News type: Africa Bulletin

For decades, cross-border payments in Africa have been characterised by friction: high transaction costs, delayed settlement cycles, currency volatility, and heavy reliance on correspondent banking networks that were never designed for the pace and complexity of modern African trade.

Africa

Africa Could Raise USD 469 Billion More in Taxes Annually

Africa is sitting on a revenue goldmine it has barely touched. If the continent’s governments modernise how they collect taxes, using digital tools, closing enforcement gaps and cutting wasteful exemptions, they could unlock an additional USD 469.4 billion a year between 2025 and 2029.

That is the scale of opportunity the African Development Bank (AfDB) placed before finance ministers gathered in Tangier, Morocco, for the 58th Conference of African Ministers of Finance, Planning and Economic Development.

According to The Guardian, the bank’s Chief Economist, Prof. Kevin Urama, told ministers that Africa’s average tax revenue currently sits at about 18.4 percent of GDP.

The AfDB estimates this ratio needs to reach at least 27 percent to close the continent’s annual financing gap of roughly USD 402 billion, the amount needed to meet the Sustainable Development Goals and the African Union’s Agenda 2063 targets.

The AfDB said it currently runs 31 active revenue mobilisation programmes across 22 member countries and is prepared to support governments through financing, technical assistance and policy support.

Source: Business Insider Africa

Africa

Africa Targets Its USD 2.5 Trillion Capital Pool to Accelerate Cross-Border Infrastructure Projects

African leaders have established a new continent-wide financing platform aimed at transforming Africa’s USD 2.5 trillion domestic capital base into the driving force for major cross-border infrastructure projects.

The Africa Infrastructure Financing Facility (AIFF), established jointly by AUDA-NEPAD and the Alliance of African Multilateral Financial Institutions, was launched on 14 February during the Third Presidential High-Level Dialogue of African multilateral lenders, held alongside the 39th African Union Summit.

The initiative aims to address one of the continent’s most persistent challenges: the disparity between political approval of major infrastructure projects and the actual funding required to implement them.

The dialogue was convened under the patronage of the President of the Republic of Ghana, John Dramani Mahama, who also leads the African Union’s agenda on financial institutions.

Mahama stated that Africa’s development issue is not the absence of funds, but the lack of a coordinated system to direct local capital into infrastructure, industrialisation, and sectors that create jobs.

Africa has domestic capital pools exceeding USD 2.5 trillion. The challenge is not the availability of capital, but how deliberately we deploy it,” he said, warning that fragmented financial markets continue to inflate Africa’s borrowing costs.

Source: Business Insider Africa

Following years of global economic instability, rising interest rates, and geopolitical upheavals, dealmaking in African markets is shifting into a new stage characterised by consolidation, increased capital flows, and escalating investor confidence.

 

The rising global demand for critical minerals and metals has placed Africa at the centre of the world’s race to achieve net-zero emissions and transition to clean energy. The IEA estimates that the world will need to invest around USD 600 billion in mining by 2040 to fulfil governments’ pledges to mitigate climate change. To achieve net-zero emissions, this amount will increase to almost USD 800 billion by 2050.

 

Africa

Africa Sits on USD 29.5 Trillion Mineral Wealth – AFC Report

A new study by the Africa Finance Corporation has indicated that the continent holds an estimated USD 29.5 trillion in mine-site mineral value, representing about 20 percent of global mineral wealth, yet captures only a fraction of the economic value embedded in this endowment.

In a recent statement, the AFC, which supports infrastructure and industry investments on the continent, said the report reframes the mineral sector through an African development lens, placing industrialisation, infrastructure, and long-term regional demand at the centre of mineral strategy.

The report, launched at Mining Indaba in Cape Town and titled Compendium of Africa’s Strategic Minerals, estimates that USD 8.6 trillion of the continent’s mineral wealth remains undeveloped, attributed to fragmented geological data, uneven coverage, and limited transparency, which continue to heighten risk perception and constrain investment.

According to the study, improving the availability and quality of geological data is a necessary first step to de-risk projects and unlock exploration capital. The AFC argued that mine-site valuations significantly understate Africa’s true mineral potential because they exclude the value created when raw materials are processed into steel, aluminium, fertilisers, batteries and alloys. When measured at the point of industrial use, the report states, Africa’s mineral endowment expands by an order of magnitude, revealing substantial latent value.

Source: Punch Nigeria

As the global economy slows and geopolitics shift, Africa is emerging as one of the fastest-growing regions in 2026. Amid new tariffs and shifting trade dynamics, African economies are deepening ties with Europe and Asia while navigating an evolving US-Africa relationship. Across the continent, regional integration is advancing, digital transformation is accelerating, and competition for critical minerals is intensifying.

 

Africa

African Startups Get USD 180 Billion from a Small, Rich Island and Gulf Financiers
In the last decade, Africa has emerged as one of the fastest-growing tech markets, driven by rapid tech and mobile adoption among its youth population.

As a result, numerous advanced economies have committed substantial financial resources to tech investments in the region.

Japan and the Gulf states are among these external investors, having poured a substantial USD 180 billion into tech funding across Africa.

Based on ecosystem reports, investor participation data, and deal trends, Briter Intelligence’s comprehensive 2025 analysis of Africa’s venture landscape shows a maturing industry no longer dependent on the boom-bust cycles of European and American venture capital.

In 2025, African tech startups saw their total tech funding rise by 33 per cent year-on-year, marking a strong rebound after declines of 35 per cent in 2023 and 25 per cent in 2024.

In November alone, entrepreneurs reported USD 162 million in fundraising, with 79 per cent of that in equity. While not a record month, it was the fifth-highest of 2025 and essentially comparable to November 2024 (USD 181 million), though lower than November 2023 (USD 267 million).

Across the continent, 32 enterprises raised USD 100,000 or more, with 16 firms raising USD 1 million or more.

Source: Business Insider Africa

Africa’s tourism and hospitality sector has long been celebrated for its breathtaking landscapes, cultural diversity, and world-renowned wildlife. Today, the continent is undergoing a remarkable revival, transforming tourism from a leisure activity into a crucial pillar of economic development.

Africa
Africa takes Control of Its Wealth, Unlocking Close to USD 1 Trillion in Assets Locally Managed
Africa’s autonomy over its own assets has seen significant growth in terms of financial valuation, as the continent pivots from aid-dependent economies.

The shifting global financial landscape is underscoring a new era of economic autonomy for African nations, as per a new report from GlobalSWF.

Increasingly, the continent is asserting greater direct control over its substantial financial assets, which are managed by key public institutions, including state-run public pension funds, national central banks, and sovereign wealth funds (SWFs).

This new shift has resulted in the continent managing close to a record USD 1 trillion in assets, as reported by Reuters.

Financial aid cuts are the primary reason for this trend, as Africa has been compelled to seek domestic solutions to its internal problems. “African (institutions) are at an all-time high, with circa USD 1 trillion in AuM,” the GlobalSWF report reads in part. “Most are designed to catalyse FDI into Africa,” it adds.

Much of the money is handled by pension funds and central banks, but the continent is also experiencing a tremendous rise in the total amount of sovereign wealth funds investing in state assets.

Source: Business Insider Africa