Happy Valentine’s Day! Here’s to love, oil and space wars. This week, Africa’s energy bank takes shape, grocery prices soar and China’s space ambitions shake up the continent. Plus, we reflect on Namibia’s founding icon and explore Africa’s booming art scene (in Marrakech).

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Africa Trivia

Graphic of the Week 

U.S. Still Winning…in Lesotho

What We Are Reading

• Central African Republic launched a meme coin called $CAR as an experiment to boost its global profile (Reuters).

• DRC: Eight African leaders have called for a ceasefire in eastern Congo, where more than 3,000 people have died in recent conflict (Bloomberg).

• Egypt’s P1 Ventures, backed by a billionaire investor, raised a $50M fund to invest in AI, fintech and enterprise tech startups across emerging African markets, focusing on both major hubs and underserved regions (Bloomberg).

• Namibia's first president and independence leader Sam Nujoma passed away at 95 after leading the country’s liberation and serving 15 years in office (BBC Africa).

• Nigeria: Oil producing nations on the continent are launching Africa Energy Bank, an oil-focused bank to counter shrinking global fossil fuel investments and expand energy financing (Reuters).

• Rwanda risks economic fallout as its alleged support for M23 rebels endangers $1B in aid, with debt hitting 80% of GDP and a 6.9% budget deficit (Bloomberg).

• Seychelles ranked top in Africa and 18th globally on the 2024 Corruption Perceptions Index, marking the largest improvement in Africa due to its active anti-corruption efforts (Capital FM).

• South Africa’s stock market hit a record high, driven by rising gold prices (Bloomberg).

• Sudan’s military is planning a new government after it gains control of Khartoum and aims to draft a new constitution and seek international support (BBC Africa).

• Uganda is facing a $82M shortfall for its HIV/AIDS programs after the U.S. aid freeze (Bloomberg); Uganda confirms an increase in Ebola cases from three to nine, according to the health ministry (Reuters).

• Zimbabwe, crippled by $21B in debt and loan restrictions, faces a food crisis as drought leaves half the population in need (Bloomberg).

Politics in Africa 

Africa Union: Reform or Fade

• What’s Happening: The African Union faces a critical leadership change as it elects a new commission chair this month. Front-runners include Kenya’s former PM Raila Odinga, Madagascar’s former Foreign Affairs Minister Richard Randriamandrato and Djibouti’s current Foreign Affairs Minister Mahmoud Ali Youssouf.

• Why It Matters: The AU’s track record is mixed (to put it kindly)—gaining a G20 seat but struggling to mediate conflicts and enforce decisions. With the U.S. pulling back under Trump, many believe the AU must reform or risk irrelevance.

• Big Picture: Analysts say the new leadership must inject authority, push reforms and leverage Africa’s global positions at the UN, World Bank and IMF. Without change, its G20 influence could fade fast.

• The Challenge: The AU’s structure limits its power—its parliament has no legislative teeth, its commission can’t enforce rules and member states ignore key rulings. Fixing these won’t be easy in a four-year term.

• What’s Next: Candidates are making big promises—Odinga wants Africa on the UN Security Council, Youssouf focuses on security and Randriamandrato backs intra-African trade. The winner must turn words into momentum.

• Read more: Semafor

U.S. (Not) in Africa 

Aid Cuts Bite

• Where the Rubber Meets the Road: Trump’s USAID cuts will hit seven African countries hardest—DR Congo, Ethiopia, Liberia, Somalia, South Sudan, Sudan and Uganda.

• Why it Matters: The most affected countries depended on USAID for emergency response, health and humanitarian aid. DR Congo received the most—$1.3B in 2024. This reliance shows how far these nations still have to go. 

• Read more: Semafor.

• For more context, I highly recommend Ken Opalo’s post: On American aid cuts/disruptions.

Business & Finance in Africa 

Africa’s Energy Play

• What’s Happening: The Africa Energy Bank will launch in Q1 2025 with $5B in equity. The bank is targeting a $120B asset base to fund oil, gas and energy transition projects. Nigeria, Africa’s top oil producer, secured the bank’s headquarters.

• Why It Matters: Western banks are pulling back from fossil fuel investments, and Africa wants to finance its own energy future. Nigeria plans to boost oil production from 1.7 million to 2.5 million barrels/day by cutting regulatory hurdles.

• Read more: Reuters and Bloomberg

Africa’s VC Pulse

The African Venture Capital Report 2024 by Wee Tracker Media Inc and Future Africa is an informative  read! 

What it Says:  African startups raised $2.07B in 2024, up 4.5% from 2023, despite fewer deals.

• Who’s Leading: Yep that’s us…Renew Capital topped the investor list.

• Funding Shifts: Early-stage funding plunged from 31% (2021) to 9%, while growth and late-stage deals surged.

• Sector Trends: Fintech dominated (51%), but climate funding (27%) soared, squeezing healthcare, education and mobility.

• Investor Moves: Debt financing surged in climate sectors—Kenya led with $537M, largely from climate-focused debt capital.

• Market Reality: The Big Four (Kenya, Egypt, South Africa, Nigeria) grabbed 80% of VC funding.

• Read more: The African Venture Capital Report 2024 (WeeTracker). Thanks Nayantara Jha for your tireless efforts for Africa’s VC Space. 

Tech’s Wild Ride

Another helpful report.

• Here’s what it says: African tech funding fell 22.73% in 2024, but mega-rounds fueled a rebound in the second half. Fintech dominated, with East Africa and the Big Four (Kenya, Nigeria, South Africa and Egypt) attracting the most investment.

• Why It Matters: M&A surged 34%, startups fought for scale, and layoffs eased compared to 2023. Regulators tightened oversight, especially on fintech, crypto and AI, while some countries launched new AI policies.

• Big Picture: Despite a rocky start, Africa’s tech scene adapted, with growth in Ghana, Tanzania and select tier-two markets.

• Read more: The State of Tech in Africa (2024 in Review)

Tech & Society in Africa

Africa’s Urban Youth: Degrees, Debt, Discontent

• FT has launched a special report: The Future of Cities. And one article in particular caught my attention this week: Thwarted Ambition Triggers Dissent Among Africa’s Urban Young. 

• Here’s the summary: Africa’s urban population has grown from 32 million in 1960 to 458 million in 2020, heading toward 665 million by 2030 according to UN Habitat. In Nairobi, 50%+ of 4.8 million residents live in informal settlements with scarce water, electricity and sanitation. Kenya’s 2024 Gen Z protests left 39 dead, forcing President Ruto to dismiss his cabinet. Despite struggles, youth-led startups are booming.

• Why It Matters: By 2050 one in four people will be African, mostly in cities and thus straining infrastructure. Youth frustration is fueling political action—similar protests have rocked Nigeria, Malawi, Senegal and Mozambique. Informal economies dominate, starving cities of tax revenue for essential services. Yet, optimism persists—young, often educated Africans believe in a better future, driving innovation.

• Read more: FT

Africa’s Costly Cart

• What’s Happening: Ethiopia tops Africa’s grocery price index in early 2025 at 46.5, followed by Botswana, Mozambique and Ivory Coast, making basic food increasingly unaffordable.

• Group grocery apps like Pricepally in Nigeria and our portfolio company ChipChip in Ethiopia have increasing demand these days! 

• Check out the data: Numbeo

China in Africa

China's Space Play

• What’s Happening: Who knew? China has 23 space partnerships in Africa, funding satellites, ground stations and a future moon base with Egypt, South Africa and Senegal. The latest move: Egypt’s "homegrown" satellite plant, built with Chinese parts, scientists and long-term oversight.

• Why It Matters: Beijing is securing access to surveillance data, deepening  African alliances, and expanding its global space footprint—all while the U.S. cuts back on foreign aid. Washington warns of military risks, but there’s no public proof of misuse yet.

• Big Picture: China’s $50B space investment is reshaping Africa’s satellite and defense capabilities. Meanwhile, the U.S. lags in (space) diplomacy, leaving Beijing room to dominate.

• Read more: China builds space alliances in Africa as Trump cuts foreign aid

Democracy in Africa

Namibia's Founding Icon 

• What Happened: Sam Nujoma, Namibia’s first president and liberation hero, died at 95 on February 9, 2025.

• Why It Matters: He led SWAPO’s fight against apartheid, securing Namibia’s independence in 1990. His leadership shaped the nation, though not without controversy.

• Big Picture: Nujoma’s death marks the end of an era for southern Africa’s liberation giants, following Mandela and Mugabe.

• Read more: FT

Explorations in Africa

Marrakech Masterpiece

• The 1-54 Art Fair was spectacular. Held in Marrakech January 30 to February 2, it showcased Africa’s dynamic contemporary art scene alongside the reopening of the Museum of African Contemporary Art Al Maaden (MACAAL), which unveiled Seven Contours, One Collection, a deep dive into 70 years of African artistic evolution.

• Why It Matters: MACAAL’s $1M revamp cements it as one of Africa’s top contemporary art institutions, alongside Zeitz Mocaa and Fondation Zinsou. The museum’s vast collection, from Moroccan modernists to rising stars like Amina Agueznay, bridges past and present.

• The Big Picture: With the 1-54 fair thriving and galleries booming, Marrakech is a global arts hub.

• Read more: FT and a big thank you to 1-54 Board member and Affinity Africa’s founder, Tarek Mouganie who graciously invited us to take it all in!

Trivia Answer

Answer: C) Egypt. Read More: Visual Capitalist

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