Africa – Singapore: Making the connection

In terms of investments, for most Singaporeans, Africa is still a frontier too far. Africa is largely terra incognita on the business map of most Singaporeans and far too risky even for those searching for the more exotic markets. The bustling Asian markets closer to home and much more familiar in terms of language and culture are far more attractive.

So what is the attraction between the two? The attraction, which I believe has a huge potential, is a genuine partnership between the two. Singapore’s success has been built on its human capital and on the systems and processes it has developed. 

It has been built on discipline, on long-term detailed planning, and the political continuity and will to carry through the plans, on an absolute intolerance of corruption. It has been built on law and order and total respect for contracts and agreements. It has been built on knowledge of how the world works, its own strengths and weaknesses and how to make the most of everything it has – its geographical position, its population structure. In short, Singapore’s achievements are doable – they can be replicated, at least in some measure.

This is the area in which the two entities can resonate. Africa can, and has been, importing Singapore’s superb urban planning, its logistics solutions, its civil service training, its education systems, its environmental controls, its health provisions, its public housing schemes, its efficiencies, its sanitation, its clean water delivery methods and so on. 

There are approximately 50 Singaporean companies operating in Africa, including household names such as Olam and packaged foods firms such as Tolaram and Vega Foods.

Surbana, the now-legendary urban planning company, which is not only responsible for Singapore’s own magnificent city but those of a host of other capitals around the world, as well has been redesigning several African cities including Kigali in Rwanda, Bujumbura in Burundi and an exciting new economic zone in the Republic of Congo, which will transform the entire economic landscape of the Oyo-Ollombo province. 

Crimson Logic, the e-government expert, has successfully rolled out a single-window trade solution in Kenya. Meinhardt, one of the world’s most advanced engineering and project management consultancies, is considering projects in Africa; Portek, now owned by Japan’s Mitsui, operates ports in Algeria, Gabon and Rwanda.

There was also a departure for Temasek, the giant investment company owned by the government of Singapore, when it invested directly in an indigenous Nigerian oil company, Seven Energy, and also bought a 20% stake through its subsidiary, Pavilion Energy, in gas fields operated off the coast of Tanzania. It has also taken a majority share in Olam.

In the meanwhile, International Enterprise (IE) Singapore, the external relations branch of the Ministry of Trade, is opening yet more offices in African countries and acting as the midwife to an increasing number of companies intrigued by the possibilities available in Africa, the world’s second-fastest growing region. The Ministry of Trade itself has been taking and hosting delegations to and from Africa.

For Singapore, Africa offers a vast opportunity for its services sectors to migrate to a new, virgin territory and flourish. The continent also opens up a tremendous possibility for Singapore’s small and medium enterprises to set up shop with local partners as the continent moves into the next stage of its economic and social transformation.

The first two Africa-Singapore Trade Forums were ‘getting to know you’ affairs. This year’s event is expected to usher in a new set of connections. Where and to what extent the networks thus established will lead to is anybody’s guess, but there is a very good chance that this meeting between Singapore and Africa will be just what each needed at this point in time.