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
Africa
AfDB Proposes Critical Minerals-Backed Currency as New Gold Standard in Africa
Africa’s development bank recently proposed a new currency system, similar to a ‘gold standard,’ backed by critical minerals like cobalt, copper, lithium, manganese, and rare earth, key elements for the global energy transition and electric vehicles.
The concept for the new financing mechanism was developed as a means of leveraging Africa’s vast critical minerals endowments.
Despite holding about 30 percent of the world’s critical mineral reserves, the 54-nation region only attracts 3 percent of global energy investments annually, with just 2 percent, or USD 40 billion, directed toward green investments in 2024, according to the African Development Bank.
This is partly due to the continent’s volatile currency markets, according to the African Development Bank (AfDB), which is proposing a new “non-circulating” currency called the African Units of Account (AUA), backed by critical mineral reserves.
To reduce carbon emissions and boost electricity production, Africa must double its clean energy investments to an average of USD 200 billion annually, Reuters reported.
Under the AfDB’s plan, countries would pool a pre-agreed amount of their proven critical mineral reserves, allowing local currencies to be converted at an agreed rate.
Source: Business Insider Africa
East Africa
East Africa Plans Regional Power Pool to Boost Energy Access
The East African Community (EAC) member states are considering establishing a central power collection and supply station to distribute energy equally across the region. EAC director of Productive Sectors, Jean Baptiste Havugimana, disclosed the plan during the East Africa Energy Cooperation Summit in Arusha. He said electricity access in the region remains below 50 percent on average, though some countries, like Kenya, have surpassed 75 percent.
“The EAC secretariat is working with member states to increase electricity access. This is being achieved through shared mini hydropower stations placed along border areas,” he said.
Havugimana added that Tanzania is expected to have surplus power once the Julius Nyerere Hydropower Plant reaches full production, making a regional power pool and energy market centre necessary. The proposed East African energy market aims to lower electricity costs, ensure equitable distribution, promote industrial growth, and strengthen regional cooperation.
Source: The Citizen
Burundi/Tanzania
Tanzania, Burundi Sign Deal with China to Build Nickel-Carrying SGR
Tanzania and Burundi recently signed an agreement with two Chinese firms to build a railway between the two countries for transporting metals, including battery mineral nickel, to the port city of Dar es Salaam. The USD 2.15 billion joint venture will be constructed by China Railway Engineering Group Ltd and China Railway Engineering Design and Consulting Group, Tanzania’s Transport Minister Makame Mbarawa said during the signing ceremony.
It will be financed by the African Development Bank, Tanzania’s Finance minister Mwigulu Nchemba said. The two nations expect the 282-kilometre standard gauge line to transport three million metric tonnes of minerals annually, Tanzania’s Finance Ministry said in 2024. In the last decade, China has funded infrastructure projects, such as railways, power plants and ports, and across Africa through its Belt and Road Initiative.
Source: The EastAfrican
Egypt
Egypt Targets USD 115.8 Billion in Annual Exports by 2030
Egypt aims to increase its annual exports to reach USD 115.8 billion by 2030, Prime Minister Mostafa Madbouly recently said.
Madbouly made his remarks during the inaugural meeting with members of six specialised advisory committees established to guide the government.
The committees encompass key sectors: macroeconomics, export development, digital economy, entrepreneurship, tourism development, political affairs, urban development, and real estate exports.
The new export target is notably lower than the USD 145 billion goal announced in January 2024. Egypt also aims to bring the value of imports to USD 105 billion by 2030, with an annual growth rate of 5 percent, Madbouly pointed out.
Due to the Red Sea disruption, Suez Canal transit revenues, one of Egypt’s major sources of foreign currency, plummeted by 61.2 percent in the first quarter of FY 2024/2025, falling to USD 931.2 million compared to USD 2.4 billion in the same period in 2024.
He added that Egypt’s trade balance has shown notable improvement, decreasing the trade deficit from USD 48 billion in 2015 to USD 37 billion in 2024.
Source: Ahram Online
Ethiopia
Ethiopia Identifies 2,507 Global Companies in Strategic Investment Drive
The Ethiopian Investment Commission (EIC) Chief Commissioner Zeleke Temesgen recently disclosed that the Commission has identified 2,507 major international companies as key targets for investment in Ethiopia, marking a strategic shift in the country’s approach to attracting foreign direct investment. This move is part of Ethiopia’s broader economic reforms aimed at unlocking opportunities in key sectors and strengthening its position as an African investment hub.
The EIC Chief Commissioner emphasised the importance of targeted investment promotion over general outreach. Unlike previous strategies that focused on broad investment promotion, Ethiopia is now pursuing a more deliberate approach, identifying specific global firms that align with its economic priorities. These companies, spanning five key sectors—manufacturing, agriculture, ICT, tourism, and energy—have been selected based on their potential to add value to Ethiopia’s economy through job creation, skill and knowledge transfer, and export expansion.
Source: Fana Broadcasting Corporate
Kenya
Kenya’s Economy is Set for a USD 4.3 Billion Boost in 2025 from One of Its Chief Industries
The tourism industry in Kenya, constituting one of the East African country’s primary sectors, is set for a major boost in the current fiscal year.
Kenya’s projected earnings from its tourism sector will increase by 24 percent this year to USD USD 4.33 billion. This was recently revealed by the country’s Tourism and Wildlife Secretary Rebecca Miano. She noted that based on the trajectory of current trends coupled with government strategies Kenya is set to receive around 3 million tourists in 2025.
The Tourism and Wildlife Secretary also disclosed that the number of tourists in Kenya which reached a record 2.4 million last year, propelled Kenya’s tourism revenue to grow by 20 percent to KES 452.2 billion (approx. USD 3.49 billion).
With 12.8 percent of all arrivals, the US continues to be the largest source of tourists, followed by Tanzania and Uganda with 9.4 percent and 8.4 percent respectively.
That was thanks to “concerted strategic interventions that include aggressive marketing campaigns, enhanced tourism product diversification, adoption of digital platforms, and the introduction of new scheduled flights,” Miano said.
As seen on Bloomberg, tourism is one of Kenya’s largest sources of foreign revenues, third only to agricultural exports and remittances.
Source: Business Insider Africa
Morocco
Morocco’s USD 10.7 Billion Investment in Urban Mobility
Morocco is significantly pushing to modernise its transportation infrastructure with a USD 10.7 billion investment in high-speed rail and urban transit. The government aims to enhance connectivity, improve mobility, and drive economic growth through strategic projects to reshape the country’s infrastructure by 2040.
Transport Minister Abdessamad Kayouh recently announced a USD 9.6 billion plan to expand the national rail network, focusing on extending high-speed rail from Kenitra to Marrakech. The investment also includes the acquisition of new high-speed and multi-service trains, upgrades to 40 railway stations, and expanded rail access to airports and ports. The long-term strategy will increase the number of connected cities from 23 to 43, serving 87 percent of the population. Additionally, the initiative is expected to create 300,000 new jobs, reinforcing Morocco’s economic and logistical position in the region.
Alongside its rail ambitions, Morocco is allocating USD 1.1 billion to improve urban transport by adding 3,746 new buses across 37 cities. Under this plan, the government will purchase and maintain the buses, while private operators will handle day-to-day management.
These initiatives mark a transformative shift in Morocco’s transportation landscape, integrating modern infrastructure with sustainability and economic development goals.
Source: Financial Fortune
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Reports
Economic Development in Africa Report 2024 | UNCTAD
The world is in polycrisis, and Africa is on the front line of exposure. The same global shock has different impacts depending on the location. Resilience is the difference between the shock and the impact; how to build resilience in Africa is the focus of this report. Recent crises have hit the continent disproportionately. Building resilience will allow the continent to reap the many opportunities offered by its future.
This year’s Economic Development in Africa Report 2024: Unlocking Africa’s Trade Potential – Boosting Regional Markets and Reducing Risks presents some important tools in this context. This includes a comprehensive framework to help African countries analyse the nature of their exposure to shocks, with a particular focus on trade and investment. It also provides an evidence-based analysis highlighting how regional trade can increase the continent’s resilience.
Click here to read and download the full report.
The Africa Report | Knight Frank
Over 95 percent of the African markets tracked by Knight Frank have fully rebounded from the COVID-19 pandemic, with most now matching pre-pandemic figures in transactions, prime rents, and average yields across major real estate sectors.
Africa’s industrial markets have shown remarkable resilience, bolstered by government initiatives in countries like Kenya and Zimbabwe, with their Special Economic Zones and Export Processing Zones helping to create new demand. Additionally, the rise of e-commerce across the continent is driving requirements for efficient storage and distribution facilities, prompting the development of modern industrial zones equipped with state-of-the-art logistics infrastructure.
Knight Frank’s Africa Report includes comprehensive coverage of property markets in 19 countries, as well as detailed insights from our experts exploring retail, economic, and healthcare trends across the continent.
Click here to read and download the full report.
Deal Drivers: EMEA 2024 | Datasite
One word seems to resonate with EMEA M&A in 2024: recovery. In 2024, deal volumes grew 4 percent yoy and aggregate transaction value rose 9 percent, making it overall a strong year despite not reaching the highs seen in 2021. Megadeals rebounded from 2023, reflecting growing investor confidence and mid-market activity remained steady with marginal gains.
This report looks at EMEA M&A activity across 7 sectors, as well as top advisor league tables, top 10 deals overall and by sector, the latest heat chart of where opportunities may lie going forward, and more.
Click here to read and download the full report.
Africa Investment Report | Briter Bridges
2024 recorded the lowest funding amount since the start of the decade if the forced interruption of investment activities in 2020 due to the COVID-19 outbreak is ruled out. This ‘newly-found’ normal consists of a current complex financing landscape defined by cautious investor sentiment, less frequent cheques signed by overseas funders, a careful rethinking of previously adopted practices, and an effort to mobilise the specialised for specific needs and business models.
This report provides a comprehensive analysis of investment trends, opportunities, and challenges across Africa’s investment landscape. Featuring the latest data, sector insights, case studies, and emerging market opportunities, this report is dedicated to investors, corporates, and policymakers looking to navigate Africa’s evolving business landscape
