This week, we dive into the continent's fiery geology, explore what Africa is selling the world and track a digital revolution that's leaving cash in the dust. From Ethiopia’s tech leap to Nigeria’s fintech boom and a laser war between Alphabet and Starlink—Africa’s got range. Let’s get into it.

Africa Trivia 

Graphic of the Week 

What Africa Sells the World

• Africa’s exports reached $700B in 2023, with fuels, minerals and metals making up 68% (~$480B) of that total—highlighting a continued dependence on commodities.

• Fuels and products alone made up $247B of exports, maintaining dominance despite the global push for energy transition.

• Precious metals and stones grew steadily, climbing to $127B in 2023—up nearly 650% since 2001.

• Manufactured goods, agriculture and food remain small slices of the export pie, a signal that Africa’s ambitions for industrialization and diversification still have a long road ahead.

• Export values dipped during the 2008 Global Financial Crisis and again during COVID-19 in 2020, but have rebounded strongly—suggesting resilience and rising global demand for African resources.

What We Are Reading

• Angola raised diesel prices by 50% amid IMF pressure to cut subsidies, sparking concerns over rising costs and potential protests (Bloomberg).

• Egypt’s economy grew 4.3% in late 2024, its fastest pace in more than two years, driven by foreign aid, rising private investment and a focus on industry and exports (Bloomberg).

• Ethiopia kept its 15% interest rate to control inflation and support economic reforms (Bloomberg); Secured a debt restructuring deal with official creditors, reducing payments by $2.5B through 2028 (Bloomberg); Granted its first investment banking licenses to two local firms as part of its economic liberalization, while also issuing brokerage and advisory permits to support its newly launched stock exchange (Bloomberg).

• Ivory Coast is issuing new dollar bonds to refinance existing debt, repay loans early and support its budget ahead of the upcoming presidential election (Bloomberg).

• Kenya failed to meet IMF targets, losing $850M in funding, which may delay $800M from the World Bank and $1.5B from the UAE (Bloomberg).

• Namibia's first female president, Netumbo Nandi-Ndaitwah, was inaugurated on the country's 35th Independence Day on March 22 (AP News); Namibia announced plans to raise funds locally to repay its $750M Eurobond maturing on October 29, 2025 (Bloomberg).

• Nigeria's cash transactions dropped 59% in a decade as fintech partnerships and digital payments surged, positioning the country as Africa’s digital finance leader (Tech Cabal); Tinubu's state of emergency in Rivers State raises fears of unconstitutional overreach and renewed tensions (Bloomberg); Nigeria is planning to create a $654M fund to provide affordable home loans, aiming to reduce its deficit of 28 million houses and boost construction (Bloomberg).

• Mozambique’s opposition leader Venâncio Mondlane and President Daniel Chapo agreed to end post-election violence, marking a key step toward restoring stability and peace after months of protests and economic unrest (Bloomberg).

• Senegal's dollar bonds dropped after the IMF delayed talks on a new loan program, following an audit that revealed the previous government understated debt and budget deficits (Bloomberg).

• South Africa’s economy is set to grow 2.1% in 2025, boosted by investment and lower inflation, though U.S. tensions and domestic political uncertainty pose risks (Bloomberg); South Africa and the World Bank are launching a $3B plan to improve infrastructure and essential services in eight major cities by providing grants based on performance targets (Bloomberg); Cassava Technologies, in collaboration with NVIDIA, will launch Africa’s first AI factory by June 2025, with planned expansions in Egypt, Kenya, Morocco and Nigeria (CIO Africa).

• Sudan’s army recaptured the presidential palace in Khartoum from the Rapid Support Forces, marking a major victory in a civil war that has caused a severe humanitarian crisis (The Guardian).

• Tunisia’s President Kais Saied fired his third prime minister since 2022, appointing Sarra Zaafrani Zenzri amid ongoing economic struggles, reliance on central bank funding and recent credit rating improvements (Bloomberg).

• Uganda's crude export pipeline secured its first $1B loan from lenders (Bloomberg).

• Zambia's economy grew much faster than expected, with GDP expanding by 4% in 2024, far exceeding the IMF’s 1.2% forecast (Bloomberg).

• Zimbabwe's sports minister, Kirsty Coventry, became the first woman and African to lead the International Olympic Committee, making history at 41 (The Conversation).

Innovation in Africa

Laser Internet War

Alphabet vs. Starlink
Alphabet has spun out Taara Lightbridge, a laser-powered internet startup from its “moonshot factory” called X, aiming to connect hard-to-reach places and compete with Elon Musk’s Starlink.

Why it matters:

• Aims to reach three billion people without reliable internet, including 860 million in Africa.

• Uses laser beams (20 Gbps over 20km) to extend fiber networks without digging trenches.

• Unlike Starlink’s 7,000 satellites, Taara’s terminals can be mounted on rooftops, trees or poles in hours, not launched into orbit.

Tech edge:

• Developed from Alphabet’s failed Loon balloon project, it uses advanced sensors and AI-driven mirrors to keep narrow light beams aligned, even through weather.

• Next-gen plan: Tiny silicon photonic chips that shrink devices and replace some WiFi networks entirely.

Zoom in on Africa: Live in 12 countries, Taara has connected Brazzaville and Kinshasa across the Congo River, where fiber was too expensive to lay underwater. Expansion is underway in Kenya, Nigeria, Zimbabwe and Tanzania, with partners like Liquid Telecom.

Business model:

• Works with telcos like Bharti Airtel and T-Mobile, unlike Starlink’s direct-to-consumer approach.

• Backed by Series X Capital; Alphabet retains a stake but lets Taara scale independently.

The big picture: Starlink dominates remote areas and transport; Taara aims to dominate dense cities and rural fiber gaps—delivering data via light, not rockets. Starlink looks to space. Taara beams ahead on Earth.

Read More: FT and Techcabal

Business & Finance in Africa 

As Wall Street Wobbles, Can Africa Rally?

The recent Bloomberg article, “Bets on US Weakness Are Fueling a Rally Across Emerging Markets,” 

Emerging Market Rally Gains Steam
Investors are piling into emerging markets as fears of U.S. slowdown and Trump-era tariffs trigger a shift away from American assets. Africa is back on the radar.

Why it matters for Africa:

• Weaker dollar = stronger African currencies.

• TCW and T. Rowe Price are buying South African bonds, citing liquidity and market access.

• Local currencies like the rand, shilling and naira may benefit from broader emerging market inflows.

Zoom out:

• Emerging market assets are seen as undervalued after years of underperformance vs. the USD.

• Investors eye Africa’s debt and currency markets as potential winners if the “end of U.S. exceptionalism” trend holds.

The trend:

• MSCI EM Index is on track for its best Q1 since 2019.

• Africa is positioned to attract new capital if investors deepen EM allocations.

The risk: U.S. resilience or policy reversals could reverse flows. Some investors are hedging with higher cash positions. For now, Africa stands to gain—if the emerging market momentum holds. Read more: Bloomberg.

A Map of Africa’s Real Estate Market

The African real estate market is presenting a dynamic landscape shaped by economic expansion, urbanization and investment trends across different regions, with its value projected to hit a staggering $17.64T by 2025. 

East Africa is leading the charge with skyrocketing housing prices, while South Africa’s luxury market is attracting international investors. Ghana and Nigeria are emerging as real estate hotspots, despite economic challenges (Business Insider Africa).

Key Highlights:

• Southern Africa takes the majority share of the existing real estate volume, about $21.5B (Estate Intel).

• Kenya’s market to surge past $944B by 2029 (CBNC).

• Zimbabwe’s luxury real estate is booming, with million-dollar homes in high demand (Bloomberg).

• Africa’s rental market offers 7% to 10% yields, beating global averages (Property Hotspots).

• Sustainable real estate is taking off, attracting environmental, social and governance (ESG) conscious investors (Grit).

What’s Next? With urbanization, a growing middle class and massive infrastructure investments, Africa’s real estate sector is set to dominate the global stage. Investors, take note—this could be your golden ticket to high returns.

Interested to find out more? Read Estate Intel’s 2024 report.

Tech & Society in Africa

Cash is Out…Digital is In 

• Cash Usage Plummets: Between 2014 and 2024, Nigeria experienced a 59% decline in cash transactions, the most significant drop among seven major economies. 

• Digital Wallets Surge: By 2024, digital wallets accounted for more than ⅓ of global consumer spending, with projections exceeding $28T by 2030.

• E-commerce Expansion: Nigeria’s e-commerce market is projected to double from $13B in 2024 to $26B by 2030, reflecting a compound annual growth rate (CAGR) of 12%. 

• Central Bank Digital Currency (CBDC) Adoption: Nigeria, along with The Bahamas and Jamaica, has fully launched a CBDC, positioning itself ahead of countries like China, Brazil and India, who are still in the testing phase.

• Financial Inclusion Progress: The percentage of banked Nigerians increased from 30% in 2011 to 45% in 2021, indicating significant strides toward financial inclusion.  

Read more: The Global Payments Report in 2025

Explorations in Africa

Within the Egyptian Sahara Desert

Ever wondered where the legendary Alexander the Great sought his destiny? 

It wasn't on the battlefield. It was deep in Egypt’s Sahara desert, at the mysterious Temple of Amun in Siwa, where Alexander sought divine answers from the oracle. But what really happened during his visit? Was he truly hailed as a god or was he simply chasing a mirage? 

Fast forward to today, the desert still beckons with its surreal landscapes and hidden secrets. From ancient fossils of whales to desert monks and even a bohemian escape by famed photographer Lee Miller, this journey through the desert is full of untold stories, eerie spirits and ancient wonders waiting to be rediscovered. 

Intrigued? Read more on FT. The desert holds answers, but not always the ones you expect!

Africa Trivia Response

Answer: A. Ethiopia has more than 60 volcanoes, around 50 which are considered active.

Source: Prevention Web and Smithsonian Global Volcanism Program.

See you next week!

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