News Update: New high-yielding hybrid rice, pay-as-you-go solar installation, first electric taxi service and more
Industry and investment news
Hi Exseeders,
welcome to our first weekly update on industry and investment news in Sub-Saharan African economies. Our focus? All things related to SMEs in the 9 priority areas identified by the African Union to combat climate change.
😍 Investment news we love:
United Bank for Africa has signed an agreement with the Africa Continental Free Trade Area Secretariat to provide financing for up to US$6.0bn over the next three years to eligible small and medium enterprises, SMEs, across Africa.
Partnership between PIDG and University of Exeter will support major new investments in Africa based on climate science.
👎 Why we need to keep pushing:
According to a UNCTAD report, developing countries face a staggering $4 trillion gap in sustainable development investments, particularly in renewable energy, to achieve global climate goals by 2030. The report emphasizes the need for private investment and reduce borrowing costs, enabling developing countries to bridge the investment gap and advance their sustainable development agenda.
What's worth knowing in:
🥑 Agriculture/ Food systems:
Sector news: Agri-Tech in Africa is set to record massive growth revolutionizing the agricultural landscape and unlocking "$1 trillion in value over the next seven years" (Akinwumi Adesina, President of the African Development Bank)
Uganda: Uganda has introduced a new hybrid rice variety called WDR-73. This high-yielding and weather-friendly rice is expected to enhance farmers' production by addressing drought issues and offering water savings, while also boosting food security and income for households in the country.
Source: Further Africa
🌳 Ecosystems
Somalia: The United Nations has pledged funding and assistance to support the establishment of Somalia's first carbon credits program through reforestation efforts. Iroko Analytics, the company leading the project, is actively locating a site and organizing the initiative in collaboration with UN agencies.
Sector news: Wood harvesting’s CO2 emissions exceed aviation industry. In Sub-Saharan Africa wood is still widely used for cooking - according to a report 62% of Kenyans still use wood as a fuel source. Replacing biomass-burning cookstoves not only impacts emissions, but would also save lives and billions in health costs.
💡 Energy and infrastructure
Congo: Altech experiences remarkable growth (expanding sixfold in just two years) by offering pay-as-you-go solar installations paid via mobile money in the Congo. With Africa presenting vast untapped demand for small-scale solar solutions, countries like Nigeria, Congo, and Ethiopia have millions of people without access to the electric grid.
Policy & regulation: African countries call for policy shifts to attract more investment in climate change measures and the energy transition, as they require a 36% annual increase in private sector climate financing to meet their goals.
South Africa: Germany and South Africa signed a declaration of intent to enhance cooperation on green hydrogen and power-to-x products. The agreement aims to strengthen collaboration in the production, processing, use, and transport of green hydrogen, with a focus on joint projects, intergovernmental exchange, and facilitating access to markets.
🚕 Mobility and transport systems
Nigeria: Possible EVS announces the launch of the country’s first-ever electric vehicle taxi service and build up of charging infrastructure. Thereby creating employment opportunities, and tackling over 15% of the countries in-scope carbon emissions.
Kenya: Stima Mobility receives 100,000 EUR in funding from DEG impulse. Stima offers eco-friendly tech solutions for the moto-taxi industry in Kenya.
🏭 Industrialization
Policy & regulation: Importance of green industrialization in Africa increases with a new European law imposing the world's first carbon border tax, charging importers the same carbon emissions fees as domestic producers. The law is expected to wipe out 0.91% of the continent's GDP, disproportionately affecting African economies despite their limited carbon footprint.
💻 Digital transformation
Mozambique: Interactive, a Mozambican company, offers satellite-based internet access to all Mozambicans starting from July 1. This will drop prices to give internet access to more Mozambicans (Currently, only 23% of the country's population has internet access).
Rwanda: How digitization is transforming Rwanda’s economy - video providing insights into Rwanda's rapidly evolving tech sector and its impact on the country's economy.
Have feedback for us? Please let us know! We’d love to hear from you!
Best,
Carolin
for the Exseede Team