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
Egypt
Egypt to Secure EUR 5.8 Billion from EU for Macro-Financial Assistance Mechanism
The Ministry of Planning, Economic Development, and International Cooperation recently launched negotiations with the European Union for the second phase of the Macro-Financial Assistance mechanism. This phase aims to provide EUR 4 billion in budget support and EUR 1.8 billion in investment guarantees, according to Minister Rania Al-Mashat during a meeting with the National Press Authority. Minister Al-Mashat highlighted Egypt’s achievements in implementing 86 structural reforms last year, which played a pivotal role in stabilising the economy and improving the business environment. These efforts have attracted financial support from key development partners, including the European Union and the World Bank.
Al-Mashat reported a 3.5 percent GDP growth during the first quarter of the current fiscal year. The non-petroleum manufacturing sector demonstrated strong momentum, achieving a 7.1 percent growth rate—the highest since the third quarter of 2021/2022. Private investments also surged by 30.1 percent, reaching EGP 133 billion (approx. USD 2.6 billion) and constituting 63.5 percent of total investments. Al-Mashat emphasised the government’s target to boost private sector contributions to 50 percent of total investments by the end of the fiscal year.
Source: Egypt Today
Ghana
Ghana’s Gold Trade Drives Record USD 5 Billion Trade Surplus
Ghana in 2024, hit a record-high trade surplus amounting to USD 5 billion, because of its gold trade.
The Bank of Ghana revealed that the disparity between exports and imports jumped to USD 5 billion in 2024, compared to USD 2.7 billion the year prior, highlighting significant financial growth.
According to the bank’s report, gold shipments from what has now come to be known as the Gold Coast rose by more than 50 percent to USD 11.6 billion in the previous year.
This positive trade balance could aid the West African country which has struggled economically in the last few years, find some currency stability.
Ghana’s currency, Cedi, recently dipped by 3.2 percent in value following the dollar increase that resulted from Donald Trump’s victory.
The Bank of Ghana also reported that the trade account improved to 5.9 percent of GDP in 2024 from 3.5 percent the previous year.
Source: Business Insider Africa
Kenya
Kenya-UAE Deal Could Be a Catalyst for Job Creation and an Economic Booster
The recent signing of a Comprehensive Economic Partnership Agreement (CEPA) between Kenya and the United Arab Emirates marks a significant milestone in their bilateral relations, experts say.
The landmark deal, the first of its kind for the UAE with a mainland African nation, was signed last week and is poised to unlock significant economic opportunities for Kenya, fostering job creation and accelerating economic growth.
“This agreement is a game-changer for Kenya,” stated President William Ruto during the signing ceremony in the UAE. “It will unlock significant economic potential, create jobs for our people, and enhance our competitiveness in the global market.”
The CEPA aims to deepen the existing trade relationship between the two countries. The UAE is currently Kenya’s second-largest source of imports and sixth-largest export destination, with bilateral trade surpassing USD 3.3 billion in 2023.
Source: The Standard Kenya
Morocco
Morocco’s USD 9.6 Billion Investment Plan to Connect 43 Cities by 2040
Morocco’s Minister of Transport and Logistics, Abdessamad Kayouh, unveiled an ambitious MAD 96 billion (approx. USD 9.6 billion) investment plan to modernise the country’s railway infrastructure by 2030.
Kayouh recently announced the plan during his presentation to the Chamber of Representatives, at a meeting of the Infrastructure, Energy, Mining, Environment, and Sustainable Development Commission in Rabat.
The minister outlined the comprehensive strategy to enhance the rail transportation system in Morocco.
In detail, Kayouh said that the government is allocating MAD 53 billion (approx. USD 5.3 billion) to build a high-speed rail line to connect Kenitra to Marrakech. The budget will go towards enhancing regional rail transport on existing networks.
Additionally, the government is setting aside MAD 29 (approx. USD 2.9 billion) to acquire 18 high-speed trains and 150 multi-service trains and reserving another MAD 14 billion (approx. USD 1.4 billion) to build or renovate approximately 40 railway stations and maintain the efficiency of the national network.
Source: Morocco World News
Nigeria
Nigeria Emerges as the Leading Destination for Oil & Gas Investments in Africa
Nigeria has emerged as the leading destination for oil and gas investments in Africa in 2024, according to a new report.
The report by market intelligence firm Wood Mackenzie revealed that Nigeria accounted for three out of four Final Investment Decisions (FIDs) announced in 2024 by global oil and gas majors. The total Final Investment Decisions (FIDs) was approximately USD 13.5 billion.
According to the report, the FIDs announced within the Nigerian market included Shell’s USD 122 million project in the Iseni Gas Project, TotalEnergies’ USD 566 million investment in the Ubeta Gas Project and Shell’s approval of the Bonga North Tranche 1 project.
The report commended Nigeria for adopting investor-friendly policies and pursuing strategic global partnerships that allow it to unlock its hydrocarbon potential fully.
The Nigerian government introduced many initiatives in 2024 to foster investments in the oil and gas sector. Among these initiatives was the introduction of tax incentives aimed at attracting up to USD 10 billion in natural gas investments.
Source: Business Insider Africa
Rwanda
Rwanda Set to Become Africa’s Newest Oil-Producing Nation after Fresh Discovery
The Rwandan government recently announced its first oil discovery, identifying 13 reservoirs within Lake Kivu, a natural border with the Democratic Republic of Congo.
This oil discovery marks a significant milestone in the country’s efforts to diversify its economy beyond traditional sectors like agriculture and tourism. Currently, Rwanda’s economy heavily relies on agricultural, and mineral exports, plus its thriving tourism industry.
However, the discovery of oil aligns with the government’s strategy to expand revenue sources through exploiting hydrocarbons and mining resources.
Rwanda’s extractive industries currently contribute about 2 percent to the nation’s GDP, according to its statistical agency. The country has also made notable contributions to global mineral markets.
According to the United States Department of Commerce, Rwanda accounted for 31 percent of the world’s tungsten exports and 14 percent of global tin exports in 2022. The country also contributed 5 percent to global niobium, tantalum, and vanadium exports. Additionally, Rwanda’s gold exports that year were valued at USD 555.7 million.
This newfound oil discovery could further bolster Rwanda’s growing presence in the global extractive industry and significantly enhance its economic prospects.
Source: Business Insider Africa
South Africa
SA Overtakes Morocco in Africa’s Race to Build Gigafactories, Power Storage
South Africa has sped ahead of Morocco and other countries by launching two gigafactories in quick succession recently. Growing investor confidence is crucial to energy sufficiency as well as acceleration of the renewable energy transition according to one analyst, and Morocco has recently become a beacon for battery investors too.
South Africa has overtaken Morocco in the race to roll out the continent’s first operational gigafactories, with Solar MD’s recent launch of a 15,000-square-meter facility capable of building 3GWh of clean energy annually coming shortly after the November opening of Balancell’s Ndabeni facility.
Establishing these gigafactories marks a crucial step toward Africa’s energy independence, ensuring reliable access to clean energy storage — vital for overcoming the intermittency challenges of solar and wind.
According to Ian Musembi, an e-mobility and green energy analyst at Green Rising, an African green economy think tank, “the surge in demand for EVs, driven by environmental imperatives and technological advancements presents Africa with a golden opportunity.”
“With over 40% of the minerals and metals essential for this energy, the continent can position itself as a key player in the burgeoning battery and EV market,” Musembi explained.
Source: Financial Fortune
Reports
World Economic Situation and Prospects Report | United Nations
The 2025 edition of the United Nations World Economic Situation and Prospects report comes at the mid-way point of a decade that has been characterised by economic turbulence. This report shows that the global economy is finally recovering following a sequence of shocks. Inflation is falling and economic growth—while slower than before the pandemic—has stabilised. In response, Central Banks are lowering interest rates, easing borrowing for much-needed investments. But the world still faces challenges that slow the rate of economic progress and the pursuit of better lives for all.
This year’s thematic chapter takes a deep dive into the role of critical minerals in ramping up energy transition and delivering sustainable development. These minerals are key to building renewable technologies to achieve net zero by 2050, while bringing tremendous opportunities for many developing countries to create jobs, generate revenues and spur industrialisation.
Click here to read and download the full report.
Foresight Africa: Top Priorities for the Continent 2025-2030| Brookings
2025 will be a critical juncture for Africa’s trajectory. New political leadership in both the African Union and the United States coincides with the urgent need to meet the looming 2030 deadline for the Sustainable Development Goals, accelerate the implementation of the African Continental Free Trade Area, and modernise and renew the African Growth and Opportunity Act—a cornerstone of the U.S. Africa trade relationship—currently set to expire in September 2025. Paired with an escalating climate crisis and the reverberations of conflict and global economic instability, these dynamics will require bold and coordinated policy action to address Africa’s unique challenges while leveraging its vast potential.
This special edition of Foresight Africa—the flagship annual report of the Africa Growth Initiative at Brookings—extends its focus from one year to five and offers cutting-edge insights and actionable strategies from heads of government, global institutions, continental and multilateral institutions, as well as leading Brookings scholars and other high-profile policymakers, business figures, and civil society leaders.
Click here to read and download the full report.
A Just Energy Transition for Communities: Large-Scale Wind and Solar Projects in Sub-Saharan Africa | IRENA
Accessible, reliable and affordable energy plays an essential role in human and economic development for the people of Sub-Saharan Africa, especially in improving livelihoods and access to opportunities. Renewables are crucial in this context, promising substantial socio-economic gains whilst also addressing the lack of access to electricity that hampers communities’ climate resilience, limiting their adaptive capacities and increasing their reliance on environmentally harmful fossil-based fuels.
By examining practices at several specific large-scale wind and solar projects in sub-Saharan Africa, this report explores the potential benefits to communities adjacent to such projects. The report discusses benefits in several categories, including advantages relating to project siting, ownership structures, investments in community development, skill development and employment opportunities, local procurement, and community energy and gender.
Click here to read and download the full report.
Redefining Success: A New Playbook for African Fintech Leaders| Mckinsey & Company
Africa’s fintech landscape has undergone a remarkable transformation in recent years, characterised by rapid growth and innovation. Despite significant headwinds, the market remains one of the most dynamic and promising in the world, with notable optimism among fintech leaders and investors. Key fintech players interviewed for this report indicated they were excited about opportunities across Africa, as reflected by our optimism survey, on which they returned an average score of 4.5, where 5 indicates the most optimistic.
As the industry matures, it’s clear that what has made players successful before may no longer serve them in the future. Fintech leaders are having to adapt their playbooks as investors shift their focus from short-term gains and growth at all costs to long-term sustainability. The investment landscape has become more selective, with a noticeable shift in funding dynamics for fintechs. This report explores the evolving fintech landscape, unpacks the lessons learned to date, and explores emerging trends and opportunities across the continent.