Stories that Matter | May 2025

East Africa

EAC Approves Cross-Border Payment System Masterplan
The East African Community’s Monetary Affairs Committee (MAC) has approved the EAC Cross-border Payment System Masterplan, which aims to reduce the cost and time of cross-border payments, making transactions faster and more affordable for businesses and individuals.

Cross-border payments within the EAC remain costly, averaging 7 percent of the transaction value, which is significantly above the global average targets of 1 percent for retail payments and 3 percent for remittances.

The masterplan seeks to harmonise policies and regulations, promote infrastructure development, build capacity, and enhance equitable access.

It also lays the groundwork for future innovations, such as a regional digital currency or Central Bank Digital Currencies (CBDCs).

“The successful implementation of the EAC Cross-Border Payment System Masterplan will enhance trade, investment, and economic collaboration across the region,” Aime Uwase, EAC Director of Planning, said.

The masterplan identifies several critical challenges, including fragmented regulatory frameworks, limited interoperability between national and regional payment systems, high transaction costs, slow settlement processes, gaps in financial inclusion, and weak consumer protection mechanisms.

Source: Kenyan Wall Street

Algeria

Algeria Clinches USD 3 Billion Islamic Development Bank Deal to Boost InfrastructureAlgeria recently secured a USD 3 billion loan package from the Islamic Development Bank to be disbursed over the next three years, aimed at accelerating key development initiatives.

Algeria maintains a significant and multifaceted relationship with the Islamic Development Bank (IsDB), both as a major contributor and beneficiary, having joined the IsDB in 1974 as a founding member.

Announced by Bank President Muhammad Sulaiman Al Jasser on Ennahar TV, the funding will support major infrastructure projects, including the expansion of the country’s railway network, part of a broader presidential strategy to connect Algeria’s economic zones better and stimulate national growth.

Furthermore, the IsDB and Algeria are enhancing their strategic partnership through a new comprehensive framework.

This framework focuses on boosting competitiveness, fostering private sector development, enhancing human capital, and strengthening regional cooperation.

Source: Business Insider Africa

Egypt

Egypt Targets Regional Mining Hub Status, Prioritises Value-Added Projects
Egypt is aiming to transform into a regional hub for mining industries, with value-added projects identified as a top priority in the Ministry of Petroleum and Mineral Resources’ operational strategy, according to a government statement.

Karim Badawi, Minister of Petroleum and Mineral Resources, affirmed that the petroleum and mining sectors attach paramount importance to value-added projects and maximising the utilisation of Egypt’s petroleum and mineral wealth. “This will be achieved by expanding local manufacturing projects, producing world-class products, and subsequently exporting to international markets, thereby securing foreign currency for Egypt,” Minister Badawi stated.

These remarks were made during the General Assembly of Misr Phosphate Company, convened to approve the financial results for the fiscal year 2024.

To sustain the company’s growth, which requires exploiting new areas to boost production and expand phosphate ore reserves, robust exploration and prospecting plans are in place. “Currently, drilling operations are underway to confirm phosphate ore deposits, calculate geological and mining reserves across various regions, and prepare for sustained production,” Abdel Azim explained. These efforts ensure the company continues to implement its strategy of maximising output and maintaining its leadership position among exporting companies.

Source: Daily News Egypt

Ghana

Ghana Looks to Get USD 12 Billion a Year from Small-Scale Gold Mining
Ghana could generate up to USD 12 billion annually from small-scale gold production if output doubles as planned, according to Sammy Gyamfi, CEO of the Ghana Gold Board.

Ghana could generate up to USD 12 billion annually from small-scale gold production if output doubles as planned, according to Sammy Gyamfi, CEO of the Ghana Gold Board.

The country’s gold exports have surged alongside rising global prices, primarly driven by growth in artisanal and small-scale mining.

To capitalise on this growth, the government has established a regulatory body to oversee all gold purchases and sales. The goal is to boost foreign currency reserves and curb illegal trade, Bloomberg reported.

While the law recognises small-scale mining as a legitimate economic activity, studies indicate that over 85 percent of operations remain informal and unregulated, occurring outside state oversight.

To curb smuggling and capture more foreign exchange, Ghana’s recently established gold regulator has increased its purchases from artisanal miners. Speaking in Accra, the regulator’s head, Gyamfi, stated that the move will help boost foreign reserves and stabilise the economy.

Source: Business Insider Africa

Kenya/ South Africa

Kenya and South Africa Emerge as Top Investment Destinations
Kenya and South Africa have consolidated their positions as Africa’s top investment destinations, according to The Wealth Report by Knight Frank.

This comes despite economic challenges such as inflation and a depreciating shilling, which have made investors consider investing both locally and abroad. This offers a strategic path to resilience and growth, as the World Bank states that inflation in Kenya stood at 5.1 percent in Kenya as of January 2025.

The Central Bank of Kenya also recently reported that the Kenyan Shilling is valued at 130 KES to 1 USD, indicating a struggling economy.

According to The Wealthy Report, the motivations for these investments are portfolio diversification, market stability and global economic trends. Portfolio diversification reduces risk and enhances overall portfolio resilience by spreading investments across different geographic locations.

Market stability in developed European countries and Canada offers a higher degree of economic and political stability makesing it an attractive long-term investment destination.

Exposure to international markets allows Kenyan investors to capitalise on emerging economic opportunities and favourable real estate cycles.

Source: Kenya Times

Nigeria

World’s Largest Electric Vehicle-Producing Country Set to Establish an EV Plant in Nigeria
China recently disclosed its intention to establish an electric vehicle (EV) plant in Africa’s most populous nation and one of its largest economies, Nigeria.

The initiative is a huge step forward for Nigeria’s industrialisation aspirations and reinforces Beijing’s expanding presence in Nigeria in a year when the East Asian country has been very active within Africa’s largest oil-producing nation.

This new development was made known during a courtesy visit by China’s Ambassador to Nigeria, Yu Dunhai, to Dr. Dele Alake, Minister of Solid Minerals Development.

During the visit, Ambassador Dunhai emphasised the need for further collaboration between the two countries in unleashing Nigeria’s solid mineral potential, a crucial component in EV battery production, and propelling Nigeria’s industrial growth. Dunhai also stated that China has consistently recognised Nigeria as an important partner in its foreign strategy

The Chinese ambassador mentioned the recent meeting between Presidents Bola Ahmed Tinubu and Xi Jinping, during which both leaders decided to upgrade Nigeria-China bilateral relations to a comprehensive strategic partnership, paving the way for considerable economic and technical collaboration.

Source: Business Insider Africa

South Africa

EU Pledges EUR 4.7 Billion Investment in South Africa at Landmark Summit
The European Union recently announced a EUR 4.7 billion investment package for South Africa to support green energy and vaccine production, marking a significant step in strengthening economic and political ties. The commitment was made during the first bilateral summit between the EU and South Africa in seven years, held at President Cyril Ramaphosa’s office in Cape Town.

Speaking at the summit, European Commission President Ursula von der Leyen drew parallels between the histories of the EU and South Africa, both of which emerged from conflict and found a path to peace through reconciliation.

“South Africa remains an emblem of hope for the world,” von der Leyen stated. “Today, we are together announcing an investment package to mobilise EUR 4.7 billion in South Africa.” South African President Cyril Ramaphosa echoed this sentiment, emphasising the importance of collaboration in upholding shared values.

The EU and South Africa already share a strong trade relationship, with the bloc being South Africa’s largest trading partner in sub-Saharan Africa. Von der Leyen reiterated Europe’s commitment to expanding trade ties.

A major focus of the investment package is South Africa’s transition from coal to greener energy. The EU pledged to continue supporting the Just Energy Transition Partnership. This comes in stark contrast to the recent U.S. withdrawal from a similar agreement.

The EU-South Africa summit marks a renewed commitment to cooperation in trade, energy, and global governance.

Source: Business Insider Africa

______________________

Reports

The State of African Energy | African Energy Chamber
The State of African Energy 2025 Outlook Report offers a rigorous analysis of the trends, challenges and opportunities shaping the continent’s energy landscape. This report highlights Africa’s strategic role in the global energy transition, particularly in oil, gas and renewable energy sectors. Onshore drilling is poised to lead the charge in exploration, while high-impact drilling, particularly in deepwater basins, is expected to elevate Africa’s prominence in global markets.

Furthermore, the report examines the critical dynamics surrounding mergers and acquisitions in Africa, signalling a notable uptick in cross-border transactions and portfolio realignment by key industry players. The power and renewables sector in Africa presents a dual narrative: on the one hand, the continent holds immense potential for renewable energy, yet on the other, it grapples with the realities of low energy access and fossil-heavy power generation. The role of gas-to-power, emerging renewables and decentralised energy systems is examined in detail, providing a comprehensive outlook on Africa’s path to energy diversification and economic resilience.

Click here to read and download the full report.

21st-Century Africa: Governance and Growth | World Bank

Will the 21st century witness Africa’s major push toward catching up with other world regions? Or will the continent continue to underperform its peers? A flagship report published by the World Bank in 2000 asked, Can Africa Claim the 21st Century? It provided a blueprint for Africa to navigate in the uncertain future. A quarter century later, Africa’s progress reveals some advancements: yet, efforts to overcome pivotal challenges identified at the century’s outset have fallen short. The agenda to mitigate conflicts, invest in people, bolster economic competitiveness, and reduce dependence on external financing remains unfinished.

This sequel report, 21st-Century Africa, analyses past achievements, enduring obstacles, and potential policy alternatives and outlines strategies for governments to enhance support for sustainable growth. The report explores ways the continent can equip its expansive, young labour force with the necessary skills and resources for a modern, productive economy. It also explores how trade in goods and services can distribute economic gains across what historically has been the most fragmented world region.

Click here to read and download the full report.

State of Urbanization in Africa | United Nations Economic Commission for Africa

Africa is experiencing one of the fastest urbanisation rates globally, with over 50 per cent
of its population expected to live in cities by 2050 (UN-Habitat, 2022). As cities grow, they
face the dual challenge of meeting the immediate needs of their expanding populations
while integrating digital technology to enhance urban services. Digital transformation has
become crucial for achieving sustainable development in urban areas, enabling cities to
improve governance, service delivery and economic opportunities. However, the digital
divide – between rural and urban areas and within cities themselves – poses significant barriers to realising this vision.

This report examines Africa’s rapid urbanisation and the role of digital transformation in fostering inclusive, resilient, and sustainable cities. Focusing on four key dimensions: digital infrastructure, affordability, digital skills, and e-government, it highlights progress and disparities across subregions. While initiatives like Kenya’s broadband expansion and Ghana’s e-government services show promise, challenges such as high connectivity costs, infrastructure gaps, and skills shortages persist. The report recommends for strategic investments, policy reforms, and public-private partnerships to bridge the digital divide and leverage technology for equitable urban development.

Click here to read and download the full report.

Africa Horizons | Knight Frank
Africa stands at the cusp of a profound transformation. With urban populations growing at an average annual rate of 3.5%, the fastest globally, over 360 million people have moved into cities in the past five decades. By 2050, 60% of Africa’s population is expected to live in urban centres, a shift that is reshaping the very fabric of our cities and igniting demand for new housing models, infrastructure, and industrial growth.

This report highlights the continent’s staggering 51 million-unit housing deficit – a crisis that, if unaddressed, could widen to 130 million units by 2030. Amidst this challenge emerges innovation: from blockchain-financed affordable homes in Mozambique to Kenya’s Boma Yangu initiative aiming for 200,000 houses annually to the rise of short-term rentals and co-living solutions tailored to Africa’s mobile, digital-savvy youth.

It also reveals how Africa’s repositioning as a manufacturing and logistics hub is unfolding. Strategic investments such as Kenya’s Naivasha Special Economic Zone and Ghana’s USD 60 billion Petroleum Hub, as well as the revival of key transport corridors. In addition, it explores Africa’s emerging Green Opportunity, highlighting the continent’s immense renewable energy potential against the backdrop of critically low climate finance investment flows. Furthermore, we examine the nascent but growing REITs market, fuelled by rising investor demand for diversified, transparent, and income-generating real estate vehicles.

Click here to read and download the full report.