Key Takeaways from Davos 2024 about Africa
Industry and Investment News
Hi all,
it’s time for our news roundup.
Our highlights:
💡 10 key takeaways from Davos 2024 on discussions about Africa
🏍 Powerhive is ramping up production of its e-motorcycles
💰 Nigerian Zebra CropBank received funding to expand its solar-powered micro-warehouses and tech platform for small-scale farmers
Read on to learn more.
10 Takeaways from Davos 2024 on Africa
Debt Challenges: Africa's debt was a major topic, with leaders stressing the need for better management and anti-corruption measures to tackle the problem.
Entrepreneurial Fund: The Timbuktoo fund ($1bn USD target size) was introduced to support innovative startups in Africa, aiming to boost economic activity and harness the potential of the continent's youth.
Corporate Partnerships: A new initiative - the Private Sector Action Plan - was launched involving 40 global corporations to help expand Africa’s economy, emphasizing the role of private investment.
Trade Potential: There was a significant focus on how the African Continental Free Trade Area (AfCFTA) could make it easier for Africa to trade with the world and enhance its position in the global economy.
Trade Dynamics: The WTO noted a shift in trade patterns, with countries in the southern hemisphere, including African nations, increasing trade among themselves, signaling a rise in Africa’s economic influence.
BRICS Collaboration: Discussions about BRICS reflected a push for stronger South-South collaboration and the need to reform international institutions to support development.
Environmental and Conflict Issues: The situation in Congo's Virunga National Park highlighted the complex issues of conflict and environmental challenges facing Africa, which could hinder progress.
Agricultural Development: There was a call to modernize agriculture as a catalyst for growth, utilizing Africa's large youth population to improve productivity and contribute to economic development.
Need for Capital: The discussions recognized the need for greater access to capital and investment in Africa, with a focus on creating a more supportive environment for business and reducing trade costs.
Global Economic Presence: Ethiopia’s deputy prime minister discussed Africa's readiness to compete on the global stage, with the continent's involvement in BRICS as a step towards a more influential role in international trade.
Investor news
😍 Good News:
IFC to Inject $20Mn Equity Investment in the Africa50 Infrastructure Acceleration Fund
The Emerging Africa Infrastructure Fund raised $294 million in debt capital, reaching halfway of its $500 million target by 2025
African Guarantee Fund Partners with Vista Group to provide financing to SMEs in West Africa
IFC provides $80m to the Facility for Energy Inclusion financing renewable energy for commercial and industrial customers
Zambia’s debut green bond attracts $54m in first raise
AfDB Launches $1 Billion Fund to Insure 40 Million African Farmers From Effects of Climate Change
👎 Challenges:
SME funding gap threatens 40% of South Africa’s GDP - 35% of loans made out to SMMEs are in the form of personal loans
Industry News
🥑 Agriculture/ Food systems:
Kenya: Agri-tech startup Shamba Pride raised $3.7 million to expand its one-stop online-to-offline platform connecting farmers to quality inputs, services and information
Nigeria: Agri-tech startup ThriveAgric kicked off its phase two distribution of agri inputs targeting 100k farmers
Nigeria: Zebra CropBank obtained funding to further expand its solar-powered micro-warehouses and its trading platforms for small-scale farmers
🌳 Ecosystems
Kenya: Clean cooking and carbon credit startup KOKO raised funding from RMB bank
Kenya: Carbon removals platform buys 1,000 direct air capture units from Kenyan facility
💡 Energy and infrastructure
Industry News: Four Trends Shaping the African Energy Sector this year
Solar: Driven by South Africa, the African continent deployed 3.7 GW in 2023 - overall installed capacity of 16 GW is still low in global comparison
Industry News: Deals in Africa: 10 things to watch in 2024
🚕 Mobility and transport systems
Ghana: The first lithium mine to be developed for the manufacturing of electric vehicles - which would make Ghana the largest producer of lithium in the West African sub-region
South Africa: Zero Carbon Charge to complete South Africa's first fully off-grid EV charging station in Q2 2024
Kenya: Powerhive is ramping up production and deliveries of the Spark electric motorcycles
🏭 Industrialisation
WEF Davos 2024: How Africa can achieve commodity-led industrialisation
Ghana: Steelmaker Rider Steel goes green with rooftop solar power - a major step towards decarbonizing Ghana’s steel industry
Nigeria/Algeria: Daikin Industries is betting on Africa with new production sites bolstering its supply chain for home air conditioners in Africa
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Thanks for reading,
Carolin