So many Africa events in New York this week: Semafor’s Next 3 Billion Summit, Unstoppable Africa and Africa Diaspora Network to mention a few. All the other events had Africa panels, too! What a week!

Read on for this week’s news and be sure to share the Africa Brief!

Africa Trivia

Graphic of the Week 

The Source of Africa’s Power 

• 600 million people in sub-Saharan Africa lack access to electricity, but powering Africa is attracting investors.

• Africa's renewable energy capacity has nearly doubled over the last decade, reaching approximately 54 gigawatts in 2020. To put this into perspective, one gigawatt can power 10 billion light bulbs.

• But Africa's vast renewable energy potential remains largely untapped. In 2021, gas led the continent’s energy production, accounting for nearly 40% of power generation, followed by coal at around 19%. Hydropower contributed about 17% to the total energy mix. 

• With adequate investment, renewable energy could meet 76% of the continent's electricity needs by 2040, highlighting the sector’s significant potential.

TL; DR

• Angola: Biden will visit Angola in October to strengthen U.S. ties with Africa (Bloomberg).

• Congo, Democratic Republic of the: South Kivu province allows mining activities to restart after a crackdown on illegal activities (Reuters).

• Ethiopia: Ethio Telecom targets 74.7% revenue growth with ambitious expansion plans and a focus on digital services for the 2024/25 financial year (Further Africa).

• Liberia: The IMF has approved a $210M support package for Liberia to enhance economic reforms and private-sector growth (Reuters).

• Madagascar: The African Development Bank Group (AFDB) has approved a $67.3M loan, aimed at fostering inclusive economic growth (AFDB).

• Malawi: Afreximbank partners with NBM Plc in a $100M deal to boost trade financing and Malawi’s economic resilience (Further Africa).

• Morocco: The central bank kept interest rates at 2.75% as inflation remains above the 2024 target of 1.3% (Bloomberg).

• Mozambique: President Nyusi confirmed the resumption of TotalEnergies' Rovuma Basin gas project (360 Mozambique).

• Nigeria: Central bank plans to pause interest rate hikes at 26.75% as inflation cooled to 32.2% (Bloomberg); Dangote pushes to end fuel subsidies (Bloomberg) and as Africa's richest man he is opening a family office in Dubai (Bloomberg). 

• Sahel: Mali, Niger and Burkina Faso sign a deal with Russia to enhance national security (BBC).

• South Africa: Eskom seeks a 36% electricity price increase for 2026 to address financial challenges (Bloomberg).

• Zimbabwe: Chinese firms are investing $250M to $300M in a lithium mine in Zimbabwe despite falling prices (Bloomberg). 

Business & Finance in Africa 

Free Trade Requires Visa-Free Travel

• Uganda and Mozambique have lifted visa requirements for their citizens to enhance trade and regional integration. 

• This initiative follows Kenya and Rwanda, which made similar policy changes, joining countries like Benin, The Gambia and Seychelles in promoting visa-free travel within Africa, aligning with the African Union’s vision for a more integrated continent. 

• These efforts are part of the African Continental Free Trade Area (AfCFTA), which aims to create a single market of 1.7 billion people by 2030. 

• The removal of visa restrictions is projected to significantly boost Africa’s regional income, reduce poverty and stimulate economic growth through increased trade and tourism, potentially creating millions of jobs and benefiting women with higher wages.

Africa’s Mobile Gaming Uptick

• Africa’s gaming industry is poised for significant growth, with projections indicating its market value will exceed $1B in 2024. 

• Driven by a youthful demographic, more than 60% of the population is under 25 and a strong preference for mobile gaming, approximately 92% of gamers engage on smartphones, according to recent surveys from GeoPoll and the Pan Africa Gaming Group (PAGG). 

• It’s not all bad. With 200 million gamers primarily using mobile platforms, the industry not only serves as entertainment but also as a vital source of digital skills development and cultural representation. “According to a study by the International Finance Corporation about 230 million jobs across the continent will require digital skills by 2030.”

Is “Mission 300” Mission Impossible?

• The World Bank Group and the African Development Bank launched "Mission 300" earlier this year to connect 300 million individuals to modern energy by 2030 in sub-Saharan Africa, where about 600 million people lack electricity and rely on unsustainable energy sources.

• The effort was at the center of many discussions this week related to the United Nations General Assembly meetings, side events and Climate Week in New York. Watch an interview with AfDB President, Akinwumi Adesina where he says “you cannot really grow a global economy without energy.” Solving Africa’s energy challenge through Mission 300 “is fundamental to Africa’s growth, development and competitiveness…”

Zimbabwe’s Currency Crashing…Again

• For several years, Zimbabwe has faced currency volatility, economic crises and hyperinflation. As a result the government has shifted currency policy six times in 15 years.  

• In April 2024, Zimbabwe replaced the Zimbabwean dollar with the Zimbabwean Gold (ZiG).

• ​​Five months the ZiG has lost about 80% of its value on the black market, trading between 20 and 26 ZiG to $1.

• Retailers argue that the official’s set rate of 14.8 ZiG to $1 overvalued the currency making products more expensive and driving away customers. Without policy intervention, businesses may have to close their doors. 

Factors plaguing the ZiG include:

• Current account and fiscal pressures worsened due to an increase in food imports due to an El Niño-induced drought;

• Lower commodity prices;

• Reduced dollar inflows; 

• A lack of access to international capital markets.

Explorations in Africa

Resurrecting the Once-Extinct Dodo Bird

• This week, the NYT highlighted that bold conservation efforts are reviving interest in the dodo, a bird that symbolizes extinction due to human actions. 

• Native to Mauritius, this flightless wonder vanished in the late 17th century, primarily due to predation by humans and invasive species. 

• In a groundbreaking partnership, Colossal Biosciences and the Mauritian Wildlife Foundation are working to resurrect the dodo using advanced genetic techniques, aiming not only to bring the bird back but also to restore its ecosystem, vital for seed dispersal. 

• As this exciting initiative unfolds, conservationists are strategically evaluating habitats while tackling invasive species that threaten the dodo’s revival.

Learning Corner

Why the Excitement About Africa’s Digital Transformation? 

• Africa’s digital transformation involves integrating digital technologies into all sectors, revolutionizing business operations, government services and personal communications across the continent.

• It has been largely driven by a surge in mobile phone use and connectivity across Africa. With 489 million unique mobile subscribers in sub-Saharan Africa as of 2022, projected to reach 692 million by 2030, the continent boasts the world’s fastest-growing mobile market. Reference: GSMA: The Mobile Economy Sub-Saharan Africa 2023.

• Digital financial services (fintech) have been the leader in the transformation. Mobile money platforms like M-Pesa have drastically improved financial inclusion, with around 856 million registered mobile money accounts in Africa as of 2023. Reference: GSMA: State of the Industry Report on Mobile Money 2024.

• E-commerce is also on the rise. E-commerce giants such as Jumia and Konga are thriving, with Africa’s online market projected to hit $75B by 2025, boosting digital entrepreneurship and consumer access. Reference: DW.

• But there are some challenges on the road to “Africa 3.0”. Despite advancements, limited infrastructure and high internet costs keep internet penetration below 40%. However, the African Union’s Digital Transformation Strategy aims for universal digital access by 2030. Reference: African Union Digital Transformation Strategy (2020-2030).

• So why should you care? Africa’s digital economy is expected to reach $180B by 2025, fueled by rapid mobile adoption and a young, tech-savvy population. This presents significant investment opportunities in sectors like fintech, e-commerce and digital infrastructure. Reference: IFC.

• Technology will transform Africa’s private sector in ways the world has never seen before. The continent is bypassing traditional development stages by embracing cutting-edge technologies—such as mobile payments and renewable energy solutions—allowing startups to scale quickly. Investors can capitalize on supporting innovative businesses that address unique market needs and have the potential for rapid expansion. Reference: World Bank.

And here are the most important numbers to know:

1. 489 million - the unique number of mobile subscribers in sub-Saharan Africa as of 2022.

   • More: Projected to reach 692 million by 2030.

   • Significance: This highlights widespread mobile access and connectivity.

   • Reference: GSMA : The Mobile Economy sub-Saharan Africa 2023

2. 70% of global mobile money transactions happen in Africa. 

   • More: Africa has 856 million registered mobile money accounts as of 2023.

   • Significance: Showcases Africa’s leadership in mobile financial services, boosting financial inclusion and cashless transactions.

   • Reference: GSMA: State of the Industry Report on Mobile Money 2024

3. $180B will be the size of Africa’s digital economy by 2025.

   • More: Africa’s digital economy will contribute up to 5.2% of the continent’s GDP.

   • Significance: Indicates substantial economic opportunities driven by digitalization across various sectors.

   • Reference: International Finance Corporation (IFC)

4. $6.5B is the amount of venture funding Africa’s tech startups attracted in 2022.

   • Significance: Reflects growing investor confidence and the burgeoning innovation ecosystem on the continent.

   • Reference: Partech Africa Tech Venture Capital Report 2022

Africa Trivia Answer 

Answer: 3

Surprising Fact: LINK. It is also interesting how many have been in the transportation and logistics sector.