News type: Africa Bulletin

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

Africa’s burgeoning digital economy is full of growth opportunities as global businesses and investors continue to explore its digital landscape. With this upward trajectory, various stakeholders across the continent are focusing more on cybersecurity to reduce incidents and address vulnerabilities. According to a report by Kearney titled Cybersecurity in Africa – A Call to Action, the African cybersecurity market was valued at USD 2.5 billion in 2020 and is projected to increase to USD 3.7 billion by 2025, which encompasses the amount organisations invest to enhance their cybersecurity capabilities.

Africa
Afreximbank to Double Intra-African Trade Financing to USD 40 Billion by 2026
African Export-Import Bank (Afreximbank) plans to double its financing of intra-African trade from USD 20 billion in 2021 to USD 40 billion by 2026, Mr Haytham El Maayergi, Afreximbank’s Executive Vice President, Global Trade Bank, recently said. Mr El Maayergi was addressing participants and guests at the African Caucus Meeting of the World Bank Group and the International Monetary Fund, where he represented Prof Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank.

Attended mainly by finance ministers and central bank governors from across Africa, the meeting aimed to identify key challenges facing Africa in achieving full integration and engaging in strategic dialogues to engender sustainable solutions. Mr El Maayergi said that Afreximbank had been a champion in facilitating intra-African trade since its founding and that it had committed USD 1 billion to support the funding of the African Continental Free Trade Area Adjustment Fund and a USD 10 million grant to facilitate the establishment and operationalisation of that fund.

Source: Afrieximbank

As the global community intensifies its fight against climate change, Africa is emerging as a key player in the global carbon markets. While still in the nascent stages, the continent’s engagement with carbon trading is growing, driven by innovative initiatives and a burgeoning recognition of the economic and environmental benefits.

 

Africa

AfDB Tops 2024 Global Aid Transparency Rankings for the Second Year
The African Development Bank’s (AfDB) sovereign portfolio was recently acclaimed as the most transparent in the 2024 Aid Transparency Index, released by the global advocacy group for aid and development transparency. For a second time running, the result highlights the Bank’s continued effort and prioritisation of good-quality data publication. The portfolio emerged first out of 50 global development institutions with a top score of 98.8 in 2024, according to the report.

The report commended the Bank for detailed publication of project objectives, impact appraisal documents, environmental studies and evaluation reports – a total of over 29 documents in both French and English. The 2024 Index assesses six sovereign (public sector) portfolios and six non-sovereign (private sector) portfolios of development finance institutions. The sovereign portfolios of development finance institutions occupy three of the top five positions in the ranking with the AfDB coming first, the InterAmerican Development Bank second and the World Bank International Development Association fourth.

Source: Business Insider Africa

Foreign exchange markets are pivotal to the global economy, facilitating currency conversions that enable international trade, financial transactions, and investments. Africa’s foreign exchange (forex) landscape is a critical component of its economic framework, influencing both domestic stability and international trade. However, the continent faces unique challenges due to a complex mix of domestic politics and global market conditions governing its forex exchanges and respective currencies.