Stories that Matter | April 2025

Africa

Egypt, Morocco, and South Africa Drive Wind Energy Boom in Africa
Total installations in Egypt and Morocco in 2024 propelled wind energy to “unprecedented growth,” making it the best year in history for the sector in Africa. South Africa racked up disappointing wind project commissioning numbers last year but is expected to bounce back strongly this year and through 2030. Globally, 2024 was a record year for new capacity, with 11I7GW (109GW onshore and 8GW of offshore) wind energy installed.

The recently released Global Wind Energy Council’s (GWEC) flagship Global Wind Report 2025 said this brought global cumulative capacity of wind energy to 1136GW, spread across all continents, with 565 countries installing wind turbines last year.”

Only Asia Pacific, Africa and the Middle East increased new installations. The Asia-Pacific region saw a 7 percent year-on-year growth rate, while Africa and the Middle East saw a 107 percent y-o-y growth rate, thanks to Egypt installing 794MW and Saudi Arabia’s 390MW.

Africa and the Middle East remained the smallest markets, although wind additions doubled in 2024 compared with the previous year doubling onshore wind additions in 2024. “Although new commissioning was disappointing in South Africa — the region’s market leader in total wind installations — unprecedented growth in Egypt and Morocco made 2024 the best year in history for wind power in Africa. “Given more than half of the capacity awarded through the REIPPPP [Renewable Energy Independent Power Producer Procurement Programme] Bid Window 4 auction are under construction, and nearly 2GW of private-offtake projects have been announced since the 2022 electricity market reforms, we believe that South Africa will bounce back in 2025 with stable growth expected for the rest of the Or to 2030,” the report said.

Source: ESI Africa

North Africa

Eni to Invest USD 26 Billion in North Africa Over Next Four Years
Italian energy group Eni, will invest around EUR 24 billion in Algeria, Libya and Egypt over the next four years to help boost energy production, CEO Claudio Descalzi recently said.

The investments would coincide with the Rome government’s efforts to relaunch its economic and political ties with Africa as part of its so-called Mattei Plan. Eni is already a major foreign investor in North Africa’s energy sector.

Descalzi said the three countries can play an important role as hydrocarbon suppliers for Europe but need outside investment to expand their energy production and meet rising domestic demand.

“Internal demand in these countries – because of demographic growth – is increasing at about 7-8 percent every year, this means they need gas … they need investment,” he told an energy conference in the Italian city of Ravenna.

In the next four years, Eni will invest more than EUR 8 billion each in Algeria and Libya and about the same in Egypt, Descalzi said.

Egypt had planned to become a major gas exporter after Eni discovered the Zohr offshore gas field there in 2015. However, domestic gas production in the country has been falling since 2021 and reached a six-year low in 2024.

Source: Reuters

Egypt

Egypt, France Enter USD 7.6 Billion Green Hydrogen Agreement
Egypt and France have signed a USD 7.6 billion agreement to develop a large-scale green hydrogen and ammonia production complex near Ras Shokeir on the Red Sea coast.

The deal, which comes amid heightened economic relations between the two nations, includes the development, financing, construction, and operation of a private-sector-led facility.

EDF Renewables and Zero Waste will lead the project in partnership with the General Authority for the Red Sea Ports and the New and Renewable Energy Authority.

According to a joint statement by the Egyptian Ministries of Industry and Transport, the undertaking will be fully financed and implemented by the private sector consortium, with no financial commitments or infrastructure obligations from the government.

The initiative will be developed over three phases and is expected to produce up to 1 million tonnes of green ammonia annually, starting in 2029.

Source: Arab News

Ghana

Ghana Selects US, China as Vendors for First Nuclear Plants
Ghana has selected the United States and China as vendors for its first nuclear power plants, though no formal contract has been signed.

In partnership with Japanese firms, the U.S.-based NuScale Power and Regnum Technology Group will construct Small Modular Reactors (SMRs). At the same time, China National Nuclear Corporation will build a Large Reactor (LR).

This was disclosed by Dr. Stephen Yamoah, Executive Director of Nuclear Power Ghana, to the Ghana News Agency on the sidelines of a media engagement in Accra.
He said LR will have a capacity of 1,200 megawatts, while the SMRs will comprise 12 modules, each generating 77 megawatts, totalling 924 megawatts.

Dr Yamoah said the LR would follow a Build, Operate, and Transfer (BOT) financial model with local equity participation, and the SMRs would be financed through Public-Private Partnerships (PPP).

Ghana has signed a framework agreement with the vendors, and experts are gathering environmental and oceanic data to determine the plant’s location.

Mr Archibold Buah-Kwofi, Acting Director of the Nuclear Power Institute, underscored the need for stable and affordable electricity for national development, noting that Ghana’s energy mix relied heavily on fossil fuels and hydro, with renewables contributing just one percent.

Source: Ghana Business News

Kenya

Kenya Set to Dethrone Ethiopia as East Africa’s Largest Economy
Kenya is set to overtake Ethiopia as East Africa’s largest economy in 2025, according to new projections from the International Monetary Fund (IMF).

The shift comes after a sharp devaluation of the Ethiopian birr last July, part of a broader effort to stabilise the economy and advance long-delayed debt restructuring talks.

The IMF forecasts Kenya’s gross domestic product (GDP) will climb to USD 132 billion in 2025, surpassing Ethiopia’s projected USD 117 billion.

Ethiopia’s decision to liberalise its exchange rate system and allow the birr to depreciate significantly, by more than 55 percent helped unlock a USD 3.4 billion IMF loan package and an additional USD 16.6 billion in financial support from the World Bank.

Bloomberg reported that the devaluation also opened the door for negotiations with international creditors to restructure at least half of the country’s USD 28.9 billion in external debt.

While the financial support offers breathing room for Ethiopia’s debt-strapped economy, the steep currency depreciation has also pushed up the cost of imports, adding to inflationary pressures in a country already grappling with economic strain from conflict and climate-related challenges.

Source: Business Insider Africa

Nigeria

NEC Approves New Textile Development Board, USD 90 Billion Agribusiness, Livestock Plan
The National Economic Council recently approved the establishment of a Cotton, Textile and Garment Development Board to propose new strategies for agribusiness expansion and livestock transformation, which are expected to generate up to USD 90 billion in economic value by 2035.

The plan is intended to “reposition Nigeria’s economy and tackle insecurity at its roots,” according to a statement signed by the Senior Special Assistant on Media and Communication to the Vice President, Stanley Nkwocha.

The resolution followed the 149th NEC meeting at the Presidential Villa, Abuja. NEC is chaired by Vice President Kashim Shettima, with the Governors of the 36 states of the federation, the Governor of the Central Bank of Nigeria, the Minister of Finance, and other co-opted government officials as members.

Other initiatives approved by the council included the establishment of the Green Imperative Project national office in Abuja and regional offices across the six geopolitical zones. It also addressed the crises caused by the country’s current system of animal husbandry.

Once established, the board will be domiciled in the Presidency, private sector-driven, with representation from relevant public sector stakeholders, and funded from the Textile Import Levy collected by the Nigeria Customs Service.

Source: Punch Nigeria

South Africa

Africa’s Most Expensive City for Housing Plans Shake-Up of USD 64 Billion Market
Cape Town, the most expensive city in Africa for real estate, is looking to streamline home development as thousands flock to the metropolitan area in search of a better life.

This influx is putting pressure on the city’s ZAR 1.2 trillion rand (approx. USD 64 billion) residential property market, Bloomberg reported.

The city has long been a haven for the wealthy, with 7,400 high-net-worth individuals calling it home, according to Henley and Partners report.

Luxury properties, including on the affluent Atlantic Seaboard region, are among the most in-demand on the continent, with prime apartments selling for an average of USD 5,600 per square meter.

Geordin Hill-Lewis, the city’s mayor said that 100,000 families have moved to Cape Town from elsewhere in South Africa over the past two years.

To address the housing shortage, he said changes to municipal planning by-laws will take effect in July or August, aiming to fast-track property development and reduce the approval process from two years to a significantly shorter timeframe.

The city plans to invest ZAR 120 billion (approx. USD 6.5 billion) in infrastructure, including power, water, and transport networks, over the next 12 years. Additionally, Cape Town will increase visible policing and implement other measures to combat crime, according to the mayor.

Source: Business Insider Africa
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Report

African Private Capital Activity Report 2024 | AVCA
The 2024 African Private Capital Activity Report reveals a resilient and evolving industry that has continued to mature despite global economic headwinds. The report shows significant growth in multiple areas: fundraising more than doubled to USD 4.0 billion (the continent’s third-highest final close value in the last decade), deal volume grew by 8 percent year-over-year, and exit activity increased by 47 percent.

These figures demonstrate Africa’s strengthening position as an attractive destination for private capital investment, supported by growing local investor participation and increasing specialisation across asset classes.

Click here to read and download the full report.

2024 Venture Capital in Africa Report | AVCA
In 2024, Africa’s venture ecosystem faced a 22 percent drop in deal volume and a 28 percent decline in deal value. This pronounced downturn came approximately one year after global markets, highlighting a delayed but significant adjustment. While global venture funding saw a modest recovery with a 6 percent increase in deal value, Africa’s sharper contraction placed it at the opposite end of the growth spectrum compared to other regions.

Despite these contractions, African startups demonstrated remarkable competitiveness at later funding stages. At Series B and Series C rounds, African ventures secured median deals of USD 29 million and USD 38 million, respectively, surpassing global averages of USD 21 million for Series B and USD 35 million for Series C. This underscores that while Africa’s early-stage funding faced significant headwinds, companies securing growth capital achieved substantial success on the global stage.

The sixth annual Venture Capital Activity in Africa report provides an overview of the current events shaping Africa’s startup investment landscape and an in-depth analysis of entrepreneurial and venture activity seen on the continent.

Click here to read and download the full report.

Africa’s Trade and Economic Outlook | Afreximbank
The 2025 African Trade and Economic Outlook (ATEO) provide an in-depth analysis of Africa’s economic and trade performance, projecting the continent’s growth trajectory in the short-to-medium term. The report highlights the key macroeconomic and trade developments shaping Africa’s recovery, detailing opportunities for sustainable growth amid heightening global and domestic uncertainties.

Notably, despite global economic fragility, Afreximbank Research projects Africa’s real GDP to grow by 4.0% in 2025, reaching 4.1% in 2026 and 4.2% in 2027. Encouragingly, 41% of African economies are expected to grow at rates of 5% or higher, nearly double the global average, reflecting the continent’s expanding role as a driver of global growth.

Click here to read and download the full report.

Africa’s Pulse: Improving Governance and Delivering for People in Africa | World Bank
Amid global economic uncertainty and limited fiscal space in the region, Sub-Saharan Africa’s economic activity is showing some resilience, with projected growth gradually increasing over 2025-2027 period. This growth is driven primarily by a rise in private demand, alongside a reduction in inflation rates and stable currencies. However, growth has been unable to reduce poverty and meet people’s aspirations. The region is also grappling with persistent challenges, including political unrest and escalating demands for adequate economic opportunities, as reflected in a surge in protests over the past decade and a notable rise in coups since 2000.

These dynamics highlight the urgent need for a renewed social contract between governments and citizens, emphasising efficient public spending, better governance, and transparent market regulations to foster job creation and sustainable economic growth. African governments must prioritise governance reforms to maintain growth momentum and restore public trust.

The report underscores the importance of strategic investments and complementary policies that bolster human capital, improve public services, and create a fair tax system, thereby fostering a business environment that supports growth and job creation.

Click here to read and download the full report.