significant step towards economic integration. Besides, through free trade agreements like the Regional Comprehensive Economic Partnership (RCEP), ASEAN nations are enhancing trade relationships with countries worldwide, promoting “open regionalism” and fostering economic prosperity.
Minister Gan added that the digital economy was a central theme, with a focus on the burgeoning opportunities it presents. Africa’s digital economy is predicted to grow sixfold by 2050, offering fertile ground for innovations in fintech, health tech, and e-commerce. Singaporean company is already contributing to this growth by providing cross-border payment solutions, empowering African consumers, and businesses.
He emphasised that sustainability emerged as a shared vision, with Africa’s vast natural resources and Singapore’s commitment to environmental stewardship. Singapore and Ghana are working together on a carbon credits cooperation agreement, promoting sustainable practices. With this, a Singaporean company is investing in a landscape restoration project in Ghana to rejuvenate degraded landscapes and generate high-quality carbon credits.
Improving connectivity between the regions is crucial for fostering mutual understanding and increasing trade and investment. Recent developments, such as the Kenya-Singapore Investment Promotion and Protection Agreement, provide certainty for companies operating in each other’s markets, boosting trade and investment flows.
The saying, “To go fast, go alone; to go far, go together,” reflects the spirit of collaboration that underpins the relationship between Singapore and Africa. Several Singaporean companies are collaborating on projects in Africa to drive sustainable agriculture and enhance supply chain efficiency. These partnerships exemplify the potential for cooperation between global traders and SMEs.
Enterprise Singapore is expanding the pool of participating financial institutions, including foreign-based institutions and multilateral development banks, to facilitate trade financing. This expansion will provide better access to financing for Singaporean enterprises venturing into Africa and emerging markets, further strengthening trade networks.
Minister Gan stressed that the Africa Singapore Business Forum underscores the importance of digital connectivity, the digital economy, and sustainability in shaping the future of Africa-Singapore relations. As both regions embrace digital transformation and sustainable practices, there is optimism about the potential for deeper collaborations and a brighter shared future, “Singapore warmly welcomes new opportunities to strengthen its relationship with Africa, fostering economic growth and innovation.”
