Trying to summarize Africa’s economic shifts, startup comebacks, Red Sea dramas and new flight routes after three days of tech panels and tagine-fueled small talk is not easy. GITEX Africa in Marrakech didn’t disappoint. Time with colleagues, investors and portfolio founders was the highlight! 

Yes, I’m tired. But the continent isn’t slowing down. Read on to see what caught my (slightly glazed-over) eyes this week.

Africa Trivia 

Graphic of the Week 

Fast, Furious & Fossil-Fueled

Twelve of the world’s 20 fastest-growing economies are in Africa; as you might imagine, oil plays a big role in several of these economies (The Visual Capitalist). 

What We Are Reading

• African military leaders are worried that President Trump may cut U.S. security aid, risking gains against Islamist insurgents and weakening America's influence as rivals like China and Russia expand their reach (Bloomberg).

• Egypt and Qatar have agreed to a $7.5B investment package to support Egypt’s economic recovery, following a foreign currency crisis (Bloomberg); Egypt's Nclude Fund is being taken over by Development Partners International (DPI) to expand into early-stage investments in fintech and payments (Bloomberg).

• Ghana is set to receive a $370M disbursement from the IMF as part of its $3B program initiated in May 2023 (Bloomberg); Ghana has banned all foreigners from trading in its local gold market to increase national revenue, control illegal mining and give full authority to newly minted Ghana Gold Board (BBC); Ghana's stock market is leading global equity gains, signaling investor confidence (Bloomberg).

• Kenya plans to attract private investment to develop and expand the Mombasa and Lamu seaports to reduce reliance on debt and stay competitive in the region (Bloomberg).

• Lesotho has granted Starlink a 10-year license to boost its communications sector, strengthen U.S. relations and mitigate the impact of U.S. tariffs (Bloomberg).

• Morocco is investing $300M to build Africa’s largest shipyard in Casablanca, aiming to boost its economy by attracting global shipbuilding business and supporting local and regional maritime needs (Morocco World News).

• South Africa is on the path to launching a traded electricity market, backed by Rand Merchant Bank, to give consumers more choice in power suppliers and help curb rising energy costs through market-based pricing (Bloomberg).

• Somalia will begin voter registration this week for its first one-person, one-vote local election in nearly 60 years, set to take place on June 30 in Mogadishu (Bloomberg). 

• Tanzania has issued an ultimatum to South Africa and Malawi to lift non-tariff barriers on its agricultural exports by next Wednesday or face reciprocal trade restrictions on their farming imports (Bloomberg); IMF reaches staff-level agreement to unlock $441M for Tanzania (Reuters).

• Zimbabwe's President Emmerson Mnangagwa has signed the Private Voluntary Organizations Amendment Act, which tightens government oversight of non-governmental organizations (NGOs) to combat money laundering and terrorist financing (Bloomberg). 

Business & Finance in Africa 

Startup Funding Stabilizes

From heatwave to ‘new normal’: Startup funding in Africa has come off its record highs and found a new, steadier rhythm. After the 2021–2022 boom and the 2023–2024 bust, 2025 is shaping up to be more balanced.

• 2024 funding hit $2.2B, down 25% from 2023

• $2.2B/year mirrors pre-boom levels

Who’s getting funded?

• 🇰🇪 Kenya reigns: 29% of all 2024 startup capital went to Kenyan companies

• 🇳🇬 Nigeria holds steady: Just more than $400M raised in 2024

• 🇪🇬 Egypt cools: North Africa’s dip tied to a 37% YoY drop in Egyptian funding

Source: Out of the woods? - Africa The Big Deal and Kenya claims the top spot, again -Africa The Big Deal.

The Big Bet: AfCFTA + The RECs

The African Continental Free Trade Area (AfCFTA) and its potential is a topic I keep coming back to. The African Futures and Innovation Programme has a report out that finds that, if fully implemented, AfCFTA could be a game changer for Africa’s economy, boosting growth, reducing poverty and unlocking industrial potential.

Projections: It’s a ways out but according to this report, GDP could grow 10% larger by 2043 with 32 million fewer people in extreme poverty. That’s better than the last projections I read, but 2043 is a long way off. The report says we can expect: 

• Major gains in services (+$397B) and manufacturing (+$110B)

• Exports will increase by 27.7%, imports up 19.5%

The RECs Still Standing: AfCFTA supposedly doesn’t replace the eight Regional Economic Communities (RECs), it connects them. RECs like SADC, EAC, ECOWAS, COMESA remain active and AfCFTA adds services, IP, e-commerce, investment and a dispute mechanism.

Bottom line: AfCFTA could transform Africa’s trade but success hinges on infrastructure, harmonization and bold national leadership. The RECs laid the foundation,  AfCFTA is the bridge to a continental market. Read more: The AfCFTA Thematic Futures.

Red Sea at a Boil

An issue to watch: This week, I appreciated The Economist’s breakdown on how the Red Sea is emerging as one of the world’s most contested geopolitical zones, with global powers jostling for control over strategic ports and shipping lanes. A few highlights:

• Houthi attacks cut shipping traffic by two-thirds in 2024

• Djibouti remains a rare anchor of stability—home to U.S., Chinese and several European military bases

• Conflicts in Sudan, Somalia and Ethiopia increasingly reflect a broader power struggle over Red Sea access

Why it matters: Control over Red Sea ports is no longer just about commerce—it's about the projection of power. As global supply chains shift, so do the stakes.

Tensions to watch:

• 🇸🇩 Sudan: UAE and Russia back rival factions vying for control of Port Sudan

• 🇸🇴 Somalia: UAE invests in breakaway regions; Turkey backs the federal government; U.S. eyes a new base

• 🇪🇹 Ethiopia: Addis wants a Red Sea outlet, raising alarms in Eritrea and Djibouti

The big picture: The Horn of Africa is becoming a testing ground for a new era of competition, where ports matter more than borders and foreign influence increasingly shapes local conflicts. Read more in The Economist.

Tech & Society in Africa

Africa, Nonstop

News you can use! Condé Nast Traveler's article, "The Best New Flight Routes to Africa in 2025," highlights a significant shift in air travel, with new nonstop flights from the U.S. and Europe making African destinations more accessible.

Notable U.S. Routes:

• Washington, D.C. to Dakar, Senegal: United Airlines begins thrice-weekly service on May 23, 2025.

• Atlanta to Accra, Ghana: Delta launches daily seasonal flights starting December 1, 2025.

• Atlanta to Marrakech, Morocco: Delta introduces thrice-weekly flights on October 25, 2025.

• Newark to Marrakech, Morocco: United commenced thrice-weekly service on October 25, 2024.

• New York (JFK) to Lagos, Nigeria: Delta offers a daily seasonal winter route.​

Key European Routes:

• Paris to Kilimanjaro, Tanzania: Air France's thrice-weekly flights provide access to Tanzania's safari destinations and Zanzibar.

• London to Sal, Cape Verde: EasyJet's thrice-weekly flights offer affordable travel to the Cape Verde islands.
  Munich to Windhoek, Namibia: Discover Airlines' thrice-weekly nonstop service connects travelers to Namibia's deserts and wildlife parks.

These new routes will help streamline my travel! Read the full article here: Condé Nast Traveler.

Africa’s AI Leap Begins

2,000+ leaders gathered in Kigali earlier this month for the first Global AI Summit in Africa and left with a bold ambition: the newly signed Africa Declaration on AI aims to drive ethical, inclusive AI adoption. Participants from more than 100 countries were present to chart a continental AI strategy.

Why it matters

• AI could add $16T to the global economy by 2030, Africa risks getting just 10%

• Skills, infrastructure and regulatory gaps are slowing local AI rollout

• But rapid population growth + "learning by doing" offers an edge

To catch up, Africa needs to:

• Grow talent: from basic AI literacy to elite research training

• Define responsible AI: governance, ethics and continent-wide data policies

• Unlock funding: partnerships like Cassava–Nvidia point the way, but blended financing is key.

• Read more: BCG on LinkedIn.

Explorations in Africa

“The Herds”

In Kinshasa's Botanical Garden, haunting cardboard animals—monkeys, a gorilla, leopards, a giraffe—led by black-clad puppeteers, began their symbolic migration north. This performance, "The Herds," aims to spotlight the climate crisis by depicting wildlife displaced from the Congo Basin to the Arctic Circle. The launch coincided with severe flooding in Kinshasa, underscoring the project's message. As the troupe moves through cities like Lagos and Dakar, local artists will join, enriching the narrative and emphasizing the global impact of environmental degradation. Visit the official website www.theherds.org and read more at AP News. 

Africa Trivia Response

Answer: D. All of the above 😅

See you next week!

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