News type: Africa Bulletin

Africa’s digital economy is on a sharp growth trajectory, projected to contribute USD 712 billion to GDP by 2050 according to the World Bank. This rapid transformation will also see the broadband base exceed 1 billion users by 2030. At the same time, African data traffic is expected to triple or more, driven by the increasing use of mobile internet and the growing dependence on digital services.

Yet, this growth hinges on a critical enabler in digital infrastructure. From broadband networks, data centres, undersea cables, cloud computing and Artificial Intelligence (AI), Africa is racing to build the backbone of a connected future. The continent’s ability to harness this infrastructure will define its competitiveness, innovation, and inclusion in the global digital economy.

Africa’s Connectivity Challenge
While sub-Saharan Africa has the fastest-growing internet usage rate in the world, only 25 percent of the continent’s population is currently online, mainly due to inadequate infrastructure, which drives up internet costs, according to GIZ.

Despite progress, Africa remains the least connected region globally. Internet penetration stands at about 40 percent, leaving over 800 million people offline. Affordability and rural access are the biggest barriers, with mobile data consuming a disproportionate share of household income.

“For Africa to realise its digital potential, quick, regular and reliable access must extend beyond urban centres into rural communities; this requires a large-scale build out of architectural infrastructure. Across the region, we are seeing how improved connectivity is transforming agriculture, healthcare, and education. Building inclusive digital infrastructure is about unlocking opportunity and ensuring no one is left behind” Edward Williams, Director at ALN Tanzania (ALN firm in Tanzania).

Large-scale projects are underway to change this picture. Google’s Equiano cable and Meta’s 2Africa project, the world’s largest subsea cable, are expected to boost bandwidth, reduce latency, and lower costs. However, these gains will only materialise if last-mile connectivity is strengthened through investment in terrestrial fibre, satellite services, and rural networks.

Data Centres, AI and Cloud Computing: The New Oil Refineries of the Digital Age
As cloud adoption and data usage surge, demand for data storage and processing is rising. Ecofin Agency estimates that Africa currently has 211 active data centres, 46 percent of which are concentrated in leading economies such as South Africa, Nigeria, Kenya, and Egypt. According to Data Center Dynamics, analysts estimate that Africa needs at least 700 new data centres to meet its connectivity and data storage requirements over the medium term.

The rapid evolution of technologies, particularly AI, will only amplify this pressure. Its integration into key sectors such as agriculture, healthcare, and finance will generate even larger data volumes, further straining the existing infrastructure.

In response to AI’s rapid growth, data centres are emerging as an attractive asset class for investors. Nonetheless, there is an urgent need for large-scale investment in tower infrastructure, fibre-optic networks, energy systems, and cybersecurity to sustain digital growth.

“With the right policies, investment frameworks, and regional collaboration, we can accelerate the growth of data centres, subsea cables, and cloud adoption. These critical elements of digital infrastructure will not only stimulate job creation but also help address poverty, reduce inequality, and facilitate the efficient delivery of goods and services across the continent” according to Bhavna Ramsurun, Partner at BLC Robert & Associates (ALN firm in Mauritius).

Role of Public-Private Partnerships (PPPs)
Governments alone cannot finance Africa’s digital transformation. Public-private partnerships are playing a pivotal role in rolling out broadband, expanding 4G and 5G networks, and building smart cities. According to GIZ, initiatives such as the African Union’s Digital Transformation Strategy (2020–2030) aim to harmonise regulations, foster collaboration, and attract investment. As a result, a year after the AU’s digital transformation strategy, the World Bank launched the All Africa Digital Economy Moonshot. This initiative aims to “digitally connect every individual, business, and government in Africa by 2030.

European Investment Bank has committed significant resources through the EU-Africa Global Gateway Investment Package, worth EUR 150 billion. Alongside sustainability and climate resilience initiatives, the Global Gateway aims to fast-track universal access to reliable internet in Africa.

Cybersecurity and Resilience
As digital infrastructure expands, so do risks. Cybercrime, data privacy issues, and system vulnerabilities pose significant threats. According to the African Union and Media Defence, Africa loses at least USD 4 billion annually to cybercrime, equivalent to roughly 10 percent of the continent’s GDP. Nearly half of African countries reported ransomware attacks targeting critical infrastructure in 2023, including hospitals, financial institutions, and internet service providers.

Regional frameworks such as Africa’s Convention on Cyber Security and Data Protection, together with national data protection laws, are steps forward. However, enforcement remains uneven. Building trust will be essential to encourage consumer adoption and investor confidence.

“Digital infrastructure is only as strong as the people who use it. Beyond infrastructure, Africa must invest in digital literacy, skills, and inclusion. Empowering our young population to participate confidently in the digital economy is what will ultimately determine the continent’s competitiveness” emphasises Youssef Benamar, Partner at ADNA (ALN Firm in Algeria, Côte d’Ivoire, Guinea and Morocco) the human element.

The Human Dimension: Skills and Inclusion
Digital infrastructure is not just about cables and servers; it’s about people. Africa’s young population needs digital skills to participate meaningfully in the economy. Without targeted investment in training, upskilling, and inclusion, the digital divide could widen further.

Programs such as Huawei’s Seeds for the Future and Microsoft’s Africa Transformation Office show how partnerships can build capacity at scale. Global public and private institutions recognise Africa’s position as an emerging digital economy on the world stage. For instance, the U.S., the European Union, China, and India all have strategic programs in place for a solid digital infrastructure on the African continent.

According to the UN’s recent World Investment Report, foreign direct investment has already financed USD 30 billion in sustainability projects, many of which are tied to digital infrastructure. With Africa’s population of 1.4 billion people, 70 percent under 30 and a median age of 20, the continent represents one of the fastest-growing digital consumer markets globally, as highlighted by Digital Realty.

Digital Infrastructure for Africa’s Digital Future
Africa’s digital revolution cannot advance without a solid infrastructure backbone. The next decade will be decisive: if investments in connectivity, data centres, and cybersecurity are accelerated, the continent could leapfrog into a new era of digital inclusion and innovation. For investors and policymakers, Africa’s digital infrastructure is a necessity, but also an opportunity to shape the future of one of the world’s most dynamic regions.

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Sources

African Bussiness | African Union | Digital for Development | Digital Realty | GIZ

 

 

Africa

Africa’s GDP to Rise to USD 15 Trillion on Investment in Agriculture, Industry, Service
Africa’s gross domestic product (GDP) is projected to grow significantly to USD 15 trillion over the next decade, driven by substantial investment in agriculture, industry, and services, according to Patrick Ndzana Olomo, acting director of Economic Development at the African Union.

Speaking at the ongoing 4th Intra-African Trade Fair 2025, organised by Afreximbank, the African Union, and the AfCFTA in Algiers, Algeria, Olomo said Africa has the potential to achieve annual growth rates of 7 to 10 percent if strategic investments are made in key sectors.

“When we look at the dynamics of growth, it is expected that if we invest massively in agriculture, in industry, and in services, Africa will be able to post 7 to 10 percent growth in the next decade and even beyond,” he said. “That level of growth will push our GDP from the current USD 3.4 trillion to approximately USD 15 trillion, effectively tripling it within a decade.”

Olomo emphasised that realising this economic transformation requires urgent and deliberate action to strengthen financial and economic governance. He revealed that Africa loses around USD 587 billion annually due to corruption, illicit financial flows, and negative risk perceptions, resources that could otherwise fund the continent’s USD 472 billion annual development needs.

“For us at the African Union, we have already taken actions, and we are supporting our member states to build the right infrastructure and institutions,” Olomo said, concluding that institutional capacity is key to fighting corruption and strengthening Africa’s economic systems.

Source: Business Day

 

Africa

From Lithium to Cobalt, India Joins USD 1 Trillion Global Race for Africa’s Minerals Alongside Major Powers
India is intensifying its bid for Africa’s critical minerals, from lithium to cobalt, as part of a USD 4 billion investment drive to secure supply chains essential for clean energy and advanced manufacturing.

The initiative focuses on essential resources, such as lithium, cobalt, and nickel, which are vital for electric vehicle batteries and renewable energy technologies, as India seeks to maintain a competitive edge in the global clean energy transition.

The Ministry of Mines has also entered bilateral agreements with several African countries, including Zimbabwe, Mozambique, Malawi, and Côte d’Ivoire. It is in discussions with the Democratic Republic of Congo to secure preliminary agreements for cobalt and copper.

By focusing on African countries with resource-rich geology and stable governance, India aims to combine disciplined fiscal and industrial policies with international partnerships, supporting long-term economic growth on the continent while ensuring reliable access to critical minerals.

Source: Business Insider Africa

 

Africa

African Leaders Unveil USD 150 Billion Green Plan to Make the Continent a Climate Powerhouse
The three-day summit brought together heads of state from across Africa and international partners, as leaders outlined their priorities ahead of the COP30 climate talks scheduled to take place later this year in Brazil.

At the end of the summit, leaders signed the Addis Ababa Declaration, pledging to turn Africa into a centre for climate solutions.

They said Africa contributes the least to global greenhouse gas emissions but suffers some of the worst effects, from floods to droughts.

Ethiopia launched the Africa Climate Innovation Compact and the African Climate Facility, which aim to raise USD 50 billion to support climate projects.

African financial institutions, including the African Development Bank, Africa Finance Corporation, and KCB Group, have also committed to mobilising over USD 100 billion under the Africa Green Industrialisation Initiative.

Leaders said Africa should treat climate action as an opportunity to grow its economies.

They highlighted renewable energy, electric mobility, sustainable agriculture, and nature-based tourism as areas with huge potential for green jobs and investment.

Source: Business Insider Africa

 

Africa

IATF2025 Closes with Record USD 48.3 Billion in Deals
The fourth Intra-African Trade Fair (IATF2025) concluded in Algiers recently, with a record USD 48.3 billion in trade and investment deals signed over the week-long event, organisers announced.

Over 112,000 visitors from 132 countries attended the week-long fair and brought together 2,148 exhibitors and 958 buyers.

Former Nigerian president Olusegun Obasanjo, chair of the IATF advisory council, told the closing ceremony that the trade fair had “surpassed all expectations and targets” set by organisers.

Organisers said Algeria accounted for USD 11.4 billion of the contracts signed during the fair, representing nearly a quarter of the total, with a further USD 11.6 billion in Algerian export commitments expected to be finalised in the coming weeks.

They said the event also boosted Algeria’s visibility as a regional trade hub, while providing a short-term lift to its tourism and hospitality sectors.

Source: Ahram Online

 

Africa

Google Pushes Beyond USD 1 Billion Africa Pledge with Four New Infrastructure Hubs
Google is planning four new infrastructure hubs across Africa to support its latest underwater fibre-optic cables.

The hubs, comprising landing stations and data centres, will connect subsea cables to the north, west, south, and east of the continent.

The company’s Africa managing director, Alex Okosi, told Bloomberg TV the investment is fully funded by Google, noting only that the company has already “surpassed” the USD 1 billion it pledged to spend in Africa between 2021 and 2026.

Google’s two newest cables, Equiano and Umoja, are scheduled to land on the continent this year. The hubs are slated for completion within three years. They could help lower costs for telecom operators such as MTN Group and Vodacom Group, enabling them to offer more affordable broadband services.

The initiative comes as global tech giants race to expand digital infrastructure in Africa, home to the world’s fastest growing and youngest population. Microsoft Corp., for instance, is developing a USD 1 billion geothermal-powered data centre in Kenya and investing about USD 300 million to expand its artificial intelligence capacity in South Africa.

Source: Business Insider Africa

 

Egypt

Egypt Seals Massive USD 18.5 Billion Tourism Project with UAE, Saudi Partners
Egypt has sealed one of its largest investment agreements to date, a USD 18.5 billion venture with Emirati and Saudi partners to build a vast integrated tourism complex along the Red Sea coast.

Jamal Bin Theniyah, chairman of UAE-based Emaar Properties, said more than 900 billion Egyptian pounds would be poured into the “Marassi Red Sea” project in partnership with Saudi Arabia’s City Stars Group.

Spanning 10 million square meters, the development is expected to create up to 170,000 jobs, including 25,000 permanent positions upon commencement of operations. Hassan Sharbatly, vice chairman of City Stars, called the project “unique in its planning and services.”

The agreement comes as Cairo intensifies efforts to attract Gulf capital, aiming to draw USD 42 billion in foreign direct investment this fiscal year.

The project is aligned with “Egypt Vision 2030,” which seeks to transform the country into a global tourism and investment hub and lift annual tourist arrivals to 30 million by 2028.

Source: Gulf News

 

Morocco

Morocco to Host Africa’s First Battery Gigafactory with USD 5.6 Billion Chinese Investment
The project, led by Chinese company Gotion High-Tech, will place Morocco at the heart of the global clean energy race, transforming the country into a key supplier of batteries for electric vehicles and renewable energy storage.

Production will include batteries, cathodes, and anodes, with Europe as the main export market. Initial operations will create 2,300 jobs, while the full five-phase project will add 10,000 positions.

Gotion aims to serve European automakers and Morocco’s domestic hubs, where Renault and Stellantis already operate, while also targeting energy storage in Africa and the Middle East, regions well-suited for renewables due to their 300 days of sunshine per year.

The first stage alone involves USD 1.3 billion in investment and is projected to create 17,000 jobs, both directly and indirectly.

This vertical integration reduces Morocco’s reliance on imports and strengthens regional supply chain security, giving the country a competitive edge as global demand for batteries surges.

For Africa, it represents a tangible example of how strategic international partnerships can create jobs, transfer technology, and secure a stronger foothold in future global industries.

As the world accelerates toward cleaner energy, Morocco’s gigafactory may well become a blueprint for African nations seeking to transform their natural resource wealth into sustainable, long-term prosperity.

Source: Business Insider Africa

 

South Africa

South Africa’s Online Retail to Pass USD 7 Billion in 2025
This is according to the “Online Retail in South Africa 2025” report, published by Worldwide Worx in partnership with Mastercard, Peach Payments, and Ask Afrika.

The study reveals that e-commerce sales increased by 35 percent in 2024, reaching approximately USD 5.2 billion and accounting for 8 percent of all retail sales.

Growth continued in 2025 at an annualised rate of 38 percent, far higher than physical retail, which rose only 2.5 percent in 2024 and 1.6 percent by mid-2025.

Analysts say this indicates that online shopping has become a central part of how South Africans spend their money.

Global companies are also driving growth. Amazon launched its South African website in 2024 and opened a seller centre in Cape Town in 2025 to support small businesses.

Shein and Temu, together, sold approximately USD 400 million worth of products in 2024; however, their growth may slow this year due to stricter customs and tax rules.

The report predicts that by 2027, online sales will exceed USD 8 billion, accounting for approximately 12 percent of all retail spending in South Africa.

Source: Business Insider Africa

 

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Reports

Harnessing Africa’s Critical Mineral Opportunity| Boston Consulting Group
The global economy is entering a new era, one powered not by fossil fuels, but by critical minerals. These materials are the foundation of the 21st-century industrial transition, enabling clean energy, digital infrastructure, advanced manufacturing, and other technologies. From electric vehicles and power grids to semiconductors and smartphones, the technologies shaping the future increasingly depend on secure, sustainable access to these essential resources. By 2040, global demand for critical minerals1 is expected to more than double. Yet today’s supply systems are slow, fragile, and heavily concentrated. In response, governments and industries are racing to build more diversified and resilient value chains, turning mineral access into a strategic priority with geopolitical and economic consequences.

For Africa to fully unlock its mineral opportunity, it must move beyond fragmented efforts and advance a shared agenda across the entire mining value chain, from exploration and extraction to infrastructure, processing and higher-value exports. As a continent, it should act deliberately and collectively to advance regional coordination, build value chains that reflect mutual benefit and industrial depth, create institutions that enable investment, develop talent and embed ESG excellence. The choices made in this decade will determine whether Africa remains a supplier of raw inputs or becomes a strategic actor in a new industrial order.

Click here to download and read the report.

 

Accelerating Investment: Challenges and Policies | World Bank
Developing economies have a pressing need for increased investment. Investment is the engine that builds productive capacity, modernises infrastructure, sets the stage for job growth, and advances countries toward development and climate goals. Yet as development needs have expanded, investment growth has been in a deep slump, a call to action for policymakers, investors, and development practitioners.

This book presents the World Bank’s most comprehensive assessment yet of investment in developing economies. It examines why investment is important, why it has stalled in many countries, and what is needed to reignite it.

The book documents how robust investment spurts have historically led to faster growth, higher productivity, and more rapid poverty reduction. But it also shows that investment growth has been sluggish in much of the developing world since the global financial crisis.

With the right policies, however, developing economies can boost investment. The book emphasises the importance of good business and governance conditions in attracting private investment. It underscores the need for credible fiscal and monetary frameworks, as well as well-targeted public investment. It also stresses the importance of international cooperation to mobilise finance. Reigniting investment is not just a domestic challenge but a global imperative.

Click here to download and read the report.

 

Securing Minerals for the Energy Transition: Finance for Southern Africa| World Economic Forum
Critical minerals are essential to the energy transition, powering electric vehicles, renewable energy systems and energy storage technologies. Southern Africa holds nearly 30 per cent of the world’s reserves, including cobalt, copper, graphite, lithium, manganese, and platinum-group metals, yet attracts less than 10 percent of global exploration financing. Unlocking this potential is crucial to enhancing global supply resilience and fostering inclusive growth throughout the region.

This report, developed under the Securing Minerals for the Energy Transition (SMET) initiative by the World Economic Forum, the Development Bank of Southern Africa and McKinsey & Company as a knowledge partner, identifies financing barriers and practical solutions to scale critical minerals value chains in Southern Africa. Drawing on multistakeholder consultations, it highlights replicable case studies that can de-risk investment, build infrastructure, support local value addition, and position Southern Africa as a key player in the global clean energy economy.

Click here to download and read the report.

 

Harnessing the Transformative Power of AI in Africa| Mastercard
AI is transforming economies worldwide, creating opportunities for innovation, growth, and positive social impact. Africa is well-positioned to harness AI for transformative development, including addressing financial inclusion, narrowing wealth disparities, and enhancing productivity. AI has the potential to lead the way to broader economic growth and shared prosperity.

This white paper examines how AI can unlock the continent’s potential, highlighting the importance of responsible governance and strategic implementation in driving sustainable progress.

Click here to download and read the report.

 

In a world where capital flows seamlessly across borders, Africa’s ability to mobilise domestic resources depends on strong tax systems, but most importantly, the transparency of those systems. For decades, African governments have faced the dual challenge of financing ambitious development plans, which also require curbing illicit financial flows that drain billions of dollars from national treasuries each year. At the heart of this challenge lies the continent’s legal and regulatory frameworks on tax transparency.

Africa

Intra-Africa Trade Surges to Record USD 220 Billion as Top Economies Recover
Trade among African nations soared to USD 220.3 billion in 2024, a notable 12.4 percent increase, signalling a rebound for the continent.

This surge, coming after a 5.9 percent contraction in 2023, signalled a turnaround driven by economic recovery across key economies on the continent, fuelling both consumption and production.

The upward trend bodes well for millions of Africans who rely on improved intra-continental trade to generate jobs and better livelihoods.

According to data from the African Export-Import Bank (Afreximbank), the remarkable growth was mainly driven by stronger performances in Africa’s largest economies: South Africa, Nigeria, and Morocco – all key players in intra-African commerce. “In 2024, intra-African trade showed a steady yet consistent move towards deeper continental integration, despite global economic uncertainties,” noted Afreximbank in its annual trade report for 2025.

The report highlighted that this “robust growth” directly contrasts with the contraction experienced in 2023, with the strong performance from Nigeria and Morocco offsetting weaker results in Ethiopia and Côte d’Ivoire.

Source: The East African

Family businesses are among the oldest forms of enterprise. Today, they are among the most impactful drivers of global economic transformation. Despite receiving less media attention than public multinationals, family-owned firms generate more than 70 percent of global GDP and account for approximately 60 percent of all jobs worldwide, according to EY and the Family Firm Institute.

East Africa

New Fibre Link to Boost East Africa’s Digital Resilience
Tanzania and Kenya have officially launched the redundancy route of the National Optic Fibre Cable network at the Horohoro border post, marking a major step in strengthening digital connectivity and regional integration across East Africa.

Speaking during the launch, Tanzania’s Minister for Communications and Information Technology, Jerry Silaa and Kenya’s Minister for Information, Communications and Digital Economy, William Kabogo Gitau, jointly called for the expansion of digital infrastructure across the African continent to accelerate digital transformation and economic development.

The newly launched redundancy route provides Tanzania with a critical alternative data path, linking to eight undersea cables via Kenya, cushioning the country against disruptions to its three marine cable connections in Dar es Salaam. “This route ensures Tanzania remains digitally connected even in the event of issues with our marine landing stations in Dar es Salaam.

It also strengthens regional data connectivity by providing faster, more reliable internet services across East and Central Africa,” Minister Silaa explained.

With this new development, Tanzania is now digitally linked with six regional countries, including Kenya, Uganda, Rwanda, Burundi, Zambia and Mozambique.

Mr Silaa also revealed that plans are underway to extend the fibre optic network to the Democratic Republic of Congo (DRC), further reinforcing Tanzania’s role as a digital gateway for the region.

Source: Daily News Tanzania

As Africa engages with the global shift toward digital industrialisation, one issue stands at the centre of the continent’s progress: access to safe and reliable energy. According to the International Energy Agency, Africa accounts for just 6% of global energy use and less than 3% of global energy-related carbon dioxide (CO2) emissions. Therefore, substantial investment is required to power its future, as estimated by the African Development Bank (AfDB) to range between USD 60 billion and USD 90 billion annually.

Africa

Africa Holds USD 4 Trillion in Domestic Capital for Infrastructure Investment – AFC
The Africa Finance Corporation has said African governments should look inward to tap into an estimated USD 4 trillion in capital held by domestic institutional investors. According to the AFC, around USD 455 billion of this capital is currently held in pension funds, while sovereign wealth funds account for another USD 150 billion.

When combined with commercial bank assets and foreign currency reserves, the total pool of investable domestic capital across the continent reaches USD 4 trillion. As the continent’s population and economies rapidly expand, investments in sectors such as railways and power generation are becoming increasingly urgent.

However, traditional funding avenues, such as foreign direct investment and official development assistance, are no longer keeping pace with the continent’s infrastructure needs, according to Reuters. African governments are finding it increasingly difficult to allocate funds for development projects, as interest payments consume a growing portion of national budgets. Shrinking donor budgets and rising protectionist policies in advanced economies are further constraining the flow of funds, the AFC noted in its report.

To unlock these funds, African governments will need to modernise the large informal sectors of their economies that remain untaxed and unregulated, and reform pension fund regulations to enable long-term infrastructure investment, the AFC said.

Source: Business Insider Africa

Africa stands at a defining crossroads in its energy transition. On one side lies a growing population, rising urbanisation, and an insatiable demand for reliable power. On the other hand, a persistent energy deficit, where over 600 million people remain without access to electricity. Bridging this infrastructure gap will be about unlocking inclusive, sustainable economic growth. But with constrained public budgets and risk-averse private capital, who will finance Africa’s energy future? Increasingly, the answer largely lies in the strategic involvement of Multilateral Development Banks (MDBs) and Development Finance Institutions (DFIs).

Over the past decade, private capital has significantly impacted Africa’s investment landscape, emerging as a key driver in its economic transformation. Private equity (PE), venture capital (VC), infrastructure funds, and private debt have played a significant role in bridging financing gaps, catalysing business growth, and enabling inclusive development across the continent.