Africa
Africa50 Invests in Infrastructure Worth Over USD 6.6 Billion in Six Years
In just six years of operation, Africa50 has invested in critical infrastructure with a total value of more than USD 6.6 billion, African Development Bank (AfDB) Group president, Dr Akinwumi Adesina, said during the recent Africa50 Infra Forum and General Shareholders Meeting in Togo’s capital Lomé. The Togolese President Faure Gnassingbé attended the event. Africa50 is an investment platform established by African governments and the AfDB to mobilise financing for mega infrastructure projects with significant development impact. Adesina chairs the Africa50 board of directors. Prominent African and global institutional investors attending the meeting signed subscription agreements and letters of intent to commit funds to the USD 500 million African Infrastructure Acceleration Fund – the first private vehicle infrastructure platform launched by Africa50. The fund will catalyse further investment flows to develop critical infrastructure across the African continent.
Source: AfDB
Africa
Africa’s Fintech Market to Reach USD 65 Billion in Revenue by 2030
The African fintech market is projected to reach USD 65 billion by 2030, representing a 13-fold increase over 2021, according to a new study conducted by consulting firm Boston Consulting Group (BCG) and QED Investors, a global VC based in the US. This will make it the world’s fastest-growing region, alongside Latin America, which is predicted to see 12.5-fold growth. North America, in contrast, will only see 4.4 times increase, although revenues there and in the Asia Pacific region will remain far ahead of the rest of the world. The study also projects a compound annual growth rate (CAGR) of 32 percent for African fintech revenue until 2030. BCG tracks global revenue pools for financial institutions and services (such as banking and insurance) and applies a proprietary methodology to project these revenue pools until 2030. The firm also tracks funding and descriptive data for nearly 32,000 fintechs worldwide. Aparna Pande, a consultant at BCG and co-author of the report, explains that the projections rely heavily on these two proprietary data sources, along with the input of internal and external experts, the experience of VC partner QED in the sector, and interviews with top global fintech CEOs to test the projections against historical and expected performance.
Source: African Business
Africa
African Leaders Call for More Investments in Green Energy, Water Infrastructure
African leaders have called for concerted investment in energy and water infrastructure to accelerate the achievement of the UN’s Sustainable Development Goals and the African Union’s Agenda 2063. The leaders made the call at the Africa Day event held under the theme, “Harnessing water and energy for Africa’s sustainable industrialisation and inclusive economic transformation,” on the sidelines of the High-Level Political Dialogue in New York. The event was co-organised by the United Nations Office of the Special Adviser on Africa UN-OSAA, the United Nations Economic Commission for Africa (ECA), the African Union Commission (AUC), the United Nations Development Program (UNDP), and the African Institute for Economic Development and Planning (UN-IDEP). “We must rethink development and lead a climate resilient, truly just, people-centred, inclusive, and equitable transition to deliver on the promises of the Agendas,” the Economic Commission for Africa, Acting Executive Secretary, Antonio Pedro, said during the event. Pedro noted that African countries have been disproportionately affected by multiple crises which have reversed development gains, but Africa had the solutions to sustainable development.
Source: ENA
Africa
African Development Bank and Asian Development Bank Announce UDS 1 Billion Swap
The Board of Directors of the African Development Bank has given the go-ahead for a USD 1 billion major exposure swap with the Asian Development Bank. On the bank’s website, a statement made this disclosure. The bank stated that the major goal of the transaction is to enable the release of more sovereign lending headroom while bolstering the capital adequacy measures of the African Development Bank. The African Development Bank has already signed two exposure exchange agreements; the first was with the Inter-American Development Bank and the International Bank for the reconstruction and development of the World Bank Group. The statement released reads in part, “This new exposure exchange agreement is the second transaction that the African Development Bank has executed following the success of the first agreement finalised in 2015 with the Inter-American Development Bank and the World Bank Group’s International Bank for Reconstruction and Development.”
Source: Business Insider
Algeria
Multiple Sectors to Benefit from USD 36 Billion from Chinese Investments
China will invest several billion dollars in Algeria following an official visit by the latter country’s president to Beijing. China will invest USD 36 billion in Algeria across sectors, including manufacturing, new technology, knowledge economy, transport, and agriculture, Ennahar Online quoted Algerian President Abdelmadjid Tebboune as saying recently. “The projects and agreements concluded with the Chinese side are huge and mutually beneficial to both countries,” said Tebboune, speaking during a meeting in Shenzhen province with representatives of the Algerian community in China. President Tebboune has been on an official visit to China since mid-July 2023, meeting with Chinese leader Xi Jinping in Beijing during his visit. The Algerian President said on Thursday that Algeria seeks to bring economic relations with Beijing to the level of “good historical political relations” and that his visit opened “all horizons of investment” between the two countries.
Source: Reuters
Egypt
Egypt Stands Out in Africa’s FDI and Green Investment Landscape
The annual investment deficit for developing countries striving to meet their Sustainable Development Goals (SDGs) by 2030 has increased, revealed a new report by the United Nations Conference on Trade and Development (UNCTAD). The UNCTAD’s World Investment Report 2023, “Investing in Sustainable Energy for All”, disclosed that the gap has widened to around USD 4 trillion per year – up from USD 2.5 trillion in 2015 when the SDGs were adopted. While investments in renewable energy have nearly tripled since 2015, most of the funding has been directed toward developed countries. According to the report, developing nations currently require approximately USD 1.7 trillion annually in renewable energy investments but have only managed to attract USD 544 billion in clean energy foreign direct investments in 2022. According to the report, Egypt saw inflows more than double to USD 11.4 billion, primarily driven by heightened cross-border mergers and acquisitions (M&A) sales. UNCTAD noted that announced greenfield projects in Egypt more than doubled, reaching 161, while the value of international project finance deals rose by two-thirds, totalling USD 24 billion.
Source: Business Today Egypt
Morocco
Morocco Well Positioned for Key Role in Green Hydrogen Production
According to a recent report by Deloitte titled “Green hydrogen: Energizing the path to net zero, Morocco is poised to emerge as a key player in the production of green hydrogen. Deloitte’s 2023 global green hydrogen outlook.” The report highlights Morocco’s favourable position, citing its exceptional “solar and wind resources,” which align well with a highly competitive large-scale production industry. This advantageous combination and its “proximity to the European Union” position Morocco as a prime candidate for significant green hydrogen production. Deloitte’s report identifies Morocco as one of the countries with the most potential to export green hydrogen, placing it alongside Chile, Saudi Arabia, Spain, the United Kingdom, and Japan, which occupy different positions on the importer-exporter spectrum. The report further projects that the global hydrogen market will generate over USD 280 billion in annual export revenues by 2050. North Africa is expected to benefit the most, reaching USD 110 billion annually due to its strong export potential.
Source: Morocco World News
Tanzania
TIC to Register Record Number of Investment Projects
The Tanzania Investment Centre (TIC) said it aims to register the highest number of new projects this year. TIC executive director Gilead Teri told journalists the Centre has registered 229 projects worth USD 2.2 billion in the first half of 2023. The projects are predicted to create 31,647 jobs. The number of registered projects is 27.9 percent below the projects registered for the whole of last year. “We are on the course to break the record. There is a possibility for doubling last year’s performance,” Mr Teri said. He said TIC registered 293 new projects valued at USD 4.54 billion last year. This suggests that in the second half of this year, the Centre has the task of attracting 64 more projects to reach the same figures registered last year. He said the new Tanzania Investment Act of 2022 has created an enabling business environment that makes investors consider Tanzania the best place for investment in Africa.
Source: The Citizen
Zambia
Oxen Energy to Spend USD 6.8 Billion to Boost Solar Power
Oxen Energy is earmarked to spend USD 6.8 Billion on solar energy programmes in Lufwanyama District on the Copperbelt. Copperbelt Province Permanent Secretary Augustine Kasongo has praised Oxen Energy, saying the company has come at the right time when the country is transforming the economy through job creation for the citizens. Mr Kasongo says the investment in the electricity sub-sector will contribute to the expansion of industries on the Copperbelt as another similar project has been undertaken in the region by the Copperbelt Energy Corporation Company (CECC), which is already producing 33 megawatts of solar energy. Mr Kasongo was speaking when Zambia Development Agency (ZDA) officers in the company of Oxen Energy officials paid a courtesy call to him in Ndola. Mr Kasongo pointed out that the setting up of an additional solar power plant in Lufwanyama will stimulate industrial growth in rural areas and create jobs for the local people.
Source: Lusaka Times
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Reports
Africa Sustainable Development Report
The 2022 Africa Sustainable Development Report comprehensively analyses Africa’s progress towards the Sustainable Development Goals (SDGs) and the African Union’s Agenda 2063 objectives. The report is aligned with the 2022 High-Level Political Forum on Sustainable Development theme: “Building back better from the coronavirus disease while advancing the full implementation of the 2030 Agenda for Sustainable Development” and provides an in-depth analysis of the following five SDGs: Goal 4 (Quality Education), Goal 5 (Gender Equality), Goal 14 (Life below Water), Goal 15 (Life on Land) and Goal 17 (Partnerships for the Goals).
The analysis projects that the socio-economic effects of the COVID-19 pandemic will reverberate across the continent for years to come, compounded by the war in Ukraine, which has precipitated a global food, energy, fuel, and finance crisis. The effects are most evident in regions like the Horn of Africa, where millions of people are now being pushed into hunger and famine as climate-change-induced drought hits simultaneously.
Click here to read and download the report.
Sustainable Energy Fund for Africa 2022
The Sustainable Energy Fund for Africa (SEFA) continued its momentum in 2022, unlocking private sector-led renewable energy and energy efficiency projects across the African continent, despite new challenges arising from Russia’s invasion of Ukraine and extreme climate events. The year saw the approval of eight projects for a combined funding amount of USD 46.5 million, enabling investments expected to generate 241 MW in new capacity, approximately 5,000 new electricity connections, 5,952,418 tCO2 of GHG emissions reductions, and creating around 745 new jobs. SEFA 2.0 current portfolio stands at USD 128.4 million for 21 projects across the three thematic areas of Green Baseload, Green Mini-Grids, and Energy Efficiency. This is expected to generate a significant impact, leveraging a total of USD 9.2 billion in investment, delivering approximately 3700 MW in new capacity and around 2 million new connections. SEFA 1.0 legacy portfolio of projects (2012- 2019) continues progressing towards full retirement by the end of 2023, with the completion of another three projects during 2022. The year also saw significant progress towards the USD 500 million capitalisation target, with commitments from new and existing donors amounting to approximately USD 65 million.
Click here to read and download the report.
Future of Trade 2023
Globalisation is not dead, contrary to recent claims. This is more evident than in global trade, where high-growth trade corridors in Asia, Africa and the Middle East are set to outpace the global average by up to four percentage points. These regions will propel global trade from USD 21 trillion to USD 32.6 trillion by 2030. Intra-regional trade – particularly within ASEAN and East Asia – will be significant over the next decade, and high-growth routes will emerge between ASEAN and South Asia and South Asia and Africa. Of the more prominent, longer-established players, China will remain a major contributor for exports and imports, and Europe and the US will remain the largest destinations for Asian exports. Almost half the global business leaders spoken to are struggling with the impact of rising geopolitical tensions, tariffs, inflation, and energy prices. To overcome these challenges, multinationals will need to become more ‘multi’ national than ever, build greater resilience and expand into these fast-growing nodes of global trade. Research estimates that in the 13 markets studied, the adoption of digital SCF platforms could help companies diversify their suppliers and drive exports up by USD 791 billion.
Click here to read and download the report.
Fostering Effective Energy Transition
The transformation of the global energy system is well underway. In just over a decade, investments across multiple forms of renewable energy have overtaken investments in fossil fuels. Energy and climate policies now take centre stage in domestic and international affairs. The geopolitical balance of energy has shifted significantly, and new superpowers have emerged in renewable energy component manufacturing, critical minerals and clean technology. The frontiers of energy innovation have been progressively redefined, and thousands of entrepreneurs are working to remake this huge industry. Enabled by mounting scientific evidence, a steady rhythm of extreme weather events and decades of awareness campaigns, climate consciousness is embedded in the public psyche. The Energy Transition Index (ETI) has supported decision-makers through this period with a robust, consistent, comprehensive framework and transparent fact base. Despite the strong momentum, the energy transition has been challenged by near-term exigencies. While investments and policy measures for energy transition have amplified despite the volatile environment, the delicate balance of the energy security architecture, and the adverse effects on vulnerable households and developing countries, demonstrate the importance of balancing the imperatives of security, equity and sustainability for an effective energy transition.
