READ ALSO: Press Release: Voting Opens for the African Persons of the Year 2024

Speaker Keorapetse has been recognised for his exemplary legislative leadership, commitment to democratic governance, and tireless advocacy for good governance and social justice in Botswana and across Africa. His tenure has been marked by progressive policy reforms, legislative oversight, and efforts to strengthen parliamentary democracy, positioning Botswana as a beacon of legislative excellence on the continent.

The African Leadership Magazine Persons of the Year (POTY) Ceremony is an annual flagship event that brings together policymakers, business leaders, civil society actors, and thought leaders from across Africa and beyond. The event serves as a platform to celebrate outstanding African leaders who are making significant contributions to the continent’s growth and development.

Other Distinguished Honourees at the 14th Edition Include:

• H.E. Andry Rajoelina, President of Madagascar—African Political Leader of the Year
• H.E. Bassirou Faye, President of Senegal—African of the Year
• H.E. Joao Lourenco, President of Angola—African Peace and Security Leader of the Year
• H.E. Robinah Nabbanja, Prime Minister of Uganda—African Female Leader of the Year
• Bridgette Motsepe, Founder/Chairperson, Mmakau Mining, South Africa—African Industrialist of the Year
• Professor Charles Anosike, Director General of the Nigerian Meteorological Agency (NIMET), Nigeria
• H.E. Douye Diri, Governor of Bayelsa State, Nigeria
• Dr. Jane Ruth Aceng Ocero, Minister for Health, Uganda
• H.E. Fardowsa Osman Egal, Minister for Transport & Civil Aviation, Somalia
• Hon. Nani Juwara, Minister of Petroleum, Energy & Mines, The Gambia
• H.E. Rindra Rabarinirinarison, Minister of Economy and Finance, Madagascar
• Hon. Augustine Kpehe Ngafuan, Minister of Finance and Development Planning, Liberia
• Hon. Lefoko Maxwell Moagi, Former Minister of Minerals and Energy, Botswana
• Dr. Armstrong Takang, Managing Director of the Ministry of Finance Incorporated (MOFI), Nigeria
• Mr. Mustafa Y. Shek, Director General of the National Communication Authority, Somalia

Prominent business leaders, including Dr. Seinye O.B. Lulu-Briggs, Executive Chairman of Moni Polu Limited, and Olusegun Alebiosu, Managing Director/CEO of FirstBank Group, Nigeria, were also in attendance.

The event attracted high-profile delegates from across Africa, including Ethiopia, Nigeria, Madagascar, Angola, Uganda, South Sudan, Zimbabwe, Congo, Cape Verde, Botswana, South Africa, and Kenya, highlighting the pan-African significance of the awards.

For media enquiries or further information, please contact:

The Group Editor
King Richard Igimoh
editor@africanleadership.co.uk, king.richards@africanleadership.co.uk

About African Leadership Magazine

The African Leadership Magazine, the flagship publication of the African Leadership Organisation (UK) Limited, has been dedicated to promoting impactful leadership in Africa for over 16 years. Through high-quality Afro-positive content, public sector training, and consulting, the magazine plays a crucial role in showcasing Africa’s success stories, driving positive change, and shaping the continent’s future.

The post Botswana’s National Assembly Speaker Dithapelo Keorapetse Wins African Lawmaker of the Year at ALM POTY 2025 appeared first on African Leadership Magazine.

READ ALSO: Press Release: Voting Opens for the African Persons of the Year 2024 

Dr. Ocero has been recognised for her exemplary leadership in advancing Uganda’s public health sector. Under her leadership, Uganda’s health ministry has seen transformative reforms that have improved the lives of the people in her home nation. Notably, she has long championed the improvement of community health outcomes as a key ingredient for universal health coverage. She promoted community health with this nationwide platform while serving as the Director of General Health Services before being appointed Minister of Health. All these underscores her significant impact on the broader African continent.

The African Leadership Magazine Persons of the Year (POTY) Ceremony is an annual flagship event that brings together policymakers, business leaders, civil society actors, and thought leaders from across Africa and beyond. The event serves as a platform to celebrate outstanding African leaders who are making significant contributions to the continent’s growth and development.

Other Distinguished Honourees at the 14th Edition Include:

• H.E. Andry Rajoelina, President of Madagascar—African Political Leader of the Year
• H.E. Bassirou Faye, President of Senegal—African of the Year
• H.E. Joao Lourenco, President of Angola—African Peace and Security Leader of the Year
• H.E. Robinah Nabbanja, Prime Minister of Uganda—African Female Leader of the Year
• Bridgette Motsepe, Founder/Chairperson, Mmakau Mining, South Africa—African Industrialist of the Year
• Professor Charles Anosike, Director General of the Nigerian Meteorological Agency (NIMET), Nigeria
• H.E. Douye Diri, Governor of Bayelsa State, Nigeria
• H.E. Fardowsa Osman Egal, Minister for Transport & Civil Aviation, Somalia
• Hon. Nani Juwara, Minister of Petroleum, Energy & Mines, The Gambia
• H.E. Rindra Rabarinirinarison, Minister of Economy and Finance, Madagascar
• Hon. Augustine Kpehe Ngafuan, Minister of Finance and Development Planning, Liberia
• Hon. Lefoko Maxwell Moagi, Former Minister of Minerals and Energy, Botswana
• Dr. Armstrong Takang, Managing Director of the Ministry of Finance Incorporated (MOFI), Nigeria
• Mr. Mustafa Y. Shek, Director General of the National Communication Authority, Somalia

Prominent business leaders, including Dr. Seinye O.B. Lulu-Briggs, Executive Chairman of Moni Polu Limited, and Olusegun Alebiosu, Managing Director/CEO of FirstBank Group, Nigeria, were also in attendance.

The event attracted high-profile delegates from across Africa, including Ethiopia, Nigeria, Madagascar, Angola, Uganda, South Sudan, Zimbabwe, Congo, Cape Verde, Botswana, South Africa, and Kenya, highlighting the pan-African significance of the awards.

For media enquiries or further information, please contact:

The Group Editor
King Richard Igimoh
editor@africanleadership.co.uk, king.richards@africanleadership.co.uk

About African Leadership Magazine

The African Leadership Magazine, the flagship publication of the African Leadership Organisation (UK) Limited, has been dedicated to promoting impactful leadership in Africa for over 16 years. Through high-quality Afro-positive content, public sector training, and consulting, the magazine plays a crucial role in showcasing Africa’s success stories, driving positive change, and shaping the continent’s future.

The post Uganda’s Minister for Health, Jane Ruth Aceng, Wins the African Public Health Champion of the Year at ALM POTY 2025 appeared first on African Leadership Magazine.

Africa’s Growth Drivers in 2025

1. Economic Diversification: A New Wave of Industry
Historically, Sub-Saharan Africa’s economies have been closely tied to commodity exports. But over the past decade, several countries have made bold strides toward diversification. Nations like Kenya, Rwanda, and Senegal are becoming hubs for technology, finance, and renewable energy. Nigeria and South Africa, traditionally dependent on oil and mining respectively, are increasingly investing in fintech, agritech, and digital infrastructure. According to a report by the African Development Bank, the technology sector alone has the potential to add up to $180 billion to Africa’s GDP by 2025.
By reducing reliance on commodities, these nations are building economies that can better withstand external shocks—a crucial step for long-term resilience.

READ ALSO: Economic Reforms in Africa: Navigating Opportunities and Challenges for Growth

2. Green Growth: Africa’s Renewable Energy Leap
Another promising trend is the region’s rapid adoption of renewable energy. With vast solar, wind, and hydro potential, Africa is uniquely positioned to become a leader in green energy. Already, more than 20% of new electricity generation in the region comes from renewable sources, and initiatives like Kenya’s Olkaria geothermal project are setting global benchmarks.
Investment in clean energy isn’t just about sustainability—it’s also about economic opportunity. Studies suggest that Africa’s renewable energy sector could generate up to 12 million jobs by 2030, making it a critical pillar of future growth.

3. Agriculture: From Survival to Sustainability
For decades, agriculture in Africa has been characterised by subsistence farming. However, technological advancements and policy reforms are transforming this vital sector. With improved access to mobile technology, farmers can now monitor weather patterns, access financial services, and connect to markets more effectively.
According to the World Bank, agricultural productivity in Sub-Saharan Africa is expected to grow by 3.2% annually over the next five years. This growth, combined with an increasing focus on value-added processing and exports, could make agriculture a key driver of economic expansion and rural development.

The Human Factor: People as the Pillars of Growth

One of the most overlooked assets of Sub-Saharan Africa is its human capital. With a median age of just 19.7 years, Africa boasts the youngest population of any continent. By 2025, over 60% of the population will be under 25, representing both a challenge and an immense opportunity.

To harness this demographic dividend, investment in education and skill development is paramount. Countries like Rwanda and Ghana are leading the way, with education reforms that prioritise STEM fields, vocational training, and entrepreneurship.

If properly educated and empowered, Africa’s youth could drive unprecedented innovation and economic transformation. The question remains: Will the right policies and investments be in place to unlock this potential?

Addressing the Critics: What Needs to Change?

It would be disingenuous to ignore the challenges facing Sub-Saharan Africa. Debt remains a pressing issue, with public debt levels exceeding 60% of GDP in many countries. Political instability in regions like the Sahel and parts of East Africa threatens to derail progress, while the climate crisis looms large.

However, it’s critical to approach these issues with nuance. Africa is not a monolith, and progress is uneven across the region. Rather than reducing the narrative to one of crisis, global partners must engage constructively, supporting locally driven solutions that prioritise long-term sustainability over short-term gains.

As we move toward 2025, one thing is clear: Sub-Saharan Africa is at a crossroads. The region has shown remarkable resilience in the face of adversity, and with the right mix of policy, investment, and innovation, it has the potential to become a key player in the global economy.

For too long, the narrative around Africa has been one of limitation rather than possibility. It’s time to shift that story. Africa’s growth is real, its potential is vast, and the world would do well to pay attention—not just to its challenges, but to its triumphs.

The post Sub-Saharan Africa’s 2025 Growth Forecast: What Economists Are Saying appeared first on African Leadership Magazine.

Although the industry has faced challenges, the government has focused heavily on industrialisation as part of its broader economic strategy. The country’s Vision 2025 aims to transform Ethiopia into a middle-income economy, and the textile and garment sector is expected to play a pivotal role in this vision. A report from Renew Capital highlights that the textile and apparel industry is central to Ethiopia’s economic growth, as it offers a sustainable avenue for export diversification and job creation.

READ ALSO: A Limelight on World Bank-Ethiopia’s Reforms

FDI Driving Textile Expansion

Ethiopia’s textile sector has attracted considerable foreign direct investment (FDI), positioning the country as one of Africa’s most attractive locations for textile manufacturing. Major international brands, including H&M, Primark, and Inditex (the parent company of Zara), have set up operations in Ethiopia due to its competitive labour costs and favourable trade agreements.

The Ethiopian government has actively fostered foreign investment through tax incentives and the creation of industrial parks. A Dutch Ministry of Foreign Affairs report on Ethiopia’s textile industry noted that these investments have been key to growing the sector’s capacity. This has, in turn, led to the establishment of robust export markets, particularly in Europe and North America.

Ethiopia’s Industrial Parks Fueling Growth

Central to Ethiopia’s textile industry boom are the government’s investments in industrial parks. The Hawassa Industrial Park, inaugurated in 2016, stands as one of the most ambitious and successful projects in Ethiopia’s industrialisation journey. Spanning 1,200 hectares, the park has attracted numerous textile firms and has created tens of thousands of jobs.

At its peak, the Hawassa Industrial Park employed over 35,000 workers, and by 2020, 22 firms were operational within the park. According to Renew Capital, the park alone generated around $32 million in revenue from textile exports between October 2022 and January 2023. Although the industry faces challenges, such as losing preferential access to the US market under the African Growth and Opportunity Act (AGOA) in 2022, the park has shown resilience and potential for future growth.

Cotton Production Boosting elf-Sufficiency in Ethiopia’s Textile Sector

A key component of Ethiopia’s textile industry is its growing cotton production. In 2019/2020, cotton production in Ethiopia was forecast to reach 262,000 bales, an 8% increase from the previous year. According to the US Department of Agriculture (USDA), this growth is attributed to the introduction of improved cotton seed varieties and expanded cultivation areas. This domestic supply of raw materials has provided textile manufacturers with the inputs needed to expand production, making Ethiopia increasingly self-sufficient in cotton production.

Moreover, Ethiopia is exploring the potential of genetically modified (GM) cotton, which could further enhance the country’s cotton output. The move towards high-yield crops is expected to support both the domestic textile sector and export opportunities.

Economic Impact and Employment Generation

The textile industry is not only a vital component of Ethiopia’s export sector but also a significant job creator. The Ethiopian Textile Industry Development Institute (ETIDI) estimates that the sector employed over 200,000 people as of 2020, with the majority of these jobs being created in industrial parks and manufacturing facilities.

In a country where unemployment rates have historically exceeded 20%, the textile sector is providing much-needed job opportunities. The labour force, which is predominantly young and affordable, continues to be a strong attraction for foreign investors, while local communities benefit from a steady source of income and opportunities for skill development.

Challenges and Future Prospects

While Ethiopia’s textile sector has made impressive strides, there are still numerous challenges. One of the major hurdles is the industry’s reliance on a limited number of export markets. For instance, the loss of access to the US market under AGOA has placed pressure on the country’s textile exporters. However, Ethiopia remains committed to diversifying its markets, with a particular focus on Europe and the Middle East.

Another challenge is the need for further technological upgrades. As Renew Capital reports, Ethiopia’s textile producers still face issues related to limited access to modern machinery and technical skills. To stay competitive, the industry will need to invest in automation, innovation, and training to meet international standards.

Ethiopia’s textile industry is steadily growing, supported by key investments in infrastructure and a competitive workforce. The expansion of industrial parks and the rise in cotton production are central to this progress. While there are challenges, such as market reliance and technological gaps, the sector’s potential remains strong. With continued development, Ethiopia could play a significant role in the global textile market, building on its current momentum for future success.

The post Ethiopia’s Growing Role in the Global Textile Market: Strategic Investments and Key Drivers appeared first on African Leadership Magazine.

The Current State of Nigeria’s Oil Industry

As of 2024, Nigeria is producing 1.8 million barrels per day (bpd)—a figure that still lags behind its true capacity. With reserves of 37.5 billion barrels, Nigeria is one of the world’s top 10 holders of crude oil, a powerhouse by any standard. But despite this, the sector faces multiple hurdles—oil theft, inadequate infrastructure, and regulatory inefficiencies—that prevent Nigeria from fully capitalising on its assets.

READ ALSO: Major Oil Producing Countries in Africa

Security concerns in the Niger Delta, a region infamous for oil theft and pipeline sabotage, continue to disrupt production. Oil theft alone is estimated to cost the country around $3 billion annually. Yet, in the face of these challenges, there are signs of progress. Government initiatives are beginning to stabilise the industry, paving the way for future growth.

Government Initiatives and Legislative Reforms

The Nigerian government has embraced change with reforms designed to unlock the sector’s potential. The Petroleum Industry Act (PIA), passed in 2021, is the cornerstone of this transformation, streamlining regulations, promoting transparency, and attracting much-needed investment. The PIA signals a shift towards a more modern and efficient regulatory framework, positioning Nigeria as an attractive destination for foreign investment.

Security efforts have already made tangible progress. Operations like Delta Sanity have helped reduce oil theft, pushing production from 1.4 million bpd to 1.8 million bpd. But the journey doesn’t stop there—Nigeria aims for 3 million bpd by 2025, an ambitious target that requires ongoing investment in infrastructure and security. These efforts are not without their challenges, but they offer a clear path to a more secure and productive future.

Opportunities in Nigeria’s Oil and Gas Sector

1. The Dangote Refinery: A Game-Changer The completion of the Dangote Refinery in 2025 promises to revolutionise Nigeria’s oil landscape. With a capacity of 650,000 barrels per day, it will become the world’s largest single-train refinery. This development has the power to shift Nigeria from being a net importer of refined products to a self-sufficient producer, saving billions in foreign exchange and driving local economic growth. Beyond its economic impact, the refinery will create thousands of jobs and boost energy security. Though ramping up to full capacity may face hurdles, the refinery’s promise is undeniable.

2. Natural Gas: Nigeria’s Untapped Potential While crude oil has long been Nigeria’s focus, its vast natural gas reserves—over 200 trillion cubic feet—are an underexploited asset. The coming years will see greater investment in Liquefied Natural Gas (LNG) infrastructure, expanding Nigeria’s export capacity and meeting rising domestic energy needs. Nigeria LNG, the country’s premier gas exporter, is set to increase its output, pushing towards 40 million tonnes per year by the end of the decade. This growth will open new avenues for foreign investment and position natural gas as a cornerstone of Nigeria’s diversified energy future.

3. Renewable Energy: A Green Horizon As the world moves towards a greener future, Nigeria is taking bold steps towards integrating renewable energy into its energy mix. With a commitment to achieving net-zero emissions by 2060, the government is implementing policies that encourage low-carbon practices across the sector. Oil companies seeking exploration licenses must now demonstrate their commitment to reducing emissions, signalling a clear shift towards sustainability. This transition opens up new opportunities for investment in solar, wind, and hydroelectric power, which will drive industrial growth and energy access across the country.

Challenges Facing the Nigerian Oil Industry

1. Security Concerns and Oil Theft Oil theft continues to plague the Nigerian oil industry. Criminal syndicates in the Niger Delta region engage in pipeline sabotage, illegal diversions, and theft. Despite military interventions like Delta Sanity, the financial toll remains high. Addressing this issue requires an integrated strategy—secure pipelines, enhanced surveillance, and stronger community engagement. The fight against oil theft is critical not only for preserving revenue but also for ensuring long-term stability in the industry.

2. Environmental Degradation and Social Unrest The environmental impacts of oil extraction in the Niger Delta are stark—oil spills, gas flaring, and soil contamination have caused widespread ecological damage. This environmental degradation has been compounded by social unrest, as local communities demand a fairer distribution of oil revenues and better environmental stewardship. The Nigerian government, along with oil companies, must step up efforts to mitigate these issues through more robust environmental policies and by ensuring that the benefits of oil extraction are equitably shared.

3. Over-reliance on Oil Revenues Nigeria’s dependence on oil revenues makes it vulnerable to global price fluctuations. As the world increasingly shifts towards cleaner energy, Nigeria must accelerate its economic diversification efforts. Expanding sectors like agriculture, technology, and manufacturing will be crucial to reducing reliance on oil. By nurturing these non-oil industries, Nigeria can build a more resilient and sustainable economy that thrives alongside its energy sector.

Economic Forecast and Strategic Outlook for 2025

The World Bank forecasts Nigeria’s GDP growth at 3.7% in 2025, largely driven by developments in the oil and gas sector. However, Nigeria must prepare for external shocks, including oil price volatility and the global energy transition. Diversification into sectors such as technology, renewable energy, and gas infrastructure will be critical to ensuring long-term economic stability.

The key challenge will be transforming its oil wealth into a sustainable growth model that extends beyond crude production; one that secures growth, job creation, and resilience in the face of global shifts. The paradox of Nigeria’s oil industry remains, but it holds the potential for transformation into a model of balanced, forward-thinking progress.

The post Nigeria’s Oil Industry in 2025: Can It Thrive Amid Global Shifts? appeared first on African Leadership Magazine.

Key Agricultural Products

The country’s fertile soils and temperate climate support a wide range of crops and livestock. However, Uganda’s agricultural potential isn’t just about what it grows—it’s about what it could grow. Agriculture contributed approximately 24% of the national GDP in 2020, according to the Uganda Bureau of Statistics (UBOS). Over 65% of the population depends on agriculture for their livelihoods, with farming being a key driver of rural development.

READ ALSO: Ugandan Govt Approves Shs30b for Coffee, Tea Farmers

Coffee remains Uganda’s most valuable export commodity. In 2020 alone, Uganda exported 4.5 million 60-kilogram bags of robusta coffee, worth around USD 1.5 billion, according to the World Bank. Despite its strong production capacity, Uganda processes only a small fraction of its coffee domestically. There’s a huge opportunity to invest in processing infrastructure, which would increase the value of Uganda’s coffee exports significantly.

In addition to coffee, Uganda’s agricultural exports include maize, bananas, cassava, tea, and sugarcane. Livestock, including cattle, goats, and poultry, also plays a key role in the economy, providing both for domestic consumption and international trade. Value addition in all these areas presents substantial opportunities for growth.

Challenges Facing Uganda’s Agricultural Sector

Limited access to modern farming technology, underdeveloped infrastructure, and vulnerability to climate change are among the most pressing structural challenges facing Uganda’s agricultural sector. Smallholder farmers, who make up the majority of the sector, often struggle with access to financing, quality inputs, and markets.

As the World Bank notes, Uganda’s population has been growing at an annual rate of 3.3%, while agricultural productivity has only increased by 2% per year over the past five years. This has created a growing gap between potential and actual agricultural performance, but these challenges present opportunities for those willing to invest in solutions.

Uganda’s Strategic Opportunities in Agribusiness

Agro-Processing and Value Addition

One of the most promising opportunities in Uganda’s agribusiness sector lies in agro-processing. While Uganda produces significant agricultural commodities, much of it is exported in raw form, meaning the country misses out on the value added through processing. The Uganda Investment Authority (UIA) has identified food processing, textiles, and beverages as key sectors for investment. The government’s push for industrialisation, which includes expanding agro-processing, aims to create jobs, increase export earnings, and reduce post-harvest losses.

Uganda’s coffee industry is a prime example. While Uganda is one of the largest producers of robusta coffee in the world, the country processes only a small portion of its coffee domestically. By developing coffee processing infrastructure, Uganda could greatly increase the value of its coffee exports. Similarly, the dairy sector, which holds significant untapped potential, would benefit from investments in milk processing plants and value-added dairy products.

Organic and Sustainable Farming

Uganda’s organic farming potential is another avenue for growth. With its diverse ecological zones and natural farming systems, Uganda is an ideal location for producing organic crops such as coffee, tea, and vegetables. According to the Uganda National Organic Agricultural Movement (UNOAM), Uganda’s export potential for organic products is substantial, with the European Union being a major market for Ugandan organic coffee and other agricultural products.

The global shift towards sustainable farming practices creates another opportunity for Uganda. Implementing climate-smart agricultural techniques such as agroforestry, sustainable water management, and organic farming methods can improve both agricultural productivity and environmental sustainability.

Agri-Tech Innovations

The rise of agri-tech is another exciting opportunity for Uganda’s agribusiness sector. As mobile phone and internet penetration increases in rural areas, agri-tech platforms like mFarm and Agricare are already providing farmers with market information, farming advice, and access to credit. Precision farming tools, such as drones and satellite imagery, are also gaining traction and allowing farmers to access real-time data to improve farm efficiency.

Agri-tech innovations hold the potential to reduce costs, enhance farm productivity, and expand market access for smallholder farmers. These technologies also offer solutions for mitigating climate change effects, enabling farmers to adopt more weather-resilient farming practices.

Government Support and Policy Framework

The Ugandan government has introduced several initiatives to support the agribusiness sector. The National Agricultural Policy (NAP) and the Agriculture Sector Strategic Plan (ASSP) outline the government’s approach to boosting agricultural productivity, increasing value addition, and ensuring food security. Key objectives include promoting agro-processing, improving rural infrastructure, and expanding access to finance for farmers.

In addition to these initiatives, the government has implemented tax incentives for agribusiness investors, including exemptions on VAT for certain agricultural products and machinery. The Uganda Investment Authority has identified agribusiness as a priority sector for foreign direct investment (FDI), aiming to attract both local and international investors to spur growth.

Private Sector Participation and Regional Integration

The private sector has a crucial role in driving Uganda’s agribusiness growth. Multinational companies like PepsiCo, Coca-Cola Beverages Africa, and Nestlé have made significant investments in Uganda, particularly in sourcing raw materials such as maize, cassava, and sugar. These investments not only benefit local farmers but also help develop sustainable value chains within the country.

Additionally, Uganda’s membership in the East African Community (EAC) and the African Continental Free Trade Area (AfCFTA) provides access to regional and continental markets. The EAC, which includes Kenya, Tanzania, and Rwanda, is a significant trading bloc, and Uganda’s agribusiness products stand to benefit from reduced tariffs and expanded market access.

Uganda’s agribusiness sector is primed for growth. Investing in agro-processing, agri-tech, organic farming, and sustainable agricultural practices offers significant returns. With the government’s supportive policies and growing private sector involvement, investors who act now will not only contribute to the country’s development but also benefit from its growing potential.

The post Uganda’s Agribusiness Potential: Unlocking Opportunities in the Heart of Africa appeared first on African Leadership Magazine.

The Growing Influence of African Sovereign Wealth Funds

Africa’s SWFs have come a long way since the first fund was established in the early 2000s. With over 20 SWFs across the continent, these funds are evolving into sophisticated investment entities designed to safeguard national wealth and drive developmental goals. By 2025, African SWFs are expected to increase their influence in both regional and global markets.

READ ALSO: Namibia launches sovereign wealth fund

Key Facts and Figures:

The Nigeria Sovereign Investment Authority (NSIA), established in 2011, is one of Africa’s most well-known SWFs, managing assets primarily focused on infrastructure development and economic stabilization.

Libya’s $70 billion wealth fund has recently seen a thaw in its asset freeze, paving the way for reinvestment and rebuilding of the country’s infrastructure, a major boost to North Africa’s investment climate. (Reuters)

According to the African Development Bank, Africa’s infrastructure financing needs amount to around $170 billion annually, with SWFs playing an essential role in bridging the gap.

By 2025, the collective assets of Africa’s SWFs are expected to grow substantially, creating a dynamic investment environment that focuses on sustainable growth, green investments, and infrastructure.

Investment Strategies: Sustainability, Diversification, and Impact

A Shift Towards Green and Sustainable Investments

One of the most significant trends shaping the future of African SWFs is their growing focus on sustainability. As the world faces pressing environmental challenges, African sovereign funds are increasingly aligning their investment portfolios with global sustainability goals. According to the United Nations Environment Programme, African nations are well-positioned to benefit from green investments, particularly in the renewable energy sector.

In 2025, African SWFs are expected to invest heavily in renewable energy projects, including solar, wind, and hydroelectric power. This shift is particularly crucial given Africa’s abundant natural resources and the growing demand for clean energy solutions both locally and globally. Additionally, these funds are exploring investments in green bonds and climate-resilient infrastructure.

Nigeria, for example, has committed to financing clean energy projects, with the NSIA allocating significant portions of its funds to renewable energy development.

South Africa, with its ambitious renewable energy goals, will likely see an uptick in SWF-backed investments in solar and wind energy projects, crucial to meeting the country’s sustainability objectives.

Infrastructure and Economic Diversification

Another area where African SWFs are expected to make substantial strides is in financing infrastructure development. The need for robust infrastructure across Africa—ranging from roads and railways to urban development—is a significant driver of economic growth. The African Union estimates that infrastructure deficits cost the continent over $68 billion annually in lost productivity.

In 2025, we can expect African SWFs to be at the forefront of financing large-scale infrastructure projects, including smart cities, energy grids, and transport systems. These investments not only address the continent’s infrastructure gap but also promote economic diversification by creating jobs and stimulating local economies.

Regional Developments and Opportunities in 2025

Strengthening the Role of the NSIA

Nigeria, as Africa’s largest economy, will continue to play a leading role in the development of sovereign wealth funds. The Nigeria Sovereign Investment Authority (NSIA), which oversees investments in infrastructure, healthcare, and the economy, is expected to increase its focus on economic diversification. By 2025, the NSIA is set to invest in sectors beyond oil and gas, such as agriculture, technology, and finance, to mitigate the risks posed by the volatile oil market.

The Rise of New Sovereign Wealth Funds

In 2025, Zambia plans to establish its own SWF to support national economic recovery. The fund will aim to build financial reserves for future generations while focusing on investing in sectors such as education, healthcare, and public infrastructure. As Zambia looks to diversify its economy away from copper dependence, the sovereign wealth fund is expected to be a key enabler of this transformation.

Attracting Private Investment into Public Infrastructure

South Africa, facing an infrastructure crisis, will leverage its sovereign wealth funds to attract private sector investments into public projects. The government’s infrastructure plan, which seeks to boost economic growth, aims to create new jobs and stimulate the economy. By 2025, we anticipate a greater influx of SWF-backed investments into the transport, energy, and water sectors, which will provide long-term benefits to the South African economy.

With an increasing focus on sustainable investments, infrastructure, and diversification, these funds are positioned to address both current challenges and future opportunities. As they continue to evolve, effective governance and strategic investment decisions will be crucial to ensuring that these funds contribute to long-term economic growth and stability across the continent. The next few years will be pivotal in determining how well African Sovereign Wealth Funds can support development goals and enhance regional and global economic influence.

The post Africa’s Sovereign Wealth Funds: What 2025 Holds for Investment appeared first on African Leadership Magazine.

The Role of Diaspora Investments in African Agriculture

In 2023, the African diaspora sent an estimated US$90 billion in remittances, a sum that surpasses both Foreign Direct Investment (FDI) and official development assistance (ODA) to the continent, according to the World Bank. This capital is essential for many African families, especially in rural areas where it helps support basic needs and local enterprises. In addition to remittances, diaspora communities are also an emerging source of direct investments in sectors such as agriculture.

READ ALSO: AfDB invests €84 million in Cameroon livestock and fish farming

The International Fund for Agricultural Development (IFAD) estimates that remittances contribute to more than 40% of the income of households in some Sub-Saharan countries. This wealth is already being redirected toward improving local agriculture, and there is growing interest in using these funds for urban farming projects. In 2023, the diaspora’s investments helped transform agricultural practices in countries such as Ghana, Nigeria, and Kenya, where they funded everything from irrigation systems to climate-resilient farming techniques.

Beyond remittances, the diaspora also contributes through more formal investment channels. A report from the African Development Bank (AfDB) highlights that diaspora investments in agriculture could exceed US$5 billion annually by 2030 if properly channelled into sustainable urban farming projects. These investments can drive large-scale agricultural transformation and foster innovation in urban food production systems, creating job opportunities and reducing urban food dependency.

A Sustainable Solution for Africa’s Growing Cities

Urban farming, the practice of growing food within cities on rooftops, vacant lots, or through vertical farming, has proven to be a sustainable solution to food security in Africa. According to a report from the Food and Agriculture Organization (FAO), the urban farming market is expected to grow at a rate of 7.4% annually between 2024 and 2029, driven by the need for fresh, local food and innovative technologies in city spaces.

In Kenya, urban farming is gaining popularity as a way to combat food insecurity. Nairobi, the capital city, has seen significant growth in urban farming projects supported by both government and private sector investment. For instance, the Kenya Urban Food Farming Program, which integrates new farming technologies such as hydroponics and aquaponics, has increased food production in the city by more than 15% over the past five years. In Nairobi alone, more than 10,000 households have benefited from urban farming initiatives, with many receiving training and support through partnerships with local governments and international organizations.

Urban farming also contributes to environmental sustainability. With climate change threatening traditional agricultural practices, urban farming has the potential to reduce the environmental impact of food production. It uses less land, less water, and fewer chemical inputs, making it a more sustainable model for future generations. According to a study by the University of Nairobi, urban farming practices funded by the diaspora have reduced water usage by up to 30% compared to traditional farming methods.

Impact of Diaspora Investments on Urban Farming Initiatives

Diaspora investments in urban farming are not only focused on providing capital but also on fostering innovation and introducing modern agricultural techniques. In 2023, a consortium of investors from the African diaspora in the UK and the US funded the development of an urban farming hub in Lagos, Nigeria. The initiative aimed to create a model for sustainable farming in urban areas, using vertical farming and renewable energy to reduce costs and environmental impact.

One success story is in Mali, where the Malian diaspora has been instrumental in introducing new farming techniques in urban areas. Their investments have led to a 25% increase in food production in Bamako, the country’s capital, and have provided new jobs for young people in agriculture. According to the International Fund for Agricultural Development (IFAD), these investments have also improved local resilience to climate change, helping farmers adapt to shifting weather patterns and soil degradation.

Challenges and Opportunities for Diaspora Investments

While the potential for diaspora-driven urban farming initiatives is clear, several challenges persist. Inadequate infrastructure, regulatory barriers, and limited access to finance remain major obstacles to scaling these initiatives across Africa. A 2023 report by the World Bank noted that less than 10% of African farmers—urban farmers included—have access to formal credit, making it difficult for them to invest in necessary tools, technologies, and infrastructure.

However, there are opportunities to overcome these challenges. Financial instruments such as diaspora bonds, impact investment funds, and social enterprises are gaining traction as ways to direct capital into urban farming projects. In 2023, Nigeria launched a diaspora bond specifically targeting agricultural development, which has the potential to raise billions for food security initiatives in urban areas. The success of such models can inspire other African nations to follow suit, creating a favourable environment for sustainable urban farming investments.

Diaspora investments are increasingly shaping the future of agriculture in Africa. As cities grow and the need for sustainable food solutions becomes more urgent, these investments are helping to drive the development of innovative farming practices in urban areas. With the continued involvement of diaspora communities, urban farming across the continent is poised to evolve into a key force in meeting the challenges of food security and urban growth.

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The Impact of Cyclone Chido on Mayotte

Cyclone Chido, which made landfall on 14 December, brought with it devastating winds reaching 250 km/h (155 mph), categorising it as a fierce Category 4 hurricane. Alongside these destructive winds, the cyclone dumped torrential rains, recording 176 mm of rainfall in just 12 hours, and generated waves up to 5 metres high, submerging coastal areas. Data from the World Meteorological Organisation confirms the magnitude of the storm’s impact on the region.

READ ALSO: COP26: Cyclone Idai’s devastation reveals the brutal impact of climate emergency

Loss of Life and Human Suffering

The immediate toll of the storm was staggering, with at least 35 confirmed fatalities, and fears that the real number may be higher as rescue teams continue their operations. Many homes were swept away, communities displaced, and vital infrastructure rendered unusable. The storm’s victims, already vulnerable due to socio-economic challenges, found themselves facing a dire humanitarian crisis. Reports from the Associated Press highlight the severe conditions survivors are enduring, with many lacking shelter, food, and clean water.

Infrastructure and Economic Devastation

Cyclone Chido left a significant mark on Mayotte’s infrastructure. Key facilities, including the island’s airport, hospitals, and government buildings, were either severely damaged or destroyed. The island’s electrical grid was crippled, and telecommunications were interrupted, making it difficult for authorities to coordinate an effective response. As noted by ReliefWeb, roads and bridges were also damaged, preventing aid from reaching isolated communities. This disruption has far-reaching implications for Mayotte’s economic stability, as sectors like agriculture and tourism, which the island depends on, are now heavily impacted.

Healthcare Crisis and Overwhelmed Systems

The healthcare system, already strained due to the island’s limited resources, was overwhelmed by the influx of casualties. Hospitals, operating at half of their usual capacity, struggled to accommodate all the injured and sick. With medical supplies running low and insufficient medical staff to manage the rising number of patients, the crisis deepened. Temporary medical stations were set up, and international medical teams offered vital support, as reported by the Disaster Philanthropy Foundation.

Mayotte’s Response and the Power of Community Resilience

Despite the overwhelming challenges, the people of Mayotte have demonstrated remarkable resilience. Local communities have come together to assist one another, sharing limited resources, providing shelter, and distributing food and medical supplies to those most in need. This spirit of solidarity underscores the strength and unity of the island’s residents, who are determined to rebuild their homes and lives. The International Federation of Red Cross and Red Crescent Societies has commended the collective response of the island’s inhabitants.

International aid has played a crucial role in addressing immediate needs. The French government, alongside humanitarian organisations, has mobilised resources such as airlifts of food, water, and medical supplies. Relief teams have worked around the clock to restore basic services and assist with the recovery process, according to an article by Reuters.

Global and Regional Responses to the Crisis

France’s Efforts and Regional Solidarity

As a French overseas department, Mayotte has received significant assistance from the French government. In the aftermath of the disaster, President Emmanuel Macron visited the island and pledged support for infrastructure restoration and affected communities. French government efforts have included dispatching rescue teams, medical personnel, and equipment to aid in the ongoing recovery. Reuters reported that this mobilisation is part of a broader effort to help Mayotte rebuild in a more resilient manner, aiming to mitigate future storm impacts.

Regionally, the African Union (AU), though Mayotte is not a member, has expressed solidarity with the island. The AU has offered support for the ongoing relief efforts, and countries like the Comoros, with geographical and cultural ties to Mayotte, have been at the forefront of coordinating assistance. ReliefWeb has highlighted the close cooperation between the Comorian government and international partners in ensuring that aid reaches the most affected areas.

In addition, Madagascar, another island nation in the Indian Ocean, has offered valuable assistance. The Malagasy government sent teams to Mayotte, contributing technical expertise in disaster management and aiding in the restoration of essential services, reports ReliefWeb. This collaboration exemplifies the importance of regional partnerships in addressing the effects of natural disasters.

Moreover, Mozambique, which was also affected by Cyclone Chido, has shared resources and information with Mayotte to improve the effectiveness of relief operations. This mutual support between nations highlights the spirit of regional solidarity during times of crisis (according to data from ReliefWeb).

Influence of Human Activities and Climate Change on Cyclone Disasters

The severity and frequency of natural disasters like Cyclone Chido are increasingly linked to human activities. The Intergovernmental Panel on Climate Change (IPCC) has emphasised that human-induced climate change is a major driver of extreme weather events worldwide. The burning of fossil fuels, deforestation, and industrial practices contribute to rising global temperatures, which in turn lead to warmer ocean waters, higher sea levels, and more intense storms (IPCC).

The Role of Greenhouse Gas Emissions

The overwhelming reliance on fossil fuels for energy production is a significant contributor to the accumulation of greenhouse gases in the atmosphere. These gases, including carbon dioxide (CO₂), methane (CH₄), and nitrous oxide (N₂O), trap heat, leading to global warming. This warming causes ocean temperatures to rise, providing more energy for cyclones and storms to intensify, thus making them more frequent and destructive. This was clearly outlined in reports from the IPCC, which link rising ocean temperatures directly to stronger cyclones.

Sea-Level Rise and Coastal Vulnerabilities

Sea-level rise, a consequence of global warming, increases the risk of storm surges during cyclones, especially in low-lying coastal areas like Mayotte. As polar ice melts and thermal expansion causes water to expand, sea levels continue to rise, making coastal cities and communities more vulnerable to flooding and erosion. According to IPCC data, Mayotte faces a heightened risk of such flooding, which exacerbates the impacts of cyclones.

The Case of Other Cyclone-Impacted Regions and Continents

Mayotte is not alone in facing the heightened risk of cyclonic activity. Other regions across Africa and the world are experiencing the same increasing frequency of tropical storms and cyclones.

Mozambique: Cyclone Freddy, which struck Mozambique in early 2024, left widespread devastation, with floods and landslides displacing tens of thousands of people and causing significant loss of life. According to reports from the BBC, Mozambique and other Southern African countries are becoming hotspots for extreme weather events exacerbated by climate change.

Madagascar: In the past two decades, Madagascar has been struck by numerous tropical cyclones. In 2023, the island suffered from Cyclone Cheneso, which displaced over 100,000 people and left many regions without power for weeks. BBC noted how Madagascar’s vulnerability reflects the struggles faced by countries with weak infrastructure and limited resources during extreme weather events.

Hurricane Season in the Atlantic: Across the Atlantic, the United States, the Caribbean, and parts of Central America also experienced a record number of cyclones during the 2024 season. Areas like Louisiana, Puerto Rico, and the Bahamas have increasingly been hit by powerful storms, such as Hurricane Laura and Hurricane Dorian, whose impacts were compounded by rising sea levels and intensifying storms, as reported by CNN.

The Need for Long-Term Action Against Cyclones

As global leaders continue to respond to the immediate humanitarian needs brought on by Cyclone Chido, a sustained effort to mitigate future risks is essential. This includes investing in climate change mitigation strategies, increasing resilience in vulnerable communities, and strengthening global cooperation on disaster preparedness.

Resilience and Adaptation: Governments, particularly in vulnerable regions, must prioritise resilient infrastructure and adaptive strategies to protect their populations from future disasters. This includes building flood-resistant infrastructure, developing early-warning systems, and fostering climate-resilient agricultural practices. Reports by the World Bank stress the importance of such measures in safeguarding vulnerable communities.

International Cooperation: Climate change is a global problem that requires a unified response. Nations must work together to implement stronger climate policies, reduce emissions, and support adaptation efforts in the most vulnerable regions. The Paris Agreement on climate change marks progress, but, as the United Nations points out, more action is needed to meet ambitious targets for reducing global warming.

The destruction caused by Cyclone Chido in Mayotte serves as a stark reminder of the growing impact of climate-related disasters. While the resilience shown by the island’s residents and the international community’s response is commendable, the increasing frequency and intensity of such storms demand a collective, long-term solution. By tackling the root causes of climate change and investing in sustainable, resilient infrastructure, we can better protect vulnerable communities worldwide and build a future where people, regardless of location, can thrive in the face of natural disasters.

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Explore the factors driving investor confidence in Africa, the most promising sectors, the challenges investors face, and what the future holds for investment on the continent.

READ ALSO: Africa’s Emerging Markets: 5 Sectors for Strategic Investment

Africa’s Economic Outlook: A Growth Story

The African Development Bank’s African Economic Outlook 2024 forecasts that the continent will achieve a real GDP growth of 3.7% in 2024, outpacing the global average. This growth is underpinned by a combination of external and internal factors, including strong global commodity demand, increased infrastructure spending, and rising consumer consumption.

Foreign Direct Investment (FDI) Surge

Foreign Direct Investment (FDI) into Africa is showing impressive growth, with 2023 witnessing a 7% year-on-year increase in FDI, totalling US$164 billion—a remarkable recovery from the pandemic-induced downturn. This marks a 138% rise from the pre-pandemic levels of 2019. The increase in FDI signals investor confidence in Africa’s economic trajectory, despite the global challenges.

Insights from the UNCTAD World Investment Report 2023:

● Sub-Saharan Africa accounted for the largest share of FDI in the region, driven by investments in sectors like technology, natural resources, and renewable energy.
● The financial sector continues to dominate as a focal point for investment, but there is also growing interest in sectors such as telecommunications, agriculture, and infrastructure.
This upward trend in FDI signals that Africa is steadily positioning itself as an emerging investment powerhouse.

Key Sectors Attracting Investment

Africa offers a diverse array of investment opportunities, ranging from renewable energy and technology to telecommunications and infrastructure. Below are some of the standout sectors attracting investor confidence:

1. Renewable Energy: Africa’s Green Investment Frontier
One of the most promising sectors in Africa is renewable energy. As the continent continues to struggle with energy access issues, the opportunity to develop and invest in green energy solutions is massive. Africa has vast renewable resources, including solar, wind, and hydroelectric power, making it an attractive destination for energy investors.

In one of the most ambitious renewable energy projects to date, Mauritania is spearheading the development of a US$34 billion green hydrogen initiative, set to transform the country into a key player in the global green energy market. The project aims to produce green hydrogen, a clean energy source that could be exported globally, making it a linchpin for Africa’s energy transition. The involvement of global energy giants and investment from international development banks shows the trust investors have in Africa’s long-term renewable energy potential.

According to the International Renewable Energy Agency (IRENA), Africa could generate more than 10 terawatts of solar power, which is more than enough to meet the continent’s energy needs and significantly reduce energy poverty. In countries like Kenya, South Africa, and Egypt, large-scale solar farms are already in operation, attracting significant investment in the form of both equity and debt financing.

2. Technology: The Rise of African Startups
Africa’s technology landscape is evolving rapidly, and this is reflected in the growing interest from investors in the continent’s tech ecosystem. In 2023, African tech startups raised more than US$6 billion in venture capital, with fintech being the dominant sector. Companies like Flutterwave and Paystack, both Nigerian fintech giants, have attracted investments from leading global players such as Tiger Global and Visa.

Fintech has seen a surge in investments, with deals such as the US$150 million investment in Tyme Bank (South Africa), bringing its valuation to US$1.5 billion. Investors are particularly attracted to the continent’s large unbanked population and the increasing adoption of mobile payment solutions.

The rise of fintech in Africa is just one example of the broader trend of innovation on the continent. Other sectors such as edtech, agritech, and health tech are attracting growing attention from investors looking to capitalize on Africa’s rapidly digitizing economy.

3. Infrastructure Boom
Infrastructure remains one of the most important pillars for long-term economic growth in Africa. Investment in transport, utilities, and telecommunications infrastructure is critical to unlocking the continent’s full economic potential. The African Union’s Agenda 2063 outlines plans to create integrated infrastructure networks that can support regional economic growth.

The African Continental Free Trade Area (AfCFTA) is poised to be a game-changer for intra-African trade, making investment in transport and logistics infrastructure a priority. With the free trade area linking 54 countries, the demand for efficient logistics and transport systems will drive significant investment in ports, railways, and highways.

4. Private Equity: A Key Driver of Investment
Private equity (PE) activity in Africa is seeing steady growth, despite global economic uncertainty. The Deloitte Africa Private Equity Confidence Survey 2024 revealed that 70% of African PE investors expect an increase in exits, with secondary sales and strategic sales leading the way. This reflects an increased appetite for private investments, particularly in growth-stage companies across various sectors. Global private equity firms are increasingly looking to Africa for investments in healthcare, real estate, and consumer goods.

Top Investment Hotspots in Africa for 2025: Emerging Markets and Sectors to Watch

1. South Africa Investment Opportunities
South Africa continues to be a leading investment destination in Africa, particularly in the technology, renewable energy, and real estate sectors. The country’s diverse economy and strategic location make it a key player in the African investment landscape. Expect growing interest in sectors like fintech, infrastructure development, and green energy solutions.

2. Nigeria: Investment Growth in Fintech and Agriculture
As Africa’s largest economy, Nigeria is a hotspot for investment, especially in fintech, agriculture, and infrastructure. Nigeria’s rapidly growing consumer market and government-backed reforms continue to attract global investors, particularly in sectors like mobile payments and agritech.

3. Kenya’s Growing Tech Ecosystem
Nairobi, Kenya, often referred to as “Silicon Savannah,” is a tech hub seeing substantial investment in fintech, mobile technology, and agritech. With global venture capital flowing into Kenyan startups, Nairobi is rapidly becoming one of the top African cities for innovation and digital transformation.

4. Morocco: Renewable Energy and Infrastructure Investment
Morocco is emerging as a leader in renewable energy in Africa. With investments pouring into solar and wind energy projects, and its strategic location as a gateway to Europe, Morocco is a key destination for sustainable energy and infrastructure development investments.

5. Egypt’s Economic Reforms and Manufacturing Sector
Egypt offers vast investment potential in sectors like manufacturing, agriculture, and tourism, thanks to ongoing economic reforms and a large consumer base. With government support for infrastructure projects, Egypt is well-positioned to attract significant foreign investment.

6. Rwanda: Emerging Tech and Innovation Hub
Rwanda is becoming one of Africa’s most attractive destinations for technology investments. Known for its political stability and business-friendly environment, the country is seeing rapid growth in tech startups, particularly in fintech and edtech.

7. Botswana’s Stable Economy and Mining Investment
Botswana remains one of the most stable economies in Africa, making it an attractive destination for investments, especially in the mining and tourism sectors. Its strong track record of governance and sustainable growth appeals to investors looking for security and long-term opportunities.

8. Ghana: Infrastructure and Energy Investment Opportunities
With a focus on infrastructure development and energy projects, Ghana is positioning itself as one of the top African countries for foreign investments in 2025. The government’s initiatives to modernize the country’s infrastructure and energy sector present exciting opportunities.

9. Mauritius: Finance, Tourism, and Tech Investment
Mauritius is a leading African destination for finance, technology, and tourism investments. The island nation offers a favourable tax environment and acts as a gateway for investments into Africa, making it an attractive base for global investors.

10. Côte d’Ivoire (Ivory Coast): Agriculture and Manufacturing Growth
Côte d’Ivoire continues to see strong investment inflows in agriculture, manufacturing, and infrastructure. As one of West Africa’s largest economies, the country’s growing industrial base and focus on sustainable agriculture create attractive opportunities for long-term investors.

Challenges to Investor Confidence

While the investment landscape in Africa is promising, it is not without its challenges. Investors need to be aware of the following risks:

1. Political Instability and Governance Issues
While some countries, such as South Africa and Ghana, are relatively stable, other regions face political uncertainty, which can disrupt business operations. The political turmoil in Sudan, for example, has deterred many investors in the region.

Corruption remains a significant issue in many African countries, affecting the ease of doing business. However, there has been progress in certain nations. For instance, Rwanda has made strides in improving governance and reducing corruption, becoming a model for good governance in Africa.

2. Regulatory and Legal Uncertainty
Despite efforts to improve the business environment, regulatory uncertainty persists in some African countries. Sudden changes in laws, especially in key sectors like energy and mining, can significantly impact investor confidence.

For example, in Senegal, the new administration’s review of oil and gas contracts raised concerns among international investors, potentially discouraging future investments in the sector.

3. Currency Volatility and Inflation
Africa’s dependence on commodities exposes many economies to fluctuations in global prices. This is particularly problematic for countries like Nigeria, where currency volatility and inflation rates pose significant risks to foreign investments. However, countries with diversified economies, like Kenya and South Africa, offer more stable investment environments.

Corporate Departures and Their Impact on Africa’s Economy

Despite the optimism surrounding Africa’s investment market, recent corporate departures have raised concerns. Several major corporations have left Africa, citing operational challenges and regulatory barriers. These exits, including those by prominent retail and technology companies, have shaken investor confidence and highlighted the structural issues that continue to plague the continent.

In 2024, Standard Chartered announced its decision to divest its retail and wealth management units in Botswana, Zambia, and Uganda, choosing to focus on serving global corporate and financial institution clients instead. Similarly, Jumia Technologies, a leading e-commerce platform, declared it would shut down operations in South Africa and Tunisia, citing high operational costs and a need to concentrate on more profitable markets.

Diageo, a global beverage powerhouse, sold its majority stake in Guinness Nigeria to Singapore’s Tolaram, reflecting the growing challenges of operating in Nigeria’s complex economic environment. South African retailer Pick n Pay also exited Nigeria, selling its 51% stake in a joint venture as part of a broader restructuring strategy. Meanwhile, Shell and BNP Paribas announced their withdrawal from South Africa, citing unfavourable market conditions and the need for strategic realignments.

Corporate departures perpetuate a cycle of economic stagnation by reducing job opportunities and dampening local economic activity. Additionally, the exit of well-established businesses sends a negative signal to potential investors, reinforcing perceptions of Africa as a risky investment destination. Addressing the root causes of these departures is essential to sustain and grow investor interest.

Africa’s Investment Future: A Call to See Beyond the Risks

The window of opportunity in Africa is narrowing as more investors pour in. Sectors like renewable energy, technology, and infrastructure are outperforming expectations in both growth and innovation. An example is the green hydrogen initiative in Mauritania, a US$34 billion venture that could shift the global energy balance.

The wait for global capital is also dwindling as a result of the active creation of frameworks that will attract investment. Major international players like Brookfield, TotalEnergies, and Google are already betting on Africa’s future; there’s no question that the continent is becoming the next frontier for bold, long-term investments.

However, recent corporate departures highlight the need for systemic reforms to reduce barriers and restore investor confidence. Addressing institutional weaknesses, managing risk-reward dynamics, and lowering transaction costs are critical steps for unlocking Africa’s full economic potential.

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