Algeria
Algeria Boosts Rail Network Expansion with USD 2.8 Billion Investment in New Trains
Algeria has committed USD 2.8 billion to revitalise its rail network, a crucial step in the country’s efforts to improve transportation and promote connectivity within the continent.
Zawya reports that the new trains include high-capacity locomotives, passenger transport cars, self-propelled trains, high-speed self-propelled trains, freight coaches and manoeuvring locomotives. Algeria’s rail network is managed by the National Company of Rail Transport (SNTF) and currently has over 200 stations covering mainly the north of the country.
Sifian Aibash, the company’s transport manager, said the country will fund the project in stages. The first will include purchasing 400 train coaches for around USD 1.03 billion.
Algeria, a prominent oil producer has already issued an international tender for the supply of passenger transport rolling stock. The tender scope covers 6 self-propelled train sets, each with six standard gauge electric carriages for passenger transport and spare parts.
The country has also commenced electrification projects in anticipation of installing high-speed trains which will link the country’s most important cities. With over 5,000 kilometres of rail already in operation, Algeria is poised to extend its network with new lines to improve travel times, bridge community gaps, and drive economic development. This move is part of Algeria’s broader objective to ensure complete connectivity by 2035.
Source: Business Insider Africa
Angola
USD 12 Billion Angola LNG Project Explores Expansion Options
The Angola liquefied natural gas (LNG) project is exploring expansion options as the facility is expected to ramp up gas supplies over the next 12 months. Options include adding a new processing unit and mini train with a capacity of 3 million tons per year of natural gas. Additional supplies to the Angola LNG facility are anticipated from Chevron’s Sanha Lean Gas Connection, a project led by the energy supermajor, which will start production at the end of 2024. Further gas supplies will come from the Quiluma and Maboqueiro fields – developed by the New Gas Consortium – which will be the country’s first non-associated gas exploration projects. The fields are expected to be drilled early next year. Anticipated additional supplies will allow the facility to operate at full capacity, Azule Energy CEO Adriano Mongini told Reuters at African Energy Week 2024.
Designed to deliver up to 5.2 million tons of LNG annually to the global market via up to 80 cargoes, the USD 12 billion Angola LNG project currently operates at 70 percent capacity, averaging around 700 million standard cubic feet of natural gas daily. Angola LNG is a joint venture project between Angola’s national oil company Sonangol, Chevron, energy supermajor TotalEnergies and international energy company Azule Energy.
Source: Energy Capital & Power
Egypt
Egypt Aims to Boost Entrepreneurship Investments to USD 5 Billion
Egypt recently revealed plans to significantly increase investments in the entrepreneurship sector, from USD 500 million to USD 5 Billion. Prime Minister Mostafa Madbouly recently announced during a meeting with the heads and representatives of 10 leading entrepreneurial companies. He said the government recognises the importance of supporting entrepreneurship, especially given Egypt’s youthful population. “Everyone acknowledges that this is a promising sector, and we will translate this into the Egyptian economy by providing the necessary support,” Madbouly said.
The government has established a special ministerial committee dedicated to entrepreneurship, under the leadership of the Minister of Planning and Economic Development, to remove any obstacles and promote entrepreneurship in Egypt. Madbouly also appointed Amr El-Abd as the Prime Minister’s advisor on this issue, tasking him with monitoring the progress.
El-Abd highlighted the significant attention this sector receives from the Prime Minister, noting that the 10 companies represented at the meeting are among the fastest-growing in the region. These companies have a combined market value of USD 3 billion, attracting USD 1.4 billion in investments and generating revenue of USD 900 million. They have also created approximately 45,000 jobs, contributing to increased competitiveness, and productivity positioning Egypt on the global map of entrepreneurship.
Source: Daily News Egypt
Kenya
Kenya Steps Up Classifying Hotels in 16 Counties to Boost Tourism
The Tourism Regulatory Authority (TRA) is stepping up the nationwide classification of all tourism facilities and establishments, including hotels, with the latest exercise now targeting 16 counties. The rating will guide visitors on the quality of services they can expect from an establishment. In the latest round, the TRA wants consultants to coordinate the assessment and accreditation of class A and B hospitality enterprises in 16 counties to continue the national accreditation, classification and grading exercise intended to cover the entire country.
According to a World Bank report, the Eastern and Southern Africa sub-region’s economy is expected to grow from 1.7 percent in 2023 to 2.2 percent in 2024 and then reach 3.9 percent in 2025–2026. With a growth rate of 4.7 percent in 2024 and an anticipated rate of 5.7 percent in 2025–2026, the East African Community outperformed other African sub-regions. The countries that contributed most to the East African Community’s growth performance were Kenya, Rwanda, Tanzania, and Uganda.
Source: Business Daily
Morocco
New Investment Charter Boosts Morocco’s Industrial Projects by USD 13 Billion
Prime Minister Aziz Akhannouch recently noted that the new Investment Charter has greatly enhanced the performance of the National Investment Commission, driving drastic progress in the country’s investment landscape.
Akhannouch noted that the total capital of approved industrial projects has increased tenfold under the new Investment Charter, reaching USD 13.58 billion between May 2023 and November 2024, compared to USD 1.26 billion from October 2021 to April 2023 under the previous version.
Speaking during the monthly oral question session in the House of Councillors on the “National Industrialisation Policy,” Akhannouch said the new charter is a key tool for boosting industrial competitiveness.
It strengthens the legislative and regulatory framework to attract local and foreign investors to priority sectors, particularly industry. The charter, which took effect in late 2022, also offers a range of incentives to improve the business climate, including financial and spatial benefits aimed at reducing costs for investors.
The minister also explained that the government is committed to ensuring spatial equity in the distribution of investments through the new charter, aiming to ensure that all regions benefit from industrial development efforts. He mentioned the government’s focus on fostering innovation and advanced technologies within the manufacturing sector.
Source: Morocco World News
Nigeria
Nigeria, Others to Share USD 10 Billion 5G Cash
Nigeria and other countries in sub-Saharan Africa that have deployed the fifth generation (5G) technology to offer telecom services are set to share USD 10 billion cash as proceeds from the technology which features lower latency, higher capacity, and increased bandwidth compared to 4G.
These service improvements will define how people live, work, and play in Nigeria and globally.
South Africa launched 5G services in July 2020 and has since increased coverage to around 20 per cent of the population while Nigeria launched 5G services in Lagos in 2022. Two other telcos, Mafab Communications Limited and Airtel Nigeria have since launched services riding on the same technology.
The Federal Government, through the Nigerian Communications Commission, generated over USD 847.8 million from the sale of the 5G spectrum. According to the Global System for Mobile Communication Association, the economic impact of deploying the technology will be felt as it is expected to contribute USD 10 billion to the region’s economy, accounting for six per cent of the mobile sector’s total economic impact.
Source: The Nation Online
South Africa
South Africa Emerging as a Top Investment Destination
South Africa is rapidly gaining recognition as an attractive destination for global investors thanks to its strategic positioning and abundant natural resources. Amid a climate of political stability and commitment to national unity, South Africa stands out for its relatively low valuations compared to other emerging markets such as the BRICS nations. This creates fertile ground for foreign direct investment.
Over the past year, the JSE All Share Index has outperformed its counterparts like the FTSE All Share and EuroStoxx, driven by investor optimism surrounding the establishment of the Government of National Unity. The market’s positive response, while dependent on effective policy implementation, indicates significant potential.
South Africa’s role as the gateway to Africa, along with its advanced financial system and robust resources, boosts its investment appeal. The market is characterised by higher equity returns, fueled by competitive dividend yields and attractive valuation metrics, making it an excellent choice for yield-seeking investors in the current move to a lower interest-rate environment.
The mining sector remains the cornerstone of the economy, driven by sustained global demand for commodities such as gold, platinum, and coal. This continuous demand, coupled with South Africa’s rich mineral reserves, makes the mining industry especially appealing for investors seeking stable and potentially high returns.
Source: The Independent Online
Tanzania
Tanzania’s Exports to African Countries Surpass Imports
The value of goods Tanzania exports to other African countries has reached USD 2.65 billion, nearly double the value of imports it receives from the continent. According to the Arusha-based East African Business Council (EABC), the International Trade Centre data indicates that Tanzania imported goods worth USD 1.5 billion from other African countries in 2023, reflecting a favourable trade balance for the nation.
In light of this, EABC’s Membership and Business Development Manager, Mr Zephania Shaidi, urged Tanzanian businesses to explore opportunities beyond local markets. He encouraged enterprises to leverage the African Continental Free Trade Area (AfCFTA) to access wider markets. Mr Shaidi made his remarks during the conclusion of a special training programme aimed at enhancing the capacity of small and medium-sized enterprises to navigate the AfCFTA framework. The event brought together more than 50 representatives from manufacturing, agro-processing, creative industries, transport, and government sectors.
Source: The Citizen
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Reports
Carbon Markets in Africa: Unlocking Potential for Shared Sustainable Growth & Climate Resilience | NEPAD
Carbon markets are market-based systems designed to address environmental challenges, particularly the reduction of greenhouse gas emissions, in a market-oriented manner. These markets create a financial incentive for businesses and entities to reduce carbon emissions.
The findings of this study indicate a growing interest among certain African nations in leveraging carbon markets to fulfil their Nationally Determined Contributions (NDCs) commitments. However, many African countries lag in adopting and utilising carbon markets. Several factors contribute to this limited adoption on the continent.
While efforts have been made to expand and promote carbon markets since the conclusion of the Paris Agreement, progress in increasing the adoption of carbon markets in most African countries has been modest at best. The Africa Carbon Market Initiative (ACMI) is currently the continent’s first-ever collective effort to enhance the capacity of carbon markets within individual countries. Nevertheless, this initiative is still in its early stages, with a growing but limited impact.
Carbon markets offer more than just environmental benefits; they have the potential to generate socio-economic value through various mechanisms. These advantages encompass revenue generation, job creation, rural economic development, and empowerment. If effectively harnessed, these benefits can transform communities across Africa.
Click here to read and download the full report.
Investing in Eastern Africa | United Nations Economic Commission on Africa
The Eastern Africa region’s economy experienced strong GDP growth before the outbreak of the COVID-19 pandemic. The structure of the economies in the region is a function of the country: some countries such as South Sudan and DRC are “resource-rich” countries, with their economies highly dependent on natural resources, whereas the economy of the island Seychelles is driven by tourism.
The region has several areas of strength and several investment opportunities for attracting more investment, particularly FDI flows to foster its industrialisation and development. These include, among other things, the large size of its internal market made of 437 million potential consumers, the strong economic growth prospect, and the region being rich in natural resources ideal for agriculture, mining, and tourism.
There are also huge investment opportunities in the manufacturing, infrastructure, and service internal market sectors. The main recommendations from this study are summarised. The initiatives aim to help countries in the region implement measures and action plans to address their key challenges and fully benefit from the implementation of AfCFTA and its investment protocol.
Click here to read and download the full report.
Boosting Regional Tourism in Eastern Africa | United Nations Economic Commission on Africa
The study explores how Eastern African urban centres can become competitive tourism destinations by assessing opportunities and challenges in the rapidly growing tourism sector, which drives regional socioeconomic development.
Despite the steady growth of tourism in Eastern Africa, the sector has not fully realised its full potential. This situation is mainly attributed to several bottlenecks in the tourism sector such as the narrow tourism product offer, which is mostly focused on wildlife-based tourism at the expense of other tourism segments.
Urban tourism development is considered a means through which the Eastern African tourism product offer can be diversified, and tourist arrivals enhanced across the rapidly urbanising landscape. However, most countries have not fully harnessed the tourism opportunities presented by the urban areas and there is limited information that can inform sustainable urban tourism development. Viewed in this context, it was imperative to undertake this study to provide information to guide East African countries to tap into the opportunities available in the urban tourism market segment and contribute to the sustainable development of the cities.
Click here to read and download the full report.
The IMF and the Future of the Global Financial Architecture: A Report of the Africa High-Level Working Group on the Global Financial Architecture | United Nations Economic Commission on Africa
The IMF and the Future of Global Financial Architecture come as part of the work of the High-level Working Group on Global Financial Architecture. This report aims to advance some new thinking and policymaking that the IMF will need to fulfil its new Bretton Woods moment. Four principles will help guide this effort.
First, the IMF’s SDR policies should be less discretionary and more rule-based and analytical. Second, the IMF’s lending horizon and outlook on balance-of-payments problems should be prioritised in the long term. Third, the IMF must work more assiduously to redress structural inequalities in the global financial architecture by giving greater representation and tending more proactively to the problems affecting low- and lower-middle-income countries. Fourth, the IMF should align its overall engagement, including its policy and lending instruments, to play a highly catalytic role in mobilising additional sources of financing while fostering closer collaboration with the World Bank and other multilateral development banks.
The IMF and the Future of the Global Financial Architecture is divided into five chapters: “Global Financial Safety Net,” “A New Global Debt Architecture,” “The Resilience and Sustainability Trust and a New Agenda for Green Development,” “A New Agenda for Market Access,” and “An International Monetary Fund for the 21st Century: Lending, Governance, and Future Direction.” Together they form a Ten Point Plan of near- and long-term recommendations for the IMF to address enduring and emerging challenges in global financial architecture.
Click here to read and download the full report.
