Africa has built the world's largest mobile money ecosystem, yet more than 90% of the value still ends up back in cash. That contradiction stood out to me this week. We also look at where Africa's digital infrastructure is actually being built, why the World Bank says transport investment across much of Sub-Saharan Africa can still generate outsized value despite high borrowing costs and how mobile is quietly adding $240B to the continent's economy. Plus, a proposed $17B refinery that could reshape East Africa's fuel supply, Shell's South African fuel exit and an Ethiopian teenager turning rubbish into high fashion for 6.5 million followers.
Enjoy this week's Brief. Sadly, there’s no need this week to do another World Cup graphic.
Graphic of the Week
Africa's Digital Divide
Source: World Bank
A recent World Bank map tracks the continent's data centers, internet exchange points, mobile coverage, terrestrial fiber and submarine cables. The pattern is both interesting and a bit predictable. Major digital infrastructure clusters around coastal corridors and economic hubs, while large inland areas, particularly across the Sahel and Central Africa, remain thinly covered despite significant populations.
Zoom in: Mobile networks are extending connectivity beyond these corridors. But the World Bank says a persistent mismatch remains between where people live and where digital infrastructure is concentrated. Africa's digital infrastructure is expanding, but unevenly.
What We Are Reading
Africa: West Africa’s regional development bank, EBID, announced plans to double its assets to $4.4B over five years, scaling infrastructure and private-sector financing to help close the region’s $36B funding gap (Bloomberg); Kuramo investors shifted $458M in African assets to Sango Capital, highlighting the growing use of continuation funds to provide liquidity as traditional private equity exits remain scarce across Africa (Bloomberg).
Ghana postponed President Ramaphosa’s planned visit amid tensions over anti-migrant protests targeting African nationals in South Africa (Bloomberg).
Kenya: Dangote Industries planned a $17B coastal refinery to boost East Africa’s fuel supply and reduce reliance on imported refined products (Bloomberg).
Mali: Insurgents launched coordinated attacks across the country, challenging the military government and Russian-backed forces (Reuters).
Morocco: Authorities foiled an Islamic State-linked attack plot, arresting 10 suspects accused of planning attacks on public and strategic sites (Reuters).
Nigeria accused South Africa of failing to protect its citizens after two Nigerians were killed during rising anti migrant violence (Reuters); Renaissance Africa Energy discovered significant oil reserves in a former Shell-operated block, highlighting the growing role of local energy companies (Bloomberg).
Senegal: President Faye announced the launch of a new political party, deepening his split with former Prime Minister Ousmane Sonko ahead of the 2027 local elections (Reuters).
Somalia: U.S. withdrawal of UN logistical support threatens the future of the AU peacekeeping mission fighting al-Shabaab, raising concerns over security gaps (Reuters).
South Sudan: Government settled oil dispute with BB Energy by granting three crude cargoes to address a $142M payment dispute (Bloomberg).
Sudan: UN condemned escalating RSF violence in al-Obeid and launched an inquiry into alleged atrocities (Reuters).
Tanzania: Authorities arrested protesters ahead of planned demonstrations demanding electoral reforms and the release of opposition leader Tundu Lissu (AP News).
Uganda: Farmers challenged the $5.6B EACOP oil pipeline in a UK court over environmental risks and potential impacts on communities (Bloomberg).
Zimbabwe: President Mnangagwa signed a constitutional amendment extending his rule by two years beyond his scheduled 2028 term (Bloomberg).
Infrastructure in Africa
Underinvestment Costs More
Source: World Bank
Another chart in the same World Bank report caught my attention. The red dotted line marks the point where the potential benefits of new transportation infrastructure equal the costs of financing and maintaining it.
Most countries sit above it. But Sub-Saharan Africa stands out, with many countries far above the threshold, despite the region's notoriously high borrowing costs.
Why it matters: Africa's cost of capital is a major barrier to infrastructure investment. The World Bank's analysis suggests the potential economic and social value of closing transport gaps can still outweigh those costs, often by a wide margin.
The takeaway: Capital is expensive in Africa. Underinvestment may be even more expensive.
Business and Finance in Africa
Cash Still Wins
Source: Affinity Africa
Our portfolio company, Affinity Africa, teamed up with the Mo Ibrahim Foundation and Yale's International Leadership Center to examine one of Africa's biggest financial contradictions.
Africa has built the world's largest mobile money ecosystem. In 2024, the continent processed more than $1.1T across 1.1B mobile money accounts.
But here's the catch: More than 90% of mobile money value is still withdrawn as cash rather than circulating digitally. As transaction value more than doubled from 2019 to 2024, the cash-out rate barely moved. The report argues Africa has solved the access problem, but not the incentive problem. For many merchants, cash still costs less, settles instantly and works everywhere. Digital often doesn't.
Zoom out: The same broken incentives show up across borders. Sending $200 from Tanzania to neighboring Uganda cost 39.1% in 2023. Sending the same amount from the U.S. to Nigeria costs 2.3%.
The takeaway: Africa built the digital rails. Now it has to give people a reason to stay on them.
Source: Affinity Africa
Innovation in Africa
The $240B Multiplier
Source: GSMA
GSMA’s Mobile Economy Africa 2026 report is out. Mobile technologies and services generated $240B in economic value across Africa in 2025, equal to 7.8% of the continent's GDP.
The interesting part: Nearly two-thirds of that value, $150B, came from productivity gains across the wider economy. The mobile ecosystem itself contributed $70B, with another $20B generated indirectly.
Why it matters: Mobile's biggest economic contribution is not telecom revenue. It is what connectivity allows the rest of Africa's economy to do faster, cheaper and at a greater scale.
The bigger picture: By 2030, mobile's economic contribution is projected to reach $290B as 4G and 5G expand and businesses adopt more AI, IoT and other digital technologies.
Explorations in Africa
Source: Cosmopolitan
You have to check this kid out. Kalu Putik, a self-taught fashion creator from Mekelle, Ethiopia, is turning old shoes, plastic, cardboard, wire, foil and fabric scraps into some of the most wildly creative fashion I have seen online.
No design school. No fancy studio. No big production. Just Kalu, whatever materials he can find and a wooden board he balances on as he models each dramatic look.
And the internet noticed: With less than 30 Instagram posts, Kalu has amassed 6.5 million followers. His videos start with what looks like a pile of rubbish, then somehow end in a full high-fashion moment.
Why it matters: Kalu is part of a bigger shift toward originality over labels and creativity over budget. He is also quite literally turning waste into wearable art. Talent can come from anywhere. Right now, millions are watching Ethiopia. If you are on Instagram, be sure to check Kalu Putik out or read more in Cosmopolitan.
Thanks for reading. Quick heads-up that the Africa Brief will be taking a break on July 24 and 31st. In the meantime, be sure to visit our reports page to see relevant events across the continent. And as always, email us at [email protected].
