News Update: Growing e-mobility, 5 innovative renewable energy projects, 1st fully digital Nigerian state, and more
Industry and investment news
Hi Exseeders,
welcome to our 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:
LeapFrog Investments commits $500mn to companies fighting climate change in Africa and Asia.
Investing in climate solutions across emerging markets is not just the right thing to do, but also a highly compelling commercial opportunity. Our internal modelling paints a stark picture. India, Southeast Asia and Africa, which today represent 25 percent of global emissions, could account for as much as 84 percent of emissions by 2050 without urgent action, undoing any climate gains made in wealthy nations - Kuper (CEO LeapFrog Investments)
👎 Why we need to keep pushing:
Kenya: Climate change financing gap has reached 79%. The lack of funding for climate change adaptation measures leads to increased vulnerability among Kenyans, particularly in sectors like agriculture.
What happened this week in:
🥑 Agriculture/ Food systems:
Nigeria: Seedspike set out to build Africa’s largest agricultural value chain network. Within one year, they’ve emerged as Nigeria’s leader in sustainable fish farming.
Nigeria: Nigeria implements $518mn Agro-Industrial Processing zones to battle stagnant agricultural labor productivity. Despite favorable pre-conditions, Nigeria remains a net food importer.
Photo by Moses Londo via Unsplash
💡 Energy and infrastructure
West Africa: Top 5 innovative renewable energy projects: Wave energy in Ghana, Wave2O (reverse-osmosis desalination plant powered by wave energy) in Cabo Verde, thorium exploration (cleaner alternative to uranium) in Nigeria, typha fuel and construction (use of typha plant as biofuel and construction material) in Senegal and Mauritania and biogas in Senegal
Uganda/Tanzania: The construction of a $4 billion oil pipeline creates climate dilemma over economic development and environmental protection in a region highly vulnerable to climate change. It pits jobs creation and revenues against ecological damage and increased emissions.
🚕 Mobility and transport systems
Sector news: As much as 35% of sub-Saharan Africa’s 5 largest vehicle markets (excl. South Africa) may be electric by 2040. E-Mobility innovators are unlocking the $3.65 bn e-motorcycle market through local production (Roam), using solar to charge batteries and innovative rent-to-own models (Zembo) as well as the development of clean storage products (Mobile Power).
Roam’s electric motorcycle (photo by Roam Electric)
🏭 Industrialisation
Investments into local refining and manufacturing capacity would enable Africa to develop a local battery value chain. With vast natural battery resources such as lithium, graphite and cobalt (e.g., DRC produces >70% of world’s cobalt) and renewable energy sources, it’s got the pre-conditions.
Namibia: Calls for investment towards developing green hydrogen infrastructure to leapfrog Namibia to low-carbon industry. Favorable policy legislation, abundant solar and wind resources as well as a harbour give Namibia the competitive edge.
💧 Water systems
Djibouti: European Investment Bank approves loan over 79mn EUR to realize projects in seawater desalination and wastewater treatment. The effort will improve drinking water supply for more than half a million people.
💻 Digital transformation
Nigeria: First state in Nigeria (Edo) to become fully e-governed by September 2023. Over 3000 workers trained in digital transformation.
Do you have feedback for us? Please let us know! We’d love to hear from you!
Best,
Carolin
for the Exseede Team