Ever wonder how internet data prices stack up around the world? Don’t miss FT’s analysis. Also, there’s a new museum for mummies in Egypt; another Kenyan runner crushed it; SSA’s growth projection has been reduced but there are some solid bright spots! And I am loving the design of the world’s largest football stadium! Lots to be fascinated with this week. 

Africa Trivia

Graphic of the Week 

Bets on Where the Next AI Tech Hubs Will Be?

Great FT article this week on the power of AI in Africa. 

• “Proponents argue that AI can help poorer societies “leapfrog” whole phases of development in the same way that many countries, lacking landline infrastructure, enthusiastically adopted mobile phones in the early 2000s…”

• “...To optimists, AI presents a once-in-a-generation opportunity to go one step further. Machine learning, they argue, can turbocharge the leapfrogging phenomenon by putting revolutionary tools into the hands of individuals, businesses and states.”

Google and Microsoft are investing in local AI research and infrastructure on the continent, including sub-sea cables to improve connectivity, sparking hope that Africa can harness AI to drive growth and development across the continent.

• However, challenges remain, including limited infrastructure, language barriers and a lack of financial capital. 

Oh and this is super interesting too:

TL; DR

• Africa: 18 African oil nations aim to raise $5B for an "energy bank" by 2025, frustrated by Western funding refusals over environmental concerns (FT).

• Cameroon: Where is President Paul Biya? Gov’t bans public discussion of the president’s health (The East African) citing national security (Bloomberg).

• Egypt: Saudi Crown Prince and Egyptian President signed agreements to enhance mutual investments and create a coordination council (Reuters).

• Ethiopia: Gov’t is selling a 10% stake in Ethio Telecom through its mobile money platform (Bloomberg) and launched its first IPO, selling 100 million shares with plans to raise $255M (Bloomberg). 

• Kenya: Senate voted to impeach Deputy President Gachagua (Bloomberg).

• Mauritius: Gov’t expects to receive billions of rupees from the U.K. as compensation for regaining sovereignty over the Chagos islands (Bloomberg).

• Morocco: Gov’t plans to double green energy production in Western Sahara by 2027 to meet growing demand ahead of the 2030 FIFA World Cup (Bloomberg).

• Mozambique: TotalEnergies plans to approve an LNG terminal in Mozambique to help South Africa avoid a potential gas shortage by 2027 (Bloomberg).

• Namibia: Central Bank cuts main interest rate by 25 basis points to 7.25% (Reuters).

• Nigeria: The Naira has achieved its most competitive level in at least 20 years following a 70% devaluation (Bloomberg), even as inflation rose for the first time in three months (Bloomberg).

• Senegal: On track to be removed from the Financial Action Task Force's 'gray list,' which could boost foreign investment (Bloomberg); new administration unveiled a $21B plan to boost growth, cut debt and increase resource revenues. (Bloomberg).

• South Africa: Jumia Technologies to end South Africa and Tunisia operations by the end of the year (Reuters).

• Uganda: Gov’t signed a $600M deal with Turkey’s Yapi Merkezi Holdings AS to build a rail line from Tororo to a new port on Lake Victoria (Bloomberg).

Business & Finance in Africa 

Sub-Saharan Africa: A Look Ahead to 2025

• The World Bank revised its economic growth forecast for sub-Saharan Africa to 3% this year, slightly down from 3.4%, primarily due to slow growth in major economies and the civil war in Sudan. 

• However, small to mid-sized economies like Rwanda and Côte d’Ivoire continue to thrive, with the region projected to grow at 3.5% excluding Sudan. 

• While Sudan faces a 15.1% contraction, rising private consumption and investment in countries where inflation is stable are driving broader growth. 

• It looks like some African governments are truly focusing on improving fiscal management and investing in human capital. 

Fingers crossed for more sustainable and inclusive economic growth and development!

Peace & Security in Africa 

Ethiopia Wary as Neighbors Forge Alliance 

• Leaders of Egypt, Somalia and Eritrea met in Asmara, Eritrea, amid concerns of forming an alliance against Ethiopia due to their strained relations with Addis Ababa. The summit emphasized “respect for the sovereignty and territorial integrity of the countries in the region,” which some interpret as a reference to Ethiopia’s ambitions for access to a seaport.

• Somalia has moved closer to Egypt and Eritrea following a diplomatic disagreement with Ethiopia over its preliminary deal with Somaliland, a territory Somalia considers its own. Ethiopia’s agreement to lease a section of Somaliland’s coastline has escalated tensions between the two nations.

• Meanwhile, Ethiopia is apprehensive about the growing ties among its neighbors, especially given existing disputes with Egypt over the Nile dam and deteriorating relations with Eritrea post-Tigray conflict. 

• Somalia denies any intentions against Ethiopia, stating the meeting focused on cooperation and strengthening Somali state institutions to combat terrorism. Despite reassurances, analysts believe the alliance may increase pressure on Ethiopia, though Somali officials maintain their commitment to peace and regional stability.

• Go deeper here:

  • Foreign Policy

  • Reuters

  • BBC

Tech & Society in Africa

E-commerce Giant Jumia Scales Back. Who Will Step In? 

• Jumia Technologies, still the powerhouse of African e-commerce, is making changes.

• This week, Jumia announced it will close its South African fashion platform, Zando and its operations in Tunisia by the end of the year. Its plan is to focus what it believes to be more promising markets like Nigeria, Kenya and Morocco. 

• CEO Francis Dufay stated that these closures are part of cost-cutting measures aimed at achieving profitability. South Africa and Tunisia contributed only 2.7% of total orders and 3% of gross merchandise value, undermining the entire company’s profitability. 

• Notably, Jumia is Africa's leading online marketplace, with Nigeria accounting for around 31% of monthly visits as of 2023, followed by Morocco at 17% and Egypt at 14%. 

E-commerce is an interesting sector to watch and Jumia was one of the first African startups to go public and the first to list on the NYSE.

Climate in Africa

Africa’s Drought Crisis Continues

• The United Nations World Food Programme (WFP) reported that more than 27 million lives have been affected by the worst drought in a century in Southern Africa, leaving 21 million children malnourished. 

• Lesotho, Malawi, Namibia, Zambia and Zimbabwe have declared a state of national disaster due to the destruction of crops and livestock. Angola and Mozambique are also severely affected. 

• In a briefing on October 15, the WFP warned that the crisis is expected to deepen until the next harvests in March or April 2025. Tens of millions of people in the region rely on small-scale agriculture for their food and livelihoods.

China in Africa

BYD Leads Africa’s EV Surge, Leaving German Brands Behind 

• German automakers are grappling with a significant downturn in their largest market, China. They are finding it increasingly challenging to adapt to the swift transition toward electric vehicles (EVs).

• Meanwhile, Chinese EV manufacturers are seizing the opportunity to expand their footprint in Africa.

• Interestingly, in Q4 2023, BYD overtook Tesla as the world’s top-selling EV manufacturer delivering around 526,000 fully electric vehicles compared to Tesla’s 484,000. BYD's aggressive expansion across the continent includes entering the Rwandan market, where it has partnered with CFAO Mobility and collaborated with BasiGo to introduce electric buses, capitalizing on significant government incentives like reduced electricity tariffs and tax exemptions. 

• Another prime example is the Choice International Group (CIG) in Nigeria, which is collaborating with the Lagos state government to implement the E-Mobility project, aiming to introduce 5,000 electric vehicles and enhance local infrastructure. This initiative builds on the success of Lagride, a ride-hailing service launched in 2022, promoting sustainable transportation in Lagos. 

• Additionally, in September 2024, BYD, a leading Chinese EV maker, launched in Kenya with three models including the BYD Atto 3, BYD Seal and BYD Dolphin through a partnership with LOXEA, further solidifying its position in the African market. 

• Despite the existing challenges, including competition from established players like Volkswagen, which struggled to gain traction in Rwanda, BYD's vertical integration strategy, designing its chips and mining materials in-house, allows it to offer more competitive pricing.

• As Africa’s transport sector remains dominated by fuel-powered vehicles, the potential for growth in the EV market is significant, even though gradual, with BYD leading the charge toward a greener future on the continent. Additionally, fuel prices are comparatively higher, especially in many sub-Saharan African countries.

Sports in Africa 

Africa is Born to Run

• On October 13, 2024, Kenya's Ruth Chepngetich won the Chicago Marathon, breaking the world record by nearly two minutes. 

• She is the first woman to run a marathon in under two hours and 10 minutes, surpassing Ethiopian Tigst Assefa's previous record. 

• This is Chepngetich's third victory in Chicago, following her 2022 victory over Brigid Kosgei.

• Interested to learn why Kenyan athletes ace long-distance running? Read this interesting article by World Athletics - What it takes to become a Kenyan distance champion.

First South Africa, Now Morocco

• Did you know Morocco will be the second African country to host the FIFA World Cup, following South Africa in 2010? 

• Morocco, Portugal and Spain will host the FIFA World Cup 2030, as confirmed by the FIFA Council.  The centenary celebration and three games are to take place in Uruguay, Argentina and Paraguay.

• Spanning three continents—Africa, Europe and South America—the event will unite six countries, with 48 teams competing for the coveted trophy.

• The tent-like design was unveiled in August 2024 for the Hassan II Stadium just east of Casablanca. Once completed in 2028, it will be the largest football stadium in the world. 

Explorations in Africa

Grand Egyptian Museum Opens Galleries After Decades

• On October 15, 2024, Egypt unveiled new exhibition galleries at the Grand Egyptian Museum (GEM) near the Giza pyramids. This long-awaited opening comes after years of delays.

• Construction began over 20 years ago, originally slated for 2012. Prime Minister Mostafa Madbouly announced this as a "trial operation" ahead of a formal inauguration, the official opening date is not yet announced.

• The GEM will eventually showcase famous artifacts, including King Tutankhamun's treasures, though they aren't on display yet. Until now, these artifacts have been housed in Cairo’s older Egyptian Museum, which hasn’t seen major updates since 1902.

This massive project cost more than $1B. After a decade of construction delays, including setbacks from the COVID-19 pandemic, the GEM is set to display more than 100,000 artifacts.

Curated Content from Africa

Investment Fund Launched to Back African Creatives

• On September 26, 2024, Next Narrative Africa lit up the Apollo Theater alongside the UN General Assembly, with Adekunle Gold and Patoranking headlining the event. 

• During the event, they announced the launch of the Next Narrative Africa Fund, a $40M initiative to empower African creatives to tell stories that present Africa and people of African descent in a better light, aiming to change how the continent is viewed globally.

• Watch what went down!

(Patoranking and Adekunle are both renowned musicians based in Nigeria).

Africa Trivia Response

Answer: Morocco. Read more.

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