Now is the time to act. The future of innovation may not be about simply refining current models but about co-creating new solutions across continents.

Read on to learn more.

🕐 In a Hurry? Here's a 1-Minute Summary:

1. From Stagnation to Momentum: While German companies wrestle with an aging population and tight regulations, Africa’s youthful demographics and accelerating urbanization are redefining growth opportunities.

2. Distinct, Often Accelerated Development: Rather than catching up, African economies frequently take bold leaps—particularly in digital technologies—creating fertile ground for disruptive business models.

3. Scalable Market Potential: With comparatively underpenetrated sectors—fintech, healthcare, agriculture, and renewable energy—African markets can offer expansion paths that are increasingly scarce in Europe.

4. Sustainability Meets Profitability: Rich in renewable resources, Africa is adopting climate-smart solutions at scale, enabling companies to achieve both commercial and ESG objectives.

5. Concrete Success Stories: Knauf, Melitta, and Dräger demonstrate how tailor-made strategies and local partnerships can lead to sustained growth and positive impact in African markets.

⏳ Ready for a Deeper Dive? Here's the Breakdown:

Situation

German companies and start-ups are facing increasingly difficult growth conditions. An aging population, saturated markets, and heightened regulatory pressures limit both innovation and scalability. Leaders are under pressure to find new avenues for expansion, yet the opportunities within Europe are shrinking.

Meanwhile, Africa is charting a very different course. Although Germany’s economy—with a GDP of around $4.2 trillion—currently outstrips the combined GDP of the entire African continent (around $3 trillion), the underlying trends tell a different story. Africa’s growth is being propelled by demographic shifts, urbanization, and rapid technological adoption. Countries like Nigeria, Kenya, Rwanda, and South Africa are driving dynamic economic shifts that offer significant potential for future growth.

Complication

Despite these prospects, many German companies remain hesitant. Concerns about unfamiliar markets, infrastructure gaps, and perceived risks create uncertainty. However, much of this hesitation stems from a misunderstanding of Africa’s growth dynamics. The trends shaping Africa are not merely a delayed version of those seen in Germany—they are distinct and, in some cases, entirely opposite.

Consider these contrasts:

• Demographics: While Germany faces a shrinking and aging workforce, Africa’s population is set to double by 2050, offering one of the youngest and most dynamic labor and consumer bases globally.

• Urban Development: Germany’s infrastructure is highly developed but aging, with limited room for large-scale urban expansion. Africa, by contrast, is witnessing rapid urbanization, creating demand for infrastructure, mobility solutions, and urban services at an unprecedented scale.

• Technological Adoption: Germany contends with slow and incremental digital transformation. Africa, however, is leapfrogging traditional technologies, building mobile-first economies and decentralized renewable energy systems.

These divergences create both a challenge and an opportunity for German businesses. Companies willing to shift their perspective can capitalize on Africa’s long-term growth trajectory.

Solution

By rethinking their strategies, German companies can position themselves to benefit from Africa’s unique growth story. Early movers will have opportunities to shape markets, build partnerships, and co-create solutions tailored to local needs.

Here’s why it makes sense to explore these opportunities now:

#1: Access to High-Growth Markets:
Africa’s expanding middle class and increasing digital connectivity are driving demand in sectors such as financial technology, healthcare, agriculture, and energy. These markets offer significant room to scale innovative solutions with less competition than in Europe.

#2: Demographic Advantage:
Africa is home to the world’s youngest population, with 60% of its people under the age of 25. This offers both a rapidly expanding consumer base and a dynamic talent pool for the future. Africa’s young, tech-savvy population is both a rapidly expanding consumer base and a source of skilled talent. Companies that invest early will gain long-term benefits from this demographic momentum.

#3: Innovation Partnerships:
Emerging African tech ecosystems such as Nairobi’s "Silicon Savannah" and Kigali’s innovation-focused initiatives are producing scalable, agile solutions to complex challenges. German companies can enhance their competitiveness by collaborating with these ecosystems through joint R&D, local partnerships, and talent exchange.

#4: Alignment with ESG Goals:
Africa is uniquely positioned to lead in sustainability, thanks to its rich biodiversity and abundant renewable energy resources (solar, wind, and hydro). The continent is already embracing climate-resilient agriculture, decentralized solar grids, and nature-based solutions to environmental challenges. Africa presents significant opportunities for sustainable investments. From renewable energy projects to digital inclusion and climate-smart agriculture, businesses can achieve both profitability and social impact.

#5: Expanding Trade and Logistics:

Africa is on the path to economic integration through the African Continental Free Trade Area (AfCFTA), which aims to create a single market for goods and services across 54 countries. This initiative, the largest of its kind globally, has the potential to dramatically boost intra-African trade and improve market efficiency. Major infrastructure projects under initiatives like AfCFTA and local investment programs are improving trade logistics and connectivity. Ports, railways, and trade corridors are being modernized to support intra-continental commerce.

Examples of Success

Several German companies are already seizing these opportunities.

• Knauf: A leading German building materials company, Knauf has expanded its manufacturing and distribution networks across multiple African countries. By adapting its product range to local construction needs, it has gained a strong foothold in fast-growing urban areas.

• Melitta: Known worldwide for its coffee products, Melitta has successfully navigated Africa’s diverse consumer preferences by localizing blends and leveraging regional supply chains. This strategy has strengthened the brand’s presence in retail and hospitality sectors.

• Dräger: A German manufacturer specializing in medical and safety technology, Dräger has made substantial inroads in African healthcare markets. By collaborating with local partners on training and equipment maintenance, it has built long-term customer relationships and contributed to improving healthcare infrastructure.

Sources to learn more:

• African Development Bank (AfDB) – African Economic Outlook with comprehensive data and analysis on Africa’s macroeconomic performance

• McKinsey & Company – Reports on Africa features research and case studies on African markets, including insights into consumer behavior, digitization, and sector-specific trends such as financial services and manufacturing.

• World Bank – Africa Region offers country-specific economic updates, development projects, and policy analysis. The World Bank’s “Doing Business” reports can also help entrepreneurs assess regulatory environments.

• Germany Trade & Invest (GTAI) – Africa Business Guide offers insights into specific African markets, legal frameworks, and potential export or partnership avenues for German companies.

• Brookings Institution – Africa Growth Initiative delivers policy briefs, expert opinions, and data-driven research on Africa’s economic transformations, governance issues, and overall development trajectory.

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Disclaimer: All information provided is not intended to serve as investment advice. Any mention of industries or countries should not be taken as an endorsement.

it’s time again for our investment and industry news roundup covering Sub-Saharan Africa.

The highlights this week:

• Mama Money to launch WhatsApp-powered bank card partnering with Access Bank and Paymentology

• Significant boost to Kenya’s e-mobility sector with Norfund’s commitment of over $300 million

• Exciting Fintech funding news with some major announcements like Nala’s $40 million Series A or TymeBank’s $78 milion pre-series C round

Keep reading to learn more!

😍 Investment news we love:

Green Financing

• Africa50 has pledged to invest $100 million in renewable energy in Africa by joining IRENA's Energy Transition Accelerator Financing platform.

• Impact Bridge Asset Management launched IB Impact Direct Debt, a €50m fund to finance social and environmental impact projects in developing countries.

Start-Up & SME Financing

• SPE Capital raised $140 million to invest in North Africa's small and growing businesses.

• Innovate Africa Fund has launched with a $2.5 million rollout to support up to 20 startups in its first year, targeting issues like insecurity, unemployment, and poverty through purpose-driven technology.

• Oasis Capital Ghana announced the first close of its $100 million Oasis Africa Fund II, securing $33.3 million to support West African SMEs.

👎 Why we need to keep pushing:

• VC investments in Africa have reached a four-year low, with startups raising $780 million in the first half of the year; climate tech attracted 45% of the funding and female-led startups continued to receive minimal investment.

What's worth knowing in:

🥑 Agriculture/ Food systems:

• South Africa: Farmers in South Africa are increasingly using drones for precision farming to enhance resource management and food traceability, providing critical data and topography analytics for improved agricultural efficiency amid economic pressures.

• South Africa: Pumpkn, addressing the funding gap in agriculture by facilitating financial support for agribusinesses, has secured investment from Renew Capital and uses data-driven credit assessments to help lenders identify viable agri-SMEs.

🌳 Ecosystems

• Ivory Coast: Ivory Coast received its first $35 million payment under the Emissions Reductions Payment Agreement, becoming the fourth African country to benefit from this forest carbon offset mechanism.

💡 Energy and infrastructure

• South Sudan: EIF and Finnfund are providing $20 million to CREI to fund the solarization of telecommunications infrastructure in South Sudan.

🚕 Mobility and transport systems

• Rwanda: BasiGo Rwanda received a RWF 300 million grant from Ireme Invest to enhance its electric bus charging infrastructure in Kigali.

• South Africa: South African startup Shesha aims to disrupt the e-hailing market dominated by Uber and Bolt by leveraging local knowledge, prioritizing safety, and addressing driver concerns.

• Kenya: Norfund will invest $307 million in Kenyan electromobility solutions, focusing on start-up BasiGo, as announced by Norway's Foreign Affairs Minister in Nairobi.

• Mozambique, Zimbabwe, and Botswana are collaborating on upgrading the Beira-Zimbabwe-Botswana railway system and constructing a new deepwater mineral port in southern Mozambique to boost trade

🏭 Industrialisation

• South Africa: Geobrugg Africa has inaugurated its first high-tensile steel production facility in Lanseria, Gauteng.

• Rwanda: Rwanda-based producer Pink Mango is working to unravel the industry’s ills

💧 Water systems

• Namibia: Namibia has initiated the construction of its second desalination plant (set to begin operations by early 2027) to address severe water shortages caused by a century-long drought.

💻 Digital transformation

• South Africa: Cross-border money transfer startup Mama Money has partnered with Access Bank and Paymentology to launch a WhatsApp-powered bank card.

• Zambia: Chisepo Chirwa, co-founder and CEO of Bosso, an e-commerce platform for building materials, secured $400,000 in pre-seed funding to address affordable housing shortages and provide better access to quality building materials.

• South Africa: TymeBank raised USD 77.8 million in a pre-Series C round led by Norrsken22 and Blue Earth Capital, aiming to use the funds for further operations in South Africa and the Philippines, and for future expansion in Southeast Asia.

• Tanzania: Money transfer fintech Nala raised $40 million in Series A funding to support its global expansion and improve payment reliability to Africa by developing its own payment infrastructure.

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today we dive deeper into money flows. Remittances, foreign direct investments (FDI) and aid - what’s the situation, the challenges and what has the most impact on sustainable and inclusive development on the continent.

To spill the beans upfront, FDI has the most positive impact on job creation and economic growth - which is also why we don’t get tired of highlighting the opportunities that the African continent offers for investors.

Read on to learn more.

🕐 In a Hurry? Here's a 1-Minute Summary:

1. Dominance of Remittances: Remittances to Africa totaled $100 billion in 2022, the largest source of external financial flows, supporting household income, especially in rural areas. They accounted for 3.4% of Africa's GDP.

2. Foreign Direct Investment (FDI): FDI is essential for economic development but remains low, with Africa receiving only $45 billion in 2022, just 3.5% of global FDI. Key drivers include natural resources, infrastructure, technology, and financial services.

3. Overseas Development Assistance (ODA): Aid flows have decreased from 6.6% of GDP in 1990 to around 2.5% today, yet remain crucial for low-income countries. The United States, Europe, and increasingly China are primary donors.

4. Challenges to Financial Flows: High remittance costs, low FDI levels, declining aid, illicit financial flows, fragmented markets, and reliance on primary commodities hinder Africa's economic potential.

5. Impact on Development: FDI has the most significant positive effect on GDP per capita and poverty reduction. By 2043, increased FDI could raise GDP per capita by $142 and reduce the number of poor people by 15.5 million, making it the most impactful financial flow for Africa's long-term development.

⏳ Ready for a Deeper Dive? Here's the Breakdown:

Africa’s development significantly influenced by remittances, foreign direct investment and overseas development assistance

These financial sources play crucial roles in supplementing domestic resources, stimulating economic growth, and reducing poverty across the continent.

1. Dominance of Remittances

Remittances have become the largest source of external financial flows to Africa, 100 billion USD in 2022, surpassing both FDI and aid. This inflow is vital for household income, especially in rural areas, supporting essential needs such as food, education, and healthcare.

In 2022, remittances accounted for 3.4% of Africa's GDP. Projections for 2024 indicate a further 2.5% increase in remittance flows. However, the cost of sending money remains high.

2. Foreign Direct Investment

FDI is crucial for Africa's economic development and poverty reduction, but remains low. In 2021, Africa saw a record $83 billion in FDI, significantly rebounding from the pandemic-induced slump in 2020.

In 2022, global FDI inflows totaled $1.3 trillion, with Asia receiving $662 billion and Latin America over $200 billion, while Africa received only $45 billion, accounting for only 3.5% of global FDI. Per capita, FDI in Africa remains marginal compared to other regions.

Key drivers of FDI in Africa include natural resources, infrastructure, technology, and financial services sectors.

FDIs differ significantly between the countries. Egypt’s FDI more than doubled to $11 billion in 2022 due to increased mergers and acquisitions. Nigeria experienced negative FDI flows (-$187 million) due to equity divestments, though greenfield projects rose.

3. Overseas Development Assistance: Declining Yet Crucial

In 2022, 25% of international aid went to Africa. However, aid flows have declined from a peak of 6.6% of GDP in 1990 to around 2.5% of GDP today. Despite this decrease, aid remains essential, particularly for low-income countries, supporting various developmental projects and humanitarian needs. The United States and Europe are the primary donors, though China's influence is growing.

Africa is increasingly focusing on mobilizing domestic resources and attracting private capital for development projects. The African Continental Free Trade Area (AfCFTA) and global collaborations, such as those with the G20, aim to create an environment conducive to green financing and sustainable investments. These initiatives are crucial for bridging the financing gap in infrastructure, healthcare, and education​.

While remittances, FDI, and ODA are essential for Africa's development, their full potential is not being realized

High Costs of Remittances: While remittances are vital for household incomes, the cost of sending money to Africa remains prohibitively high, averaging 7.9% for $200. This reduces the effective amount received by families and limits the overall economic benefit.

Low FDI Levels: Despite high growth potential and abundant natural resources, Africa attracts far less investment per capita than Asia or Latin America. Contributing factors include political instability, economic uncertainty, underdeveloped financial markets, poor infrastructure, and weak regulatory frameworks.

Declining Aid: Although still crucial, especially for low-income countries, the decline in aid has not kept pace with Africa's growing needs. The growing influence of China as a donor adds complexity to the traditional aid dynamics, potentially leading to debt sustainability issues due to non-concessional loan terms.

Illicit Financial Flows: Africa loses between $50 billion and $80 billion annually due to illicit financial flows, including tax evasion, corruption, and illegal transactions. These outflows drain resources that could be invested domestically.

Aid, remittances, and FDI each have distinct impacts on Africa's socio-economic development.

Remittances: Remittances can boost growth by providing resources for investment and consumption. However, their positive impact is limited by factors like spending on imports, real exchange rate appreciation, and the potential 'brain drain' of skilled workers.

FDI: FDI is crucial for capital accumulation, technology transfer, and managerial skills. It directly reduces poverty by creating jobs and enabling further job creation through knowledge transfer. Labor-intensive manufacturing FDI, similar to the Asian model, is particularly effective in reducing poverty.

Aid: To be effective in reducing poverty, aid should be targeted at specific programs and objectives, such as health and education.

FDI has the most significant positive effect on GDP per capita and poverty reduction compared to other financial flows

FDI has the most significant impact on poverty reduction in upper-middle- and lower-middle-income groups. For low-income groups, aid remains crucial for poverty reduction, closely followed by FDI.

By 2043, increased FDI could raise Africa's GDP per capita by $142 above the current path forecast. While aid and remittances would have much smaller effects ($20 and $4, respectively).

Increased FDI could reduce the number of poor people in Africa to 383 million by 2043, 15.5 million fewer than the current path forecast.

Sources to learn more:

• African Futures - Financial Flows

• Remitscope - The global platform for remittance related data

• Investment flows to Africa dropped to $45 billion in 2022 by UN Trade & Development

• False economy: Why Europeans should stop slashing development aid to Africa by ECFR

• AidFlows - Flows of aid around the world by country and organization

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Disclaimer: All information provided is not intended to serve as investment advice. Any mention of industries or countries should not be taken as an endorsement.

it’s time again for our investment and industry news roundup covering Sub-Saharan Africa.

The highlights this week:

• Mauritania's Green Hydrogen Initiative: Mauritania is partnering with CWP Global to use green hydrogen for decarbonizing iron production, aiming to produce hot briquetted iron and significantly reduce CO2 emissions, positioning the country as a key player in the green steel industry.

• Ethiopia's Largest EV Factory: Ethiopia has inaugurated its largest electric vehicle factory in Debre Berhan with a $52 million investment by Belayneh Kinde, aiming to produce 1,000 electric vehicles annually, enhancing the country's move towards sustainable transportation.

• Serum Institute of India's Expansion in Africa: The Serum Institute of India is planning to set up its first manufacturing plant in Africa, with potential locations in South Africa and Rwanda, to bolster local vaccine production and reduce dependency on foreign suppliers, particularly highlighted by the COVID-19 pandemic.

Keep reading to learn more!

😍 Investment news we love:

Green financing

• Senegal is launching a national fund to promote the green economy, focusing on agriculture, waste management, and biodiversity to reduce environmental impact.

• The African Development Fund (ADF) has approved a $42.86 million grant to support Ethiopian agricultural projects led by SMEs, particularly those headed by young people and women.

• The Climate Action Africa Forum (CAAF24) in Lagos highlighted Africa's potential for green transformation and announced several key initiatives, including the launch of the $20 million Pan African Climate Action Fund.

Venture Capital

• Eco2rybe Africa Platform has launched the $250 billion Art2Green Africa Initiative to monetize the creative arts, crafts, music, and traditions of over 2,500 African tribes.

• European early-stage VC firm Breega has launched a $75 million Africa-focused fund to invest in early-stage startups across Africa, in sectors such as agri-tech, ed-tech, e-health, fintech, and logistics.

What's worth knowing in:

🌳 Ecosystems

• Mali: Rokiatou Traore, a green entrepreneur in Mali, is combating desertification by encouraging women and young people to plant trees to protect livelihoods.

💡 Energy and infrastructure

• SolarSaver has installed solar PV systems at 150 Engen fuel stations in Botswana, Namibia, and South Africa, generating nearly 6.59 MW and reducing grid dependence and CO2 emissions.

• DRC: The MIGA is providing a $50.3 million guarantee to Congo Energy Solutions (Nuru) for installing hybrid solar-powered metropolitan electricity grids to electrify 28,000 households and businesses.

• Guinea-Bissau: The World Bank is supporting Guinea-Bissau's first solar power plants to decarbonize electricity production and enhance electrification, including hybrid solar mini-grids to power 1,200 households and businesses.

• Mauritania: Mauritania, in partnership with Australian energy company CWP Global, aims to decarbonize its iron production by using green hydrogen to produce hot briquetted iron.

🚕 Mobility and transport systems

• Ethiopia: Ethiopia has opened its largest EV factory in Debre Berhan, with a $52 million investment by entrepreneur Belayneh Kinde, aiming to produce 1,000 EVs annually.

• Ivory Coast: Bouaké has inaugurated its first EV charging point, aligning with the country's push towards e-mobility and following the arrival of BYD e-cars and is part of a broader strategy to improve air quality and promote green transportation.

• Rwanda: Ampersand signed an agreement with Chinese EV company BYD. Ampersand will buy batteries from BYD to build approximately 40,000 electric motorcycles by the end of 2026.

🏭 Industrialisation

• Angola: A new clothing factory has opened in Viana, Luanda, Angola, with the capacity to produce between 300,000 and 900,000 garments per month, with plans to potentially reach 15,000 employees by 2026.

• The Serum Institute of India (SII), the world's largest vaccine producer, is planning to establish its first manufacturing plant in Africa, with potential locations including South Africa and Rwanda.

• Businesses from the U.S., Japan, and Europe are racing to invest in Central Africa's Copperbelt region, which spans Zambia and the DRC, to tap into its rich reserves of copper and cobalt essential for EV batteries. Utilizing advanced technologies like AI for locating deposits, these companies aim to compete with China's dominant presence in the region's mineral development.

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the African Development Bank has launched its African Economic Outlook 2024 report - filled with insights, that we want to shine a light on today in this newsletter.

The report highlights the continent’s resilience and growth potential despite significant challenges. It argues that by addressing structural weaknesses and advocating for global financial reforms, Africa can pave the way for a more inclusive and sustainable economic future.

Read on to learn more, or access the full report through the website of the African Development Bank.

🕐 In a Hurry? Here's a 1-Minute Summary:

1. Economic Resilience Amid Challenges: Africa's GDP growth slowed from 4.1% in 2022 to 3.1% in 2023 due to geopolitical tensions and climate issues but is expected to rebound to 3.7% in 2024 and 4.3% in 2025, maintaining its position as the second-fastest growing region globally.

2. Regional Growth Variability: Growth projections for 2024-25 vary by region, with East Africa expected to grow the fastest. This variability underscores the need for tailored policy interventions.

3. Structural Transformation Needs: Africa's economic structure remains reliant on low-productivity sectors like agriculture. Investment in high-skill services and manufacturing, alongside closing the $402 billion annual financing gap, is crucial for significant transformation.

4. Enhancing Domestic Resource Mobilization: Improving tax systems, broadening the tax base, and strengthening tax administration are essential to reduce dependency on external financing and ensure stable development funding.

5. Global Financial Reforms: Comprehensive reforms are needed to make global financial institutions like the World Bank and IMF more effective and inclusive. Proposed reforms include recycling SDRs, capital adequacy reforms, efficient debt resolution mechanisms, and increasing climate finance accessibility. These reforms could secure $169.4 billion annually, covering 42% of Africa’s financing gap.

⏳ Ready for a Deeper Dive? Here's the Breakdown:

The African Development Bank's African Economic Outlook 2024 emphasizes bold reforms in the global financial architecture to meet Africa's development financing needs. Here are the key things we took away:

1. Economic Resilience Amid Challenges

Despite strong economic performance, Africa's structural transformation has been slow. The continent faces severe shocks, including rising food and energy prices due to geopolitical tensions, climate issues, and political instability. Average consumer price inflation in Africa increased from 14% in 2022 to 17% in 2023.

These challenges contributed to a slowdown in GDP growth from 4.1% in 2022 to 3.1% in 2023.

However, over half of African countries saw higher GDP growth in 2023 than in 2022, with fifteen countries achieving at least 5% growth.

Overall, growth is expected to rebound to 3.7% in 2024 and 4.3% in 2025, maintaining Africa as the second-fastest growing region globally.

2. Heterogeneous Growth Across Regions

The growth outlook for 2024-25 varies across Africa’s regions and economic groupings, reflecting differences in economic structures, commodity dependence, and domestic policy responses:

• East Africa: Fastest-growing, with GDP growth from 1.5% in 2023 to 4.9% in 2024 and 5.7% in 2025.

• Central Africa: Growth moderates from 4.3% in 2023 to 4.1% in 2024, improving to 4.7% in 2025.

• West Africa: Growth from 3.6% in 2023 to 4.2% in 2024 and 4.4% in 2025.

• North Africa: Growth declines from 4.1% in 2023 to 3.6% in 2024, rising to 4.2% in 2025.

• Southern Africa: Growth increases from 1.6% in 2023 to 2.2% in 2024 and 2.7% in 2025.

This variability highlights the need for tailored policy interventions.

3. Structural Transformation and Investment Needs

Africa’s economic structure remains heavily reliant on low-productivity sectors like agriculture and low-skill services.

The services sector drives growth despite global shocks, but industrialization remains limited. The shift has been towards low-skill services rather than more productive manufacturing sectors.

Agriculture and industry face challenges from climate change and structural issues. The agriculture sector, which employs 42% of Africa’s workforce, is 60% less productive than the economy-wide average. This low productivity leaves most African workers in low-income situations.

Recent growth in high-skill services, such as finance and ICT, suggests that this sector can significantly contribute to Africa’s productivity growth if properly harnessed. Developing a services-led growth model, alongside promoting manufacturing, could drive future economic development.

However, closing the annual financing gap of about $402 billion until 2030 is crucial for this purpose. This would allow investments in education, energy, productivity-enhancing technology, and infrastructure.

4. Enhancing Domestic Resource Mobilization

Domestic Resource Mobilization (DRM) is vital for reducing dependency on external financing and ensuring stable development funding. Many African countries have low tax-to-GDP ratios and a large informal economy, limiting revenue collection.

Policies to broaden the tax base, improve tax compliance, and eliminate tax exemptions are essential. Strengthening tax administration through technology and capacity building, and implementing transparent tax regimes for natural resources can boost DRM.

However, domestic resources alone are insufficient; scaling up external financial flows and reforming the global financial architecture are necessary.

5. Recommendations for Global Financial Reform

The current Global Financial Architecture, including key institutions like the World Bank and IMF, has played a crucial role in supporting global development. However, the report argues it is increasingly inadequate in addressing modern challenges such as climate change, geopolitical tensions, and pandemics. Despite their efforts, these institutions often provide only short-term relief and fail to offer sustainable solutions to ongoing economic issues.

The African Economic Outlook 2024 calls for comprehensive reforms to make these institutions more effective, inclusive, and responsive:

• Recycling SDRs (Special Drawing rights) through Multilateral Development Banks to increase funding for Africa.

• Capital Adequacy Reforms to enhance lending capacity and attract private investments.

• Debt Resolution Mechanisms to make debt resolution more efficient.

• Climate Finance Accessibility by simplifying procedures and increasing funding to vulnerable countries.

These reforms could secure $169.4 billion annually, covering 42% of Africa’s financing gap. Greater private sector involvement and inclusive governance structures in financial institutions are also emphasized.

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Disclaimer: All information provided is not intended to serve as investment advice. Any mention of industries or countries should not be taken as an endorsement.

it’s time again for our investment and industry news roundup covering Sub-Saharan Africa.

The highlights this week:

• Sustainable mobility: African electric vehicle company Spiro has been recognized on the TIME 100 Most Influential Companies of 2024 list, highlighting its leadership in sustainable transportation and its impact on reducing environmental pollution across Africa.

• African Tech Startups Funding Surge: African tech startups attracted $187 million in funding in May 2024, marking a 150% increase from April's $75 million.

• Ghana’s Modular Nuclear Reactor: Ghana is set to be the first African country to have a small modular nuclear reactor, enhancing its energy independence and innovation in nuclear technology.

Keep reading to learn more!

😍 Investment news we love:

• African tech startups attracted $187 million in funding in May 2024—a 150% increase from April's $75 million.

• Kenyan President William Ruto secured $200 million from the US during a state visit to Washington D.C., earmarked for sustainable housing and electric mobility projects in Nairobi.

• The European Investment Bank invested €25 million in Amethis Fund III to support the growth of medium-sized businesses across Africa, focusing on sectors like healthcare, IT, manufacturing, and energy.

• Germany and the EU have committed 68 million Euros to support electrification projects in Mozambique, focusing on renewable energy in off-grid areas.

• The DBSA has launched its first biodiversity fund with an initial investment of 50 million South African rand (approximately $2.7 million), to address the pressing environmental degradation in southern Africa.

What's worth knowing in:

🥑 Agriculture/ Food systems:

• Uganda: Emata is bridging the financial gap for East African smallholder farmers (from dairy to maize, oilseed, and coffee) by providing digital microloans

• Rwanda: Rwanda is expanding its agricultural exports with advanced cold chain and cargo infrastructure

💡 Energy and infrastructure

• Ghana: Ghana will be the 1st African country to have small modular nuclear reactor - MoU signed between Ghana and the USA

• Uganda: Women are transforming agricultural waste like banana peels into biofuel briquettes, providing a more energy-efficient alternative to wood and charcoal.

• South Africa: South Africa is advancing its decarbonization efforts with a new solar power initiative at the Port of Richards Bay, set to commence construction in June 2024.

🚕 Mobility and transport systems

• Benin/Togo: African electric vehicle company Spiro has been recognized on the TIME 100 Most Influential Companies of 2024 list, underscoring its role in pioneering sustainable transportation and innovation in Africa.

• Liberia: Liberia has taken a significant step in eco-friendly transportation by launching its first electric vehicles through the Liberia Energy Access Practitioner Network (LEAP Network).

• Kenya: Kenya Airways is leading Africa's charge towards sustainable aviation by spearheading the IATA’s Sustainable Aviation Fuel Registry.

• Ghana: Clean-tech startup Kofa is set to expand its innovative battery swapping system, currently in use in Ghana, to Kenya and Togo.

💻 Digital transformation

• Ghana: TecHustle is building Africa's largest network for small business global trade by providing financial services and market access.

• Zambia: Bosso, a construction e-commerce platform, has secured $400,000 in pre-seed funding to enhance its services and expand operations.

• Nigeria: Google for Startups has selected Nigeria's Healthtracka for its 2024 Growth Academy: AI for Health program, aimed at revolutionizing healthcare through artificial intelligence across Europe, the Middle East, and Africa.

• Nigeria: Harde Business School is developing an online open university to address educational challenges in Nigeria and across Africa.

• Kenya: Microsoft and G42 are investing $1 billion in Kenya to build an eco-friendly data center, powered by geothermal energy from the Olkaria site.

• Kenya: Kenyan startup Wowzi, an influencer marketing platform, has partnered with Mastercard and Masria Digital Payments in a $2.04 million deal to enhance financial management for content creators.

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developing renewable energy capacity is crucial for the continent’s development - and current capacity and investment levels lack far behind the potential.

Today, we want to shine a light on a few selected companies dedicated to driving forward the renewable energy revolution in Africa.

Firms like SPS and ARTsolar indicate a growing local manufacturing capacity for solar PV modules, which can reduce costs and dependency on imports.

Companies like Powerhive and GridX Africa provide scalable and customizable renewable energy solutions, enhancing adaptability to various local needs.

Organizations such as Oolu Solar and EnerGrow offer innovative financing options, making renewable energy solutions more affordable and accessible.

Firms like Infinity Power and Serengeti Energy have significant capacity expansion goals, highlighting ambitions to scale up renewable energy production substantially by 2030.

Read on to learn more.

Introduction: Africa’s energy challenge and opportunity

Situation

Africa faces significant energy challenges despite abundant resources, attracting only 2% of global renewable energy investments and employing less than 3% of the global workforce.

China dominates renewable energy supply chains and installed capacity. Africa remains a minor player in material processing, manufacturing, assembly, and installed capacity.

Opportunity

Africa holds 60% of the world’s best solar resources - leading the world in solar power potential.

Central and Southern Africa have significant mineral reserves crucial for renewable energy products, and assembly of solar PV modules is becoming cost-competitive in some regions.

Green hydrogen, driven by Africa's solar potential, presents a EUR 1-trillion opportunity.

Transitioning to clean energy can boost GDP, create jobs, and improve well-being.

However, achieving these goals requires doubling current investments to USD 180 billion annually by 2030, focusing on clean energy and leveraging private investments.

To learn more, check out our former articles on Renewable Riches - Introduction to Energy & Infrastructure in Africa and Africa's potential as a global renewable energy player.

10 players driving forward the renewable energy development in Africa

1. Strategic Power Solutions (Ghana)

SPS is a Ghanaian solar equipment manufacturer and the only Solar PV Module producer in West Africa. They specialize in utility-scale, commercial, and industrial photovoltaic plants. The company emphasizes quality and regulatory compliance, employing 105 staff dedicated to delivering sustainable energy solutions. Their services include engineering, procurement, and construction (EPC) for on-grid and off-grid solar projects.

2. ARTsolar (South Africa)

ARTsolar, established in 2010 in Durban, South Africa, is a leading local manufacturer of PV solar panels. They specialize in high-volume production for utility-scale PV farms and offer products with a 30-year linear power output guarantee. ARTsolar is dedicated to quality, job creation, and education, focusing on providing top-notch solar solutions while contributing to local economic development.

3. Oolu Solar

Oolu Solar is a leading provider of pay-as-you-go solar energy solutions in West Africa, offering off-grid households in rural areas access to modern energy through affordable solar systems. Based in Senegal, Oolu operates in several countries, including Burkina Faso and Mali, and focuses on improving the quality of life by providing reliable and sustainable energy.

4. SolarNow

SolarNow is a social business providing high-quality solar energy solutions in East Africa. They offer solar home systems and appliances like water pumps designed to meet the energy needs of households, businesses, and institutions. With a focus on affordability and reliability, SolarNow also provides financing options to make solar energy accessible to more people.

5. EnerGrow

EnerGrow is a tech startup in Uganda focused on increasing rural electricity demand through productive asset financing, training, and digital ID-based technology. They provide low-interest loans for electrical appliances, financial literacy, and business support to small businesses and households. EnerGrow partners with utilities and mini-grid operators to boost local productivity, making newly electrified communities economically viable for energy providers.

6. Powerhive

Headquartered in Kenya, Powerhive develops scalable off-grid utility solutions to provide clean energy and internet access to remote communities. Their modular mini-grid systems utilize proprietary technology to bypass outdated power infrastructure. Powerhive offers tools and services for profitable off-grid utility projects, working as a lead developer or in partnership with energy providers and governments. Their technology platform provides insights into system performance and scalability, aiming to create efficient and resilient energy infrastructures in emerging markets.

7. Infinity Power

Infinity Power, a joint venture between Egypt's Infinity and Masdar (Abu Dhabi Future Energy Company), is Africa's largest pure-play renewable energy provider. Specializing in utility-scale solar and on-shore wind technologies, Infinity Power operates substantial renewable energy assets across Egypt, South Africa, and Senegal. The company aims to deliver 10 GW of renewable energy by 2030, currently operating 1.3 GW and reducing 3.5 million tons of CO2 emissions annually.

8. Hydroneo

Hydroneo is an Independent Power Producer (IPP) specializing in developing, financing, building, and operating run-of-river hydropower plants up to 30 MW in sub-Saharan Africa. With projects in countries like Rwanda, Kenya, Tanzania, and Burundi, Hydroneo focuses on generating eco-friendly, 100% decarbonized electricity while benefiting local communities. Their expertise includes comprehensive project management, from site identification to operation, ensuring minimal environmental impact and promoting sustainable development.

9. Serengeti Energy

Serengeti Energy develops and operates renewable energy projects up to 50MW in Sub-Saharan Africa, with a focus on hydro, solar, and wind technologies. They aim to reach 300MW of capacity by 2030. Currently, they have 9 operational plants across South Africa, Uganda, Rwanda, Sierra Leone, and Malawi, totaling 73.9MW. Notable projects include the first commercial grid-connected solar plant in Sierra Leone and a 21MWp solar plant in Malawi.

10. GridX Africa

GridX Africa develops and finances bespoke solar and renewable energy solutions for commercial and industrial clients across Africa. They offer fully financed projects, including battery storage and substation assets, with no upfront costs for clients. GridX specializes in creating private utilities with renewable power generation and infrastructure, supporting energy transitions and reducing carbon emissions.

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Disclaimer: All information provided is not intended to serve as investment advice. Any mention of industries or countries should not be taken as an endorsement.

it’s time again for our investment and industry news roundup covering Sub-Saharan Africa.

Our highlights this week:

• The IFC has launched a platform to provide up to $4 billion to small businesses in emerging markets, focusing on women-owned firms and those in agriculture and climate sectors.

• Namibia and South Africa have announced a partnership to develop Africa's first green hydrogen pipeline, marking a significant step towards advancing renewable energy infrastructure on the continent.

• Kenya has started constructing the world’s first green garment factory made from recycled containers

Keep reading to learn more!

😍 Investment news we love:

Green financing

• The AfDB launched a EUR 500 million short 4-year Green Benchmark bond due March 2028 with a 2.875% coupon to finance eligible green projects.

• Genesis Energy Group Limited to mobilize US$10 billion for strategic climate investments in green energy and renewable energy projects.

SME focus

• Coris Holding to increase financing for micro, small, and medium-sized enterprises (MSMEs), particularly those led by women, in underserved areas of Mali, Niger, Burkina Faso, and Senegal.

• Accion has launched the $152.5 million Digital Transformation Fund to provide capital to financial institutions serving small businesses.

• UBA Kenya has received a $282 million loan from its parent company to lend to small and medium-sized enterprises (SMEs).

• The IFC launched a program to provide up to $4 billion to small businesses in emerging markets, focusing on women-owned firms and those in agriculture and climate sectors.

Venture Capital

• OpenseedVC has launched its $10 million early-stage fund to invest in tech startups across Africa and Europe, offering up to $150,000 in starter cheques.

What's worth knowing in:

💡 Energy and infrastructure

• South Africa/Namibia: Namibia and South Africa have announced a partnership to develop Africa's first green hydrogen pipeline.

• Mali: Mali begins construction of West Africa’s largest solar plant with Russian support

• South Africa: A co-development consortium of Hive Hydrogen, Akuo Energy Afrique, Africoast Investments, and Golden Sunshine Trading has reached a significant milestone in developing a giga scale solar project.

🚕 Mobility and transport systems

• Namibia: Cleanergy Solutions Namibia, in collaboration with CMB.TECH, Port of Antwerp Bruges, and Namport, plans to launch Africa's first hydrogen-powered ship in two years.

• Nigeria: Swap Station Mobility Limited has signed a partnership agreement with Glovo and Siltech World to deploy electric motorbikes, smart swappable batteries, and quick interchange stations in Lagos.

• Botswana: Giyani Metals has secured a $26 million investment to produce low-carbon, high-purity battery grade manganese for the EV industry

• Senegal: The Rapid Transit Bus system in Dakar has started operations, providing a new 100% electric transport option across several communes.

🏭 Industrialisation

• Kenya: Kenya has started constructing the world's first green garment factory made from recycled containers, expected to save 18 tonnes of CO² and 1,000 cubic metres of water annually.

• Ghana: Ghana's Vice President Bawumia has commissioned a waste recycling plant with a 400-ton-per-day capacity in Kperisi.

• South Africa: South Africa has inaugurated the Nuclear Medicine Research Infrastructure in Pretoria, a first-of-its-kind facility in Africa focused on nuclear medicine training and research..

• South Africa: Alpla Group is building its first plastics recycling plant in South Africa with a collaboration with local waste management company Re-purpose to collect waste PET.

🌆 Urban areas

• South Africa: The IFC will lend $250 million to South Africa's FirstRand Ltd. to boost loans for green buildings.

• Kenya: Stanbic Bank, MiDA Advisors, and Acorn Holdings have secured $700 million in long-term blended finance commitments to develop affordable green student housing in Kenya.

💻 Digital transformation

• Kenya: Kenya is set to establish a 1,000 MW data center powered by geothermal energy, as part of a $1 billion digital investment package announced by Microsoft Corp. and G42.

• Rwanda: East African digital postal service MPOST has launched its e-P.O.Box system in Rwanda, enabling Rwandan citizens to convert their mobile phone numbers into virtual postal addresses.

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during the Covid 19 pandemic, it became all too apparent how important it is for countries to be self-reliant on medicine.

But it doesn’t have to come as far as a global pandemic. Being able - as a country, or continent - to provide medicine, vaccines and testing for the own population is essential for improving health outcomes.

And also holds immense potential for economic growth and innovation.

Therefore, this week, we dive into the current state, the challenges and opportunities within the African pharma sector, and emphasize the importance of strategic development.

🕐 In a Hurry? Here's a 1-Minute Summary:

1. Market Growth Potential: The African pharmaceutical market was valued at $28 billion in 2023 and is expected to grow significantly, potentially reaching $110.9 billion by 2033 due to rising demand from population growth and chronic diseases​

2. Major Challenges: The industry faces significant challenges with fragmented regulations, inadequate infrastructure, financial constraints, skilled labor shortages, and counterfeit drugs.

3. Investment Opportunities: Establishing regional manufacturing hubs is viable with the AfCFTA providing access to a unified market of 1.3 billion people, reducing trade barriers and tariffs. Moreover, governments offer incentives like tax breaks, subsidies, and streamlined regulatory approvals to attract investment in local production facilities.

4. Successful Case Studies: Companies like Aspen Pharmacare have thrived with strategic investments and support, demonstrating the potential for local firms to succeed and expand operations internationally.

5. Strategic Levers for Development: Focus on capacity building through training and technology transfer, develop state-of-the-art manufacturing and supply chain infrastructure, harmonize regulatory standards, and leverage digital health platforms to enhance efficiency and market reach​.

⏳ Ready for a Deeper Dive? Here's the Breakdown:

Current State of the Pharmaceutical Industry in Africa

The African pharmaceutical market was valued at approximately $28 billion in 2023 and annual growth is expected to be between 3.4% to 8.3% until 2030, potentially reaching $110.9 billion by 2033.

Key countries include South Africa, Nigeria, and Egypt, which host some of the continent’s largest pharmaceutical companies and manufacturing facilities.

Despite this, the continent still relies heavily on imports, with local production meeting only about 30% of the demand. This gap presents both a challenge and an opportunity for growth.

5 major complications facing the industry

1. Regulatory Hurdles: The regulatory landscape in Africa is highly fragmented, with each country having its own set of regulations. This fragmentation can delay drug approvals and complicate cross-border trade.

2. Infrastructure Deficiencies: Many African countries lack the necessary infrastructure for efficient pharmaceutical manufacturing and distribution, leading to high production costs and supply chain issues.

3. Financial Constraints: Access to capital is a major barrier for many local pharmaceutical companies, limiting their ability to scale up production and invest in new technologies.

4. Skilled Labor Shortages: There is a significant shortage of skilled professionals in the pharmaceutical sector, including pharmacists, researchers, and manufacturing experts.

5. Counterfeit Drugs: The prevalence of counterfeit drugs undermines the market and poses serious health risks to the population. Strengthening quality control measures is essential to address this issue.

Despite these challenges, the potential for growth in the African pharmaceutical sector is immense.

Growing demand

The African pharma market is projected to grow to over $100 billion within the next 10 years, driven by population growth, and a rising incidence of chronic diseases.

There is a high demand for essential medicines for diseases such as malaria, HIV/AIDS, tuberculosis, and non-communicable diseases.

Regional market access

The establishment of AfCFTA creates a unified market of 1.3 billion people. This significantly reduces trade barriers and tariffs, making it easier for pharmaceutical companies to expand across borders.

Investors can leverage this free trade area to set up regional manufacturing hubs that serve multiple countries.

Local Manufacturing Incentives

Many African governments are offering incentives such as tax breaks, subsidies, and easier regulatory approvals to attract pharmaceutical investments. This support is aimed at boosting local production and reducing dependency on imports.

Investors can enter into partnerships with governments and international organizations to co-invest in infrastructure and technology, sharing risks and benefits.

Companies like Aspen Pharmacare in South Africa have shown that with the right support, local pharmaceutical firms can thrive. Aspen has expanded its operations significantly and now exports to multiple countries.

💡💡 Spotlight: Aspen Pharmacare

Aspen Pharmacare, founded in 1997 by Stephen Saad and Gus Attridge, is Africa’s largest pharmaceutical manufacturer. The company expanded through the acquisition of South African Druggists in 1999, enabling significant growth.

Aspen sold its infant nutrition and Japanese generics businesses in 2018 to focus on high-potency drugs like anesthetics and oncology medications. It invested in an $80 million facility in Gqeberha, enhancing its capacity to produce 3.6 billion tablets annually.

Aspen has been crucial in global health, supplying generic antiretrovirals (ARVs) under the U.S. President’s Emergency Plan for AIDS Relief and producing the Johnson & Johnson COVID-19 vaccine. The company reported revenues exceeding $1.1 billion in early 2024 and continues to expand its sterile manufacturing capabilities.

Focus on capacity building, infrastructure development, and digitalization necessary

Focus on Capacity Building

Investments in training programs to develop a skilled workforce capable of operating advanced pharmaceutical manufacturing technologies are needed. Partnering with local universities and technical schools can ensure a steady pipeline of qualified professionals.

Collaborations with international pharmaceutical companies can bring in the necessary expertise and capital. For instance, partnerships between local firms and global giants like Pfizer and Novartis have led to the successful introduction of new drugs and technologies in Africa.

💡💡Spotlight: Cipla and Uganda's Quality Chemicals

In 2005, Cipla, an Indian multinational pharmaceutical company, partnered with Quality Chemicals Limited, a Ugandan company, to form Cipla Quality Chemical Industries Limited (CiplaQCIL).

The partnership enabled the local production of antiretrovirals (ARVs) and anti-malarial drugs, crucial for treating HIV/AIDS and malaria, two of Africa's most significant health challenges.

The facility in Uganda is equipped to manufacture drugs compliant with international standards, reducing reliance on imported medications and ensuring a stable supply of essential drugs in the region.

The establishment of CiplaQCIL has had a substantial economic impact by creating jobs and contributing to the local economy.

Infrastructure Development

The establishment of state-of-the-art manufacturing plants with the capacity to produce high-quality pharmaceuticals, with a focus on building facilities that can adapt to produce various drugs as market needs evolve, will be crucial.

Especially also investments in robust supply chain infrastructure, including transportation, storage, and distribution networks, to ensure efficient delivery of pharmaceuticals across the continent.

Leveraging of Digital Health

Investors can explore digital health platforms to improve access to pharmaceuticals, particularly in remote and underserved areas. Telemedicine and e-pharmacy solutions can complement traditional distribution channels.

Utilizing data analytics to understand market trends, predict demand, and optimize production schedules can lead to more efficient operations and better resource allocation.

Sources to learn more:

• World Economic Forum - In Africa’s free trade area, investment in pharmaceuticals means impact and profit

• IFC - Inside Africa’s Push to Make its Own Medicines

• McKinsey & Company - Should sub-Saharan Africa make its own drugs?

• Grand View Research - Africa Pharmaceutical Market Report

• Persistence Market Research - Africa Pharmaceuticals Market Report

• IQVIA - Middle East & Africa Pharmaceutical Market Insights

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Disclaimer: All information provided is not intended to serve as investment advice. Any mention of industries or countries should not be taken as an endorsement.

it’s time again for our investment and industry news roundup covering Sub-Saharan Africa.

Our highlights this week:

• Kenya's Revital Health Care inaugurated Africa's first End-to-End Rapid Diagnostic Testing Kit Manufacturing facility, potentially revolutionizing diagnostic capabilities across the continent.

• Sierra Leone's implementation of clean and reliable solar power installations in major hospitals underscores the critical role of sustainable energy in improving healthcare delivery and ensuring uninterrupted medical services

• Tanzania's partnership between Cisco Systems and the ConSenso Project demonstrates the innovative use of IoT technology to support coffee growers amidst climate change challenges

Keep reading to learn more!

😍 Investment news we love:

• The ECOWAS Bank has pledged $200 million to support Ghana's economy

• DBG and Proxtera are teaming up to provide $100 million in loans to Ghanaian SMEs through a digital platform

• BII and NDF are investing $29.5 million in climate insurance technologies through the second InsuResilience Investment Fund (IIF II).

• Vitol and Vivo Energy are investing over $550 million in clean cooking technologies in Africa by 2030. This investment includes LPG infrastructure and clean cooking carbon projects.

• The Summit on Clean Cooking in Africa secured pledges of USD 2.2 billion to address the lack of clean cooking access for over 1 billion people in Africa.

• Accion, a non-profit organization focused on creating an inclusive economy, has launched the Accion Digital Transformation Fund with $152.5 million.

What's worth knowing in:

🥑 Agriculture/ Food systems:

• Tanzania: Cisco Systems, Inc. partners with the ConSenso Project to use IoT technology in aiding Tanzanian coffee growers amidst climate change challenges.

• Kenya: Renew Capital has invested in Farm to Feed, a Kenyan agri-tech startup aiming to combat food waste by repurposing surplus agricultural products.

🌳 Ecosystems

• Kenya: EcoSafi makes history by issuing the first carbon credits in Africa using the Gold Standard MECD methodology for clean cooking. This achievement sets a new standard for trust and verifiability in the region's clean cooking carbon markets.

💡 Energy and infrastructure

• Sierra Leone: Six major hospitals in Sierra Leone now benefit from clean and reliable solar power installations ensuring uninterrupted medical services and improving healthcare delivery, thanks to Sustainable Energy for All's project.

• Gambia: The Gambia is undergoing a significant energy evolution, transitioning from solar power to green hydrogen as part of its renewable energy strategy.

• Djibouti: Djibouti aims to achieve 100% renewable energy by 2035, starting with the inauguration of its first wind farm in September 2023.

🚕 Mobility and transport systems

• Namibia: Cleanergy is set to develop Africa's first hydrogen-powered ship. Namport's Port of Walvis Bay in Namibia will host the project, with insights provided by Namport to refine the vessel's specifications.

• Zambia: Zambia is poised to start local manufacturing of car batteries in July, marking a significant development at the Zambia JianXi Multi-Facility Economic Zone in Chibombo district.

🏭 Industrialisation

• Kenya: Revital Health Care, has unveiled Africa's first End-to-End Rapid Diagnostic Testing Kit Manufacturing facility with the capacity to supply 240 million test kits annually.

• South Africa: Ener-G-Africa has inaugurated a factory in Paarl producing advanced clean-burning, fuel-efficient stoves and cookware for local and African markets.

• Nigeria: Pres. Bola Tinubu has lauded the inauguration of the country's largest lithium processing plant in Lafia, Nasarawa State, emphasizing the country's potential as Africa's hub for solar panel and EV battery manufacturing.

🌆 Urban areas

• Ethiopia: Kubik, specializing in converting hard-to-recycle plastic waste into affordable, low-carbon building materials, plans a pan-African expansion following a $5.2 million seed funding round.

• Nigeria: LMI Holdings' Mega Warehouse has achieved the IFC’s EDGE Green Building Certification, marking it as the first warehouse in the country to receive such recognition.

• South Africa: Novare Equity Partners has become the first African company to collaborate with the IFC on its Greening Real Estate Investment Portfolios programme, aimed at decarbonising properties.

💧 Water systems

• South Africa: Interwaste, a local waste management company in South Africa, has launched a R100-million leachate and effluent treatment plant recovering more than 80% of reusable water from liquid waste streams in Delmas, Mpumalanga.

💻 Digital transformation

• Rwanda: Rwanda plans to implement technology to monitor changes in land use, aiming to address issues like encroachment on agricultural land and ensure efficient utilization of resources.

• Nigeria: Exclusive Networks, a global cybersecurity specialist, has opened its West African office in Lagos, Nigeria, aiming to generate employment opportunities and enhance the country's technology sector.

• South Africa: Ubuntu Education connects African teachers through its platform facilitating networking, collaboration, and access to professional development opportunities.

• Ghana: Kola Market aims to support SMEs by providing smart inventory management and product financing through machine learning. Kola Market's platform helps businesses stock efficiently, ensuring consistent sales and facilitating growth.

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as the population in Sub-Saharan Africa continues to grow, the region faces a major challenge with low agricultural yields.

Traditionally, increasing farm output in the region has meant using more land, which harms natural habitats.

However, technology and digitalization hold great promise for improving yields in an environmentally sustainable way.

In this deep dive, we'll look at the current challenges and shine a light on some innovative initiatives and companies leveraging technology to address this pressing issue such as:

• Hello Tractor, the “Uber” for tractor owners and farmers in Nigeria, optimizing tractor use through a booking app.

• Agrihawk, specialized in precision aerial crop science, providing drone services for example for spraying.

• Farmerline, delivering farming advice, weather forecasts, market prices, and financial tips via a voice service and SMS platform.

Let’s dive in.

🕐 In a Hurry? Here's a 1-Minute Summary:

1. Low Productivity: Agricultural productivity in Sub-Saharan Africa is considerably low, with crop yields often below 25% of their potential due to limited access to improved seeds, fertilizers, and efficient farming practices.

2. Increased Land Use: Rather than improving yields, the region has expanded arable land usage to boost output, tripling cereal production since 1980 mainly through increased land use, which has led to significant environmental impacts including loss of natural habitats.

3. Digital Solutions: Digital technologies offer significant potential to transform agriculture by enhancing productivity and sustainability, managing inputs more efficiently, and improving market access for smallholder farmers.

4. FAO 1000 Digital Villages Initiative: This initiative by the FAO aims to integrate digital technologies in rural areas to boost agricultural productivity, enhance food security, and improve the quality of life for farmers through technology integration, capacity building, and improved market and data access.

5. Spotlight on Digitalization: Companies like Hello Tractor, Agrihawk, and Farmerline are driving agricultural digitalization in Africa by increasing equipment accessibility and providing crucial agricultural data and resources.

⏳ Ready for a Deeper Dive? Here's the Breakdown:

Situation: Low agricultural productivity

The agricultural productivity in Sub-Saharan Africa is strikingly low compared to global averages: crop yields in the region often stagnate at less than 25% of their potential.

This low productivity is attributed to limited access to improved seeds, fertilizers, technologies and efficient farming equipment and practices.

As a result, a significant portion of the region’s labor force remains in agriculture with low earnings, contributing to high rates of poverty.

Complication: Increase in Arable Land Usage

Sub-Saharan Africa has primarily increased its agricultural output by expanding the amount of arable land used, rather than through improving yields.

For example, cereal production in Sub-Saharan Africa tripled from 1980 to 2018, but this was mainly due to land use more than doubling from 48 to 112 million hectares, rather than significant improvements in yield, which have only increased by about 30% during the same period.

Whereas in South Asia land use did not change since 1980, but yields have more than doubled.

This expansion of farmland has led to substantial environmental consequences, including the loss of natural habitats, which is a significant concern given the biodiversity of the region.

Not being able to increase output through higher yields will increase hunger, poverty and environmental degradation.

Solution: Potential of Digital Tools

Digital technologies hold significant promise for transforming agriculture in Sub-Saharan Africa by improving productivity and sustainability.

Digital tools can help manage agricultural inputs more efficiently, provide real-time data for better decision-making, and improve market access for smallholder farmers.

The FAO’s 1000 Digital Villages Initiative is an example of how digital platforms are being utilized to enhance agricultural practices.

These technologies not only aim to increase yields but also reduce the environmental impact by optimizing resource use and reducing the need to expand into new lands​.

💡💡 Spotlight: FAO 1000 Digital Villages Initiative

The FAO 1000 Digital Villages Initiative is a project launched by the Food and Agriculture Organization of the United Nations (FAO) aimed at transforming rural areas by integrating digital technologies into agriculture. The initiative seeks to enhance agricultural productivity and sustainability, improve food security, and raise the quality of life in rural areas through digital solutions.

Key aspects of the initiative include:

1. Technology Integration: Implementing a range of digital tools, such as mobile applications, drones, and remote sensing technologies, to assist in farm management, monitoring crop health, and optimizing resource use.

2. Capacity Building: Educating and training farmers and local agricultural workers on how to use these digital technologies effectively, ensuring they can maximize the benefits.

3. Market Access: Improving farmers' access to markets through digital platforms that facilitate better pricing, trading, and logistics management.

4. Data Access: Providing farmers with real-time information related to weather, soil conditions, and agricultural best practices, helping them make informed decisions that enhance productivity and sustainability.

The initiative reflects a broader trend towards digitalization in agriculture and is part of FAO’s efforts to promote more efficient, inclusive, resilient, and sustainable agrifood systems across the developing world.

💡💡 Spotlight: 3 companies driving digitalization in African agriculture though increasing accessibility of equipment, technology and information

We want to shine the spotlight on several companies are actively working to improve agricultural yields in Sub-Saharan Africa through digitalization.

1. Hello Tractor (Nigeria)

Hello Tractor is a Nigerian company that leverages tech to enhance the efficiency, maintenance, and profitability of tractors.

It provides a platform where tractor owners can connect with smallholder farmers optimizing tractor usage and increasing agricultural productivity.

Their service includes a booking app through which farmers can schedule tractor services, while owners can manage their fleet and track performance.

Learn more here.

2. Agrihawk (South Africa)

Agrihawk specializes in precision aerial crop science, providing advanced agricultural drone services and products in South Africa.

As an authorized DJI dealer, the company offers drone spraying and surveying services to enhance farm productivity and profitability.

Agrihawk is committed to integrating the latest technologies in agriculture, supporting farmers with innovative solutions to improve their operations.

Learn more here.

3. Farmerline (Ghana)

In West Africa, Farmerline provides a voice service and SMS platform that delivers crucial farming advice, weather forecasts, market prices, and financial tips directly to farmers.

Through its Mergdata platform, Farmerline supports agribusinesses, food manufacturers, NGOs, and governments by offering actionable intelligence to create profitable opportunities for farmers.

The company enhances the agricultural ecosystem by aligning supply with demand, integrating innovative financing, and leveraging flexible technology to ensure comprehensive support to growers and dealers alike.

Learn more here.

Sources to learn more:

• Increasing agricultural productivity across Sub-Saharan Africa is one of the most important problems this century, Our World in Data

• Increasing Agricultural Productivity in Africa: Can STI help Africa to make a quantum leap in agricultural productivity?, FAO

• Winning in Africa’s agricultural market, McKinsey & Company

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Disclaimer: All information provided is not intended to serve as investment advice. Any mention of industries or countries should not be taken as an endorsement.

it’s time again for our investment and industry news roundup covering Sub-Saharan Africa.

The highlights this week:

🚌⚡🏍️ Advancing the electrification of Rwanda's and Kenya's public transport with more e-buses and electric motorcycles

🌰🌿🔆 Creation of a new cashew variety enhancing yield by shedding nuts prior to heat season

🚫🛍️🌱 Kenya implements ban on plastic bags for organic waste collection to combat plastic pollution

Let’s dive in!

😍 Investment news we love:

SME Financing

• Standard Bank's injection of a R2 billion loan has empowered over 2,000 small businesses across South Africa to invest in generator and solar power solutions.

• The African Development Fund has approved a partial credit guarantee to support Rwanda's financing of green and social initiatives, enabling the country to raise up to €200 million from international commercial banks.

• British International Investment has partnered with Citi to sign a $100 million risk-sharing facility aimed at supporting the trade finance needs of African SMEs and corporates.

• The Africa Enterprise Challenge Fund (AECF) has introduced a €12.5 million initiative, the Sudan SME Catalyser, to support SMEs in Sudan amid conflict.

Venture capital

• TLcom Capital closes second fund at $154M to back early-stage startups across Africa, positioning the firm as Africa’s largest investor across seed and Series A

• Orange, the EU and GIZ invest €7.6m in agritech start-ups in Ivory Coast to support sustainable cocoa production and combat deforestation

👎 Why we need to keep pushing:

• African Development Bank Group President Dr. Akinwumi A. Adesina stressed the urgent need for heightened financing to bridge the annual $4 trillion gap and meet the Sustainable Development Goals (SDGs) by 2030.

What's worth knowing in:

🥑 Agriculture/ Food systems:

• Ghana: The Cocoa Research Institute and the Ministry of Food Agriculture have developed a new cashew variety that drops its nuts early before the heat season.

• Better Cotton, funded by the African Export-Import Bank, is collaborating with the WTO and FIFA to scale sustainable cotton production in West and Central Africa.

🌳 Ecosystems

• Kenya: Kenya has intensified its fight against plastic pollution by banning the use of plastic bags for organic waste collection.

• The Great Green Wall project aims to restore degraded land, combat desertification caused by deforestation and drought, spanning nearly two dozen African countries with a budget estimated between $36 to 49 billion.

💡 Energy and infrastructure

• Floating solar can power Africa’s energy goals, study finds

• Ghana: Anansi Green Energy to deliver green electricity to Ghanaians through a new renewable energy platform

• Zambia: President Hakainde Hichilema inaugurated the Itimpi photovoltaic solar power plant, a 60 MWp facility marking a significant step towards addressing the country's urgent need for power diversification.

• Malawi: Partnership between Green Impact Technologies (GIT) and Amped Innovation aims to deploy 15,000 solar home systems in rural Malawi, providing electricity access to at least 70,000 households by June 2024.

🚕 Mobility and transport systems

• Tanzania: New electric train, connecting Dar es Salaam to Dodoma with plans for further expansion, has garnered attention for its modern infrastructure, including Wi-Fi connectivity and speeds of up to 160 km/h.

• Rwanda: IZI Rwanda, a mobility solutions platform, begins the electrification of Kigali's buses with the acquisition of five electric buses.

• Kenya: Roam and County Bus Service have partnered to deploy 200 electric buses in Kenya by 2026.

• Kenya: Bolt has partnered with M-KOPA to introduce an electric motorcycle fleet in Kenya, aiming to deploy 5,000 electric motorbikes within three years.

🏭 Industrialisation

• Zimbabwe: Voluntary Carbon Credits Market Forum, through its Mvelo brand, is actively engaging investors to secure $1 million to build a plastic recycling plant and produce climate-smart construction products

• Ethiopia: Kubik, specializing in recycling plastic waste into eco-friendly building materials, has secured $1.9 million in a seed extension round.

🌆 Urban areas

• South Africa: Newinbosch Neighbourhood Estate in Stellenbosch has achieved a Six Star Green Star Sustainable Precincts rating, marking the first such rating in Africa.

• The IFC is partnering with Novare Equity Partners to decarbonize real estate properties in Zambia, Mozambique, and Nigeria, marking the first collaboration under the Greening Real Estate Investment Portfolios (GRIP) program.

💻 Digital transformation

• South Africa: MTN Group, in collaboration with Huawei Technologies, has established a Technology Innovation Lab aiming to drive digital transformation and sustainable development across Africa.

• Gambia: The Ministry of Communication and Digital Economy has initiated a US$50 million regional digital transformation initiative.

• Kenya: Matta is revolutionizing African trade by streamlining the supply chain for chemicals, raw materials, ingredients, and commodities across the continent.

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it will hopefully only be a matter of time for Sub-Saharan Africa to transition from being a “dumping ground” for old vehicles to a leader in the production and adoption of electric vehicles.

The region, responsible for about 10% of global emissions from mobility, faces increasing environmental risks with an increasing number of vehicles. However, embracing electric vehicles early on - in combination with the region’s renewable energy resources - can mitigate these impacts.

With growing momentum - especially in East Africa - we want to shine a spotlight today on 10 companies driving forward the e-mobility revolution on the African continent.

Introduction: E-Mobility in Sub-Saharan Africa

Increasing road transport poses environmental challenges

In sub-Saharan Africa, transportation mainly happens by road - especially with motorcycles and buses, as personal car ownership is low.

However, with a growing urbanization and rising incomes, this is set to change leading to more vehicles hitting the road, and increasing emissions.

This effect could be mitigated by an early adoption of electric vehicles.

However, the transition to electric vehicles in the region faces several challenges including affordability, inadequate infrastructure, and low consumer awareness.

Enabling the shift to e-mobility

To effectively transition to electric mobility, four critical enablers have been identified:

1. Expansion of electricity access and development of charging infrastructure.

2. Promotion of local production of electric vehicles.

3. Implementation of supportive regulations and incentives.

4. Provision of financing options to lower entry barriers.

Growth in electric motorcycles

Electric motorcycles are becoming more and more popular thanks to their affordability and commercial viability.

The region, especially East Africa, is witnessing a surge in e-mobility startups focusing on local assembly and distribution of e-motorcycles and e-buses, underscoring a robust growth in EV sales.

To learn more, check out one of our former deep-dives on E-Mobility in Sub-Saharan Africa.

10 players driving forward the e-mobility production and adoption in Sub-Saharan Africa

1. Spiro (Benin, Togo, Rwanda, Uganda, Kenya)

Spiro manufactures electric two-wheelers, partnering with Horwin to boost electric mobility manufacturing across Africa.

They focus on local assembly plants for bikes and batteries, promoting local jobs and sustainable transport solutions.

2. Ampersand (Rwanda, Kenya)

Established in 2016, Ampersand assembles and finances electric motorcycles and operates a battery-swap network in Kigali allowing drivers to exchange batteries at various charging stations around the city​.

With recent funding rounds boosting their capacity, Ampersand aims to significantly expand their fleet and swapping stations, pursuing an ambitious target to serve 1,000,000 vehicles by 2030.

3. Roam (Kenya)

Formerly known as Opibus, Roam is based in Kenya and focuses on creating electric buses and motorcycles designed for the African market. Their products are tailored for affordability and durability in rough terrain.

A recent $24 million funding boost will scale up their production and innovation in electric vehicle technology.

4. BasiGo (Kenya, Uganda, Tanzania)

Launched in 2021 in Kenya, BasiGo provides electric buses, enhancing public transport with cleaner, cost-effective alternatives. The company has already made considerable progress, with plans to deploy 1,000 electric buses across Kenya, Uganda, and Tanzania by the end of 2025.

Their Pay-As-You-Drive model makes these buses more accessible by mitigating high upfront costs. This model includes covering the leasing of the bus battery, charging, and maintenance costs for a per-kilometer fee.

5. Metro Africa Xpress (Nigeria, Ghana)

Founded in 2015, MAX started as a logistics startup and has evolved into a comprehensive provider of transportation solutions, including electric vehicles (EVs).

In 2021, MAX raised $31 million in a Series B funding round, which has facilitated its expansion into new markets like Ghana and plans for further expansion into other African countries.

MAX's approach includes a vehicle subscription service aimed at making electric vehicles more affordable and accessible.

6. eWAKA (Kenya, Rwanda)

Based in Kenya, eWAKA provides sustainable mobility solutions in Africa, including electric scooters and bicycles. eWAKA focuses on personal and shared mobility to reduce traffic congestion and pollution.

The company's approach includes the integration of sophisticated IT capabilities to enhance the efficiency and safety of their vehicles through features like real-time tracking, geofencing, and performance metric monitoring.

7. SolarTaxi (Ghana)

Established by Jorge Appiah in 2018, SolarTaxi aims to lead the e-mobility landscape in West Africa by providing a range of electric vehicles, from motorcycles to cars.

One of the most notable initiatives by SolarTaxi is the development of its ride-hailing platform, which is exclusively powered by electric vehicles.

As SolarTaxi continues to grow, it not only aims to expand its fleet and service offerings but also to innovate in the area of EV infrastructure, such as setting up solar charging stations.

8. eBee (Kenya, Uganda, Rwanda)

Launched in late 2021, eBee Africa focuses on economical electric bicycles, providing cost-effective and sustainable urban transport. Their e-bikes are designed to be 2-3 times cheaper to operate than e-motorbikes and conventional motorbikes, with the added benefit of zero fuel costs​.

They not only sell and rent e-bicycles but also manage a fleet for last-mile delivery services. eBee Africa’s operations are supported by technological innovations such as integrated smart Battery Management Systems (BMS) and GPS for efficient fleet management and easy charging

9. Bodawerk (Uganda)

Bodawerk is actively advancing electric mobility in Uganda with a strong focus on converting traditional petrol-powered vehicles into electric versions.

Bodawerk's innovation extends to creating a flexible energy storage solution that integrates with various applications like electric outboard boat motors and home power systems.

This approach is particularly impactful as it leverages recycled materials, such as laptop batteries, to create affordable, sustainable products that address transportation needs.

10. Zembo (Uganda)

Zembo provides electric motorcycles to boda boda riders under a lease-to-own model, coupled with a network of solar-powered battery stations to promote sustainable transport and economic opportunities.

This network allows drivers to swap depleted batteries for fully charged ones, minimizing downtime and maximizing efficiency on the roads.

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Disclaimer: All information provided is not intended to serve as investment advice. Any mention of industries or countries should not be taken as an endorsement.

it’s time again for our investment and industry news roundup covering Sub-Saharan Africa.

The highlights this week:

💰🌍 Substantial new funds announced to invest across Africa with e.g., Adenia’s $470 million private equity Africa fund or Verod-Kepple’s $60 million venture fund

🚗🔋 Kenya introduced national e-mobility policy to further boost the local production and assembly of electric vehicles

☀️🚰 South Africa’s port authority initiated groundbreaking solar-powered water desalination plant at the country’s only river port

Let’s dive in!

Investor news

😍 Investment news we love:

Private equity & Asset Manager

• Adenia Partners Ltd. has successfully closed its largest Africa-focused fund, the Adenia Africa Fund, raising $470 million to invest in high-growth sectors like fintech, telecommunications, and healthcare across Africa.

• Gemcorp Abu Dhabi office to raise $1bn for Africa debt investment

Venture capital

• Verod-Kepple Africa Ventures has raised $60 million for its inaugural fund, targeting investments in Series A and Series B startups outside the major "Big Four" markets.

• The IFC is investing $10.5 million in a new fund by 4DX Ventures to invest in early-stage African tech companies in various sectors, such as fintech, e-commerce, edtech, climate tech, and health tech.

• Spark+ General Partner has reported the second and third closings of its US$64 million Spark+ Africa Fund.

• Evelyne Dioh Simpa, Managing Director of WIC Capital, discusses investment opportunities in French-speaking West Africa particularly in agri-processing, and sectors like fashion and education.

Other

• The EU announced the launch of a new initiative, the "SWITCH to Circular Economy in East and Southern Africa" program, backed by a €40 million investment over five years.

• The European Investment Bank (EIB) has partnered with the Bank of Kigali to allocate €100 million to credits for agritech startups and agribusinesses in Rwanda.

• MasterCard has launched a fund specifically for agribusiness SMEs in 20 Sub-Saharan African countries providing grants ranging from $500,000 to $2,500,000 over three years.

What's worth knowing in:

🥑 Agriculture/ Food systems:

• Kenya: Reed Hastings, co-founder of Netflix, and Eric Schmidt, former CEO of Alphabet, have contributed in SunCulture’s $27 million funding round, an African startup that develops solar-powered irrigation systems.

• Kenya: Agricultural insurance and tech company Pula has raised $20 million in a Series B round to expand its services designed to protect smallholder farmers from climate-related risks.

• Cocoa industry: Cocoa prices have surged, reaching $10,000 per ton, leading to increased interest from African farmers in cultivating cocoa trees.

🌳 Ecosystems

• Tanzania: UpEnergy has received Tanzania's first authorization for carbon credits under Article 6 of the Paris Agreement for its cleaner cookstove projects.

💡 Energy and infrastructure

• South Africa: Africa Data Centres and Distributed Power Africa Southern Africa have initiated construction of a solar farm in Bloemfontein, South Africa, as part of a 20-year power purchase agreement.

• South Africa: Largest standalone battery energy storage system in Africa receives go-ahead

• Tanzania/Lesotho: Astra Energy and Powertron Global have initiated a joint venture to invest in waste-to-energy projects, targeting to convert 300 tonnes of daily municipal solid waste in Zanzibar into 50 MW of electricity.

🚕 Mobility and transport systems

• Kenya: Kenya has introduced a draft National E-mobility Policy designed to boost the local production and assembly of electric vehicles (EVs) by setting zero-emission vehicle sales targets and investment criteria for eligibility for government incentives.

• Kenya: BasiGo has launched the country's first dedicated electric bus assembly line at the Kenya Vehicle Manufacturers plant in Thika.

• Ghana: Wahu Mobility launched the country's first EV assembly plant with a capacity of about 200 e-bikes per month.

🌆 Urban areas

• Lesotho: Africa's first sustainable timber football stadium is nearing completion in Maseru, Lesotho, set to finish by December.

💧 Water systems

• South Africa: Transnet National Ports Authority (TNPA) in South Africa has initiated a groundbreaking project by launching a solar-powered water desalination plant in the Port of East London, the country's only river port.

🐳 Ocean economy

• West Africa: West Africa's fish stocks, particularly small pelagic species like sardines and anchovies, have significantly declined over recent decades, largely due to illegal fishing by Chinese trawlers, climate change, and pressure from local artisanal fishing fleets.

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the Worldbank released it’s latest report on the state of the African economies.

Which we wanted to take as an opportunity to share some insights with you on the state and current challenges of Sub-Saharan African economies.

Let’s dive in.

🕐 In a Hurry? Here's a 1-Minute Summary:

1. Growth: Sub-Saharan Africa's economy is on the path to recovery, with growth rates expected to hit 3.4% in 2024 and 3.8% in 2025, mainly driven by increased consumer spending amid falling inflation.

2. Inflation: Inflation across the region is cooling but remains concerningly high, with some countries still facing double-digit rates.

3. Fiscal balances: Fiscal health is showing slight improvement through spending cuts, but high deficits and debt levels persist, compounded by risks of increased spending during election periods.

4. Conflicts: Conflicts and natural disasters across Sub-Saharan Africa are creating economic uncertainty, deterring investment, and exacerbating food insecurity.

5. Policies: Improving tax systems, and investing in human capital and technology are crucial for sustaining growth and reducing poverty.

⏳ Ready for a Deeper Dive? Here's the Breakdown:

1. Growth outlook: Bouncing back

Sub-Saharan Africa's economic growth is expected to bounce back, with growth rates projected at 3.4% in 2024 and 3.8% in 2025.

This is primarily driven by increased private consumption due to declining inflation.

However, there’s a growing gap between countries with lots of natural resources and those without.

Resource-abundant countries are projected to grow from 2.2% in 2023 to 2.8% in 2024, fueled by new projects like oil and mining.

Meanwhile, non-resource abundant countries may see their growth go from 2.4% in 2023 to 3.4% in 2024 and even 4% by 2025-26, helped by more investments.

Overall investment growth is likely to remain low due to high interest rates and fiscal consolidation, with the global economy making a modest contribution to Africa's growth.

2. Inflation Trends: Cooling, but still high

Prices in most Sub-Saharan African countries are cooling down, but they're still quite high. Inflation is expected to drop from 7.1% in 2023 to 5% by 2025-26.

Despite this drop, many countries still have high inflation rates - especially compared to pre-pandemic levels - with 14 countries having extremely high inflation (two digits or more).

3. Fiscal Balances and Debt: Improving, but caution needed

Many countries (e.g., Kenya, Nigeria or Ghana) have improved their fiscal balances due to consolidation measures.

Deficits are expected to go down to 3.5% of GDP in 2024, but they're still quite substantial, posing challenges to African governments' fiscal positions.

This is even more challenging given it’s a super election year in Sub-Saharan Africa with 17 general and presidential elections. And during election years governments often spend more.

It's important for countries to stay frugal though.

Even though public debt levels are expected to drop slightly from 61% of GDP in 2023 to 57% in 2024, growing debt service obligations are a concern.

It can come to liquidity problems and the crowding out of development spending.

The external public debt servicing cost is expected to increase to $58.7 billion by 2026, which represents a 50% jump in 7 years.

4. Conflict and Violence: Escalations causing uncertainty

Escalating conflict and violence in the region (e.g., tensions in West Africa, where Burkina Faso, Mali and Niger have decided to leave the Economic Community of West African States) make things harder and create uncertainty for businesses, impacting investor sentiment and food security in affected countries.

At the same time frequent droughts and floods in Eastern and Southern Africa are causing food shortages warranting urgent interventions and support.

5. Policy Responses: Domestic resource mobilization and investments are crucial

Countries need to generate more money domestically to pay for important things like schools and hospitals, and they can do this by improving how they collect taxes and spending money more wisely.

Making changes with regard to the tax administration and reforming things like energy subsidies can help bring in more money.

Trade agreements, like the AfCFTA, can also help countries sell more things and make more money.

But just changing fiscal policies alone won't solve everything. Countries need to invest in areas like education and technology to make sure everyone has a fair chance to succeed.

Sources to learn more:

• Africa’s Pulse, Spring 2024 by The Worldbank Group

• Africa MSME Pulse Survey Report 2023 by GeoPoll

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Disclaimer: All information provided is not intended to serve as investment advice. Any mention of industries or countries should not be taken as an endorsement.

it’s time again for our investment and industry news roundup covering Sub-Saharan Africa.

The highlights this week:

🚀 Movement in the e-mobility space with funding and financing deals for eWaka, Roam and BasiGo to boost e-bike and e-bus expansion

👗 Rwandan fashion brand Asantii wins prestigious 2024 Rising Sustainable Brand Award in New York

📈 Africa’s largest stock exchange plans to begin trading carbon offsets within the next 2 months

Let’s dive in!

Investor news

😍 Investment news we love:

• African Development Bank approves $50 million loan to support climate change resilience, improve livelihoods and boost food security in Nigeria

• PE-firm Adenia Partners Ltd. has raised $470 million, closing its largest fund to date, the Adenia Africa Fund

• VC firm Satgana closes 8mn fund to invest in early-stage climate-tech startups in Africa and Europe

• IFC invests $10.5 million into the 4DX Ventures fund to invest into African technology firms.

• ANAVA invests $4.3 million in Janngo Capital Startup Fund (JCSF), targeting 25 startups in francophone Africa with a $65 million fund size

• Calvert invests $10m in sub-Saharan agribusiness fund

What's worth knowing in:

🥑 Agriculture/ Food systems:

• Industry: Discover proactive African Foodtech startups focused on shifting agricultural practices to prepare for what is to come.

• Uganda: Bamboo farming on the rise offering high growth potential and taking off pressure from dwindling forest reserves of eucalyptus

• Uganda: Conservationists, manufacturers, and processors have collaborated to kickstart the implementation of bio-degradable plastics nationwide.

• Nigeria: CEO grows dried fruit company ReelFruit from idea to new modern factory with a capacity of 800 tonnes per year

• Kenya: Innovators using solar energy to dry vegetables and fruits

• East/Southern Africa: Nestle plans to invest $132 million in enhancing supplier sustainability, focusing on improving raw materials, packaging, and supporting emerging locally-owned businesses.

🌳 Ecosystems

• South Africa: JSE Ltd., the largest stock and bond exchange in Africa, plans to begin trading carbon offset credits in the next two months

• Industry: The global carbon credit market has surged to a record high of $909 billion, prompting Africa to seek a larger share through initiatives like the African Carbon Markets Initiative (ACMI)

💡 Energy and infrastructure

• Zimbabwe: Zimbabwe set to commence mega hydropower project in early 2025 in partnership with Zambia to enhance electricity supply in the region.

• Kenya: Kenya published new regulations that allows the processing of green hydrogen for commercial use boosting their quest for a net-zero economy

• South Africa: Construction of Impofu wind farm started with capacity of 330 MW

• Nigeria: Women spearheading solar projects - ‘I want to tackle it in a big way’

🚕 Mobility and transport systems

• Kenya: There are now visibly more electric motorcycles in Nairobi

• Kenya: Kenyan tech start-up eWaka signed a deal with financial and energy company Powerbase to optimise its electric mobility solutions.

• Kenya: E-mobility company Roam joined hands with MOGO, an asset financier, to accelerate the adoption of electric motorcycles in East Africa.

• Kenya: Electric bus startup BasiGo secures $3 Million funding for East Africa expansion

🏭 Industrialisation

• Nigeria: AMA Medical Manufacturing initiates phase 2 construction of its OSD plant to produce tables and capsules, as part of its facility expansion

• South Africa: Ford invests close to $300 mn in hybrid EV plant

• South Africa: Manufacturers show optimism as logistical challenges begin to alleviate, with an index indicating anticipated business conditions reaching a 14-month high

• Rwanda: Asantii, a Rwandan clothing line that sources over 80% of materials from the continent, gained global recognition after winning the prestigious 2024 Rising Sustainable Brand Award in New York

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While over 60% of the goods the EU imports come from other EU states, within Africa it’s less than 15% of imports that come from other African states.

This highlights a significant difference in regional trade dynamics, underscoring the potential for growth in intra-African trade.

Therefore, the African Continental Free Trade Area (AfCFTA) is more than a trade agreement; it’s a promise of interconnected markets for trade and innovation with huge potential for economic development and job creation.

Which is why we want to shine a light on it today.

Let’s dive in.

🕐 In a Hurry? Here's a 1-Minute Summary:

1. Context: The AfCFTA is a landmark initiative aimed at creating a single market across 54 African nations to boost economic growth, innovation, and trade within the continent. Launched in 2018 and operational since January 2021, it's set to unify over 1.3 billion people and a GDP surpassing $3.4 trillion.

2. Vision: The AfCFTA is expected to lift 30 million Africans out of extreme poverty, increase the continent's income by $450 billion, boost intra-African regional trade by over 30% and foster significant job creation.

3. Sectors: Expected to significantly impact sectors like agriculture, manufacturing and the digital economy - manufacturing could double in size by 2025, driven by access to a larger regional market and job creation; And the digital economy can benefit from the AfCFTA’s focus on protecting intellectual property rights.

4. Challenges: Despite its potential and political will, the AfCFTA still faces significant hurdles in harmonizing standards and protocols across countries, addressing infrastructural gaps, and overcoming non-tariff barriers to truly capitalize on intra-African trade benefits.

5. Implications for investors: The AfCFTA signals a move towards more integrated and investor-friendly conditions in Africa, promising a large, more easily accessible consumer market, lower trade costs, and new opportunities for growth in diverse sectors.

⏳ Ready for a Deeper Dive? Here's the Breakdown:

Context: What is the AfCFTA?

The African Continental Free Trade Area (AfCFTA) represents a big step towards economic integration across the African continent.

Established by the African Continental Free Trade Agreement in 2018, the AfCFTA encompasses the majority of African countries, making it the world's largest free trade area by the number of participating countries.

With 54 states having signed the agreement, the AfCFTA aims to create a single, liberalized market for goods and services encompassing over 1.3 billion people and a GDP exceeding $3.4 trillion.

It commenced trading on 1 January 2021, with a permanent secretariat based in Accra, Ghana, to oversee its implementation.

The vision: Facilitate intra-African trade

Intra-Africa exports account for less than 15% - whereas in other world regions like the EU the intra-continental trade is well above 60%.

The AfCFTA is set to lower trade barriers, enhancing goods and services flow, which could stimulate economic growth, diversification, and innovation across the continent - and boost intra-Africa exports by more than 30%, significantly cutting the continent’s trade deficit.

The vision encompasses a more competitive Africa on the global stage, aiming for substantial poverty reduction, job creation, and inclusive socio-economic development.

The AfCFTA seeks to boost investment, technological advancement, and the development of regional value chains, potentially redefining Africa's global economic role and moving towards a prosperous, integrated, and united continent as envisioned in the African Union's Agenda 2063

Let’s make the African market, the market of Africans. Produce in Africa, transform in Africa and consume in Africa. Let’s produce what we need and let’s consume what we produce instead of importing - H.E. Thomas Sankara, President of Burkina Faso

The World Bank highlights the economic potential of the AfCFTA, noting its capacity to lift 30 million Africans out of extreme poverty and significantly boost the continent’s income by $450 billion.

💡💡Sector Spotlight: Who will gain?

🌾 Agriculture and Food

The agreement is expected to make African agriculture more productive, competitive, and sustainable.

The AfCFTA aims to increase agricultural efficiency and productivity by facilitating better access to markets across the continent. By removing tariffs and non-tariff barriers, the agreement opens up opportunities for farmers and agricultural businesses to export their products to a wider market.

Improved intra-African trade in agriculture could also enhance food security across the continent. By making it easier to trade agricultural products, countries can better manage food surpluses and shortages, reducing the risk of food crises and ensuring that populations have access to a stable supply of affordable food.

🏭 Manufacturing

The AfCFTA is expected to make access easier to vast regional markets encouraging the local production of goods, reducing reliance on imports.

This is expected to foster competitive manufacturing environments, and with successful implementation, Africa's manufacturing sector could double in size, creating 14 million stable jobs by 2025.

💻 Digital Economy and services

The AfCFTA aims to streamline cross-border e-commerce and create a harmonious digital landscape across Africa. This can open new doors for fintech, online retail, and digital services.

Another critical area is innovation, particularly in technology and intellectual property rights. The AfCFTA encourages policies that protect and promote innovation, vital for sectors like digital platforms, healthcare, and pharmaceuticals.

With Africa's youthful and increasingly educated population, fostering an environment conducive to innovation could lead to the development of new industries and enhance the continent's global competitiveness.

The agreement's focus on intellectual property rights will also be key to protecting innovations and fostering a culture of creativity across the continent

Implementation hurdles despite vast economic potential

A significant hurdle in the AfCFTA's implementation is aligning member states on diverse protocols and standards across sectors such as trade, competition policy, and intellectual property.

Also, the Regional Economic Communities - e.g., East African Community (EAC), Economic Community of West African States (ECOWAS) - are foundational components towards achieving the AfCFTA, but also introduce additional complexities in integrating regional and continental objectives.

Moreover, national readiness is critical, with countries still developing strategies to empower the private sector to truly capitalize on AfCFTA.

Practical trade barriers within AfCFTA, like insufficient trade infrastructure and access to digital platforms, further hinder effective cross-border commerce.

Additionally, non-tariff barriers, including different customs procedures and standards, pose significant challenges to realizing AfCFTA's potential in enhancing intra-African trade.

Why does it matter for investors?

The AfCFTA signals to investors that Africa is moving towards greater economic integration and creating a more conducive environment for business and investment.

It offers the promise of a larger, more unified market, reduced trade costs, and enhanced opportunities for economic diversification.

By creating a single market for goods and services across 54 African countries, the AfCFTA significantly increases the potential consumer base and market size for businesses.

Moreover, by reducing trade barriers and simplifying customs procedures, the AfCFTA lowers the cost of doing business across borders within Africa.

This makes it easier and more profitable for investors to establish operations in one country and serve markets across the continent.

The focus on diversifying economies and moving up the value chain, particularly in sectors such as manufacturing, agriculture, and services, opens new investment opportunities in areas poised for growth.

Additionally, the agreement's emphasis on digital trade and intellectual property rights is set to enhance the legal framework for business, providing more security and confidence for investors.

This is particularly important in the burgeoning tech and innovation sectors, where Africa shows considerable promise.

Sources to learn more:

• Website of the AfCFTA

• The Road to Africa’s Single Market: Progress so far and challenges for the future by Africa Policy Research Institute

• The benefits of the AfCFTA for the African economy by the Borgen project

• Discover AfCFTA by ITC Market Access Map

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Disclaimer: All information provided is not intended to serve as investment advice. Any mention of industries or countries should not be taken as an endorsement.

it’s time again for our investment and industry news roundup covering Sub-Saharan Africa.

The highlights this week:

🌍💡 Feasibility study for “Project Nour” completed in Mauritania which could become one of the world’s largest green hydrogen projects

💊🏭 Nigerian AMA Pharmaceuticals launches second manufacturing plant to serve African markets with locally produced pharmaceuticals

🏦💰 The United Bank for Africa and the African Guarantee Fund have partnered to provide $100 million in new loans to SMEs across 20 African countries

Let’s dive in!

Investor news

😍 Good News:

Green Funds

• Green Climate Fund announced an investment of $100 million for climate initiatives in Somalia.

• The European Investment Bank aims for climate-related investments in Africa, funding e.g., Nairobi's bus system electrification and food security in Zambia.

• The Green Climate Fund has pledged $309.3 million in climate investments to Madagascar, Somalia, and Ghana, as part of a $1.26 billion global climate financing initiative.

SME Funding

• The United Bank for Africa and the African Guarantee Fund have partnered to provide $100 million in new loans to SMEs across 20 African countries.

Venture Capital

• P1 Ventures has secured a second close of $35 million for its Fund II

• XSML Capital has raised $98.7 million in the first close of its fourth fund, African Rivers Fund IV, aimed at providing growth capital to SMEs in Central and Eastern Africa.

• IFC and Solcon Capital have formed a partnership to support growth in South Africa's deep tech sectors.

Industry News

🥑 Agriculture/ Food systems:

• The World Bank has approved a $40 million grant to promote Climate Smart Agriculture technologies across various African countries.

• Rwanda: KKOG Rwanda is the first local company to receive a license for 5 years to cultivate and export medical cannabis.

• Ghana: The Africa Business Angel Network has invested in Ghana's Legendary Foods, which produces palm larvae to serve as a sustainable protein source.

• South Africa: Agri-tech platform SwiftVEE has expanded from an online livestock auction platform to offering comprehensive agri-tech solutions, including white-label auction software and a digital agri-inputs platform.

🌳 Ecosystems

• The Trees for the Future project, transforming monoculture lands into biodiverse forest gardens in Africa, has restored over 41,000 hectares—seven times the size of Manhattan—since 2015.

• Lazard suggests that African nations could alleviate their debt by selling carbon credits from their extensive forests, including the Congo Basin and mangroves.

💡 Energy and infrastructure

• Zambia: TDB has provided a $2 million loan to MPower Ventures to support the distribution of solar home systems in rural Zambia.

• Nigeria: Microsoft and CFM have partnered to invest USD 18mn in private renewable power trading platform Konexa.

• Mauritania: Chariot has completed a feasibility study for "Project Nour," a major green hydrogen project with a potential to become one of the largest of its kind globally producing 150 kt of green hydrogen annually.

• South Africa: Enel Green Power South Africa has initiated the construction of three wind farms, set to supply 330MW of renewable energy to Sasol’s Secunda site, home to the world's largest oxygen production facility.

• South Africa: Trina Solar is partnering with SOLA and WBHO to build 135MW solar plant powering operations at African Rainbow Minerals mine.

• The African Commission On Nuclear Energy and US-based DeepGEO have signed an agreement aimed at expanding nuclear energy in Africa and establishing a fully autonomous African nuclear supply chain.

🏭 Industrialisation

• Nigeria: AMA Pharmaceuticals, based in Kaduna, Nigeria, has launched its second pharmaceutical manufacturing plant, marking a significant expansion aimed at addressing healthcare needs across Africa.

• Nigeria: Dangote Sugar Refinery is leading a revolution in Nigeria's sugar industry with its backward integration programme, aimed at creating a thriving sugarcane-to-sugar value chain.

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the African continent is full of natural resources - but the comparison between African countries rich in natural resources and those with fewer resources underscores the complexity of leveraging natural wealth for sustainable development.

It highlights that natural resources can be both a blessing and a curse, depending on governance, economic policies, and diversification efforts.

Ultimately, the path to prosperity for all African nations lies in robust governance, economic diversification, investment in human capital, and innovation.

We’re having a closer look in this deep-dive at resource-rich and resource-light African countries, and why it’s worth it for investors and other global stakeholders to look at the opportunities on the continent beyond natural resources.

🕐 In a Hurry? Here's a 1-Minute Summary:

1. Resource-Rich Countries' Wealth: Nations such as Nigeria, Angola, and the Democratic Republic of Congo are endowed with vast natural resources, including oil, diamonds, and cobalt, crucial for the global economy and for the energy transition.

2. The Resource Curse: Despite this abundance, many African countries grapple with the "resource curse," where high levels of natural resources can lead to less democracy, more corruption, and poor development outcomes. This paradox is evident in the continent's struggle with economic volatility, inadequate healthcare, education, and infrastructure.

3. Innovation and Diversification in Resource-Lighter Countries: In contrast, countries with fewer natural resources, such as Rwanda, Kenya, and Ethiopia, are focusing on diversification into services, technology, and manufacturing. These efforts are yielding more stable economic growth and development indicators, showcasing how investment in human capital and foreign direct investment in sectors beyond natural resources can drive significant progress.

4. Spotlight on Lower-Resource Countries' Strategies: Rwanda's emergence as the "Singapore of Africa," Kenya's leadership in mobile money and the tech industry, and Ethiopia's diversification into manufacturing highlight how strategic governance and innovation can overcome natural resource limitations.

5. Beyond Natural Resources - Opportunities for Investors: Africa offers vast opportunities beyond its natural resource wealth, with an upcoming technology sector, a growing middle-class consumer market, and sustainable development initiatives. The African Continental Free Trade Area (AfCFTA) amplifies these opportunities, providing a streamlined platform for trade and investment across borders and signaling the continent's readiness for scalable ventures and innovation-driven growth.

⏳ Ready for a Deeper Dive? Here's the Breakdown:

Nations like Nigeria, Angola, and the DRC are rich in natural resources and have economies heavily dependent on those—oil, diamonds, cobalt, and more.

🪨 Minerals & Metals

South Africa leads in gold, diamonds, and platinum, contributing significantly to the global supply.

The Democratic Republic of Congo is famed for its cobalt and copper, essential for the upcoming electric vehicle and electronics industries.

Meanwhile, Guinea stands out for its bauxite reserves, critical for aluminum production.

☀️ Energy Resources

Nigeria and Algeria are pivotal players in the oil and natural gas sectors, fueling industries worldwide.

In renewable energy, Kenya harnesses geothermal power from the Rift Valley, while Morocco's Noor Ouarzazate Solar Complex is a cornerstone of solar energy capture.

Also the push towards green hydrogen is gaining momentum, with Namibia and South Africa pioneering projects that promise to revolutionize energy production and export.

🌾 Agricultural Wealth

Ethiopia's coffee, and Ivory Coast's cocoa are just a glimpse of the continent's agricultural bounty.

Innovative agri-tech startups are transforming this sector, enhancing productivity, market access, and sustainability.

🐟 Aquatic Resources

Africa's vast coastlines and river systems harbor rich fisheries and untapped aquaculture potential.

Beyond fisheries, the blue economy encompasses seabed mining, energy production, and marine biotechnology, offering new horizons for exploration and investment.

However, despite holding 30% of the world's mineral resources and significant renewable energy potential, a significant portion of the population on the African continent lives in poverty

The "resource curse" implies rich natural resources often lead to less democracy, more corruption, and poor development.

While natural resources contribute to substantial GDP figures, they also often lead to economic volatility due to fluctuating global commodity prices. This dependence often results in a lack of diversification, making economies vulnerable to global market shifts.

Resource-rich African countries often face challenges in translating this wealth into broad-based development gains. Issues like inadequate healthcare, education systems, and infrastructure persist, exacerbated by corruption and mismanagement of resource revenues.

The focus on natural resources can sometimes stifle innovation by concentrating investment and talent in the extractive sectors.

Lack of resource wealth can drive necessity-based innovation, with countries like Kenya and Rwanda becoming hubs for technological and social innovation.

Often countries with fewer natural resources have managed to make more significant progress in development indicators by efficiently utilizing their limited resources, investing in human capital, and attracting foreign direct investment in sectors beyond natural resources.

Countries such as Rwanda, Kenya, and Ethiopia, with less reliance on natural resource exports, have (been forced to) focus more on diversification into services, and manufacturing.

This diversification has contributed to less susceptibility to global price changes, and a broader base for development.

💡💡Spotlight: Examples and Strategies of Lower-Resource Countries

🇷🇼 Rwanda: Known as the "Singapore of Africa," Rwanda has focused on creating a favorable business environment, investing heavily in ICT, and promoting tourism.

The country has become a hub for tech startups and innovation, leveraging its strategic location and political stability.

🇰🇪 Kenya: With its economy not primarily dependent on natural resources, Kenya has become a leader in mobile money through the M-Pesa system and has a booming tech industry known as "Silicon Savannah."

Agriculture also plays a significant role, particularly the tea and coffee sectors.

🇪🇹 Ethiopia: Once heavily reliant on agriculture, Ethiopia is diversifying into manufacturing and services.

The government has encouraged foreign investment, especially in the textile and garment sector, and is working on expanding its renewable energy capacity.

🇧🇼 Botswana: Although relatively rich in diamonds, Botswana deserves mention for its prudent management of natural resources and focus on economic diversification.

It has invested diamond revenues into education, health, and infrastructure, and is exploring sectors like tourism and financial services.

It’s instrumental for investors and international companies to look at Africa’s potential beyond the extraction of natural resources

The continent's emerging technology sector, particularly in fintech, agritech, and health tech, presents fertile ground for digital innovation, driven by a young and tech-savvy population.

Urbanization and the growth of middle-class consumers open avenues in retail, telecommunications, and consumer goods, capitalizing on a rising demand for diverse products and services.

Additionally, Africa's push towards sustainable development and green energy transitions unveils investment prospects in renewable energy projects, green minerals, and eco-friendly infrastructure.

The African Continental Free Trade Area (AfCFTA) further amplifies these opportunities, offering a streamlined platform for trade and investment across borders, encouraging regional integration, and fostering an environment ripe for scalable ventures.

For investors and companies willing to navigate the complexities of the African market, the continent offers vast opportunities beyond its natural resources.

Sources to learn more:

• Africa: Special Issue, Oct 2023 by IMF

• Africa’s Natural Resource Wealth: A Paradox of Plenty and Poverty published in Advances in Social Sciences Research Journal

• Economic diversification in Africa: How and why it matters published July 2022 by Industrial Analytics Platform

• From resource curse to blessing: harnessing Africa’s green minerals, 2023, SDG Action

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Disclaimer: All information provided is not intended to serve as investment advice. Any mention of industries or countries should not be taken as an endorsement.

it’s time again for our investment and industry news roundup covering Sub-Saharan Africa.

The highlights this week:

💰🌍 Several new funds have been launched (Conducive Capital, Renew Capital, Ring Capital) with the target to invest in Africa

🚗⚡Kenyan Go Electric Ltd presented its latest electric vehicle model “UTU saloon”

🛸🦟 Rwandan drone company Charis UAS is monitoring assets of more than $1 billion through its platform, and at the same time leverages its technology to mitigate malaria through detecting mosquito breeding

Let’s dive in!

Investor news

😍 Good News:

• TDB Group and GGGI signed an agreement to enhance cooperation in climate adaptation funding and accelerate climate finance strategy implementation.

• The EU has committed $150 billion for renewable energy projects in Africa.

Venture Capital

• Conducive Capital launches $50m VC fund to invest in early-stage startups in Africa

• Renew Capital has launched a new pan-African tech fund, Renew Venture Lab Fund 2 focusing on asset-light startups with scalable and sustainable business models

• Ring Capital has launched Ring Africa, a €50 million impact investment fund targeting French-speaking West Africa.

👎 Challenges:

• A study reveals that climate change is projected to reduce African GDP by 7.1%, with crop revenue expected to drop by 30%, leading to 200 million people facing hunger.

• Africa faces a $2.5 trillion shortfall in climate change financing by 2030, despite minimal emissions, with only 2% of global clean energy investments directed to the continent, says UN.

Industry News

🥑 Agriculture/ Food systems:

• Kenya: Farmers like Yvonne Atieno and Mark Ogado are embracing regenerative agriculture to combat climate change, supported by initiatives like the TREYL project, aiming to enhance economic prospects, livelihoods, and sustainability in rural communities, according to IPS.

• Malawi/Mozambique: Floodbase, a climate tech firm, will pilot fast-paying flood insurance in Africa, specifically offering low-cost parametric insurance to farmers and rural communities to address the lack of insurance coverage for smallholder farmers against natural catastrophes like floods.

• Botswana: Tumo Kgabeng, founder of Anton Tech, discusses their AI research company aimed at transforming the agriculture industry to address food security - utilizing drones and AI to track pests, diseases, and soil quality, offering real-time recommendations for treatments and interventions.

• Kenya/Tanzania: French investor Mirova invests $8.5 million in Pamoja for sustainable macadamia nut farming with the help of small-scale farmers

💡 Energy and infrastructure

• South Africa: Record seed-funding round of $8mn for Hohm Energy, which connects homeowners with installers and financiers to ease the process of installing rooftop solar panels in South Africa.

• DRC: Africa Finance Corporation (AFC) partners with Canadian company SkyPower to develop a 1,000 MW solar megaproject in the DRC.

• The US is banking on the Lobito corridor in Africa, connecting Congo, Zambia, and Angola, to provide the necessary battery metals for its electric vehicle revolution.

• Ghana: Ghana's recent introduction of green initiatives - including adopting clean fuel standards, implementing the Cylinder Recirculation Model for LPG, and promoting electrification and solar energy initiatives - showcases its leadership in the clean energy transition within West Africa.

• Cameroon: Gaia Impact has sold its stake in a Cameroon-based solar home systems company to global energy company Électricité de France.

🚕 Mobility and transport systems

• Kenya: Kenyan Go Electric Ltd, unveils its latest car model in Rwanda, marking progress in sustainable transportation and reaffirming its commitment to offering eco-friendly mobility solutions.

• Nigeria: Uber Technologies Inc. is in discussions to invest in Nigerian vehicle-financing startup Moove in a funding round of up to $100 million, potentially pushing Moove's market value to $750 million.

🌆 Urban areas

• Kenya: BURN introduces the continent's first large-scale electric cooking carbon project, listed by Gold Standard, aiming to enhance access to clean cooking by making e-cooking appliances affordable to low-income households through carbon funding and "pay as you cook" financing.

💧 Water systems

• As climate change increases water stress in Africa, desalination offers a potential solution, particularly in remote areas, with solar power making small-scale desalination projects more feasible.

💻 Digital transformation

• Rwanda: Drone startup Charis UAS is monitoring over $1 billion worth of assets using its proprietary platform, Charis Analytics, while also contributing to malaria mitigation by detecting mosquito breeding sites.

• Equinix plans to invest $390 million in Africa over the next five years to establish data centers in South Africa and the western part of the continent.

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