Global container throughput continues to rise, with the top 50 ports handling over 800 million twenty-foot equivalent units (TEUs) in 2023. The Port of Shanghai remains the world’s busiest, processing 47 million TEUs, followed by Singapore with 39 million. The expansion of the Panama and Suez Canals has further enhanced maritime efficiency, reducing transit times and bolstering global trade. According to the World Bank, port efficiency directly influences national GDP, with a 10% improvement in port operations contributing to a 3% increase in trade volume.

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Yet, global shipping faces mounting challenges, including supply chain bottlenecks and security risks. The ongoing Red Sea crisis has led to higher insurance premiums for shipping companies, while climate-induced disruptions, such as hurricanes and rising sea levels, threaten port infrastructure. These challenges underscore the urgent need for modernisation and investment in resilient port systems.

Africa’s ports are integral to the continent’s economic aspirations. They handle about 90% of Africa’s trade, moving over 500 million tonnes of cargo annually. In monetary terms, these ports facilitate trade worth over $400 billion each year, with imports constituting a significant portion of this figure. The United Nations Conference on Trade and Development (UNCTAD) reports that Africa’s maritime transport sector contributes roughly $100 billion to the continent’s GDP, highlighting its economic importance.

Major ports such as Durban (South Africa), Lagos (Nigeria), and Mombasa (Kenya) serve as critical gateways for both imports and exports. However, inefficiencies persist. According to the African Development Bank (AfDB), African ports experience an average dwell time of 20 days—substantially longer than the global benchmark of four days. These delays increase costs and deter investment. Infrastructure deficits exacerbate the problem, with only a handful of African ports, such as Tanger Med in Morocco and Port Said in Egypt, operating at globally competitive standards. The World Bank’s Container Port Performance Index (CPPI) ranks these as Africa’s top performers, yet many others struggle with outdated facilities and congestion. Additionally, port-related logistics account for up to 40% of total transport costs in Africa, compared to just 10% in developed economies.

Despite these challenges, Africa’s ports are undergoing significant transformation. Investments in port expansion and digitalisation are surging. The Lekki Deep Sea Port in Nigeria, operational since 2023, is expected to contribute $360 billion to the economy over its lifetime. Meanwhile, Kenya’s Lamu Port, part of the LAPSSET Corridor, aims to enhance regional connectivity, facilitating trade between East and Central Africa. Furthermore, expansions at Ghana’s Tema Port and Côte d’Ivoire’s Abidjan Port are boosting Africa’s competitiveness in global trade.

Sustainability and Innovation: The Future of African Ports

The future of Africa’s ports lies in modernisation and sustainability. Green port initiatives are gaining traction, with South Africa’s Transnet investing in electrification to reduce carbon emissions. Additionally, recycling and waste management efforts are improving. The Port of Durban, for example, has implemented waste-to-energy programmes that convert ship-generated waste into usable energy. According to the African Ports Environmental Report, waste management and pollution reduction are now priority areas, with initiatives focused on minimising plastic waste and improving oil spill response capabilities.

Smart port technologies, including blockchain-based cargo tracking and AI-driven logistics, are being deployed to reduce inefficiencies. The African Union’s 2050 Africa’s Integrated Maritime Strategy (AIMS) emphasises digitalisation and security to ensure African ports remain globally competitive. With port expansion projects exceeding $50 billion in investments, Africa is on a path to transforming its maritime landscape.

A New Dawn for African Trade

Africa’s ports stand at a crossroads. While inefficiencies and infrastructure gaps persist, significant investments and reforms are underway. As global trade evolves, Africa has a golden opportunity to enhance its maritime sector, driving economic transformation. By modernising ports, adopting green initiatives, and embracing technology, the continent can solidify its position as a key player in the global trade ecosystem. With annual port-driven revenues surpassing $400 billion and continued investment in sustainability and efficiency, Africa’s maritime sector is poised to become one of the continent’s leading economic drivers in the future.

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Mr Chan said this in his opening address to attendees of the Africa-Singapore Business Forum 2018 on Tuesday (Aug 28).

Over 500 people from over 35 countries are expected to participate in the two-day forum which ends on Wednesday.

In his speech, Mr Chan outlined the importance of promoting economic integration and cooperation against a backdrop of rising trade tensions and protectionism.

“I would like to encourage African businesses to engage Singapore as your partner in Asia, see Singapore not just for our domestic market, but see us also as a platform, as a launchpad for your business opportunities in Southeast Asia and beyond,” said Mr Chan.

He added that Singapore’s “strong connections at the government and business level makes it a good base from which African companies can explore and access Asia.”

According to Singstat, foreign direct investment from Africa into Singapore amounted to S$27.4 billion in 2016.

Over 60 Singaporean firms operate in Africa, ranging from food manufacturing to digital payment services, and Enterprise Singapore – the government agency which helps businesses internationalise – is working to increase that number. It said a main challenge was managing risk.

Global Markets Director, Middle East & Africa of Enterprise Singapore G Jayakrishnan said the agency works with people on the ground, validate African counterparties, as well as encourage companies to take up political risk insurance.

“We have programmes for (that), there are ways to mitigate it, and get around the risk element of Africa,” said Mr Jayakrishnan.

In 2017, trade between Singapore and Africa amounted to S$9.78 billion according to data from Enterprise Singapore, while Singapore investment into Africa reached S$18.5 billion in 2016, making the republic its 7th largest trading partner.

According to the United Nations, Singapore is Africa’s largest Southeast Asian trading partner.

Enterprise Singapore highlighted two growth engines in the areas of deepening digital capabilities and addressing Africa’s manufacturing needs.

According to a McKinsey report, Africa’s consumer spending is expected to reach US$2.1 trillion (S$2.86 trillion) by 2025, and that its e-commerce purchases are projected to hit US$75 billion (S$102 billion) in the same year.

“Africa’s rapid growth and thriving digital economy offers rich opportunities for Singapore companies seeking higher growth and market diversification,” said CEO of Enterprise Singapore, Mr Png Cheong Boon.

At the event, an Avoidance of Double Taxation Agreement (DTA) between Singapore and Gabon was signed, bringing the list of DTAs between Singapore and Africa to 13. A total of five memoranda of understandings in areas of digital, infrastructure and business services were inked between African and Singapore companies.

One is a tie-up is between media analytics firm Graymatics, and IT company Crescentech to provide security and surveillance solutions in Kenya, South Africa and Nigeria.

President and CEO of Graymatics Abhijit Shanbhag said Enterprise Singapore has played a big role in the collaboration.

“Enterprise Singapore had organised a mission within Africa which we participated in within Kenya and within that, that was actually the start of a number of business engagements that we had in Africa,” said Mr Shanbhag.

Director of Strategy & Innovation for Crescentech, Dr Percy Opio, said “Enterprise Singapore is very specific about who they want us to partner with, they want us to partner with organisations that have relevant solutions for our market.”

“We believe that this process will not only provide solutions in Kenya, but Graymatics will also empower us,” he said.

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1. Enterprise Singapore has successfully facilitated close to 50 projects for Singapore companies in Africa in the last two years. 80% of these projects were undertaken by small and medium enterprises (SMEs). More local companies are turning towards Africa as the continent progressively opens up to through digitalisation, regional integration and global trade, offering opportunities across various industries. Over 60 Singapore companies are present in Africa, operating across more than 40 African countries and multiple industries.

2. “Africa’s rapid growth and thriving digital economy offer rich opportunities for Singapore companies seeking higher growth and market diversification. We are encouraged to see our local companies, including SMEs, venturing into Africa and gaining traction there. We hope many more can tap onto platforms like the biennial Africa Singapore Business Forum and connect with our three regional offices in Africa to spark even closer business exchange and partnerships,” said Mr Png Cheong Boon, Chief Executive Officer, Enterprise Singapore.

3. In addition to traditional sweet spots like oil and gas, and urban infrastructure solutions, Enterprise Singapore has identified Africa’s thriving digital economy and its manufacturing industry as two new growth engines.

Deepening capabilities in the digital economy

4. Africa’s rapid urbanisation and rising middle class are driving consumption and spending. According to a McKinsey report, Africa’s consumer spending is expected to reach US$2.1 trillion by 2025. Coupled with a fast growing internet economy, the continent is looking for solutions to facilitate access to global markets and ensure payment interoperability. Africa’s e-commerce purchases are projected to hit US$75 billion by 2025. As Africa ramps up trade connectivity within itself and the rest of the world, Singapore companies can also offer tried and tested solutions to help modernise trade facilitation systems, digitise manual processes and improve data transparencies.

5. In the last year, Enterprise Singapore has helped more than 10 Singapore companies to break into Africa’s digital technology space including e-Government services, e-commerce platforms and cross-border payments.

Enterprise Singapore

Addressing Africa’s manufacturing needs

6. Many African countries are embracing manufacturing as a key economic growth strategy to boost exports, upgrade domestic enterprise capabilities, and create higher-skilled employment. Singapore’s manufacturing services companies with expertise in plant construction and design, equipment set-up, production workflow planning, quality control and testing, and skills training will be able to support manufacturers to expand production across the continent.

7. Africa’s agri-food manufacturing sector, for example, presents the tremendous market potential for Singapore companies across the value chain – from agri-tech and food production to food processing and packaging. Africa’s food production industry is poised to be worth US$1 trillion by 2030 as the continent seeks to substitute imports with high-value domestically-manufactured food. Larger local companies such as Olam, Wilmar, Tolaram and Vega Foods, have gone beyond trading and distribution, to vertically integrate agri- and food processing into their operations.

Catalysing collaboration opportunities

8. The growing bilateral economic ties between Singapore and Africa were further cemented with the signing of an Avoidance of Double Taxation Agreement (DTA) between Singapore and This brings the list of DTAs that Singapore has signed with African countries to 13.

9. Enterprise Singapore supports Singapore companies expand business opportunities by connecting them to local networks and working closely with African governments to create a business-friendly environment, through the three regional offices in Africa. The Nairobi overseas centre opened recently in June 2018, while the two others in Accra and Johannesburg have been in operation since 2013. Business activities in North Africa are undertaken by the Dubai overseas centre.

10. On the sidelines of ASBF 2018, the following memoranda of understanding were also inked:

• Singapore Cooperation Enterprise and the Mozambique Investment and Export Promotion Agency to facilitate the exchange of consultancy, advisory and training services for master urban planning and Special Economic Zones/Industrial Zones.
• Well & Able Holdings and Compagnie Sénégalaise de Transport Transatlantique Afrique de l’Ouest (CSTT-AO) to design and build a 9,795 square metre multimodal logistics hub in Senegal.
• GeTS Asia and Kenya Trade Network Agency to launch the Open Trade Blockchain platform which will improve efficiency, security and transparency of trade-related processes.
• Graymatics Singapore and Crescentech Limited to provide security and surveillance solutions in industries including banking, telecommunications and retail across Kenya, South Africa and Nigeria.
• Singapore Manufacturing Federation and Egyptian Businessmen Association to accelerate business matching between Singapore and Egyptian companies.

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