Welcome to the January 24, 2025 edition of The Africa Brief. This week, President Trump's executive orders are sending ripples across Africa. But there’s a lot of other things happening too! From South Africa's inflation surge to Kenya's ambitious AI strategy and even some premium spirits to search for in your neighborhood liquor store this weekend…we've got the continent's latest developments covered. Let’s dive in! 

We know you've been diligently reading our newsletters (right?), so let's see if you can nail this one:

Africa Trivia

Graphic of the Week 

Africa's Future Workforce

• We all know Africa's population is booming and its children (and youth) are key to the continent's future. The number of children has skyrocketed from 110 million in 1950 to a whopping 580 million today. This means that a quarter of the world's children live in Africa and there are four times as many children in Africa as in all of Europe.

So, what does this mean?

• This increase in children could be a huge opportunity. Will education and digital access position this growing population with the skills needed for jobs and innovative entrepreneurship of the future that addresses local and global challenges?

• Read more: UNICEF

Too Long; Didn’t Read

• Angola: The central bank keeps its key interest rate at 19.5% to manage inflation (Bloomberg); Plans to raise $2B in Eurobonds to manage debt costs and maturities, with 4% economic growth projected for 2025 (Bloomberg); Plans to sell shares in its biggest telecom company and banks to attract investors as part of its privatization plan (Bloomberg).

• Botswana: The economy is projected to grow by 3 to 4% in 2025, driven by a recovery in the global diamond market and growth in the non-mining sector. This follows a 3.3% contraction in 2024 (Reuters).

• Gabon: Military junta schedules presidential elections for April 12, 2025, following a coup that ousted President Ali Bongo two years ago (Bloomberg).

• Ghana: Delays the delivery of 370,000 metric tons of cocoa from the 2023/24 season due to a sharp drop in production, which has hit a two-decade low, with climate change and tree diseases contributing to the decline (Reuters).

• Kenya: Announced it will do away with the Electronic Travel Authorization system to ease entry for African travelers and boost tourism (BBC). 🎉🎉🎉

• Mauritius: Could receive £90M annually from the UK for the Chagos archipelago but the deal faces delays due to concerns over China's influence and U.S. military interests (Bloomberg).

• Morocco: Startups secured $70M in 2024, positioning the country as one of Africa's most innovative ecosystems (Tech In Africa).

• Mozambique: Considering restructuring its public debt after losing $664M in revenue due to post-election unrest, with its Eurobonds dropping 3.5% (Bloomberg).

• Nigeria: Africa's most populous nation, joined BRICS as a partner state to enhance trade and investment opportunities, amid efforts to combat soaring inflation, low tax collection and a renewed $2B currency-swap deal with China (Bloomberg).

• South Africa: Inflation rose by 3% in December, slower than the expected 3.2%, providing room for potential interest rate cuts (Bloomberg); Cape Town unveiled a memorial honoring 1,772 unrecognized Black South Africans who died as non-combatants during World War I (AP News).

• South Sudan: Restricts social media for up to 90 days after protests over attacks on its refugees in Sudan (Bloomberg).

• Tanzania: Ruling party nominated President Samia Suluhu Hassan for re-election, making her the first woman to run, with her leadership praised for policy changes but criticized for curbing political dissent (Bloomberg).

• Zambia: Copper output rose to 820,000 tons in 2024, with a 2025 target of one million tons, despite last year’s drought which hampered hydropower; 70% of the country's export earnings come from copper (Bloomberg).

• Zimbabwe: Finance minister warns that the U.S. withdrawal from the WHO could reduce vital HIV/AIDS aid, with Zimbabwe receiving more than $200M annually from PEPFAR (Reuters).

U.S. in Africa 

Trump's Africa Shockwaves

Trump's first day in office was a busy one, with executive orders flying left and right and Africa experienced a bit of the heat (The Africa Report). According to the Africa Report, five of his executive orders are causing a stir in Africa:

1. Suspension of Foreign Assistance Programs: A 90-day freeze on U.S. foreign development aid to reassess alignment with American foreign policy, potentially disrupting ongoing projects across Africa.

   • During his Senate confirmation hearing for Secretary of State, Marco Rubio emphasized that U.S. foreign assistance should be evaluated based on three criteria: 1) Does it make America safer? 2) Does it make America stronger? 3) Does it make America more prosperous? (Reuters).

2. Establishment of External Revenue Service: Creation of a body to collect tariffs and duties, which could complicate international trade and impact African exports to the U.S.

3. Withdrawal from the Paris Agreement: U.S. exit from the global climate accord may reduce support for African nations combating climate change effects.

4. Withdrawal from the World Health Organization (WHO): Ceasing U.S. participation and funding could undermine health initiatives in Africa, affecting disease control and prevention efforts.

5. Declaration of National Energy Emergency: Emphasis on fossil fuel exploration may lower global oil prices, adversely affecting African oil-exporting economies.

How did African experts respond?

Tariffs: On January 21, 2025, South Africa's Reserve Bank Governor, Lesetja Kganyago, warned that U.S. protectionist policies could cause inflation and stop future interest-rate cuts. Kganyago said that the plan to impose tariffs could slow down the progress central banks made in controlling inflation since the Great Inflation of 2022, causing problems for emerging markets like South Africa (Bloomberg).

Energy: Meanwhile, Kenya's central bank chief, Kamau Thugge, thinks that Trump's plan to release more energy reserves could lower consumer price growth. The decision could potentially lower fuel prices, leading to lower U.S. and global inflation (Bloomberg).

Health: Zimbabwe's finance minister, Mthuli Ncube, is worried that a U.S. withdrawal from the World Health Organization (WHO) could lead to aid cuts to countries hit hardest by HIV/AIDS. Zimbabwe gets over $200M annually from the U.S. President's Emergency Plan for AIDS Relief (PEPFAR), which has given the country over $1.7B since 2006. Without U.S. membership, the WHO would lose its close ties to the CDC, affecting PEPFAR. Zimbabwe is struggling to fund its public health system and Ncube believes scaling up funding for health is crucial (Reuters).

Business & Finance in Africa 

Africa's GDP Imbalance

• Read more: VisualCapitalist

Karibu Kenya!

• Kenya is reforming the Electronic Travel Authorization (ETA) requirements for travelers from most African countries. 

• Phew! For those of us who have been visiting Kenya the past few years, 2024 was rough as far as entry goes! 

• The ETA, implemented last year, dropped Kenya 17 places to 46th out of 54 nations in the 2024 Africa Visa Openness Index. 

• The planned 2025 policy will allow African visitors to enter freely and stay for up to two months, while East African Community members can stay for six months.

• The advanced passenger information system is expected to make the ETA process faster, streamlining entry. Hopefully policymakers will be kind to global travelers too! 

• Read more: BBC.

• Oh, and in more good news, it looks like Ghana is hopefully on a similar path to making entry to the country easier (BBC).

Tech & Society in Africa

Africa’s Big Five?

• No big surprise, Kenya, Nigeria, Egypt and South Africa are still on top in terms of total venture capital funding attracted.

• But Moroccan startups did pretty well in 2024, raising $70M and making it 5th in attracting startup funding. We contributed by investing in Talaty, Enakl and Agenz. Morocco is on the move!

• The Big Four countries attracted almost 84% of all the funding in Africa, which was $2.2B in equity, debt and grants. However, this was actually a 25% drop from 2023 and a whopping 52% drop from 2022.

• Read more: Africa: The Big Deal.

Kenya's AI Ambition

In January 2025, Kenya launched a National Artificial Intelligence Strategy (2025-2030) to be at the forefront of AI development in Africa. 

• Strategic Vision: Kenya aims to become Africa's leading AI innovation hub by 2030, focusing on sustainable development and ethical technology use.

• Core Pillars: The strategy emphasizes developing AI-ready digital infrastructure, establishing a robust data ecosystem and fostering AI research and innovation.

• Barriers: Challenges such as limited access to advanced infrastructure and a shortage of AI professionals, could limit AI’s utilization. To overcome these, Kenya is focusing on capacity building, regulatory clarity and international partnerships.

• Read more: AU Startups.

• We will surely see some other countries follow suit and launch their own strategies soon.

Explorations in Africa

Happy in Nigeria?

• Sagaci Research heard from more than 13,000 Africans across 27 countries to measure optimism. This is not what I would have predicted. Most intriguing to me? 

  • Nigeria. Wow. Nigerians are surely among the most resilient in the world. Last year was economically rough there, so these results say a lot about the place. West Africa looks like the place to be this year! 

  • And of course, Malawi makes sense! People are just positive in the warm heart of Africa.  

• It looks like Africa is a pretty positive place this year!

Distorted Worldviews

• Did you know most maps make Greenland look as big as Africa, even though Africa is 14 times larger?

• Historical Context: The Mercator projection, developed in 1569, was designed for navigation, preserving accurate compass bearings (Wikipedia).

• Educational Impact: Despite its inaccuracies, the Mercator projection remains prevalent leading to misconceptions about the relative sizes of countries and continents. 

• Read more: The Economist.

Honoring Forgotten Heroes

• The Memorial: A new monument in Cape Town's Company's Garden now honors 1,772 Black South African servicemen who died in non-combat roles during World War I and have no known graves.

  • Historical Context: Due to racial policies of the time, these men were prohibited from bearing arms and served in labor units, supporting Allied forces in African campaigns.

  • Delayed Recognition: Their contributions were overlooked for over a century, a neglect rooted in the racial policies of British colonialism and apartheid.

• Memorial Details: The memorial features African hardwood poles inscribed with the names of the fallen, symbolizing their reach for recognition.

• Read more: AP News.

African Spirits Revived

• Historical Roots and Modern Revival: West Africa has a rich tradition of spirit production and present-day entrepreneurs like Amma Mensah of Reign Rums and Lola Pedro of Pedro’s Ogogoro are reintroducing premium African spirits to the global market.

• Cultural Significance: Reign Rums features Ashanti royal symbols, while Pedro’s Ogogoro elevates a traditional Nigerian palm spirit once linked to anti-colonial resistance.

• Future Outlook: Currently producing small batches, these ventures aspire to position West African spirits—priced between £48 and £96—alongside renowned beverages like French wine and Mexican tequila (The Economist).

• And while we are on the topic of high-end African spirits, a current favorite from East Africa is…

• Procera Gin (Kenya), Crafted in Nairobi, Procera Gin is distilled using African juniper berries and other indigenous botanicals (Procera Gin). Yum and beautiful! 

• And if you visit Rwanda, try Kari Vodka, produced by Virunga Mountain Spirits and distilled from local potatoes. So many friends have invested alongside the company’s founder Karen Sherman and I can’t wait to try it. 

Africa Trivia Response

Answer: C) $2.2B. Read More: Africa: The Big Deal.

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