Africa
Africa Holds USD 4 Trillion in Domestic Capital for Infrastructure Investment – AFC
The Africa Finance Corporation has said African governments should look inward to tap into an estimated USD 4 trillion in capital held by domestic institutional investors. According to the AFC, around USD 455 billion of this capital is currently held in pension funds, while sovereign wealth funds account for another USD 150 billion.
When combined with commercial bank assets and foreign currency reserves, the total pool of investable domestic capital across the continent reaches USD 4 trillion. As the continent’s population and economies rapidly expand, investments in sectors such as railways and power generation are becoming increasingly urgent.
However, traditional funding avenues, such as foreign direct investment and official development assistance, are no longer keeping pace with the continent’s infrastructure needs, according to Reuters. African governments are finding it increasingly difficult to allocate funds for development projects, as interest payments consume a growing portion of national budgets. Shrinking donor budgets and rising protectionist policies in advanced economies are further constraining the flow of funds, the AFC noted in its report.
To unlock these funds, African governments will need to modernise the large informal sectors of their economies that remain untaxed and unregulated, and reform pension fund regulations to enable long-term infrastructure investment, the AFC said.
Source: Business Insider Africa
Africa
Planning Completed for USD 4 Billion Bridge Linking Africa and Asia, Construction Set to Begin
The governments of Saudi Arabia and Egypt have unveiled a groundbreaking, multibillion-dollar bridge project that will connect Africa and Asia across the Red Sea.
Although it was originally unveiled by Saudi Arabia’s King Salman in 2016, the bridge is expected to cost around USD 4 billion, fully financed by the Kingdom. It would link Saudi Arabia’s Ras Hamid with Egypt’s Sharm El-Sheikh, spanning the Strait of Tiran.
According to The Sun UK, the ambitious project dubbed the “Moses Bridge” has taken a significant step forward with Egypt confirming the completion of its planning phase.
Egypt’s Minister of Transport, Kamel al-Wazir, recently revealed that all planning work has been finalised.
“We have now completed the planning for the bridge between Egypt and Saudi Arabia and are ready to implement it at any time—whether as a bridge or a tunnel,” al-Wazir said.
Currently, maritime transport between the two countries is managed by the Arab Bridge Maritime Company, which operates a fleet of 13 cargo and passenger vessels.
Notably, earlier plans for a Red Sea bridge have been discussed since 1988 but have been delayed and stalled due to political hesitations.
The Moses Bridge, however, may offer a more unifying vision—one that seamlessly blends symbolism, strategy, and regional development into a single structure spanning continents.
Source: Business Insider Africa
Africa
Uganda, South Sudan, and the CAR Commit to Funding 1,800km Cross-Border Road Project
Three African countries—Uganda, South Sudan, and the Central African Republic (CAR) — have embarked on a landmark infrastructure initiative with the launch of a 1,800-kilometre regional road project aimed at enhancing trade, connectivity, and economic integration across East and Central Africa.
Sputnik Africa reports that the ambitious 1,800-kilometre road project connecting Uganda, South Sudan, and the Central African Republic (CAR) will be executed in phases, with construction moving progressively across borders—from Uganda into South Sudan and then from South Sudan into CAR.
The phased approach enables the three countries to focus on the most critical sections of the corridor first while gradually mobilising resources for broader, long-term improvements.
To ensure the project’s success, Uganda, South Sudan, and the Central African Republic will collaborate to secure financing from a combination of national budgets, international development partners, and private sector investments.
By sequencing the project from Uganda through South Sudan to CAR, the initiative reflects both strategic regional planning and a commitment to boosting intra-African trade, especially for landlocked and infrastructure-challenged areas.
Source: Business Insider Africa
East Africa
East Africa Driving Global Growth in Solar Energy Kits
At least 20 million people globally improved their energy access through solar energy kits (SEKs) sold in 2024, with this growth almost exclusively driven by sales from countries in East Africa.
The latest Global Off-Grid Solar Market Report from GOGLA reveals that, overall, nearly 138 million people have cumulatively benefited from renewable energy technology.
“This shift is generating significant economic opportunity – USD 10 billion in new income since 2010 – across rural and peri-urban communities,” the report said. In 2024, access to solar energy kits (SEKs) grew at a rate of almost 4% when compared to 2023.
“This shows a positive trend and the ongoing demand for off-grid solutions despite macroeconomic headwinds, including high inflation and climate emergencies.
“Sales of off-grid solar technologies by GOGLA affiliates reached 9.3 million SEKS and nearly two million off-grid appliances such as solar water pumps, fans and fridges,” the report noted.
In terms of the impact on Africa, the report stated that global growth in sales volumes of SEKs in 2024 was almost exclusively driven by growth in East Africa, with “particularly strong” increases in sales in Ethiopia, Malawi, Rwanda, Somalia, Tanzania, and Zambia.
Source: ESI Africa
Egypt
Egypt Targets Top 50 Global Business Readiness Ranking with Key Reforms
Egypt’s government is targeting a position among the world’s top 50 economies for business readiness and has set a three-month deadline to implement the required reforms, the country’s investment minister said.
Minister of Investment and Foreign Trade Hassan El-Khatib made the statement during the second meeting of the National Committee for the ‘Business Ready’ report. The meeting was hosted by the ministry and attended by Cairo Governor Ibrahim Saber, as well as representatives from other relevant government bodies.
“The government is targeting a position among the world’s top 50 economies for business readiness,” El-Khatib said, stressing the need to implement the required measures within three months.
For his part, Cairo Governor Ibrahim Saber affirmed the governorate’s full readiness to cooperate with the Ministry of Investment and Foreign Trade to address any challenges that may hinder the implementation of the targeted reforms.
The meetings of the National Committee for the ‘Business Ready’ report are part of a state-wide effort to enhance the readiness of its institutions to apply international business standards. The initiative aims to coordinate between different government agencies and integrate their roles to build a flexible and effective institutional system capable of keeping pace with global developments and improving Egypt’s investment climate.
Source: Daily News Egypt
Ethiopia
Ethiopia Triples EV Adoption in Two Years Amid Intense Policy Shifts, Incentives
Ethiopia is experiencing a sharp acceleration in electric vehicle adoption, with the number tripling from 4,600 in early 2023 to 14,000 EVs in early 2025 in Addis Ababa, according to the country’s energy outlook.
“The pace of EV adoption could be influenced by changes in government policy, shifts in global battery prices, improvements in charging infrastructure, and consumer acceptance of EVs. If incentives are reduced or supply chain challenges emerge, EV adoption may progress more slowly than anticipated,” the report states.
The de facto ban is part of the country’s broader strategy to reduce the country’s USD 4 billion annual fuel import bill, ease pressure on its foreign currency reserves, and transition toward cleaner transportation powered by domestically produced electricity. Ethiopia’s grid relies heavily on hydroelectric power, giving the country a comparative advantage in electrifying transport.
The national car fleet is projected to grow from 320,000 in 2024 to 415,000 by 2030, with EVs expected to account for 113,000 units, about 28% of all cars on Ethiopian roads. As older ICE vehicles are retired and domestic assembly scales up, Ethiopia’s transport landscape is set to be rapidly reshaped by electrification. Meanwhile, fuel-powered motorcycles are being phased out in Addis Ababa, and electric buses are being introduced to the city’s public transport fleet.
Source: Kenyan Wall Street
Morocco
Morocco’s USD 3 Billion ‘Airports 2030’ Targets 80 Million Passengers
Morocco has approved a USD 3 billion plan dubbed ‘Airports 2030’, which aims to increase the number of passengers using its airports to a record 80 million.
The plan, outlined by Morocco’s Transport Minister, Abdul Samad Qayouh, in parliament this week, involves the expansion of existing facilities and the construction of new airports in preparation for the 2030 FIFA World Cup games.
Nearly half the targeted number of passengers will be achieved through the USD 1.5 billion expansion of Mohammed V airport in the Western Atlantic port of Casablanca, Morocco’s largest city and business hub.
Qayouh told parliament that the plan includes building a second airport in Casablanca, as well as new airports in other cities and the expansion of some existing facilities.
“The plan is designed to increase the capacity of the country’s airports to 80 million passengers in 2030…besides new airport projects and expansions, it also includes upgrading services and the infrastructure,” he said, quoted by Sabah Akadir newspaper and other Moroccan news outlets.
Qayouh said the plan also involves quadrupling the fleet of Royal Air Maroc from approximately 50 to more than 200 aircraft between 2023 and 2037.
Source: Zawya
South Africa
Ramaphosa’s Infrastructure Push Attracts USD 13 Billion for Africa’s Wealthiest Economy
South African President Cyril Ramaphosa says his plan to boost the economy by launching major construction projects has attracted a record ZAR 238 billion (approx. USD 13.3 billion) in investment.
Speaking at an infrastructure summit in Cape Town, Ramaphosa announced that the government’s new construction pipeline for the fiscal year starting April 1 includes approximately 250 projects. These cover key sectors such as energy, roads, and water, Bloomberg reported.
“Infrastructure is the flywheel that our economy needs to boost growth and to create jobs,” he said. “Infrastructure that is well constructed and maintained encourages investors to see our country as a great investment destination.”
“We will turn South Africa around and make it a true construction site, but a beautiful site for all to behold,” Ramaphosa said.
The National Treasury has allocated ZAR 1.03 trillion (approximately 57 billion) for public infrastructure over the next three years, aiming to attract more investment from the private sector.
Source: Business Insider Africa
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Reports
World Energy Investment Report| International Energy Agency
This year’s World Energy Investment report marks the 10th edition of this flagship analysis. It provides a comprehensive update on the investment landscape in 2024 and an initial assessment of the emerging picture for 2025.
The report provides a global benchmark for tracking capital flows in the energy sector. It examines how investors assess risks and opportunities across all areas of fuel and electricity supply, critical minerals, efficiency, research and development, and energy finance.
The report highlights several key aspects of the current investment landscape in the context of recent policy and macroeconomic developments, as well as a heightened focus on energy security. It explores the different drivers of energy investments and identifies emerging trends and priorities.
This year’s edition also reflects on energy investment trends over the last decade, highlighting significant milestones and lessons from different energy sectors and regions. It also includes an expanded regional analysis, as well as an extensive analysis of the sources of investment and finance in the energy sector, including insights into the role of development finance institutions in energy investments across emerging and developing economies. It will also look at how investment trends in clean energy compare with those in fossil fuels, as well as the geographic distribution of these investments.
Click here to read and download the full report.
Africa Economic Outlook | Africa Development Bank
The 2025 African Economic Outlook (AEO) report has been prepared against a backdrop of unprecedented global circumstances. April 2025 witnessed seismic shifts in the trade policies of major economies, with significant ramifications for the global trade order. Major development partners have announced significant aid cuts, primarily triggered by shifts in domestic policy priorities. This action will undoubtedly create a funding squeeze for low-income countries, especially those in Africa, that heavily depend on international development assistance.
The 2025 AEO report is both a diagnosis and a roadmap. It demonstrates that with deep, properly sequenced reforms, Africa can mobilise an additional USD 1.43 trillion in domestic resources from its diverse forms of capital—fiscal, natural, financial, business, and human—to accelerate inclusive and sustainable growth. This exceeds Africa’s estimated USD 1.3 trillion annual financing gap to achieve the Sustainable Development Goals by 2030. To reach them, Africa must broaden its revenue base, curb resource leakages, formalise its vibrant informal sector, deepen domestic financial markets, and enhance the efficiency of public spending as well as tap into the transformative power of the diaspora.
Click here to read and download the full report.
Fostering Effective Energy Transition 2025 | World Economic Forum
After several years of slow momentum, progress in the energy transition has accelerated, according to the World Economic Forum’s Fostering Effective Energy Transition 2025 report. The Energy Transition Index (ETI), which benchmarks 118 countries on their current energy system performance and the readiness of their enabling environment, finds improvements in energy equity and sustainability-driven by easing energy prices, subsidy reforms, lower energy and emission intensity, and an increased share of clean energy.
However, progress on energy security has been limited, and momentum for transition readiness has slowed. Meanwhile, global energy systems are facing increasing pressure from climate change, geopolitical, economic and technological disruptions.
Click here to read and download the full report.
World Investment Report | UNCTAD
Global foreign direct investment (FDI) fell by 11% to USD 1.5 trillion in 2024, marking the second straight year of decline.
While the overall data shows a 4% rise, it masks deep underlying weaknesses. The apparent growth was inflated by volatile financial conduit flows through several European economies, which often serve as transfer points for investments.
The outlook for 2025 has turned negative. Modest growth seemed possible at the start of the year, but escalating trade tensions, geopolitical fragmentation and economic volatility have led to sharp downward revisions of most FDI prospects. These include GDP growth, capital formation, trade flows, financial market stability and investor confidence. Early 2025 data show record-low deal and project activity.
The World Investment Report calls for bold, coordinated action to redirect investment toward sustainable and inclusive development, with a sharp focus on bridging divides in the digital economy, infrastructure, and sustainable finance.
