This week’s brief covers key developments across the continent, from economic trends to exciting new records. The BRICS Summit provided fresh insights into Africa’s growing geopolitical role, while Egypt celebrated being certified malaria-free, marking a significant public health achievement. Currency updates bring mixed fortunes for African nations—South Africa’s rand is projected to rise, but Nigeria’s naira continues to struggle. Finally, Zimbabwe made history in T20 cricket, setting a new world record. Stay tuned for deeper dives into these stories and more.

Africa Trivia

Graphic of the Week 

There’s Something to be Said About Being the Underdog

Hint: No one sees them coming…

Where is Africa getting more innovative?

1. Africa, alongside Latin America, saw a decline in venture capital investment in 2024, returning to pre-pandemic levels, reflecting global financial challenges.

2. Countries like Morocco, Kenya, Senegal and South Africa have shown significant improvement in innovation rankings over the past few years.

3. Rwanda, Madagascar and Uganda are recognized for performing above expectations in innovation compared to their economic development levels.

4. Egypt, South Africa and Morocco are highlighted as key science and technology hubs, contributing with regional research and innovation but lagging in patent filings.

5. Africa is identified as fertile ground for social enterprises addressing issues like energy access, healthcare and education, driven by both market needs and societal challenges.

6. African innovation ecosystems require policy reforms to sustain growth, focusing on enhancing access to finance, infrastructure and international collaboration to attract investment.

Go deeper: Global Innovation Index

And for those of you who like eye-candy:

TL; DR

• Africa: African currencies show a mixed 2025 outlook, with the rand rising and the naira weakening (Bloomberg).

• Egypt: Egypt may review its IMF program as President El-Sisi seeks to balance fiscal discipline with public welfare amid economic pressures (Bloomberg); the WHO certified Egypt as malaria-free (WHO).

• Ethiopia: Ethiopia receives $340.7M from the IMF as part of a $3.4B package to support economic reforms and boost foreign exchange stability (Bloomberg); central bank to keep interest rates high for the rest of the year to counter inflation (Bloomberg).

• Ghana: Parliament suspended amid chaos over majority control dispute, impacting government funding and laws (BBC). 

• Guinea: Alumina prices soar as Guinea export ban disrupts supply, impacting the global aluminum market and sparking concerns of production cuts in China (Bloomberg).

• Ivory Coast: Cocoa prices dropped as more beans are arriving at the ports of the world’s biggest cocoa producer (Bloomberg); the country's credit rating was upgraded to BB, making its bonds more attractive (Bloomberg).

• Kenya: The Kenyan shilling remains the world’s best-performing currency due to strong capital inflows, high real interest rates despite political turmoil. (Bloomberg).

• Mozambique: Ruling-party candidate Daniel Chapo claims victory with 70.67% of the vote amidst allegations of election fraud (Bloomberg).

• Namibia: New wave of offshore oil drilling set to kick off with the arrival of Saipem's Santorini drillship (Bloomberg).

• Niger: Turkey and Niger sign mining pact, highlighting Ankara’s bid for uranium access amid global competition in West Africa (Bloomberg).

• Nigeria: President Bola Tinubu (finally!) reshuffled his cabinet, dismissing five ministers (is that enough?) to improve government efficiency (Reuters); the block of Shell's $2.4B sale alarms investors, undermining President Tinubu's foreign investment efforts (Reuters).

• Somalia: Gov’t has requested the exclusion of Ethiopian troops from a new peacekeeping force fighting al-Qaeda-linked militants, citing violations of its sovereignty (Bloomberg).

• South Africa: Taiwan refuses to move its office from Pretoria despite China's pressure on South Africa to relocate it (Bloomberg); inflation is expected to fall below 4%, which could lead to a potential interest rate cut by the central bank in November (Bloomberg).

• Zambia: Gov’t aims to quadruple copper production by partnering with investors to develop over 40 new mining licenses (Bloomberg).

• Zimbabwe: Set a new world record in men's T20 cricket by scoring 344-4 against The Gambia (BBC Africa).

Business & Finance in Africa

Can You Find the Next Great Consumer Market?

• According to a report by World Data Lab, Nielsen and GfK, Gen Z is set to become the biggest spending generation in sub-Saharan Africa by 2030, outpacing older generations. They will also dominate consumer spending in countries like India and parts of Southeast Asia and Latin America. Meanwhile, Millennials will lead spending in regions such as North Africa and China, while Gen X retains the largest share in the U.S., Europe and Canada. 

• Gen Z's global spending power is projected to reach $12T by 2030.

What Do Gen Z Consumers Want?

• Authenticity: They prioritize genuine connections with brands and influencers over traditional marketing.

• In-Store Shopping: Nearly 50% of their spending occurs in-store, despite beginning their shopping journeys online.

• Health and Wellness Focus: They are health-conscious consumers.

• Technology Influence: Online reviews from fellow shoppers are crucial in their decision-making.

Africa’s Currencies: Place Your Bets for 2025 

• African currency performance will depend heavily on macroeconomic fundamentals and commodity prices, reflecting the diverse economic conditions across the continent.

• South Africa’s rand is expected to gain in 2025, while Nigeria’s naira faces further weakening before showing signs of recovery.

• The Angolan kwanza is predicted to fall 8%, the Ghanaian cedi by 16% and the Nigerian naira by 2.4%. In contrast, the rand is expected to rise 5% to ZAR 16.75 per dollar.

• The Kenyan shilling, Ugandan shilling and Zambian kwacha are expected to trade sideways with little movement, maintaining stability amid regional economic challenges.

Closer Look: Africa’s Best Performing Currency…For Now 

• Despite ongoing political tensions surrounding the impeachment of Deputy President Gachagua,  Kenya's economy exhibits positive trends, marked by a strong currency and rising bond and stock markets. 

• The Kenyan shilling stands out as the best-performing currency globally, rebounding 27% since reaching a record low against the dollar earlier this year. This recovery is largely attributed to the successful issuance of a $1.5B Eurobond, which was used to repay existing debt. 

• Additionally, Kenya's dollar bonds have outperformed many emerging markets, with Eurobond returns surpassing four times the emerging market average. Moderation in inflation led to a high real interest rate of 8.4%, the highest in the region, enhancing the country's attractiveness for investment. 

Health in Africa 

They Did It! Egypt Gets Certified Malaria-Free 

• This week, Egypt has been certified malaria-free by the World Health Organization (WHO), marking the end of a disease that has afflicted the nation since ancient times. 

• WHO Director-General, Dr. Tedros Adhanom Ghebreyesus, praised the nearly century-long efforts of the Egyptian government, making it the third country in the Eastern Mediterranean Region, after the UAE and Morocco, to achieve this status. 

• However, the WHO cautioned that this milestone is just the beginning, urging Egypt to remain vigilant against any potential re-establishment of malaria transmission. 

• As of 2023, only seven African countries had been certified malaria-free. Globally, 44 countries and one territory have reached this achievement, highlighting the ongoing fight against a disease that claims around 600,000 lives annually, mostly in Africa.

Climate in Africa

Electric Motorbikes Are Transforming Africa's Streets

• Electric motorbikes are gaining popularity in African cities like Nairobi, Kampala and Addis Ababa due to their cost efficiency and environmental benefits. With cheaper charging, maintenance and fuel savings, e-bikes are especially useful for intensive daily use, such as deliveries and taxi services. Battery-swapping stations further ease the transition by making it more convenient for drivers.

• The shift to electric vehicles (EVs) has significant potential to reduce carbon emissions and improve air quality in urban areas. For instance, Ethiopia, which banned petrol and diesel vehicle imports, now has over 100,000 EVs, showing how electrification can lead to cleaner cities.

• McKinsey expects the market for electric motorbikes to grow faster in Africa than in any other region until the end of the decade, largely because it is starting from the lowest base.

• While challenges like infrastructure and electricity reliability remain, the growing adoption of EVs in Africa's major cities indicates a promising step toward lowering emissions. Even if the trend is currently urban-focused, it demonstrates that green energy solutions can bring both economic and environmental benefits without imposing high costs on developing countries.

Democracy in Africa

Tough Love from Mo

The 2024 Ibrahim Index of African Governance is hot off the press. Here are five top takeaways:

1. Governance Stalls: Half of Africa's population faces worse governance since 2014.

2. Security & Democracy Decline: The most concerning declines are in security and democratic participation, affecting more than 77% of Africa’s population. 

3. Diverging National Trends: While some countries like Seychelles, Côte d'Ivoire and Angola have seen marked improvements, others, such as Tunisia and Burkina Faso, have experienced major declines.

4. Public Perception Discrepancy: There is a growing gap between governance improvements and how citizens perceive their daily lives, with many feeling left behind despite economic progress. 

But there are some bright spots…

5. Infrastructure & Gender Gains: There’s been big progress in energy, mobile access and women's equality. 

   • Morocco leads Africa in infrastructure development with a score of 85.8, driven by advancements in energy access, mobile communications and internet access.

   • Kenya made the largest improvement in infrastructure, increasing by +17.5 points due to significant progress in energy access,+30.9 and internet access, +30.8.

   • Laws on violence against women improved across the continent, with half of Africa’s countries achieving a maximum score in this area.

   • Public perception of female leadership saw notable progress, particularly in countries like Egypt, where it increased by +14.5 points.

   • Mobile communications: Improved by +19.8 points across the continent, showing substantial progress in making mobile phones and mobile internet more accessible and affordable.

   • Energy access: Increased by +7.2 points, reflecting efforts to expand access to electricity and clean energy, though the overall level remains modest at a score of 43.5.

Empowered Citizens: Mozambique’s Future

• In Mozambique, ruling-party candidate Daniel Chapo claimed victory with 70.67% of the vote, signaling political continuity at a crucial time for projects like TotalEnergies' $20B LNG endeavor. 

• However, opposition leader Venâncio Mondlane has called the results “grand fraud,” sparking youth-led protests demanding accountability and reform. 

• Tensions intensified after the murder of Mondlane’s lawyer and assassination threats, sending Mozambique’s bonds plummeting and blocking routes in and out of the capital. 

• Amid economic challenges, this pivotal moment showcases the resilience of Mozambique’s young, engaged citizens, who strive for transparency and a more inclusive future.

U.S. in Africa 

BRICS* Summit Recap: Power in Numbers

• BRICS, originally comprising Brazil, Russia, India, China and South Africa, is a coalition of emerging economies aiming to promote economic cooperation and reform global governance structures. 

• Now expanded to include the UAE, Iran, Egypt and Ethiopia, BRICS represents 26% of the world economy and 45% of the global population. 

• This week, at the BRICS Summit in Russia, President Vladimir Putin hailed the expanded BRICS group as a key driver of a "multipolar world" that challenges the U.S.-dominated global order. 

• Putin emphasized the growing interest from Global South nations in joining BRICS, while members push to reduce reliance on the dollar. However, some members remain cautious about positioning the bloc as anti-U.S. 

• Meanwhile, some are of the opinion that the U.S. continues to underdeliver in its engagement with Africa, which is increasingly aligning itself with Moscow and Beijing as reported by Bloomberg Opinion.

Sports in Africa 

Zimbabwe's Big Win

• Zimbabwe set a new world record for the highest score in men's T20 international cricket with 344-4 against The Gambia.

• The match took place during the 2026 Men's T20 World Cup Sub-Regional Africa in Nairobi, Kenya from October 17 to October 26.

• Zimbabwe won the match by 290 runs, bowling The Gambia out for only 54 runs.

• This victory guarantees Zimbabwe a spot in the final round of Africa qualifying for the 2026 World Cup.

Africa Trivia Response

Correct Answer: Rwanda.
Fact: Rwanda, alongside Madagascar and Uganda, has been identified as an innovation overperformer relative to its development level. Read more.

P.S. We hope you enjoyed the Brief! Reach out if you have ideas or feedback ([email protected]). See you next week.