Singapore-Africa Trade Surges 50% to $13.7 Billion as Investment Treaties Strengthen Economic Ties

Bilateral trade between Singapore and Africa has experienced remarkable growth, surging 50% over the past five years to reach US$13.7 billion in 2024, as new investment treaties and strategic partnership agreements signal deepening economic cooperation across diverse sectors spanning technology, agriculture, and sustainable development.

The milestone was announced by Singapore’s Minister for Sustainability and the Environment Grace Fu during the eighth Africa Singapore Business Forum, where she revealed that bilateral investment treaties with Côte d’Ivoire and Nigeria entered into force this week. These treaties are expected to significantly boost investor confidence by protecting business interests and facilitating greater investment flows between Singapore and the two critical West African markets.

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A Strategic Asian Gateway to Africa

Singapore companies have invested over US$20 billion in the African continent as of end-2023, demonstrating sustained commitment to the region’s growth prospects and positioning Singapore as a strategic gateway for Asian capital seeking opportunities in Africa’s rapidly expanding economies. This investment figure reflects Singapore’s unique role as a financial and logistical hub connecting Asian markets with African opportunities.

President John Mahama of Ghana, who delivered the keynote address at the forum, highlighted the substantial trade relationship that has developed between Singapore and Ghana, with bilateral trade reaching US$215.9 million in 2024. The forum, themed “Bridging Capabilities, Charting Sustainable Growth,” featured over 700 business and government leaders from around 40 countries exploring opportunities in Africa’s evolving business landscape.

“Ghana is open for business 24 hours a day,” President Mahama declared, describing his administration’s flagship “24-hour economy” strategy designed to align infrastructure, incentives, and skills so that factories, farms, ports, and service centers can operate round-the-clock shifts safely and competitively. “Africa is investable, and Ghana is your reliable gateway to the continent,” he emphasized, positioning Ghana as a trusted entry point to the African Continental Free Trade Area (AfCFTA).

The AfCFTA Advantage: A $3.4 Trillion Market

Central to the Singapore-Africa partnership is the transformative potential of the African Continental Free Trade Area, which creates the world’s largest free trade area by number of participating countries. The AfCFTA connects 1.3 billion people across 55 countries with a combined GDP of US$3.4 trillion, presenting unprecedented opportunities for Asian investors and businesses.

President Mahama emphasized Ghana’s strategic position as host of the AfCFTA Secretariat, noting that the country provides investors with access to more than 400 million consumers through the ECOWAS (Economic Community of West African States) market. “Ghana is, therefore, a trusted entry point to scale across the continent,” he stated, highlighting the country’s role as a continental launchpad for international businesses.

The AfCFTA’s implementation has the potential to lift 30 million people out of extreme poverty and boost Africa’s income by $450 billion by 2035, while increasing the continent’s exports by $560 billion, mostly in manufacturing. For Singapore companies, this represents a massive expansion of accessible markets and opportunities for value-chain integration.

Technology and Digital Transformation Partnerships

Digital transformation emerged as a significant growth area for Singapore-Africa cooperation during the forum. Embed Financial Group Holdings signed an agreement with Ghana’s Purpleline Solutions to deliver digitization solutions focused on transforming insurance processes through advanced technology platforms.

The collaboration aims to integrate insurance and micro-financing services into comprehensive digital platforms, expanding mass market access to financial services across West Africa. This partnership reflects broader trends in Africa’s digital economy, where mobile money and fintech adoption rates lead global markets, creating substantial opportunities for Singapore’s advanced financial technology sector.

Singapore’s expertise in digital infrastructure and fintech solutions aligns perfectly with Africa’s growing digital economy. The continent’s mobile money market, valued at US$700 billion in 2021, continues to expand rapidly, driven by increasing smartphone penetration and innovative digital payment solutions.

Climate Technology and Sustainability Initiatives

Climate technology emerged as another significant collaboration area between Singapore and African partners. Singapore-based Arkadiah Technology partnered with Ghana’s CJ Commodities Limited and Oman Carbon to launch a large-scale agroforestry project aimed at restoring degraded landscapes while generating valuable carbon credits.

The initiative has been accepted under the Singapore-Ghana Implementation Agreement framework, leveraging Article 6 mechanisms under the Paris Agreement to enable carbon credit projects that support both climate goals and economic development across African markets.

According to Damilola Ogunbiyi, CEO and Special Representative of the UN Secretary-General for Sustainable Energy for All, Africa holds many climate solutions despite being disproportionately impacted by climate change. “The continent’s renewable energy potential and natural carbon sinks position it uniquely to drive global decarbonization efforts through strategic partnerships,” she emphasized.

Multiple carbon credit projects were announced during the forum, reflecting growing international interest in Africa’s potential for climate mitigation initiatives. Climate Bridge International signed a memorandum of understanding with Rwanda to promote carbon investments and strengthen carbon credit frameworks in the East African nation, demonstrating the expanding geographic scope of these initiatives.

Sector-Specific Agreements and Partnerships

Five new agreements spanning diverse sectors were signed during the event, demonstrating the breadth of Singapore-Africa cooperation:

Petroleum Standards Enhancement: A memorandum of understanding between Enterprise Singapore and the Ghana Standards Authority enables the adoption of Singapore’s Mass Flow Meter technology in Ghana, enhancing transparency in petroleum transactions through improved measurement standards and technical cooperation.

Agricultural Sustainability: Valency International collaborated with Agridence to develop digital traceability tools for deforestation-free sourcing in cocoa and other key agricultural commodities. These initiatives address growing international demand for responsible sourcing practices and sustainable supply chain management.

Construction and Infrastructure: Archicom Singapore entered distribution agreements for advanced cladding solutions in Ghana and Côte d’Ivoire, supporting infrastructure development across West Africa while providing Singapore companies with access to growing construction markets.

Consumer Markets: LAC Global, a Singapore-based health and wellness company, partnered with Ghana distributor Watertree to bring premium dietary supplements to West African consumers, with ambitious plans for broader continental expansion targeting Africa’s growing middle class.

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Investment Protection and Regulatory Framework

The bilateral investment treaties with Côte d’Ivoire and Nigeria represent crucial legal infrastructure for Singapore-Africa economic cooperation. These agreements provide comprehensive investment protection, covering:

Investment Security: Protection against expropriation and unfair treatment, with transparent dispute resolution mechanisms that provide confidence for long-term investment commitments.

Market Access: Streamlined procedures for Singapore companies seeking to establish operations or partnerships in these key African markets.

Technology Transfer: Frameworks enabling knowledge sharing and technical cooperation across various sectors from manufacturing to digital services.

Financial Services Integration: Protocols supporting cross-border financial services and payment systems that facilitate trade and investment flows.

The Broader Asian-African Connection

The Singapore-Africa partnership represents a broader trend of increasing economic integration between Asia and Africa. Minister of State for Trade and Industry and National Development Alvin Tan participated in a keynote dialogue exploring Africa’s expanding business landscape and opportunities for collaboration between Asia and Africa.

Trade between Africa and Asia accounts for 2.2% of Asia’s global trade, indicating substantial room for growth as both regions experience rapid economic expansion. Singapore’s strategic location and advanced infrastructure make it an ideal hub for facilitating these growing trade relationships.

The forum highlighted Singapore’s competitive advantages in areas critical to African development:

Financial Services: Singapore’s status as a global financial center provides access to capital markets and investment expertise essential for African infrastructure and development projects.

Logistics Excellence: Advanced port facilities and supply chain management capabilities that can enhance African trade efficiency and reduce transaction costs.

Technology Innovation: Cutting-edge solutions in areas like smart cities, digital payments, and sustainable technology that address African development priorities.

Risk Management: Sophisticated financial instruments and insurance products that help mitigate investment risks in emerging African markets.

Addressing Africa’s Financing Gap

President Mahama emphasized the critical importance of addressing Africa’s substantial financing needs, citing an annual African financing gap of roughly $1.3 trillion. He noted that infrastructure needs alone require $181-221 billion per year through 2030, with an additional climate finance shortfall of approximately $213 billion annually.

“In a world of tightened financial conditions, fragile supply chains, and rising protectionism, South-South collaboration is not optional – it is essential,” President Mahama declared, calling for reforms to the global financial system and stressing the need for innovative partnerships to drive sustainable development.

Singapore’s financial expertise and capital market access position it uniquely to help address these financing challenges through innovative mechanisms such as:

Blended Finance: Combining public and private capital to reduce investment risks and attract commercial funding for development projects.

Green Bonds: Enabling African countries and companies to access international capital markets for sustainable development initiatives.

Trade Finance: Providing essential working capital and payment guarantees that facilitate increased trade flows between Africa and Asia.

Infrastructure Development and Trade Facilitation

The success of Singapore-Africa trade relationships depends heavily on continued infrastructure development across the African continent. The African Development Bank has funded 25 transport corridors and constructed more than 18,000 km of roads, 27 border crossings, and 16 bridges, representing a total investment of $13.5 billion.

Enterprise Singapore maintains overseas centers in Accra, Johannesburg, and Nairobi to provide on-ground support for companies exploring African opportunities. The agency plans to organize an Africa Mission Trip to Lagos and Johannesburg in October 2025, connecting Singapore high-growth companies with African partners and facilitating new business relationships.

These infrastructure investments are crucial for realizing the full potential of the AfCFTA, which aims to reduce trade costs and streamline border procedures. Full implementation of the AfCFTA would help African countries increase their resilience in the face of economic shocks and drive the deep reforms necessary for sustained long-term growth.

Women and Youth Integration

A critical aspect of the Singapore-Africa partnership involves ensuring that economic growth benefits all segments of society, particularly women and youth who comprise the majority of Africa’s population and workforce. The AfCFTA is expected to generate larger wage gains for women (10.5%) than for men (9.9%), highlighting the importance of inclusive economic development.

Singapore’s experience in creating inclusive economic opportunities through education, skills development, and technology adoption provides valuable lessons for African partners. The partnership agreements include provisions for:

Skills Transfer: Technical training programs that enable African workers to participate in higher-value economic activities.

Entrepreneurship Support: Funding and mentoring programs for small and medium-sized enterprises, particularly those led by women and young entrepreneurs.

Technology Access: Digital platforms that provide broader access to markets, finance, and business services across Africa.

Looking Forward: Sustainable Growth Trajectory

The forum’s success builds on more than a decade of engagement since the first Africa Singapore Business Forum in 2010. More than 5,000 business and government leaders from over 50 countries have participated in previous editions, creating an established platform for ongoing economic cooperation and partnership development.

With 14 partner events scheduled around the forum, double the number from 2023, the expanded program reflects growing institutional support from organizations including the Singapore Business Federation and Nanyang Technological University’s Centre for African Studies.

“Since the first edition in 2010, we have hosted more than 5,000 business and government leaders from over 50 countries. Today, we gather in the midst of a profound shift in the global economic landscape. This new reality demands not isolation but deeper collaboration,” noted Lee Chuan Teck, Chairman of Enterprise Singapore.

The deepening economic relationship positions Singapore as a key Asian partner for Africa’s development ambitions while providing Singapore companies access to one of the world’s fastest-growing economic regions. The combination of investment protection treaties, sector-specific partnerships, and institutional support creates a robust framework for sustained cooperation that can weather global economic uncertainties.

Strategic Implications for Global Trade

The Singapore-Africa partnership represents more than bilateral trade growth – it embodies a shift toward South-South cooperation that could reshape global trade patterns. As traditional North-South trade relationships face increasing challenges from protectionism and supply chain disruptions, the Singapore-Africa model offers an alternative approach based on mutual benefit and complementary strengths.

President Mahama’s emphasis on Africa and Singapore serving as “champions of open markets, trusted rules, and practical partnerships” reflects a commitment to maintaining global trade integration even as other regions move toward protectionism and economic nationalism.

The partnership’s focus on sustainable development, climate technology, and inclusive growth aligns with global priorities for addressing climate change and achieving the UN Sustainable Development Goals by 2030. By demonstrating that economic growth and environmental sustainability can be mutually reinforcing, the Singapore-Africa partnership provides a model for other regions seeking to balance development needs with environmental responsibilities.

As global economic power continues to shift toward Asia and Africa – the world’s youngest and fastest-urbanizing regions – the Singapore-Africa partnership positions both regions to play increasingly influential roles in shaping the future of international trade, investment, and sustainable development. The success of this collaboration will likely encourage similar partnerships between other Asian and African economies, creating a new paradigm for South-South economic cooperation in the 21st century.

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By: Montel Kamau

Serrari Financial Analyst

27th August, 2025