Stories that Matter | August 2025

East Africa

Construction Begins on East Africa’s First-Ever Cross-Border SGR Worth USD 2.15 Billion
East Africa has commenced its first-ever cross-border standard gauge railway (SGR), a USD 2.15 billion project extending 240 kilometres from Uvinza in western Tanzania to Musongati in eastern Burundi.

The foundation stone was recently laid by Tanzanian Prime Minister Kassim Majaliwa, marking a milestone in regional integration and transport modernisation.

Prime Minister Majaliwa assured citizens that work would commence as scheduled, emphasising the railway’s potential to revolutionise regional trade and travel.

“Once completed, passengers will be able to travel from Musongati to Dar es Salaam in a single day. Currently, cargo trucks take up to 96 hours to reach Bujumbura from Dar es Salaam. With the railway, that journey will be reduced to just 20 hours,” he said.

Burundian President Évariste Ndayishimiye described the SGR as a long-awaited dream for his country, emphasising its importance in unlocking mineral wealth and enhancing connectivity.

“Many asked how we would transport the minerals. This railway is the answer,” he said, adding that the line will boost cross-border trade, reduce transport costs, and connect landlocked Burundi to global markets through Dar es Salaam.

Source: Business Insider Africa

East Africa

EAC Launches Regional Customs Bond to Unlock Trade Efficiency
The East African Community (EAC) introduced the EACBond, a regional customs guarantee instrument that eliminates the necessity for multiple national bonds when moving goods across Partner States.

By allowing traders to secure their entire cargo journey with a single bond, the EACBond will significantly reduce trade costs, ease border delays and free up business capital.

The bond was officially launched in Kampala, Republic of Uganda, at a high-level event attended by government representatives, logistics firms, banks, insurance providers, and customs officials.

The bond is launching with Uganda, Kenya, and Rwanda in the pilot phase. The full rollout will gradually include all EAC Partner States, coordinated through customs authorities. Compliance will be enforced via automated systems linked with customs and cargo tracking, ensuring all movements are monitored and risk managed.

The EACBond removes these repetitive requirements by offering a single bond that covers the entire movement of goods across EAC Partner States. This streamlines customs processes, lowers operational costs, and enables businesses to reinvest their working capital into expansion and employment creation.

Source: East African Community

Algeria

Algeria Leads Africa with the Highest GDP in Early 2025
Algeria recorded the highest year-on-year GDP growth among the top 10 wealthiest African countries in early 2025, increasing by over 4.5%, driven by high energy exports, strong foreign reserves, and government-led public spending, according to a report by The African Exponent.

Algeria remains Africa’s wealthiest country in early 2025, with a GDP of USD 266.78 billion, accounting for 9.47% of the continent’s total economic output, the report stated.

“A hydrocarbon giant, Algeria continues to benefit from high global oil and gas prices, with hydrocarbons making up nearly 95% of export earnings and 60% of government revenues,” the source said, while emphasising that the Algerian government is now “heavily investing in non-oil sectors”.

The report stated that major industrial zones, renewable energy initiatives, and investments in technology are part of Algeria’s national strategy to reduce dependence on oil and gas. Additionally, the country has expanded trade with Europe and China while strengthening ties within the African Continental Free Trade Area (AfCFTA).

The African Exponent also highlighted Algeria’s foreign reserves, which exceed USD 90 billion, alongside controlled inflation—factors that position the country not only as a resource-rich state but also as “a potential manufacturing and energy hub for North Africa and beyond.”

Source: AL24 News

Egypt

Israel’s Leviathan Signs USD 35 Billion Natural Gas Supply Deal with Egypt
Israel’s Leviathan natural gas field has signed the largest export agreement in the country’s history, valued at up to USD 35 billion, to supply gas to Egypt, NewMed, one of the partners in the field, recently said.

The deal should ease Egypt’s energy crisis, which has cost billions on importing liquefied natural gas since its own supplies fell short of demand.

Egypt’s production started declining in 2022, leading it to abandon its ambitions of becoming a regional supply hub. It has increasingly relied on Israel to cover the shortfall.

Exports from Leviathan were halted during a 12-day war between Israel and Iran in June for security reasons, but have since resumed.

Under the deal, Leviathan, off Israel’s Mediterranean coast, with reserves of approximately 600 billion cubic metres, will sell about 130 bcm of gas to Egypt through 2040, or until all contractual quantities are fulfilled.

The gas is transported via pipelines, which makes it more affordable than LNG, as its cost is increased by the super-cooling needed to liquefy it for ship transport and regasification upon arrival.

Source: Reuters

Ghana

Ghana Targets USD 1.2 Billion Investment for Garment Sector by 2030
The Ghana government aims to attract USD 1.2 billion in new investments to create 150,000 jobs in the garment and textiles industry by 2030.

It also intends to revive cotton cultivation across 50,000 hectares to support local raw material supplies.

Mr. Samson Ahi, Deputy Minister of Trade, Agribusiness and Industry, announced this at a stakeholder validation workshop on the draft Textiles and Garments Manufacturing Policy in Accra.

He said the policy would offer a coherent and competitive framework to attract investment, boost productivity, and position Ghana as a sourcing hub for ethical and sustainable apparel manufacturing.

“The draft policy proposes bold interventions, ranging from establishing five world-class industrial parks to creating dedicated funds for cotton development and textile upgradation, as well as providing fiscal incentives and concessional tariffs for manufacturers,” he stated.

Mr. Ahi described the sector as both a cultural emblem and a strategic pillar of the government’s Industrialisation Agenda, with the potential to create employment, especially for women and youth, while also enhancing export diversification and sustainable development.

“Our garment export sub-sector, although growing steadily, is yet to reach its full potential. At the same time, we face the dual challenges of increasing imports of finished garments and the erosion of domestic production capacity,” he added.

Source: Ghana Business News

Morocco

US Expected to Greenlight USD 5 Billion Investment for Morocco’s Southern Provinces
The US is transforming its pledges into action, preparing to invest USD 5 billion to support the socio-economic development of Morocco’s southern provinces in Western Sahara.

For years, particularly after the US recognised Morocco’s territorial integrity over the region in 2020, Washington has pledged to support the inclusive growth of the southern provinces.

“A policy limited under Joe Biden’s administration, the possibility for American companies to invest in Western Sahara is expected to be eased by Donald Trump,” the African Intelligence wrote.

The report stated that the Trump administration is planning to encourage American companies to invest in Morocco’s southern provinces. The US Development Finance Corporation received approval from Washington to identify projects in the region.

The development finance cooperation has already held meetings with Moroccan stakeholders, including Moroccan banks and companies, to identify promising projects, the report added.
For years, the US has promised to continue supporting the development of Morocco’s southern provinces. The US further highlighted this commitment after its new stance in 2020, when it officially recognised Morocco’s full sovereignty over its southern provinces in Western Sahara.

Source: Morocco World News

South Africa/ Morocco

South Africa, Morocco Lead Africa’s Vehicle Production, According to Latest Data
South Africa and Morocco remain Africa’s leading vehicle producers, according to the International Organisation of Motor Vehicle Manufacturers.

South Africa produced 599,755 vehicles in 2024, a 5% decrease compared to the previous year, ranking it 20th worldwide. The figure falls short of the 784,509-unit target set under the South African Automotive Masterplan 2035.

Morocco, by contrast, produced 559,645 vehicles, a 5% increase that ranked it 23rd worldwide.
Emerging markets are solidifying their role as automotive centres, driven by increasing incomes, regional trade agreements, and supply chain realignments away from higher-cost nations.

In South Africa, for example, seven international car manufacturers, including Volkswagen, Toyota, and Mercedes-Benz, run local factories.

But the industry faces headwinds from rising imports, especially from China, along with sluggish domestic sales.

Trade Minister Parks Tau stated that low demand for locally assembled cars and weak local content levels have resulted in the closure of 12 plants and the loss of over 4,000 jobs in the past two years.

Source: Business Insider Africa

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Reports

Assessing Regional Integration in Africa: Delivering on the Africa Economic Community | United Nations Economic Commission for Africa
As of September 2024, the AfCFTA Agreement had gained 54 signatories and 48 ratifications, accompanied by tangible actions such as establishing the AfCFTA Secretariat, launching the Guided Trade Initiative, and adopting key protocols on investment, intellectual property rights, and competition policy. Unprecedented political will and commitment from African leaders and other stakeholders in the AfCFTA indicate strong prospects for its successful implementation and its transformative potential. As implementation advances, reflections on its consolidation and progression to subsequent phases of Africa’s integration are essential, particularly given the rapidly changing and increasingly complex global environment, which demands deeper internal integration and the ability of Africa to speak and act with a unified, strong voice.

ARIA XI is intended as a practical policy tool and a scholarly research piece. It recognises that successfully implementing the AfCFTA is essential and that the AfCFTA should serve as a foundational anchor for establishing an African Continental Customs Union (AfCCU) and African Continental Common Market (AfCCOM). The comprehensive analysis in ARIA XI offers valuable insights to support the next phases of Africa’s integration into an African Economic Community, with key findings and refined recommendations.

Click here to download and read the report.

Critical Minerals for Africa’s Inclusive Growth and Development | Africa Development Bank
Critical minerals and metals are essential in the global energy transition, advanced manufacturing, and digital transformation. The rising demand for minerals such as cobalt, lithium, nickel, rare earth elements (REEs), and platinum group metals (PGMs) emphasises their strategic importance. However, the definition of ‘criticality’ varies across countries; it is largely influenced by national economic and strategic priorities, supply chain vulnerabilities, and policy objectives.

This paper offers an overview of the various approaches to defining criticality in light of global trends. While critical minerals strategies are often linked to industrialised economies aiming to secure supply chains, resource-rich countries, including many in Africa, are increasingly adopting critical minerals policies to maximise value creation, foster economic diversification, and promote industrial development.

Click here to download and read the report.

Migration: Africa’s Untapped Potential | United Nations Economic Commission on Africa
Migration in Africa is mainly driven by the search for economic opportunity, safety, and security, including environmental challenges. However, migration’s potential to improve African livelihoods remains largely unexploited. While nearly 15 percent of the world’s migrant population comes from Sub-Saharan Africa, two-thirds of Sub-Saharan migrants stay within the continent, with most moving within regional economic communities. Africa also hosts a quarter of the world’s refugees, mainly in neighbouring countries. The continent now faces a critical crossroads. With a rapidly growing young population confronted by economic stagnation, conflict, and climate change, Africa’s workforce is projected to increase by 600 million people by 2050, accounting for a third of the world’s youth. Meanwhile, labour forces in high-income and upper-middle-income countries are expected to decline by 200 million. This demographic divergence creates an opportunity for Africa to improve its migration management systems.

This companion report to World Development Report 2023: Migrants, Refugees, and Societies highlights the need for policies that promote safe, orderly, and regular migration while safeguarding the rights of the forcibly displaced. It urges concerted efforts by policymakers, communities, and stakeholders in countries of origin, transit, and destination to develop strategies that harness the economic potential of migrants and refugees. Furthermore, it stresses the importance of providing alternatives to hazardous journeys, which too often lead to human tragedies during transit.

Click here to download and read the report.

Africa Governance Report 2025 | Africa Union
The Africa Governance Report 2025 (AGR25) is the fourth report produced by the African Peer Review Mechanism (APRM) on behalf of the African Governance Architecture (AGA). The AGR25 concentrates on Natural Resource Governance in Africa and derives its mandate from the AU Assembly Decision, Assembly/AU/ Dec.874(XXXVII), made at the 37th Ordinary Session of the African Union Assembly of Heads of State and Government held from 17 to 18 February 2024 in Addis Ababa, Ethiopia. The Assembly Decision instructs the APRM to develop the fourth African Governance Report (AGR) and present it at the 38th Ordinary Session of the Assembly scheduled for February 2025.

The AGR25 provides a detailed background on the authority responsible for appointing the theme of Natural Resource Governance in Africa and explores governance issues within the framework of the African Union’s multi-agency, three-pronged approach – governance, development, and peace and security. The report examines the political economy of natural resource governance in Africa as well as the connection between natural resource governance and peace, security, taxation, illicit financial flows, and development. It also highlights trends in exploration, extraction, use, trade, and regulation of natural resource sectors and industries within the context of global governance and the economic and financial architecture. The AGR25 outlines Africa’s historical and current position in international production networks, value chains, and trade in natural resources.

Click here to download and read the report.