Dar es Salaam – Singapore and Tanzania are forging closer economic ties as global trade dynamics shift, highlighted by a high-level business forum held here on Tuesday.
The event coincided with the first-ever state visit by a Singaporean president to the East African nation, marking a significant milestone in their 45-year diplomatic relationship.
President Tharman Shanmugaratnam’s three-day visit, which concludes today, June 10, comes at a time when international supply chains are increasingly strained by geopolitical tensions and climate change.
Addressing the Tanzania-Singapore Business and Investment Forum, he emphasised the need for developing nations to diversify their economic partnerships.
“We know the international order, especially the international trading order, is not what it used to be. It is more uncertain, and that uncertainty is likely to endure,” President Shanmugaratnam told the gathering of business leaders and government officials.
“In such a world, the answer must be to diversify – to build new corridors of opportunity and wider, more resilient supply chains,” he added.
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The forum served as a platform to translate diplomatic goodwill into tangible commercial ventures. It culminated in the signing of a Double Taxation Avoidance Agreement and memoranda of understanding covering carbon credits, trade facilitation, and skills development.
Tanzania, strategically positioned along the Indian Ocean, is increasingly viewed as a vital gateway to the broader African market, which boasts over 1.4 billion people under the African Continental Free Trade Area.
On her part, President Samia Suluhu Hassan underscored this potential, noting her country’s stability and rapid economic growth.
“Tanzania greatly values your experience in industrialisation, logistics, urban planning and investment promotion,” she said. “In turn, Tanzania offers one of Africa’s most stable and fast-growing economies, strategically positioned as the gateway to East, Central and Southern Africa.”
Despite the optimism, bilateral trade remains volatile. President Samia highlighted that trade between the two nations grew from US$74 million in 2020 to US$299 million in 2023, before contracting sharply back to US$74 million in 2024.
“This volatility tells us that our trade structures are not yet resilient, and we must adopt deliberate measures to address the discrepancies,” the Tanzanian Head of State added.
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Since 1997, Singapore has registered 36 investment projects in Tanzania valued at over half a billion dollars, generating more than 3,000 jobs. These investments span manufacturing, construction, transport, and agriculture, including significant operations by companies like Wilmar International and Pavilion Energy.
Private sector leaders at the forum echoed the call for deeper engagement. Angelina Ngalula, the President of the Tanzania Private Sector Federation (TPSF), urged businesses to move beyond preliminary discussions.
“The government can open doors. It is the businesses that must walk through them,” Ms Ngalula said. “Let us make this forum the beginning of a new and more ambitious chapter in Tanzania-Singapore economic cooperation, one measured not only in declarations but in deals and deals delivered.”
Mark Lee, Acting Chairman of the Singapore Business Federation (SBF), outlined three key themes for the partnership: access, bridges, and growth. He expressed confidence in Tanzania’s infrastructure developments, such as the standard gauge railway, and its human capital.
“We are not here to extract value. We are here to build it together with Tanzanian partners,” Lee stated, adding that the SBF’s mission is to “translate political momentum into commercial substance.”
A significant development emerging from the visit is the impending negotiation of a Free Trade Agreement (FTA) between Singapore and the East African Community (EAC). This would be Singapore’s first FTA with an African partner and the EAC’s first with a non-African nation.
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President Shanmugaratnam welcomed the EAC’s intention to pursue the agreement, noting it will “open new pathways for trade and investment between East Africa and Southeast Asia.”
The state visit also included engagements beyond the commercial sphere. The two nations are collaborating on healthcare research, specifically targeting sickle cell disease, and exploring opportunities in the digital and green economies.
Following his engagements in Dar es Salaam, President Shanmugaratnam is scheduled to visit Zanzibar to discuss further collaboration in business and trade in the semi-autonomous archipelago.
As both regions navigate an increasingly fragmented global economy, it was expressed during the forum that the strengthening of Tanzania-Singapore relations underscores a broader strategy among developing nations to build resilient, cross-continental partnerships.
