East Africa
East Africa Leads Africa’s Economic Recovery
The degree of economic recovery in 2024 has differed greatly across Africa and the continent’s subregions. However, East Africa remains the most notable subregion, with the highest economic growth rate. Within East Africa, Kenya stands out owing to its robust currency and impressive sectoral accomplishments.
Growth is projected to accelerate in nearly 60 percent of Sub-Saharan African countries by 2024, according to a World Bank report. Highlighting Africa’s economic prospects, the Africa Pulse study notes that East Africa continues to lead as the continent’s top-performing economic sub-region.
The World Bank report projects that the economy of the Eastern and Southern Africa sub-region will grow from 1.7 percent in 2023 to 2.2 percent in 2024, reaching 3.9 percent by 2025–2026. Leading the continent, the East African Community is expected to achieve a growth rate of 4.7 percent in 2024, rising to 5.7 percent in 2025–2026. Key contributors to this strong performance include Kenya, Rwanda, Tanzania, and Uganda.
Source: Business Insider Africa
Algeria
Algeria and Niger in Talks to Revive Saharan Gas Pipeline
Top energy officials from Algeria and Niger recently met in Algiers to revive plans to complete construction of a USD 13 billion pipeline that would transport gas from Nigeria to the Mediterranean Sea. The 4000-kilometre Trans-Sahara Gas Pipeline (TSGP) has been mooted for at least 20 years and while sections already exist in Nigeria and Algeria, a deal has never been agreed to build the critical link through Niger.
Gas-rich Nigeria is keen to exploit its vast resources, with the TSGP being one of three export pipeline projects under consideration. One proposed pipeline would follow West Africa’s coast up to Morocco, while Abuja has also recently engaged in discussions with Libya about a northward-flowing pipeline.
Source: Upstream Online
Egypt
Egypt Poised to Lead Wind Energy in the Middle East with 76 GW Capacity by 2050
Egypt is positioned to become a leading force in wind energy within the Middle East, with the capacity to generate an excess of 76 gigawatts per hour by 2050, according to an international study. This capability would solidify its status as a potential leader in clean energy across the region. Published in the journal “Science of The Total Environment,” the study utilised weather modelling techniques to assess wind and solar energy potentials across 16 countries in the Eastern Mediterranean and Middle East. It projects that by 2050, renewable sources could cater to 89 percent of the region’s projected energy needs, predominantly through wind and solar power.
During a press conference at the recently concluded World Energy Day 2024, Ahmed Butti Al Muhairbi, Secretary-General of the Dubai Supreme Council of Energy and Vice Chairperson of the Emirates Energy Award Committee, stated: “Egypt has made remarkable achievements in the fields of clean and renewable energy; and has established leading strategies that support environmental sustainability and carbon emission reduction. This award fosters cooperation among Arab countries to address climate change challenges and support innovation in the energy sector.”
Source: Daily News Egypt
Kenya
Kenya Leads Africa in Startup Funds Raised
Kenya has emerged as the leading African country in startup funding, raising USD 437 million, which represents 31 percent of total funds raised on the continent, according to data from Africa: The Big Deal. The growth highlights the strong preference for Kenyan startups among global investors, driven by the country’s strategic location, fast internet speeds, and favourable policies.
Kenya’s robust startup ecosystem has positioned it ahead of Egypt, which raised USD 373 million during the same period. Together, Kenya and Egypt account for 58 percent of the total startup investments in Africa.
In contrast, once a leader in startup funding, Nigeria has raised USD 218 million, representing a 15 percent share—up slightly from last year’s 14 percent but still a notable decline from its historical average of 35 percent between 2019 and 2022.
South Africa has reported its lowest startup funding performance since 2019, securing just USD 125 million, or 9 percent of the continent’s total funding in 2024. The remaining 18 percent of funds raised were spread across 23 African markets, with Tanzania, Ghana, Morocco, Uganda, and Rwanda achieving significant deals.
Source: Capital Business
Morocco
Morocco’s FDI Boom Gains Momentum with Major Projects on the Horizon
Morocco is consolidating its appeal as a prime foreign direct investment (FDI) destination, with a growing focus on the automotive and green hydrogen sectors. The 2025 finance bill report from the Ministry of Economy and Finance underlines Morocco’s promising outlook, with several key projects on the horizon.
Notably, Chinese tech giant Gotion recently announced plans to invest USD 6.4 billion in building an electric vehicle battery manufacturing plant. At the same time, Morocco is advancing its green hydrogen sector, following the March 2024 launch of the “Morocco Offer” looking to foster growth in this field.
In 2024, Morocco’s FDI has shown a strong rebound, growing by 55.1 percent in the first eight months, with revenues reaching USD 2.5 billion and expenses dropping to USD 1 billion. This recovery follows a 52 percent decline in net FDI in 2023, which fell to USD 1.1 billion, according to the Office des Changes. France led foreign investments in 2023 with 33 percent, followed by the UAE (10 percent), the UK (8 percent), and Spain (7 percent). The industrial and real estate sectors were the largest recipients, attracting 38 percent and 22 percent of FDI, with additional contributions from the transport, energy, mining, and tourism sectors.
Source: Morocco World News
South Africa
SA Climbs UN E-Government Index Rankings to Lead Africa’s Digital Transformation
South Africa has rocketed up the rankings in the United Nations (UN) e-Government Index for 2024, climbing from 65 in 2022 to an impressive 40 out of 193 countries. This advancement places the nation among well-established economies globally, marking it as a leader in e-government development within Africa.
In a notable milestone, South Africa’s progress is echoed by Mauritius, which ranks 76th, and Tunisia at 87th. Both South Africa and Mauritius have now entered the category of countries classified within the very high E-Government Development Index group. This classification highlights the remarkable strides made in enhancing digital government infrastructure and services across the region.
Minister of Communications and Digital Technologies, Solly Malatsi, welcomed this significant improvement by emphasising the importance of accelerating South Africa’s National e-Government Programme.
“As the digital economy gains rapid momentum, it’s imperative for South Africa to streamline processes that touch the lives of our citizens,” he said.
Source: Independent Online
Tanzania
Tanzania Leaps Ahead in Africa’s Trade Attractiveness Rankings
Tanzania has made a significant leap in its trade attractiveness, now ranking fourth highest in Africa, according to the Standard Bank Africa Trade Barometer (SB ATB) released recently. This advancement is attributed to the country’s substantial investments in infrastructure and enhanced access to finance, which have energised businesses and facilitated greater engagement in cross-border trade.
The findings from Issue 4 of the SB ATB, highlight the dynamic changes in the trade landscape across ten African nations, reflecting both opportunities and challenges. “As Africa moves towards greater integration under the African Continental Free Trade Area (AfCFTA), the Standard Bank Africa Trade Barometer offers critical insights into the opportunities and challenges faced by African businesses and stakeholders in facilitating trade,” said Philip Myburgh, group head of trade at Standard Bank Business and Commercial Banking.
Source: Independent Online
Uganda
Uganda Joins BRICS as Partner Nation, Paving the Way for Increased Trade and Investment
Uganda has officially joined BRICS (Brazil, Russia, India, China, and South Africa) as one of 13 new partner nations in a move set to reshape its international trade and investment prospects. By aligning with the BRICS alliance, Uganda is positioning itself to benefit from deeper economic ties with some of the world’s largest emerging markets.
Other nations joining as BRICS partners include Algeria, Indonesia, Turkey, Nigeria, and Vietnam, as the group seeks to expand its global influence and foster a more balanced, multilateral trade system.
The expansion is part of BRICS’ long-term strategy to challenge the dominance of Western-centric trade and financial institutions, promoting alternative economic pathways. For Uganda, inclusion in BRICS presents opportunities to diversify its trade relationships and tap into the vast markets within the alliance.
With a GDP that relies heavily on agriculture and natural resources, Uganda stands to gain from increased foreign investment and trade in sectors like oil, minerals, coffee, and tea.
Source: Nile Post
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Report
Finance and Investment in Africa | AfDB
This report analyses finance and investment status and trends in Africa, and how these shape the developments in key economic sectors. The focus is on understanding the current state of finance and investment in Africa and identifying opportunities for promoting sustainable finance and investment practices that align with the continent’s economic, ecological, and social potential.
The report highlights the essential need for Africa to adopt sustainable development pathways that acknowledge the significant role of the continent’s natural capital in ensuring long-term prosperity.
The African economic landscape is dynamic and multifaceted, shaped by various factors influencing its financial and investment status and trends. The financing instruments are diverse, encompassing contributions from both foreign and domestic sources. To gain a comprehensive understanding of the African economic landscape, the report analyses the following economic metrics: Foreign Direct Investment (FDI), Portfolio Investments, Debt, Official Development Assistance (ODA), and Tax Revenues.
Click here to download and read the full report.
A Prosperous and Sustainable Africa and Europe | NEPAD
The report provides a concise overview of the progress made in delivering on the commitments from the 6th EU-AU Summit, under the “Joint Vision for 2030” aimed at a prosperous and sustainable Africa and Europe. It highlights alignment with AU’s Agenda 2063 and the UN’s Sustainable Development Goals (SDGs), with progress tracked through consultations and reviews by key EU and AU bodies.
The Global Gateway Africa-Europe Investment Package, endorsed at the summit, is on track with its EUR 150 billion investment target by 2027, with 95 Team Europe Initiatives already developed for Africa. Key flagship projects, particularly in Africa, are advancing, with visible results in areas requiring technical and financial arrangements. Civil society and youth engagement are also emphasised as crucial drivers for success.
Click here to download and read the full report.
Estimating Investment Needs for the Power Sector in Africa 2023-2030 | AfDB
This study contributes to the ongoing dialogue about the costs and implications of tackling two critical energy challenges facing the African continent: achieving universal access to electricity in alignment with Sustainable Development Goal 7 and expanding power systems to foster economic growth while avoiding a high-emissions trajectory.
Specifically, the study aims to derive insights from economic least-cost expansion modelling to: estimate economic least-cost investment requirements and related emissions; and explore existing structural barriers to and enablers of the energy transition.
The headline estimates indicate a base case investment requirement of about USD 454 billion, or USD 64 billion per year from 2023 until 2030 if an optimal investment plan is realised. Behind this headline are several interesting results and findings.
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2024 M&A Report | BCG
Amid global economic turbulence, Mergers & Acquisitions (M&A) activity has been mixed. The year began with a modest comeback in dealmaking, followed by a sluggish second quarter and, more recently, a volatile return to average activity levels. During the first nine months of 2024, global aggregate M&A value increased by approximately 10 percent compared to last year.
BCG’s M&A Sentiment Index continues to show signs of a strengthening market, albeit slowly and steadily. We anticipate increased activity in the coming months, with dealmakers in the US and Europe leading the charge. Most industries will participate in the recovery, especially energy, technology, and healthcare sectors. Fundamental factors, such as economic growth and political and regulatory conditions, will remain volatile. Even so, major trends, including energy transformation, digitisation, and the rising importance of AI, will continue to propel the M&A market.
Click here to download and read the full report.