S’pore firms heed the roar of Africa’s fast growth and untapped consumer market

SINGAPORE - Mr Dennis Ng gets a string of questions whenever he talks about his business trips to Africa.

“At the top of most people’s list is: Are there lions around?”

Mr Ng, the founder and executive chairman of Embed Financial Group Holdings (EFGH), said he often has to deny he is there on a safari. His firm entered the African market in March 2024 to make insurance and financial technology solutions accessible to consumers there.

Mr Ng told The Straits Times that he is also asked whether Africans speak English, when it is a widely used language on the continent. “Africa is still a very distant market to many people,” he said.

EFGH is one of more than 100 Singapore companies currently operating in Africa.

Another firm of note is agribusiness group Wilmar International, owned by billionaire Kuok Khoon Hong, which has been present in Africa for more than two decades. It taps its sprawling oil palm plantations to make edible oils, soaps and detergents.

Family-run conglomerate Tolaram, meanwhile, is known in Africa for the local manufacturing of Indomie instant noodles, and the distribution of consumer goods like Kellogg’s cereals and snacks.

It also operates a large free trade zone and a deep-sea port in Nigeria, which has started to attract international shipping lines.

Trade between Singapore and Africa has grown by more than 50 per cent in recent years, from $12.1 billion in 2020 to $18.7 billion in 2024, according to Enterprise Singapore, which helps the Republic’s companies to build capabilities, innovate and internationalise.

Singapore is also one of Africa’s top 10 investors. But its presence in the continent – home to 1.4 billion people spread across 54 countries in different stages of development – is small, compared with its footprint in Asean, China or the US.

Historically, businesses venturing into Africa had to navigate political instability, regulatory hurdles and a lack of infrastructure.

Several multinational firms have also struggled because of the weakening of currencies like Nigeria’s naira, which fell to an all-time low against the US dollar in 2024. A weak currency makes the imports of materials more expensive, crimping profits.

High inflation in Nigeria has also raised the cost of essentials like food and fuel, limiting the spending power of people in the country.

But interest in Africa is growing as some nations embark on economic reforms and court international investors.

Africa also has the youngest population in the world, raising its potential for businesses scouting for a growing consumer market.

Source: The Straits Times