Singapore Rwanda MoU to focus on carbon trading, urban planning, and more

^{Photo credit: High Commission of Rwanda}

Singapore Cooperation Enterprise (SCE), that brings multiple government and private sector firms to deliver development projects overseas, has inked a five-year memorandum of understanding (MoU) with the Rwandan Ministry of Foreign Affairs and International Cooperation. The collaboration will focus on areas including ICT, climate change, carbon trading, urban planning, infrastructure and transport advisory, and special economic zones.

The MoU builds on the earlier agreement between the two countries which ended in 2020. The previous MoU supported Rwanda in areas like digitisation of services, public health, and institutional capacity building.

The new agreement broadens the scope of collaboration to encompass climate change and carbon trading. At the forthcoming COP28 summit in Dubai, Rwanda will introduce its carbon market scheme, which will detail the processes for potential investors to acquire carbon credits. The country is emphasising initiatives such as low-emission cooking technologies, renewable energy projects, and the promotion of electric vehicles.

Singaporean firms have entered carbon financing ventures in Africa. Earlier this year, GenZero, a Singaporean decarbonisation investment platform backed by Temasek, announced an investment in a landscape restoration project in Ghana. This project is intended to produce carbon credits that Singaporean businesses could potentially use to offset some of their carbon tax. Another example is the Singapore-based fund manager, Impact Capital Asset Management (ICAM), which together with Indian carbon credit developer EKI Energy Services, rolled out a fund to invest in the manufacturing and distribution of energy-efficient cookstoves in Kenya. In a related development, Singapore's carbon credit trading platform ACX has joined forces with the Nairobi Securities Exchange (NSE) to launch Kenya's first carbon offset exchange.

Singapore has also been involved in several urban planning projects in Rwanda. In 2020, the Kigali city council approved the capital’s updated 2050 master plan, which was designed by Singaporean urban planning firm Surbana Jurong. This master plan guides the future growth of Kigali to support a population of 3.8 million residents. It emphasises efficient land use and compact development that combines living, working, and leisure spaces. Additionally, the Rwanda Housing Authority engaged Surbana Jurong to draft master plans for six other secondary cities: Muhanga, Huye, Rusizi, Rubavu, Nyagatare, and Musanze.

The MoU reinforces continued collaboration in ICT, an area where Rwanda and Singapore have already established strong ties. For instance, Singaporean firm CrimsonLogic was behind the development of Rwanda’s Irembo system, a digital platform that centralises various government services, from national identity card applications and company registrations to driving licences and criminal record certificates.

Earlier this year Rwanda partnered with Singapore to host the Inclusive FinTech Forum in Kigali. The event's goal was to support financial inclusion and responsible fintech practices in emerging markets by encouraging conversations about technology and policy. In its drive to position itself as a fintech hub, Rwanda has been gleaning insights from Singapore's journey. Despite its relatively small domestic market, Singapore has managed to attract global fintech companies. Central to its success is its financial status in the region, swift business facilitation giving investors access to a wider Southeast Asian market. With its central location in Africa, Rwanda sees potential in replicating Singapore's success in this sector.

 

References

‘CrimsonLogic opens African base and hub in Rwanda to increase footprint in continental Africa’, CrimsonLogic, 14 June 2018

‘Surbana Jurong and SMEC deliver updated masterplan to transform Kigali into a centre of urban excellence by 2050’, Surbana Jurong, 04 September 2020

‘A Singaporean firm has become the go-to master planner for African cities’, City2City Network, 09 October 2020

‘Rwanda fintech strategy 2022–2027’, Rwanda Ministry of ICT and Innovation, April 2022

‘Kenyan bourse brings carbon exchange to East Africa’, How we made it in Africa, 13 July 2022

‘Rwanda and Singapore launch annual global Inclusive FinTech Forum to advance innovation in inclusive finance’, Inclusive FinTech Forum, 25 January 2023

‘Singapore firm launches fund for energy-efficient cookstoves in Africa’, NTU-SBF Centre for African Studies, 23 March 2023

‘GenZero invests in restoration project in Ghana aiming to generate carbon credits with corresponding adjustments’, GenZero, 08 June 2023

‘Inside Rwanda's ‘carbon market scheme’, The New Times Rwanda, 26 September 2023

‘Rwanda, Singapore sign MoU on mutual socio-economic development’, High Commission of the Republic of Rwanda in Singapore, 29 September 2023

‘Rwanda, Singapore sign deal on ICT, carbon trading, and more’, The New Times Rwanda, 02 October 2023

‘Rwanda Secondary Cities Master Plans’, Surbana Jurong, Accessed 07 October 2023