News type: Africa Bulletin

Africa
Financiers Commit Over USD 50 Billion for Africa Electricity Connections
Africa recently secured USD 50 billion to provide power to 300 million more Africans by 2030. The funds were pledged at the Mission 300 Africa Energy Summit held in Tanzania and represent 55 percent of the amount required to expand electricity access over the next six years, with Mission 300 estimating the total costs to be USD 90 billion.

The summit was organised by the African Development Bank in partnership with the World Bank Group and convened leaders, policymakers, and financiers to address Africa’s energy deficit.

Despite being home to 18.5 percent of the world’s population, Africa consumes less than 6 percent of global energy and 77 percent of its energy comes from fossil fuels. Over 600 million people, about 44 percent of the total population, lack access to reliable power and this affects economic growth, healthcare, education, and job creation.

As the world moves towards a more sustainable future, Africa’s energy transition will play a crucial role in shaping the global clean energy landscape. With the right investments, policies, and partnerships, the continent has the potential to power millions of homes and businesses, unlocking economic opportunities and improving the quality of life for generations to come.

Source: The EastAfrican

Over the past decade, Africa has experienced a significant transformation driven by demographic growth, technological advancements, and increasing regional integration. During this period, the continent has evolved from a region with untapped potential to a hub of economic dynamism, innovation, and resilience.

AI to Add USD 136 Billion to African Economies by 2030
Ngozi Okonjo-Iweala, Director-General of the World Trade Organization (WTO), recently stated that Artificial Intelligence (AI) could contribute USD 136 billion in productivity gains, cost savings, and increased revenues to the economies of Nigeria, Kenya, Ghana, and South Africa by 2030.

This is even as she stated that AI has the potential to boost global economic activity by up to USD 15.7 trillion by 2030, with the global south, including Nigeria, standing to gain substantially.

She stated this while delivering a keynote address at the recently concluded 10th Convocation ceremony of the African University of Science and Technology in Abuja.

According to Okonjo-Iweala, Nigeria alone is positioned to reap 43 percent of these gains. She emphasised the transformative role AI can play in driving economic growth and sustainable development across the continent, citing a report by Access Partnership, which indicated that these gains represent 13 percent of the 2022 GDP of the four countries.

She called on African countries to harness AI’s benefits by investing in basic infrastructure, regulatory frameworks, digital literacy, and upskilling young people.

Source: Business Day

As we move into a new year, Africa’s economic transformation and sustainable development are at a pivotal juncture. Notably, the continent has made significant strides in forging a clear path for its growth journey reshaping global narratives about its potential. However, Africa’s Road to prosperity is not without hurdles. Persistent challenges such as climate change, governance gaps, and infrastructural deficits must be addressed to unlock the continent’s full potential.

Africa

Africa Registers USD 29.2 Billion Investment Interests in Three Days
About USD 29.2 billion in investment interests have been registered in three days for various projects in Africa as the continent turns its needs into bankable and beneficial opportunities for investors. The investment interests were realised from 37 projects in 41 boardroom meetings in three days at the recently concluded 2024 Africa Investment Forum market days in Rabat, Morocco.

It covers projects in transport, power and energy, food and agribusiness, mining, pharmaceuticals, water and sanitation, urban infrastructure, and tourism, across various African countries. At the Forum, some 15 new sponsors and partners, including banks, insurers and export credit in Africa and globally, registered their interest in boosting investment on the continent. Dr Akinwumi Adesina, Chair of AIF and President of the African Development Bank said the development showed that the forum was becoming a global investment movement for Africa.

He spoke at the closing press conference of AIF stating that over 2,300 investors and delegates from 83 countries, marking a 60 percent increase in the number of participants from 2023 was “truly outstanding.” He highlighted USD 4.8 billion garnered for Nigeria’s Special Agro-Processing Zone, and other projects initiated by Morocco and the Democratic Republic of the Congo as examples of projects that drew investor interest higher than initially targeted.

Source: Ghana Business News

Algeria
Algeria Boosts Rail Network Expansion with USD 2.8 Billion Investment in New Trains
Algeria has committed USD 2.8 billion to revitalise its rail network, a crucial step in the country’s efforts to improve transportation and promote connectivity within the continent.

Zawya reports that the new trains include high-capacity locomotives, passenger transport cars, self-propelled trains, high-speed self-propelled trains, freight coaches and manoeuvring locomotives. Algeria’s rail network is managed by the National Company of Rail Transport (SNTF) and currently has over 200 stations covering mainly the north of the country.

Sifian Aibash, the company’s transport manager, said the country will fund the project in stages. The first will include purchasing 400 train coaches for around USD 1.03 billion.

Algeria, a prominent oil producer has already issued an international tender for the supply of passenger transport rolling stock. The tender scope covers 6 self-propelled train sets, each with six standard gauge electric carriages for passenger transport and spare parts.

The country has also commenced electrification projects in anticipation of installing high-speed trains which will link the country’s most important cities. With over 5,000 kilometres of rail already in operation, Algeria is poised to extend its network with new lines to improve travel times, bridge community gaps, and drive economic development. This move is part of Algeria’s broader objective to ensure complete connectivity by 2035.

Source: Business Insider Africa

Intra-Africa trade has long held untapped potential for the continent’s economic growth and resilience. As African countries strive for economic diversification, reducing dependency on raw material exports and fostering industrialisation remains a key objective. While traditionally focused on commodity exports, many African economies are now seeking to rethink their trade and investment patterns, moving toward value-added production and intra-regional trade that could unlock significant economic opportunity. However, realising this vision demands a renewed focus on the structural reforms and infrastructural investments necessary to integrate markets and create diverse and inclusive growth.

Africa remains the most vulnerable region to climate change with most countries lacking the resources to implement climate mitigation measures and infrastructure.  As Africa contends with climate change and economic development, the investment landscape is also shifting rapidly towards environmental sustainability.

In response to these shifts, green bonds have emerged as a promising financial instrument poised to catalyse sustainable growth across the region.  They offer several benefits, notably, they provide additional sources of finance, diversify the investor base, attract ESG and new sources of public climate finance specifically dedicated to green bonds, and offer portfolio diversification for investors.

Africa’s rich history has played a critical role in shaping the global mining industry, transforming economies, and unlocking opportunities for development across various sectors. Today, with the surge in global demand for minerals, driven largely by the transition to green energy, the continent finds itself at the center of a pivotal moment. As the world looks to Africa for its critical metals and minerals, important questions arise: Will African nations and communities truly benefit from this new wave of extraction? Can mining companies and governments build a transparent, ethical partnership? And how can mining companies position themselves as responsible stewards of the environment?

Africa
China Offers Africa USD 51 Billion in Fresh Funding, Promises a Million Jobs
China recently pledged to increase its support across debt-laden Africa with nearly USD 51 billion in funding over three years, backing more infrastructure projects and creating at least 1 million jobs. China was ready to step up cooperation with Africa in industry, agriculture, infrastructure, trade and investment, President Xi Jinping told delegates from more than 50 African nations gathered in Beijing for the three-yearly Forum on China-Africa Cooperation Summit.

“China and Africa account for one-third of the world population. Without our modernisation, there will be no global modernisation,” Xi said. China, the world’s biggest bilateral lender, promised to carry out three times as many infrastructure projects across resource-rich Africa despite Xi’s avowed new preference for “small and beautiful” schemes based around selling advanced and green technologies in which Chinese firms have invested heavily.

Source: Reuters