Welcome to this week’s Africa Brief where we spotlight tax codes that squeeze small businesses harder than anywhere else, billion-dollar bets on airports and nuclear power, and the untapped promise of the services sector. Add in ancient festivals, wildlife crime and trade tensions and the continent’s economic and cultural story is as vibrant as ever.

Africa Trivia 

Which African country holds the world's oldest continually operating university?
A) Egypt
B) Morocco
C) Ethiopia
D) Ghana

Graphic of the Week 

Time for a Tax Code Tune-Up

Africa’s Tax Squeeze: Spotted this graphic on how small businesses in Africa are taxed on LinkedIn via Anthony William Catt. His posts on the VC space in Africa are always interesting. Africa’s average small business corporate tax rate is 27.5%, topping the world. South America follows at 26.1%.

• Lowest in Africa: Somalia at 12.3% — well below the global average (~23%).

• Highest in Africa: Zambia, Guinea, Comoros, Chad, Equatorial Guinea, Sudan at 35% — rivaling Malta (Europe’s peak) and topping Japan (33.6%).

• Global context: Middle East (17.9%) and Europe (16.2%) offer the lowest averages; tax havens like the Bahamas, UAE and Monaco are near zero.

• Trend line: Interestingly, the data shows that corporate tax rates worldwide have nearly halved in 40 years but not so in Africa.

Why it matters: For investors and founders, Africa’s above-average tax rates can sap margins and deter FDI — especially as low-tax hubs compete aggressively for business relocation. Read more: On deck.

What We Are Reading

• Africa: The African Development Bank is providing funding for the construction of a new airport in Ethiopia (Reuters); President Trump’s administration will send $93M in food aid to 13 countries, including 12 in Africa (Semafor).

• Côte d’Ivoire: Opposition parties protested nationwide, demanding inclusion in the October presidential elections amid President Ouattara’s bid for a fourth term (Bloomberg).

• Egypt's urban consumer prices rose at a slower rate in July, easing to 13.9% annual inflation (Reuters); TikTok has been given a three-month ultimatum to adjust its content moderation to align with national laws and cultural norms or face a ban (TechPoint Africa).

• Guinea: Workers at Rusal’s Fria refinery blocked alumina shipments in a strike over unimplemented labor agreements (Bloomberg).

• Kenya plans to raise up to $4B by securitizing an import levy to fund a railway extension (Bloomberg); Airtel plans to expand towers and double mobile money agents to challenge Safaricom’s market dominance (Semafor).

• Mali: After being saved from militants more than 10 years ago, ancient manuscripts from Timbuktu are being returned to their home city (AP News).

• Niger is investigating the potential sale of a large meteorite for $5M to determine its legitimacy and ensure proper handling (AP News).

• Nigeria's exports of goods other than oil surged nearly 20% in the first half of the year, driven by high demand for cocoa and urea (Reuters); Airtel Nigeria is investing $120M in a new data center focused on AI compute capacity to boost the country’s AI infrastructure by 2026 (Tech Cabal).

• South Africa plans to present an amended trade agreement to the United States (Reuters); Trump’s 30% tariff on South African wine imperils a $500M export market and 270,000 jobs, forcing producers to seek new buyers (Financial Times).

• Tanzania: A new directive banning foreigners from operating many types of small businesses, has sparked backlash from Kenya over potential violations of East African Community trade agreements (BBC Africa).

• Zambia: TDB Group may claim insurance on part of its $500M debt in Zambia’s restructuring but warns this could harm trade finance across Africa (Bloomberg).

• Zimbabwe: U.S. President Donald Trump’s administration paused most routine visa processing, citing high overstay rates and lack of a migrant return agreement (Semafor).

Business & Finance in Africa 

Services: Hidden Growth Potential

Africa’s Services Moment — McKinsey’s Hiding in Plain Sight Report (March 2025) claims that Africa’s fastest path to new jobs and growth may be in services. The report says that services drive the global economy, making up 75% of real gross value-added activity in high-income countries and 63% in low and middle-income countries (LMICs). Statistics related to Africa:

• Big and growing: Services already drive 50%+ of GDP in many African economies, employing more women (46%) than industry.

• Untapped exports: Goods still dominate trade but high-growth service niches are emerging.

• Hotspots: Tourism, cloud, fintech, SME lending, e-commerce and creative industries.

• Upside: Africa could claim a big slice of a $1.1T LMICs services boom by 2030, creating millions of jobs.

• Why it matters: Services diversify beyond commodities, grow middle-class jobs and tap Africa’s young, digital population, but winning will take skills, infrastructure and smart policy.

• Read more: Hiding in Plain Sight (March 2025).

Geopolitics in Africa

BEE Under Fire

• Backdrop: According to an article in The Economist, Trump’s 30% tariff on South Africa seems to be aimed squarely at Black Economic Empowerment (BEE), the ANC’s post-apartheid policy to boost black ownership, management and procurement.

• The problem: 1T rand ($56B) in assets has flowed to fewer than 100 people; compliance costs firms up to 4% of GDP; joblessness among black South Africans stays above 60%.

• Support vs. backlash: Supporters say BEE prevents instability; critics see it as elite enrichment, divisive and a drag on growth.

• Why it matters: Trump’s move taps local discontent — using trade pressure to challenge a system many South Africans already question. Read more: The Economist.

Innovation in Africa

Africa’s Atomic Pivot

Africa’s SMR Race: Ghana and Rwanda are vying to lead Africa in small modular reactors (SMRs) — cleaner, cheaper and faster to build than traditional nuclear. Rwanda brings political muscle; Ghana has stronger regulation, training and partnerships. Others like Namibia and Kenya trail. And the push is on to process uranium locally, not just export it.

Why it matters: SMRs could cut fossil fuel use, power electrification and data centers and make Africa a nuclear tech player. Still early-stage and competing with ever-cheaper renewables. Key stats:

• South Africa has the only operating nuclear power plants on the continent.

• Rwanda played host to the Nuclear Energy Summit in June 2025.

• Namibia, Niger and South Africa are Africa’s heavyweight uranium producers.

• Read more: Semafor.

Conservation in Africa 

Wildlife Crime Surge

U.S. cuts to Africa wildlife aid are fueling the $23B illegal animal trade, giving Chinese triads, Mexican cartels and local poachers freer rein.

Why it matters: USAID once spent $375M+ a year on anti-poaching and trafficking. Loss of funding weakens law enforcement, border security and community outreach, opening doors for organized crime.

Bigger picture: Beyond biodiversity loss, the article claims that weakened wildlife protection erodes governance, fuels instability in fragile states and disrupts U.S. security interests abroad. Read more: Financial Times.

Travel in Africa 

Runway for Growth

The African Development Bank (AfDB) and Ethiopian Airlines recently signed a $7.8B letter of intent for Abusera International Airport, which will be 40 km from Addis (AfDB).

• Why now: Bole International is nearing its 25 million passenger cap. The new hub will absorb the surge and cement Ethiopia’s aviation dominance.

• By the numbers: In 2024, Ethiopian Airlines pulled in $7.02B in revenue and flew 17.1 million passengers, 13.4 million international, 3.7 million domestic.

• Big picture: The project will boost intra-Africa and global connectivity, drive regional integration and solidify Ethiopia as Africa’s aviation leader.

• Read more: African Airlines Association Annual Report 2024

Explorations in Africa

Songs on the Mountain

I was reminded by one of my favorite Ethiopian tour guides, Berhanu, that the Ashenda Festival is coming up this month in Ethiopia. Ashenda is a week-long celebration in the Tigray and Amhara regions, marking the end of the two-week fast called Filseta in honor of the Virgin Mary. It’s a riot of music, dance and color—young women dressed in intricate white tilfi dresses, adorned with jewelry, carrying tall green grasses as they sing and drum through the streets. Beyond its religious roots, Ashenda is a joyful expression of female identity, community pride and cultural resilience, especially poignant after years of conflict in Tigray.

And then I remembered my own trip to the area a few years ago, and my terrifying climb near Gheralta to Abuna Yemata—an ancient cliff-top church carved into sheer rock, reachable only by climbing a cliff face BAREFOOT with no ropes. The view from the top was breathtaking and the 6th-century frescoes hauntingly beautiful. Watch this video to get a taste for what makes Ethiopia unlike anywhere else on the continent. If you want Berhanu’s contact details, let me know. 

Africa Trivia 

Answer: B. Morocco, home to the University of al-Qarawiyyin, founded in 859 AD by a woman. Wikipedia.

Didn’t get a chance to read last week’s newsletter? Take a look back at our graphic of the week, Africa’s Ore Opportunity.

See you next week! If you’re enjoying The Africa Brief, please share with your family and friends. We’d love to have them follow along with Africa’s macro trends too! Email us at ([email protected]) if you have some scuttlebutt we should follow up on.