The Launch of Polypropylene Production

In a recent announcement, it was confirmed that Dangote has commenced operations at his polypropylene plant, a facility with a staggering capacity of 830,000 metric tonnes per year. This marks a significant milestone in Dangote’s strategy to meet Nigeria’s growing demand for polypropylene—a versatile plastic used in a wide range of applications, from packaging to automotive components.

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According to a report by S&P Global, polypropylene production has officially begun, with the material already being distributed in 25 kg bags. Market analysts have taken note of the development, suggesting that it has the potential to disrupt the domestic market, which has traditionally been dominated by imports, particularly from the Middle East, and centred around Indorama Eleme’s refinery in Port Harcourt.

Market Impact and Expansion Plans

The introduction of Dangote’s polypropylene plant is poised to transform the local manufacturing landscape. Aliko Dangote has expressed confidence that the new facility will meet Nigeria’s annual polypropylene needs, estimated at approximately 250,000 metric tonnes. Comprising two production units with capacities of 500,000 mt/year and 330,000 mt/year, this facility is set to become the largest of its kind in Africa once fully operational.

Devakumar Edwin, Group Executive Director for Strategy, Capital Projects & Portfolio Development at Dangote Industries Limited, underscored the significance of this initiative, stating, “The facility will stimulate significant investment in downstream industries.” With the capability to produce 77 different types of polypropylene, the plant’s applications span multiple sectors, enhancing Nigeria’s industrial capacity.

Addressing Challenges in Raw Material Supply

A longstanding challenge for Nigerian manufacturers has been their reliance on imported raw materials for polypropylene production. Foreign exchange constraints have further compounded this issue, limiting manufacturers’ ability to secure essential resources. The Dangote Petrochemical plant aims to alleviate this problem significantly.

Edwin noted, “Currently, raw materials for polypropylene are imported into the country. There is no foreign exchange for manufacturers to import raw materials. The Dangote Petrochemical plant is going to address this challenge.”
By producing polypropylene domestically, the new facility represents a crucial step towards self-sufficiency and reduced dependency on imports. This move is expected to stabilise prices in the domestic market while encouraging local innovations in the petrochemical sector.

As operations ramp up at the polypropylene plant, the implications for Nigeria’s economy and industrial sector are substantial. The facility is set to create jobs, attract local investment, and reduce reliance on imported petrochemicals, aligning with Dangote’s broader vision of a more economically independent Nigeria.

The launch of this production facility reflects a wider trend of industrialisation across Africa, where local manufacturing is increasingly seen as a key driver of economic growth. With Aliko Dangote leading the charge, Nigeria’s petrochemical sector is poised for a transformative shift, strengthening Africa’s industrial position on the global stage. As the plant scales up production, it will play a crucial role in shaping the future of local manufacturing and economic development.

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According to the World Bank, global remittances to low- and middle-income countries reached a record $685 billion in 2024, with Africa receiving approximately 5.8%. Nigeria alone accounted for $4.22 billion, representing a significant source of external financing. Countries such as Egypt ($29 billion) and Ghana ($6.65 billion) also benefit heavily from diaspora inflows. However, these remittances are primarily used for household consumption rather than large-scale investments.

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The introduction of diaspora bonds could shift this dynamic, directing a fraction of these funds towards national development projects. Israel, for example, has raised over $44 billion since launching its diaspora bond programme in 1951. India followed suit, successfully raising $11 billion through diaspora bonds during its economic crisis in 1991. If African nations replicate these models, they could unlock billions in new development funds.

The Potential of Diaspora Bonds in Africa

Africa’s diaspora community is one of its most significant assets. With over 50 million Africans living abroad, many have accumulated wealth and are willing to contribute to their home countries’ development. Unlike traditional foreign aid, diaspora bonds offer a direct and stable source of funding, as investors are emotionally and culturally tied to their homelands.

Ethiopia provides a noteworthy case study. The country issued its first diaspora bond in 2008, raising millions to finance the Grand Ethiopian Renaissance Dam (GERD). Although challenges such as low subscription rates persisted, the initiative demonstrated the potential for mobilising diaspora resources. Similarly, Kenya launched its own diaspora bond in 2011 to fund infrastructure projects, though results were mixed due to limited investor confidence. By learning from these experiences, African governments can refine their approaches to attract more investors.

Challenges and Risks

Despite its potential, the success of diaspora bonds hinges on trust, governance, and financial stability. Many African governments struggle with issues of corruption, mismanagement, and political instability, discouraging diaspora members from investing. For instance, Ethiopia’s diaspora bond faced scepticism due to concerns about government transparency. To mitigate these risks, governments must adopt best practices, ensuring proper financial accountability, offering competitive interest rates, and fostering investor confidence through clear legal frameworks.

Nigeria presents a notable example. In 2017, the Nigerian government successfully issued a $300 million diaspora bond with an interest rate of 5.625%, targeting Nigerians in the U.S., U.K., and Europe. The bond was well received, proving that structured policies and transparent governance can attract diaspora investments.

A Global Perspective on Diaspora Bonds

Africa is not alone in leveraging diaspora bonds. Countries such as China and the Philippines have experimented with similar instruments to boost national development. China’s global diaspora has played a crucial role in financing the country’s economic rise, with expatriates heavily investing in national industries and infrastructure. The Philippines has also encouraged its overseas workforce, which remits over $30 billion annually, to invest in homeland projects. These global examples highlight that when effectively structured, diaspora bonds can become a reliable financing mechanism. Africa’s challenge is to instil confidence among its diaspora communities and create investment-friendly environments.

Unlocking Africa’s Financial Potential

To fully harness diaspora bonds, African nations must adopt strategic policies. First, governments should strengthen financial institutions, ensuring transparency and accountability. Establishing independent monitoring bodies to oversee bond utilisation will boost investor trust. Second, African countries must offer attractive incentives such as tax breaks and high-yield returns to make diaspora bonds competitive in global financial markets. Third, marketing and outreach efforts should be intensified. Many African diaspora members are unaware of these investment opportunities, underscoring the need for targeted campaigns, digital platforms, and partnerships with financial institutions abroad.

If well implemented, diaspora bonds could provide Africa with an alternative financial strategy to fund critical infrastructure, drive economic growth, and reduce dependency on foreign loans. The time has come for African nations to view their diaspora communities not just as remittance senders but as strategic investors in the continent’s future. By doing so, Africa can unlock billions in untapped capital, turning the vision of self-sustaining development into a reality.

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The strategic choice of BTC and USDT as preferred cryptocurrencies is rooted in their unique advantages. BTC facilitates decentralised, borderless payments, enabling rapid cross-border transactions that bypass traditional banking intermediaries, which often burden businesses with excessive fees and delays. Meanwhile, USDT provides a stable alternative amid Africa’s frequently volatile currencies, helping businesses maintain consistent pricing and mitigating risks associated with currency fluctuations. Together, these cryptocurrencies streamline payment logistics, enhancing efficiency and reducing operational disruptions in supply chains across the continent.

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Countries like Nigeria are at the forefront of this crypto revolution, taking legislative strides to integrate digital assets into their economic frameworks. The 2025 Nigerian Investment and Securities Bill, poised to redefine the legal status of cryptocurrencies, exemplifies this progressive shift. By formally recognising crypto assets, the bill aims to create a safer and more conducive environment for digital trading. Nigeria’s cryptocurrency landscape has evolved markedly, with the government striving to balance regulation and innovation, particularly after previous regulatory crackdowns. The new bill not only modernises existing laws but also fosters fintech innovation, offering diverse investment avenues that cater to the growing interest in digital assets.

Despite the promising landscape, significant challenges remain in integrating cryptocurrencies into trade across Africa. High transaction fees associated with traditional bank transfers, regulatory uncertainties, infrastructural deficiencies, and concerns about security and fraud continue to pose risks. Additionally, cryptocurrency volatility can deter potential users from fully embracing digital assets. However, proactive measures such as improved regulatory frameworks, robust cybersecurity protocols, and increased public education can help mitigate these concerns.

The newly proposed regulations under the Investment and Securities Bill are crucial in fostering a secure crypto ecosystem. By empowering the Nigerian Securities and Exchange Commission to oversee digital assets, the bill seeks to enhance transparency and investor protection—key factors in attracting both local and international investment. Moreover, leveraging blockchain technology for transaction transparency and security can build trust among trading partners and safeguard against fraud. As businesses adapt to the evolving landscape, legislative clarity and technological advancements could further incentivise crypto adoption.

Africa’s future in cryptocurrency looks promising as businesses and governments collaborate to integrate BTC and USDT seamlessly into trade practices. The continued evolution of legal frameworks and accelerated technological adoption could significantly enhance the continent’s global trade competitiveness. With Nigeria leading the charge, the potential for cryptocurrency to drive economic growth and diversification is becoming increasingly evident. This transition not only redefines trade practices within Africa but also strengthens the continent’s position on the global economic stage, fostering innovation, resource control, and strategic partnerships.

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With a rapidly growing population and economy, Africa struggles to provide reliable electricity to its citizens. The power sector is marked by inadequate generation capacity, inefficient transmission and distribution networks, limited access to electricity, heavy reliance on fossil fuels, and a lack of investment. The continent’s total installed power generation capacity stands at approximately 250 GW—less than 10% of the world’s total.

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Inefficiencies in transmission and distribution result in substantial power losses and frequent outages. Africa’s average transmission and distribution losses hover around 20%, compared to 5-10% in developed countries. Additionally, more than 600 million Africans lack access to electricity, according to the International Energy Agency (IEA). This deficiency not only hampers economic growth but also affects the quality of life for millions.

Africa’s power sector remains heavily dependent on fossil fuels, particularly coal and gas, making it vulnerable to price fluctuations and supply disruptions while contributing to climate change. Significant investment is required to bridge the infrastructure gap and meet the growing demand. However, attracting private sector investment remains a challenge due to regulatory and financial barriers.

Despite these hurdles, there are opportunities for growth. Africa has vast renewable energy resources, particularly solar and wind power, which can be harnessed to provide clean and sustainable electricity. Private sector participation could bring much-needed investment, expertise, and efficiency. Additionally, regional cooperation and integration can facilitate resource sharing, technical expertise, and risk mitigation.

Regional disparities in power supply remain pronounced. North Africa has a relatively developed power sector, with high electricity access rates. Southern Africa has significant installed capacity but faces transmission and distribution inefficiencies. East Africa has made notable progress in expanding electricity access, especially in Kenya and Ethiopia. However, West Africa continues to struggle with unreliable electricity provision.

Addressing Africa’s power supply challenges requires a comprehensive approach that considers the unique circumstances of each region. Investment in renewables, improved efficiency, and strengthened regional collaboration will be key to transforming the continent’s power sector.

The Impact of Power Supply on Economic Growth

Reliable electricity is a fundamental driver of economic growth. It enables businesses to operate efficiently, boosts productivity, and attracts investment. Conversely, inadequate power supply leads to reduced productivity, increased operational costs, and deterred investment. Frequent outages and shortages result in lost economic output and decreased competitiveness. Businesses and households often resort to costly and inefficient alternatives, such as diesel generators, further increasing their financial burden.

A stable power supply fosters industrial growth, enhances technological advancement, and improves the overall business environment. Without it, Africa risks stagnation and a continued reliance on external assistance for economic development.

Success Stories: Power Supply and Economic Growth in Africa

Despite challenges, some African countries have made remarkable progress in improving power supply and driving economic growth. Rwanda, for instance, has significantly invested in renewable energy, particularly solar and hydroelectric power, with an ambitious target of achieving universal electricity access by 2024. Kenya has successfully developed geothermal energy and expanded its transmission infrastructure. South Africa has made significant investments in wind and solar power while implementing policies to enhance energy efficiency.

These examples demonstrate that with strategic planning, investment, and policy implementation, Africa can overcome its power challenges and foster economic growth.

While Africa’s power sector faces considerable obstacles, opportunities abound. The continent is rich in renewable energy resources, including solar, wind, hydroelectric, and geothermal power. Encouraging private sector participation can unlock investment, expertise, and innovation. Public-private partnerships (PPPs) and independent power producer (IPP) programmes can play a crucial role in accelerating progress.

Regional cooperation is another key solution. Organisations such as the African Union and the Economic Community of West African States (ECOWAS) can facilitate cross-border electricity trade and integration. Energy efficiency measures, such as adopting energy-efficient lighting, appliances, and building insulation, can also help manage demand and optimise existing resources.

The link between power supply and economic growth in Africa is undeniable. While the challenges are substantial, so are the opportunities. By investing in renewable energy, fostering private sector engagement, promoting regional cooperation, and improving energy efficiency, Africa can transform its power sector and unlock sustainable economic growth. It is imperative for governments, investors, and regional organisations to collaborate in implementing these solutions, ensuring a brighter and more prosperous future for the continent.

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The international governance system, as embodied by institutions such as the United Nations (UN), World Bank, and International Monetary Fund (IMF), has not always fulfilled its promises to Africa. Although Africa comprises 54 countries and accounts for nearly 28% of the UN General Assembly, its influence remains marginal in key decision-making processes such as the UN Security Council, where only five countries hold permanent, veto-wielding seats.

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Economic participation in global governance tells a similar story. Africa contributes less than 4% to global GDP yet bears a disproportionate debt burden, with countries such as Ghana and Zambia struggling under external debt often tied to restrictive conditions. This imbalance underscores the need for a governance system that reflects Africa’s realities, opportunities, and challenges.

In the symphony of global governance, Africa’s voice often resembles a whisper struggling to be heard over the crescendos of more dominant players. This imbalance calls for systemic changes, akin to redistributing the musical score so that all sections, including Africa, can harmonise effectively.

Multilateral institutions such as the IMF and World Bank have initiated reforms, but more is needed. According to a 2022 Brookings report, while Africa is home to over 16% of the global population, its voting power in the IMF stands at just 6%. Structural changes to these institutions are crucial to enable African nations to advocate for policies that reflect their development priorities, from infrastructure funding to debt restructuring.

The IMF’s Special Drawing Rights (SDRs), allocated in 2021, provided a glimpse of progress, with $33 billion directed to African nations. Yet, critics argue that these allocations are insufficient, particularly when compared to the $650 billion issued globally. A more equitable SDR redistribution could provide African countries with the fiscal space needed to invest in health, education, and renewable energy.

Debt Sustainability: A Looming Shadow

Africa’s debt crisis epitomises the shortcomings of the global governance system. More than 22 African nations are either in debt distress or at high risk. Innovative mechanisms such as debt-for-climate swaps, which exchange debt relief for investments in green projects, are gaining traction. For instance, Seychelles successfully piloted such a programme, protecting its marine biodiversity while reducing its debt burden.

Climate Change

Africa contributes less than 4% of global greenhouse gas emissions yet bears the brunt of climate change, from desertification in the Sahel to flooding in Mozambique. The global governance system must prioritise climate justice by ensuring developed nations fulfil their $100 billion annual climate finance pledge. Additionally, initiatives such as the African Climate Summit, hosted in Kenya in 2023, highlight the continent’s proactive stance in shaping global climate policy.

Trade and Economic Growth

The African Continental Free Trade Area (AfCFTA) represents a beacon of hope for intra-African trade, which currently stands at a mere 18%, compared to 58% in Asia and 68% in Europe. By reducing tariffs and streamlining trade processes, AfCFTA could boost Africa’s combined GDP by $450 billion by 2035, according to the World Bank. However, global governance systems must support this initiative through fair trade policies and capacity-building programmes.

Technology and Innovation

Africa’s technological landscape is evolving rapidly, with startups across the continent attracting $4.85 billion in funding in 2022—a tenfold increase from 2015. To harness this potential, global governance systems should facilitate technology transfer, capacity building, and infrastructure development. Programmes such as the UN’s “Digital Cooperation Roadmap” are a step in the right direction but require stronger implementation.

Way Forward: A New Global Compact

The path to a fairer global governance system requires more than reforms; it demands a paradigm shift. Africa’s leaders must unite in their advocacy, leveraging regional bodies such as the African Union (AU) to negotiate as a bloc. Meanwhile, developed nations must recognise that a prosperous Africa is not just a moral imperative but an economic and geopolitical necessity.

The global governance system, much like a puzzle, remains incomplete without Africa’s full and equitable participation. By amplifying Africa’s voice and addressing systemic inequities, the international community can turn the current whisper into a resounding melody that benefits all.

The post Making Global Governance Work for Africa appeared first on African Leadership Magazine.

Fortunately, fintech is reshaping Africa’s financial landscape, offering a long-overdue alternative that makes banking services more accessible. Through digital solutions, fintech companies are breaking down barriers that have historically marginalised women. Innovations such as mobile banking, digital wallets, and peer-to-peer lending enable women to engage in financial markets without the constraints of physical bank branches or extensive documentation.

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Beyond accessibility, fintech empowers women with greater control over their financial decisions. Digital savings platforms, micro-investment tools, and mobile payment solutions provide secure and convenient options to manage finances. Research shows that when women participate in financial markets, they contribute to stronger economic frameworks and sustainable growth.

However, despite these advances, the fundamental components of entrepreneurship—equity and debt—have not improved sufficiently. Women-led startups often outperform their male counterparts, with a 2018 Boston Consulting Group report revealing that women-founded businesses generate over double the revenue per dollar invested. Yet disparities persist. A 2023 PitchBook report found that female-only founded startups received a meagre 2% of total U.S. venture capital funding—suggesting an even starker reality in Africa.

Understanding the Financial Gender Gap

In several African countries, data highlights the benefits of investing in women-led businesses. Organisations like RealFi demonstrate this impact: 65% of the two million loans disbursed to small businesses in Kenya, Uganda, and Rwanda have been allocated to women-owned ventures. These businesses not only exhibit responsible capital management, with an 11% lower default rate and quicker loan repayment times compared to their male counterparts, but also underscore their potential for growth when adequately funded.

Despite this, only 15% of loans to small and medium-sized enterprises (SMEs) in Africa go to women-led businesses. Contributing factors include digital skills gaps, entrenched gender norms, and a lack of collateral. Even with evidence that women entrepreneurs often achieve better business outcomes, the flow of capital remains insufficient, reflecting the complexity of financial access.

Can Cryptocurrency Bridge the Gap?

Cryptocurrency presents a compelling alternative for democratising financial access. By providing direct entry into a decentralised financial system, crypto enables individuals to manage their assets without traditional gatekeepers such as banks or familial authority. The experiences of Afghan women using Bitcoin for wealth preservation amid political turmoil illustrate crypto’s potential to foster economic independence.

However, cryptocurrency introduces challenges, particularly in effective key management, which requires careful navigation. For many, local digital banks may provide a more user-friendly alternative, highlighting the need for tailored financial solutions.
The most transformative potential of cryptocurrency lies in its ability to create an open capital market detached from traditional finance constraints. Evidence suggests significant risk-adjusted returns from lending to women-owned SMEs in Africa. Yet fintech firms, much like their clients, struggle with funding challenges. They require scalable capital to amplify their lending impact.

A Generational Opportunity

This moment presents a unique opportunity to reshape the financing landscape for women entrepreneurs in Africa. With stablecoins currently valued at approximately $250 billion and gaining popularity in global trade, there is growing interest in yield generation. Emerging players such as Ethena are creating pathways for yields that could help build innovative capital portfolios.

By 2030, an estimated $250 billion in yield-bearing stablecoins could be strategically deployed to address Africa’s financing gap. The impact could be transformative, driving socio-economic change across the continent. In this scenario, capital flows directed towards women-led businesses could rival traditional investment paths, challenging entrenched financial norms.

The dual forces of fintech and cryptocurrency have the potential to ignite a financial revolution for women entrepreneurs in Africa. By bridging the capital gap and addressing systemic funding disparities, we can empower women, drive economic growth, and create a more equitable financial landscape. The time to act is now. Every investment in women-led ventures contributes to a brighter, more inclusive future.

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European countries, particularly the United Kingdom and France, also exhibit strong franchise networks, with thousands of successful franchise brands. In Asia, China and India have leveraged franchising to spur small business growth, with China alone experiencing a 15% annual increase in franchise businesses. The franchise model has proven resilient in diverse economies, providing entrepreneurs with a lower-risk entry into business ownership and bolstering local economies through employment opportunities.

READ ALSO: West Africa’s Economy: The Critical Role of Innovation and Entrepreneurship

Africa’s Untapped Franchising Potential

Africa’s franchising sector remains dynamic yet largely untapped. Foreign direct investment (FDI) in Africa is estimated at approximately $60 billion. According to the World Economic Forum, small and medium enterprises (SMEs) account for 95% of all registered businesses and contribute around 50% to the total GDP of Sub-Saharan African countries. SMEs play a critical role in driving economic growth, yet many struggle with sustainability. Data from the International Finance Corporation (IFC) indicates that about 80% of startups fail within the first five years. Franchising offers a structured business model that can mitigate this high failure rate by providing proven systems, established brand recognition, and ongoing operational support.

The South African franchise industry is the most mature on the continent, contributing around 15% to the country’s GDP and encompassing over 800 franchise brands. Nigeria and Kenya are emerging as strong players in the sector, with international brands such as Shoprite, KFC, Domino’s Pizza, and Cold Stone Creamery making significant inroads. Kenya, in particular, has seen a 12% growth in its franchise sector over the past five years, fuelled by a rising middle class and increasing urbanisation. Ghana, Egypt, and Morocco are also witnessing a gradual increase in franchise investments, signalling the potential for broader adoption across the continent.

Key Drivers of Franchise Growth in Africa

A combination of economic and demographic factors is making Africa an attractive frontier for franchising. The continent’s population, currently at 1.4 billion, is projected to reach 2.5 billion by 2050, with over 60% of its inhabitants under the age of 25. This youthful demographic is driving demand for both international and locally adapted brands. Urbanisation is another significant factor, with an estimated 50% of Africans expected to live in urban areas by 2030. This shift is increasing disposable income levels and altering consumer preferences towards standardised, quality-controlled goods and services—an area where franchises excel.

Furthermore, digitalisation is enhancing the feasibility of franchising in Africa. The continent’s mobile penetration rate stands at over 46%, with a projected increase to 50% by 2025. Mobile money services such as M-Pesa in Kenya, MTN Mobile Money in Ghana, and Flutterwave in Nigeria are facilitating seamless financial transactions, making it easier for franchises to operate and expand across borders.

Challenges Hindering Franchise Expansion

Despite its potential, franchising in Africa faces several challenges. Access to financing remains a significant barrier, as many prospective franchisees struggle to secure the necessary capital. The average cost of starting a franchise in Africa varies widely, from $50,000 for smaller brands to over $1 million for well-known international franchises. High interest rates on business loans, averaging between 15-25% in many African countries, further exacerbate the issue.

Regulatory complexities also pose hurdles. Many African nations lack clear franchise-specific legislation, leading to inconsistent enforcement of contracts and intellectual property protections. South Africa is one of the few countries with a dedicated franchise regulatory framework under the Consumer Protection Act, but other nations continue to grapple with legal uncertainties that deter potential investors.

Additionally, supply chain inefficiencies and infrastructure deficits present operational challenges. Poor road networks, unreliable electricity supply, and inefficient logistics can hinder franchise businesses reliant on timely supply chains. However, increasing investments in infrastructure projects, such as the African Continental Free Trade Area (AfCFTA), aim to improve trade flows and connectivity across the region.

The Future of Franchising in Africa

Despite these challenges, the outlook for franchising in Africa remains optimistic. Several international brands are adopting an ‘Africanised’ approach by integrating local preferences into their offerings. McDonald’s, for instance, has adapted its menu in Egypt to include halal-certified products, while KFC in Nigeria sources over 80% of its ingredients locally to navigate import restrictions.

Furthermore, homegrown African franchises are on the rise. South Africa’s Debonairs Pizza, Nigeria’s Chicken Republic, and Kenya’s Java House have successfully expanded within and beyond their home countries, proving that African franchises can scale effectively. The rise of technology-driven franchise models, such as cloud kitchens and e-commerce-based retail franchises, is also shaping the future of African franchising.

As financial institutions and investors increasingly recognise the profitability of franchising, initiatives such as franchise-focused funding schemes by the African Development Bank (AfDB) and the World Bank are emerging to provide necessary capital. Additionally, governments can play a pivotal role by establishing clearer franchise regulations, improving infrastructure, and fostering an environment conducive to business expansion.

Franchising is not merely a business model; it is a vehicle for economic transformation. With strategic investments, regulatory support, and a shift in entrepreneurial mindset, franchising has the potential to redefine African entrepreneurship, create jobs, and stimulate sustainable economic growth.

The post Franchising Could Revolutionise African Entrepreneurship appeared first on African Leadership Magazine.

According to the International Energy Agency (IEA), global material consumption is projected to double by 2060, reaching 167 gigatonnes annually. The extraction of raw materials such as metals, fossil fuels, and biomass currently accounts for 50% of global carbon dioxide emissions, as reported by the United Nations Environment Programme (UNEP). Meanwhile, the Ellen MacArthur Foundation estimates that transitioning to a circular economy could reduce material-related emissions by up to 45% by 2050, highlighting the necessity of renewable materials in climate mitigation strategies.

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The Energy Information Administration’s (EIA) International Energy Outlook projects that global energy consumption will increase by 34% between 2022 and 2050, outpacing advances in energy efficiency. Factors such as global population growth, increased regional manufacturing, and higher living standards contribute to rising consumption, leading to a projected 15% increase in global carbon dioxide emissions from energy by 2050.

The World Economic Forum reports that the global bioeconomy, which includes renewable materials, is valued at approximately $5 trillion. While Europe and North America lead the charge, Asia and Africa are rapidly increasing their footprint. According to the African Circular Economy Alliance (ACEA), Africa’s transition to renewable materials has the potential to inject an additional $4.5 trillion into its economy by 2030, driving employment, reducing waste, and mitigating environmental impact.

Africa’s Lithium Boom: A Renewable Energy Game-Changer

One of Africa’s most significant contributions to the global search for renewable materials is its vast lithium reserves. Lithium, a critical component in battery production for electric vehicles (EVs) and renewable energy storage, has made Africa a focal point for international investment. The continent holds an estimated 4.9 million metric tonnes of lithium reserves, with major deposits in Zimbabwe, the Democratic Republic of Congo, Mali, and Namibia.

Zimbabwe, home to one of the world’s largest lithium reserves, is rapidly becoming a key supplier of the mineral. The country produced approximately 1,200 metric tonnes of lithium in 2022, with projections to exceed 20,000 metric tonnes by 2025 due to foreign investments from China, the US, and Europe. The Bikita, Arcadia, and Zulu lithium mines are among the most prominent, attracting billions in funding. Meanwhile, Mali’s Goulamina lithium project, backed by Australia’s Firefinch Limited, is set to become a major global producer, contributing to the shift towards sustainable energy solutions.

As demand for electric vehicles surges, Africa’s lithium industry is expected to play a crucial role in reducing global reliance on fossil fuels. According to BloombergNEF, the global lithium-ion battery market is projected to reach $400 billion by 2030, with Africa poised to be a major supplier of raw materials. However, concerns over resource exploitation and fair value distribution remain critical. African governments are increasingly pushing for local processing and value addition, ensuring that lithium benefits the continent’s economy rather than merely serving as an export commodity.

The Agricultural Goldmine: Biomaterials and Organic Innovation

Africa’s vast agricultural sector is another frontier for renewable materials. The continent produces significant quantities of agricultural waste, much of which can be repurposed into bio-based alternatives. Over 70 million tonnes of crop residues are generated annually, providing a valuable resource for creating biodegradable packaging, bio-composites, and organic fertilisers.
Countries such as Ghana and Côte d’Ivoire, which together produce over 60% of the world’s cocoa, are exploring ways to repurpose cocoa husks into bioplastics and biofuels. Similarly, Ethiopia and Kenya, two of the largest coffee producers, are developing sustainable alternatives to petroleum-based materials using coffee husks and pulp. The integration of biomaterials into mainstream industries presents an opportunity for Africa to shift from an exporter of raw agricultural commodities to a global leader in sustainable material production.

Industrial Scale-Up: Renewable Construction and Textiles

The construction and textile industries are among the most resource-intensive sectors globally, and Africa is pioneering sustainable alternatives in both fields. Countries such as Rwanda and Ethiopia are investing in green building materials, with Kigali emerging as a hub for bamboo-based construction materials. The International Bamboo and Rattan Organisation (INBAR) notes that Africa’s bamboo industry, valued at over $20 billion, has the potential to revolutionise construction through renewable materials.

In the textile sector, organic cotton, hemp, and recycled polyester are gaining traction. According to the Ethical Fashion Initiative, Africa’s sustainable textile industry is projected to grow by 13% annually, driven by eco-conscious fashion brands such as Ghana’s Studio 189 and South Africa’s Sealand Gear. These efforts align with the global push for sustainable fashion, a $1.5 trillion industry expected to transition towards 50% renewable materials by 2030.

The Future of Africa’s Renewable Material Economy

As the world pivots towards sustainability, Africa is proving that it is not just a participant but a leader in the search for renewable materials. With its rich natural resources, innovative entrepreneurship, and increasing policy support, the continent is set to play a crucial role in shaping the future of sustainable industries. If leveraged strategically, Africa’s contributions could redefine global supply chains, making sustainability not just an aspiration but a reality.

The post How is Africa Contributing to the Search for Renewable Materials? appeared first on African Leadership Magazine.

In 2025, the global fashion market is expected to be worth $1.84 trillion, accounting for 1.63% of the world’s GDP. The industry is projected to expand at a 4.1% compound annual growth rate (CAGR) from 2024 to 2030. Out of the 3.62 billion people in the global workforce, 430 million are employed in fashion and textile production, making it one of the largest employment sectors worldwide. The typical U.S. household spends approximately $162 per month on clothing, contributing to a U.S. apparel industry valued at $365.7 billion in 2025, which is expected to grow at a CAGR of 2.11% from 2025 to 2028.

READ ALSO: Is Africa the New Fashion Capital of the World?

The global women’s apparel market is currently valued at $930 billion and is expected to surpass $1 trillion by 2027, while the men’s apparel market stands at $587.6 billion, and the children’s apparel segment is valued at $274.3 billion. Each year, the global fashion industry produces 100 billion garments, equating to 12.5 pieces of clothing per person worldwide. The average individual owns between 70 and 150 pieces of clothing, with Europeans having the largest wardrobes compared to other regions. Overall, the global apparel market is valued at $1.7 trillion, comprising approximately 2% of the world’s economy.

Despite its undeniable influence, the global fashion industry is also plagued by unsustainable practices. The sector is responsible for 10% of global carbon emissions—more than international flights and maritime shipping combined. The growing demand for sustainable alternatives presents an opportunity for emerging markets like Africa to capitalise on eco-conscious fashion trends.

Africa’s Place in the Global Fashion Economy

African fashion is experiencing an unprecedented boom. According to McKinsey & Company, the African fashion industry was valued at approximately $31 billion in 2020, with projections indicating it could surpass $50 billion by 2030 if investments and infrastructure development align with market demand. With a youthful population—over 60% of Africans are under 25—the appetite for fashion-driven entrepreneurship is expanding rapidly.

Nigeria, South Africa, Ghana, and Kenya are leading markets, contributing significantly to Africa’s fashion industry. Nigeria’s fashion industry alone contributes over $6.1 billion to the GDP, with Lagos Fashion Week attracting global investors and designers. South Africa, home to brands like Maxhosa by Laduma and Thebe Magugu, has witnessed a steady 10% annual growth in its fashion sector, fuelled by international partnerships and local consumption.

Meanwhile, e-commerce is driving African fashion’s expansion. Platforms like Jumia, Afrikrea, and Zando are providing African designers with global reach. In 2022, Afrikrea, a leading African e-commerce platform, reported a 60% increase in international sales, with buyers from the United States, France, and the UK showing significant interest in African-inspired designs.

Sustainability and Innovation: Africa’s Secret Weapon

While the rest of the world grapples with the environmental impact of fast fashion, Africa is pioneering innovative sustainability models. Upcycling, the use of organic materials, and traditional dyeing techniques position African fashion as a leader in the sustainable fashion movement. According to the UN Environment Programme, over 40% of Africa’s textile production involves some form of recycling or upcycling, compared to the global average of 25%.

Designers such as Nkwo Onwuka (Nigeria) and Kofi Ansah (Ghana) are leading the charge in eco-conscious fashion, utilising discarded fabric waste to create luxury garments. The innovative use of waste materials, such as turning plastic waste into fabric in Rwanda, has positioned African designers as torchbearers for sustainable fashion. With the global sustainable fashion market projected to reach $9.81 billion by 2025, Africa’s early adoption of eco-friendly practices could be a key differentiator in achieving the $50 billion target.

Challenges Hindering Growth

Despite its potential, African fashion faces significant hurdles. The lack of robust infrastructure, insufficient access to financing, and inadequate supply chains impede the industry’s scalability. A report by the African Development Bank (AfDB) revealed that 70% of African designers struggle with funding, while 60% cite poor logistics as a barrier to international expansion. Additionally, counterfeit goods and competition from Western fast fashion brands make it difficult for authentic African designs to penetrate global markets at scale.

Another major challenge is the need for industry regulation. Unlike Europe and North America, where fashion councils govern industry standards, Africa lacks a unified regulatory framework. Establishing regional fashion councils with standardised policies on intellectual property rights, trade regulations, and manufacturing standards could provide the stability necessary for sustainable growth.

The Road to a $50 Billion Industry

To achieve a $50 billion valuation, Africa’s fashion industry must embrace strategic investments, technological innovation, and market expansion. Governments must prioritise textile industry policies, much like Ethiopia has done with its Hawassa Industrial Park, which has attracted major global investors such as PVH Corp (owners of Tommy Hilfiger and Calvin Klein). Countries like Rwanda, which banned second-hand clothing imports to boost local production, present a model that could be replicated across the continent.

Moreover, collaborations with international brands could accelerate growth. The success of the 2021 collaboration between Nigerian designer Kenneth Ize and Karl Lagerfeld demonstrated the power of African-Western fashion partnerships. Encouraging more African designers to showcase at global fashion weeks and investing in digital marketing will be crucial in propelling African fashion to mainstream recognition.

A Cultural and Economic Revolution

African fashion is more than an industry; it is a movement. The world is beginning to embrace the continent’s unique blend of heritage and modernity, with celebrities like Beyoncé, Rihanna, and Lupita Nyong’o donning African-inspired designs on global platforms. If Africa can harness its creative ingenuity, resolve infrastructure deficits, and leverage its sustainable practices, the dream of a $50 billion industry is not far-fetched—it is inevitable.

In the grand runway of global fashion, Africa is not just walking; it is strutting towards an economic revolution. The industry is at an inflection point, and with the right investments, policy frameworks, and strategic alliances, Africa’s fashion industry can transcend its current trajectory and become a formidable global force. The question is no longer if Africa will reach the $50 billion mark; it is when.

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Globally, solar energy is leading the investment race. In 2024 alone, solar photovoltaics (PV) attracted over $500 billion in investments, surpassing all other electricity generation sources combined. Hydropower, despite its historical dominance, is witnessing a decline in new investments, with only $130 billion annually allocated for expansion.

READ ALSO: Africa’s Journey towards a Solar-Powered Future

Solar energy’s installed capacity reached 1.5 terawatts (TW) in 2023, overtaking wind energy and closing in on hydropower’s 1.4 TW capacity. However, hydropower remains the largest source of renewable electricity, generating over 4,200 terawatt-hours (TWh) annually, while solar contributes approximately 1,300 TWh, according to the 2024 International Renewable Energy Agency (IRENA) report.

Efficiency-wise, hydropower surpasses solar with a capacity factor of 40-60%, compared to 15-25% for solar. This means hydropower plants generate electricity more consistently than solar farms, which rely on sunlight availability.

The African Context: Hydropower’s Legacy vs. Solar’s Disruption

Africa has long relied on hydropower, which accounts for nearly 70% of the continent’s renewable electricity (African Development Bank, 2023). The Grand Ethiopian Renaissance Dam (GERD), expected to generate 6.45 gigawatts (GW), exemplifies Africa’s hydropower ambitions. Similarly, Inga III in the Democratic Republic of the Congo has the potential to add another 11 GW to Africa’s grid.

Yet, hydropower faces significant challenges. Africa’s hydropower potential is heavily reliant on river systems like the Nile, Congo, and Zambezi, which are vulnerable to climate change-induced droughts. Countries such as Zambia and Zimbabwe experienced severe blackouts in 2019 and 2022 due to low water levels at the Kariba Dam.

Conversely, solar energy is rapidly gaining traction. Egypt, South Africa, and Morocco are spearheading large-scale solar projects, with Egypt’s Benban Solar Park (1.65 GW) ranking among the largest in the world. Africa’s solar potential is immense, with daily irradiation levels exceeding 5.5 kWh/m², making it one of the sunniest continents. In 2024, solar PV capacity in Africa surpassed 14 GW, a threefold increase since 2018.

Cost and Feasibility: Which Is More Practical for Africa?

Cost is a decisive factor. The levelised cost of electricity (LCOE) for solar PV dropped to $0.04/kWh in 2024, compared to $0.07/kWh for large-scale hydropower. This decline is driven by technological advancements and economies of scale, making solar more financially attractive.

Solar also offers flexibility. Unlike hydropower, which requires multi-billion-dollar infrastructure and long gestation periods, solar farms can be deployed quickly. For instance, Kenya’s Garissa Solar Plant (50 MW) was completed in less than two years, whereas large dams often take a decade or more.

However, hydropower provides energy storage and grid stability, which solar lacks. Hydropower’s ability to store excess energy in reservoirs makes it crucial for balancing Africa’s intermittent renewables, especially in regions with underdeveloped battery storage technology.

Environmental Considerations: Sustainability and Climate Impact

Environmental sustainability is a key concern. Hydropower projects often lead to deforestation, displacement of communities, and ecosystem disruption. The Merowe Dam in Sudan displaced over 50,000 people, and Ghana’s Akosombo Dam altered the Volta River ecosystem.

Solar, in contrast, has a lower ecological footprint. However, the production of solar panels relies on rare earth minerals like lithium and cobalt, raising concerns about unsustainable mining practices in countries such as the Democratic Republic of the Congo.

Africa’s Best Bet: A Balanced Approach

The verdict? Neither hydropower nor solar alone can power Africa’s green future. A hybrid approach is essential.
Solar should be the dominant energy source due to its declining costs, scalability, and abundance. Investments in decentralised solar mini-grids can rapidly expand access to electricity in rural areas.

Hydropower must play a complementary role, particularly for grid stability and energy storage. Future investments should focus on small and run-of-river hydropower projects, which minimise environmental and social impacts.

Energy storage and grid modernisation are critical. Expanding battery storage solutions and investing in grid infrastructure will maximise the benefits of solar energy and mitigate its intermittency.

Shaping Africa’s Renewable Energy Future

Africa stands at an energy crossroads. While hydropower has historically been the backbone of the continent’s renewable energy, solar is emerging as the more cost-effective and scalable solution. A strategic blend of solar dominance and hydropower stability, supported by investments in battery storage and transmission infrastructure, will be the most viable path towards a sustainable and resilient green future.

As the sun rises on Africa’s energy revolution, it is clear that solar energy, with the right policies and investments, will lead the continent’s transition towards a cleaner, more prosperous future.

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