News Update: Six of the world's top 10 fastest growing economies 2024 in Sub-Saharan Africa
Industry and Investment News
Hi all,
it’s time for our news roundup.
As we start the new year, it's that time again to think about what's ahead. According to the World Bank, it’s looking promising for Sub-Saharan African economies.
We've added a section about the 2024 growth outlook, with West Africa expected to see the biggest growth.
Read on for more.
Prospects for 2024
In 2024, six of the world's top 10 fastest-growing economies are predicted to be in Sub-Saharan Africa.
The region's growth is expected to rise to 3.8%, an increase from 3.3% in 2023.
Notably, six of the region's largest economies are projected to expand by over 5%.
Leading this growth are countries like Ivory Coast, DRC, and Ethiopia, achieving rates of 6.5% and 6.4%, driven by economic diversification and foreign investment.
Although the three biggest economies in the region — Nigeria, South Africa, and Angola — are showing signs of recovery, their growth rates are still below the regional average.
Especially non-resource-rich countries are expected to grow considerably - increasing investment and business confidence in Kenya and Uganda are expected to boost growth.
However, challenges such as debt burdens, poverty, and inequality persist.
African countries face difficulties accessing the eurobond market due to global financial conditions, including the US Federal Reserve's interest rate hikes.
Moody's maintains a negative outlook on African sovereign credit, citing high debt-refinancing risks and potential impacts from slower growth in major economies like China.
Investor news
😍 Good News:
Seedstars Africa Ventures secured $30 million from EIB Global for early-stage investments in companies across Sub-Saharan Africa
China is expected to resume higher lending to Africa in 2024, marking the first increase since 2016, focusing on financing projects in renewable energy and natural gas.
TikTok, following its decision to set up regional headquarters in Kenya, is committing a $1.49 million fund to support local small and medium enterprises.
👎 Challenges:
Investment in African startups fell to $3.2 billion in 2023, marking a two-year decline and a drop of over 30% from the $5 billion recorded in 2022.
Industry News
🥑 Agriculture/ Food systems:
Exports: African companies ramp up and benefit from exporting food to global markets - from Rwandan avocados and chillis to Nigerian cashew nuts.
Industry: Analysis of the 2023 performance of Africa's agriculture market and projection for its outlook for 2024.
🌳 Ecosystems
Kenya: Ethiopian impact investor Renew Capital backs Kenyan direct air capture startup with undisclosed amount to suck carbon out of the air and store it in Kenya’s Great Rift Valley.
💡 Energy and infrastructure
Nigeria: All On commits $2.25 million in credit to Baobab+ Nigeria to roll out over 1,500 solar energy systems throughout the country
Uganda: Emerging Africa Infrastructure Fund invests 19 million USD in solar PV project for remote Uganda
Zambia: Copperbelt Energy Corporation (power supplier to mines in Zambia and DRC) receives $145 million in investments from Affirma Capital and Norwegian funds.
🚕 Mobility and transport systems
Rwanda: Ampersand raised 19.5 million USD in equity and debt led by Ecosystem Integrity Fund, Acumen and Hard Edged Hope Fund to continue to expand its operations.
Senegal: Mbay Mobility is gearing up to putting 33,000 electric taxis on the streets of major West African cities (Dakar, Accra and Abidjan).
Kenya: British International Investment loans $5 million to BasiGo to assemble 1,000 electric buses for Kenya and Rwandan markets
🏭 Industrialisation
Angola: The country’s first Caustic Soda and Calcium Hypochlorite factory announced producing high-quality chemicals
🌆 Urban areas
Rwanda: Rwanda’s tallest building to begin construction in January 2024: The 29-storey Kigali Green Complex.
💻 Digital transformation
Ethiopia: Microsoft and Gebeya have partnered to upskill 300,000 African developers with a focus on cloud and AI over the next 3 years
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Thanks for reading,
Carolin