Africa is a developing continent that has significant potential. Reports indicate that the spending trend is increasing and it may reach $2 trillion USD over the next 2 years. Additionally, Africa is being moved by digital advancements, especially the penetration of reliable internet. This means that the e-commerce sector is doing well just like in the rest of the world.
Enterprise Singapore has been eyeing these opportunities in an attempt to improve their companies. Reports indicate that they have been working together with African companies with over 50 projects completed now. The goal is to have as many Singaporean companies as possible penetrate Africa and work together with upcoming companies for market diversification. After all, the African digital economy is proving to be one of the best.
A Boost from the Digital Economy
As mentioned earlier, Africa is already doing well in the digital economy. Almost all countries on the continent are working hard to access 4G internet and promote e-commerce. The McKinsey Report has revealed that e-commerce spending is on a gradual rise. The report has continued to show that the continent has indeed got a significant boost from the digital economy since the only expenditure will be over $75 billion USD over the next five years.
To tap into this, Enterprise Singapore has started helping their companies to set up in Africa or partner with SMEs. They also assist these companies to take advantage of the digital economy in all possible ways like doing cross-border payments.
In fact, Visa Express Singapore has been working closely with SMEs to help them set up businesses before they proceed to break through the African digital economy. If this goes on like this, more partnerships are likely to be seen and this will have mutual benefits to both companies.
Enterprise Needs in Africa
As a growing continent, Africa needs to grow its manufacturing sector to be on par with other parts of the world. Enterprise Singapore is also eyeing this sector and planning to offer expertise and resource management, which Africa needs. Thus, there will be a lot of merging of companies in the years to come according to a statement from the Singaporean authorities.
In the same way, Enterprise Singapore and African countries are working together to improve agri-business, especially the tech sector. As African agri-business benefits from their skills, Singaporean companies also want to get a share of the pie. The food production industry in Africa will get a boost in the long run.
Proposed Bilateral Solutions
Singapore is one of the countries that believes in signing bilateral agreements aimed at benefiting local companies. The state has already signed double tax avoidance (DTA) with many African countries to promote collaboration. Some of the countries that have signed either a DTA or any other trade-related agreement include South Africa, Gabon, Kenya, and Ghana to mention just a few.
Singapore has always wanted the best for her people. But the good thing is that the state is aggressive in looking for collaboration that has mutual benefits. It is no wonder why the state is one of the best business hubs in the world. From the above insights, it is clear that Singapore and Africa have taken advantage of the digital economy to work together.