Most African leaders are familiar with the Singapore story.
They in fact would like the continent to emulate much of the successes of
Singapore. The story of rising from a backwater Third World country, to a First
World country, is a story that resonates with many African leaders. Many have
in fact drawn up policies to ensure that Africa does draw crucial lessons from
this success. However, even though the story of Singapore is well known in
Africa, the fact remains that China is the dominant player in Africa. It has
signed huge multilateral deals with several African countries, mainly in the
area of minerals and infrastructure development. However, the trade is mostly
one way, and African countries are beginning to question the deals that Africa
conducts with China. For example, early last year, the immediate former
Nigerian central Bank Governor, Lamido Sanusi, warned that China was dumping
substandard industrial goods on the African continent, and in the process,
killing the African manufacturing sector.
In an attempt to upstage China in the continent, this week,
the government of Singapore will be hosting its third Africa-Singapore business
forum. The forum will bring African private and public sector leaders to
Singapore to discuss investment opportunities across the continent. But the forum could also serve a more
strategic purpose by encouraging a broader evaluation of Singapore's
relationship with Africa.
China's trade with Africa will total almost US$300 billion
this year. Accurate figures for foreign
direct investment (FDI) are more difficult to find, but here, too, the numbers
are surely quite high - with multi-billion dollar investments in
infrastructure, resources, and manufacturing spread over a large number of
African markets. And this does not
include the more than US$75 billion Beijing has committed to Africa over the
past decade.
Singapore's brand, by contrast, is very strong. Most African leaders are familiar with
Singapore's story. Many have even
explicitly stated that they would like their country to become the Singapore of
Africa. Their desire to do so makes
sense: the top priorities for most African countries include achieving rapid
economic growth, maintaining political stability, and ensuring a safe
environment in the face of terrorist threats, crime, and regional
conflict. In the context of such goals,
the Singaporean model seems very attractive.
Singapore is a small country, African leaders do not view it
as posing a strategic threat. They would
therefore not be concerned if Singaporean companies won tenders for projects of
strategic significance, such as deep-sea ports and other vital
infrastructure.
Of course, it is not as though Singapore is unaware of
Africa. Indeed, Singapore's trade with
Africa has been growing at over 10 per cent per year, and reached approximately
US$11 billion in 2013. Singaporean FDI
into Africa now stands at over $16 billion.
The point, however, is that Singapore has the potential to
put in place a strategic partnership with Africa that could go far beyond
merely achieving incremental increases in trade and investment. For African
leaders, diversifying trade partners will be the most pragmatic view, and in
the process, the African leaders should ensure that they get the best deals for
the African people.
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