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issue 588 | 06 Apr 2025
A new International Energy Agency (IEA) report highlights recent progress and emerging risks across the energy innovation landscape worldwide, with investment trends uneven across different regions and sectors. The range of new energy technologies under development globally is broader and appears more promising than ever before, yet the global energy innovation landscape is at a pivotal moment amid signs of slowing momentum in financing and shifting priorities, according to the new IEA report released recently. The report – The State of Energy Innovation – provides a first comprehensive global review of energy technology innovation trends drawing upon a new dataset covering more than 150 innovation highlights and a survey of nearly 300 practitioners from 34 countries. The findings reveal both the central role of innovation in advancing national energy and industrial strategies, and key opportunities to maintain the pace of progress.
Source: IEA
The African Export-Import Bank (Afreximbank) and Zep-Re (PTA Reinsurance Company) have launched the Trans-Africa Bond Alliance (TABA), a transformative initiative, designed to bridge the insurance capacity gap and empower African contractors to secure more construction and procurement projects while boosting cross-border trade and enhancing the movement of goods and investment across Africa. By providing robust transit guarantee mechanisms, the joint venture between Afreximbank and Zep-Re is expected to reduce trade barriers, lower costs, and improve efficiency in the movement of goods across Africa. Moreover, TABA will promote seamless cross-border trade and the growth of trade insurance business within the continent, all within the transformative framework of the African Continental Free Trade Area Agreement, which aims to create a single market for goods and services across 54 countries. By facilitating seamless transit trade, TABA will strengthen the trade insurance sector, making it easier for businesses to operate with confidence while minimising financial risks.
Source: Afreximbank
Government officials, migration experts, diaspora representatives, private sector actors, civil society, and youth leaders gathered in Mombasa from 26 to 27 March 2025 to press for concrete progress on ratifying the African Union’s (AU) Free Movement of Persons Protocol. The two-day meeting, jointly convened by the United Nations Economic Commission for Africa (ECA) and the AU Commission (AUC), brought together stakeholders to review and validate a report titled Enhancing Free Movement of Persons and Pathways for Labour Mobility and Skills Portability in Ghana, Kenya, and Zambia. The project forms part of a wider effort to reshape the narrative around migration in Africa and remove existing mobility barriers, with funding support from the Government of Italy. “This report stems from a joint ECA-AUC effort launched in 2023 to challenge the dominant crisis-driven narrative around African migration,” said Francis Ikome, Chief of the Regional Integration Section at ECA. “Globally, migration is often viewed as a problem. But within Africa, it is a driver of opportunity.”
Source: ECA
Delegates at the Global Artificial Intelligence (AI) Summit on Africa have emphasised the urgent need for strategic investments to accelerate AI adoption and AI-driven economic growth. They made these remarks at the opening of the inaugural Global AI Summit on Africa in Kigali, Rwanda. "Together, we can ensure Africa not only participates in the AI revolution but helps lead it, creating solutions that respond to African priorities while establishing models the world can learn from. AI has tremendous potential for developing countries to leapfrog barriers and unlock new paths for development," said Doreen Bogdan-Martin, secretary-general of the International Telecommunication Union. However, to fully realise these benefits, she emphasised that AI must be handled in a trustworthy manner, guided by clear values, inclusive governance, and human-centred design. "For Africans to benefit equally from the AI revolution, we need to close connectivity gaps across the continent, invest in digital infrastructure, and develop the capacity to close the skills gap," Bogdan-Martin added.
Source: Xinhua
The United States (US) government's imposition of steep tariffs on African nations signals the end of the African Growth and Opportunity Act (AGOA) trade deal, an initiative meant to help African economies develop through preferential access to US markets, trade experts have said. Several African countries were hit by some of the highest tariffs announced by the White House, including levies of up to 50% on goods from Lesotho, 47% for Madagascar, 40% for Mauritius, 38% for Botswana and 31% for South Africa, the continent's biggest exporter to the US. AGOA, which grants qualifying African nations duty-free access to the US market, is due to expire in September. The raft of tariffs suggests a renewal of the trade accord - a cornerstone of US policy towards Africa since the 1990s - is now unlikely.
Source: Reuters
The United Nations Economic Commission for Africa (ECA) Sub-Regional Office for Southern Africa organised a study tour on Special Economic Zones (SEZs) to foster automotive value chains in Southern Africa. The study tour, which aimed at exploring incentives and requirements that support development of successful SEZs, was attended by policymakers and private sector representatives from Namibia and Lesotho. The study tour was facilitated by the Gauteng Provincial Government, South Africa, in close collaboration with the Tshwane Automotive Special Economic Zone and took place from 25 to 27 March 2025. During the consultations, Ms Olayinka Bandele, Chief of the Inclusive Industrialisation section at the ECA Sub-regional Office for Southern Africa (SRO-SA) highlighted the crucial role that ECA is playing in supporting the region develop their industrial sectors, by using the African Continental Free Trade Area (AfCFTA) as an anchor. She stated that ECA works with the AfCFTA Secretariat, the African Union Commission and supporting financial institutional agencies such as Afreximbank and the African Development Bank in delivering results to the automotive industry.
Source: ECA
An International Monetary Fund (IMF) staff team led by Mr Albert Touna Mama visited Bangui between 19 and 28 March 2025 to hold discussions with the Central African Republic (CAR) authorities as part of the combined third and fourth reviews of the programme supported by the Extended Credit Facility. Discussions will continue, virtually, over the coming weeks. Mr Touna Mama made the following statement, in part, at the end of the discussions: "Despite notable improvements in several areas, such as security, CAR continues to suffer from persistent strains on public finances. The strains stem from CAR’s structurally low domestic revenues, which left the country exposed following the suspension of budget support programmes by development partners in 2021. Although some development partners have resumed their budget support since 2023, the overall envelope remains well below the levels required to stabilise public finances (only 2% of GDP vs 5% pre-crisis). Moreover, domestic revenues have grown in recent years but failed to cover the residual financing needs.”
Source: IMF
The Board of Directors of the African Development Bank (AfDB) has approved Eswatini's Country Strategy Paper (CSP) 2025-2030. The target is to accelerate the country’s structural transformation and build a strong foundation for a more inclusive, diverse, resilient, and competitive economy. The new strategy, which followed extensive consultations with government authorities, civil society, the private sector, and development partners, represents a significant shift in focus for the AfDB Group’s support. It strategically aligns with Eswatini's National Development Plan (2023-2028) and the AfDB's High-5 operational priorities. “As a nation, we are very pleased to learn that the priority areas for the Country Strategy Paper build on past [AfDB] support. Indeed, this strategy will provide us with the necessary continuity and long-term sustainability for our development agenda,” said Neal Rijkenberg, Eswatini’s Minister of Finance. The strategy focuses on two priority areas: investing in climate-resilient infrastructure to reduce business costs, focusing on transport, energy, and water/sanitation sectors; and strengthening competitiveness to promote private sector development.
Source: AfDB
The National Bank of Ethiopia (NBE) has unveiled a sweeping new directive titled Requirements for Licensing and Renewal of Banking Business and Representative Office Directive No. SBB/XX/2025, marking a historic shift in the country’s financial landscape. The directive, which replaces the 2013 regulations, lays the groundwork for opening Ethiopia’s banking sector to foreign banks under tightly controlled and highly regulated conditions. “This is not just about opening the doors to foreign banks,” said a senior official from the NBE. “It is about opening the right doors, with the right locks, and only for those who come with the right credentials.” The directive categorises foreign participation into three entry channels: Foreign Bank Subsidiaries – locally incorporated entities under full Ethiopian laws; Foreign Bank Branches – extensions of international banks without separate legal identity; and Representative Offices – non-transactional liaison offices limited to market research and promotion.
Source: Addis Insight
Lesotho, with support from the African Development Bank (AfDB), is leveraging its abundant water and renewable energy resources to chart an ambitious path that will accelerate its economic transformation and have a huge impact on South Africa and Botswana. His Majesty King Letsie III and the President of the AfDB, Dr Akinwumi Adesina, met in Lesotho’s capital, Maseru, to discuss a transformative partnership designed to accelerate economic growth in the country. Their discussions focused on infrastructure and human capacity development, health, agriculture, tourism, manufacturing, and private sector investments to unleash Lesotho’s potential as an economic giant. “We will hasten to ensure that the right policies and incentives are in place to attract participation from the private sector, particularly in sectors such as health, agriculture, and manufacturing,” King Letsie III said. The AfDB Group has earmarked USD331-million for investment in Lesotho from 2025 to 2030, focusing on quality infrastructure, capacity building, energy development, regional integration, and institutional strengthening. The AfDB’s approach aligns with the upcoming Country Strategy Paper, which has at its core the revitalisation of private sector-driven job creation to promote inclusive economic growth.
Source: AfDB
Malawi’s Ministry of Trade and Industry (MoTI), supported by the United Nations Economic Commission for Africa (ECA) Sub-Regional Office for Southern Africa (SRO-SA), organised a meeting to review and validate the draft regulations for Special Economic Zones (SEZs) in the country on 1 April 2025 in Lilongwe. The validation meeting was attended by representatives from MoTI, Malawi Investment and Trade Centre, Reserve Bank of Malawi, SEZ Board, the private sector, development partners, government regulatory agencies, the United Nations System in Malawi, academia and ECA SRO-SA. The meeting was officially opened by Ms Christina Zakeyo, Secretary for Trade and Industry who noted that for the Government of Malawi, the establishment of SEZs is a key strategy towards supporting economic growth, diversification and industrialisation. She underscored that SEZs have been proven to be effective in attracting foreign investment, promoting exports, and creating jobs in many countries and Malawi seeks to leverage these zones. She emphasised that, “developing regulations for [SEZs] is crucial to attract investment and promote economic growth by outlining specific investment incentives offered to businesses operating within the zones, such as tax exemptions, subsidies, and streamlined regulations”. She underscored the need to develop an implementation plan and a monitoring and evaluation framework to accompany the regulations once they have been adopted.
Source: ECA
The World Bank Group has approved the Mauritania Development of Energy Resources and Mineral Sector Support Project – known as the DREAM Project – to boost green hydrogen development, expand energy storage, and support critical reforms in the mining sector. “The Mauritania DREAM Project is a transformative step toward a more resilient future that entails stronger economic growth, more jobs, and long-term energy security,” said Ibou Diouf, World Bank Country Manager for Mauritania. The project will finance Mauritania’s first large-scale battery energy storage facility, enabling the country to harness its abundant solar and wind resources for more reliable electricity. This investment is critical to the success of Mauritania’s Mission 300 Energy Compact, which aims to achieve universal access to electricity by 2030. DREAM is key to helping Mauritania estimate and promote its critical mineral potential through geological surveys. The project will also implement the recently approved Green Hydrogen Law, one of the first in Africa. The project will help establish a regulatory agency, develop implementing regulations, promote environmental and social standards, and attract private investments.
Source: World Bank
The International Finance Corporation’s (IFC) commitment to fostering private sector growth in Mauritius was at the forefront of discussions during a courtesy call the IFC Regional Director for Southern Africa, Ms Cláudia Conceição, had on the Prime Minister, Dr Navinchandra Ramgoolam, at the New Treasury Building in Port Louis. She was accompanied by the World Bank Resident Representative, Mr Sjamsu Rahardja. In a statement Ms Conceição described the meeting with the Prime Minister as very positive and highlighted the IFC’s role as the private sector arm of the World Bank. She emphasised the need to create a more enabling environment for private sector participation and to position Mauritius as a channel for investment on the African continent while mobilising private sector investment locally. Moreover, Ms Conceição said discussions revolved around sectors where the IFC could make an impact, including improving transport and connectivity to and from Mauritius, supporting the transition from coal to renewable energy, and enhancing the regulatory environment to maintain the country’s investment rate.
Source: Government of Mauritius
Namibia has announced plans to revive the national carrier, Air Namibia, through a public-private partnership model, with operations expected to resume by late 2026. The Namibian Presidency recently confirmed its position in a statement on its social media page, reaffirming President Netumbo Nandi-Ndaitwah's commitment to relaunching the airline under a sustainable business framework. Air Namibia ceased operations in 2021 after years of financial struggles, requiring repeated government bailouts. "President Nandi-Ndaitwah has committed to reviving the national airline through well-intentioned strategic measures aimed at avoiding past mistakes. The government intends to pursue this initiative using a sustainable business model with a public-private partnership approach to provide a sound business case," the Presidency said. According to the Presidency, a market study will be completed by June 2025, an expression of interest for private partners will be finalised by August this year, and negotiations are expected to conclude by December 2025. "The launch and official operations of the new airline are anticipated between June and December 2026," the Presidency added. The implementation plan indicates that a NAD3-billion (about USD163-million) investment is required in the next five years to support Air Namibia.
Source: Xinhua
Nigeria’s new capital market laws now officially classify cryptocurrencies and other virtual assets as securities for the first time, in what would lead to greater transparency and increased investments. President Bola Tinubu recently assented to the Investments and Securities Act 2024, which repeals the Investments and Securities Act No. 29 of 2007. The Act explicitly recognises virtual/digital assets and investment contracts as securities and brings Virtual Asset Service Providers, Digital Asset Operators and Digital Asset Exchanges under the Securities and Exchange Commission’s (SEC) regulatory purview. This means businesses dealing in digital assets must register with the SEC and comply with its guidelines, a crucial step in curbing fraudulent activities in the digital space while fostering trust and innovation in blockchain technologies. Emomotimi Agama, Director-General, SEC, who lauded the bold move as a transformative step for the capital market said the new law will boost investments in digital assets. Nigeria initially responded with panic to the rise of cryptocurrencies, which started gaining traction around 2015 following a crash in oil prices that led to a depreciation of the naira.
Source: Business Day
Rwanda's real GDP grew by 8.9% in 2024, surpassing the previous year's growth rate of 8.2%. The latest edition of the Rwanda Economic Update, titled Modernizing Agriculture to Accelerate Structural Transformation in Rwanda, launched by the World Bank, highlights that Rwanda has exhibited strong resilience amidst global uncertainties, driven by robust private consumption, significant investment and strong performances in services, industry, and a recovering agriculture sector. This led to significant improvements in the labour market, with the creation of over half a million new jobs on a year-on-year basis. Employment growth in Rwanda reflects strong job creation and a recovery of structural transformation, as the services sector regained its position as the largest employer in 2024, a status it last held in 2019. Despite ongoing challenges, agriculture remains the cornerstone of Rwanda’s economy, employing 40% of the workforce and contributing 27% to GDP. “Over the last decade, agricultural income has significantly increased, reaching USD419-million. Production has diversified beyond traditional cash crops, like coffee and tea, to include high-value commodities such as vegetables and fruits,” said Peace Aimee Niyibizi, World Bank Senior Country Economist for Rwanda. "However, the sector still holds considerable potential to deliver higher growth, better employment opportunities, and increased foreign exchange earnings.”
Source: World Bank
The African Development Bank (AfDB) Group’s Board has approved a USD7.9-million grant to bolster São Tomé and Príncipe’s economic recovery. The budgetary support operation aims to strengthen the country’s economic resilience through improved revenue and public expenditure reforms and lay the groundwork for sustainable energy sector reforms vital to a strong and vibrant private sector. The support is from the AfDB Group’s Transitional Support Facility and is part of the country’s second phase of its Fiscal Sustainability and Economic Resilience Support Program. The first phase of the support amounting to USD5.3-million was approved on 1 December 2023. The approval of the second phase brings the total financing to USD13.2-million. The programme aligns with the Country’s Strategy Paper 2024-2029, the AfDB’s Ten-Year Strategy, 2024-2033, and the High 5s development priorities, particularly the “Improve the Quality of Life of the People of Africa” and “Light up Africa” goals. It will greatly contribute to improving the business climate. The key impediment to São Tomé and Príncipe’s economic recovery is an insufficient energy supply that is aggravated by worn-out fossil fuel-based electricity generation equipment and a loss-making state-owned utility, which hinder the efficient functioning of the economy.
Source: AfDB
An International Monetary Fund (IMF) staff team, led by Hans Weisfeld, visited Lomé from 17 to 28 March to discuss macroeconomic developments and policies. This visit took place in the context of the second review of the Extended Credit Facility arrangement that the IMF has been providing to Togo since March 2024. At the conclusion of the visit, Mr Weisfeld issued the following statement, in part: “The IMF team had constructive and productive discussions with the Togolese authorities and commended them on the sustained progress in advancing reforms. Economic growth reached an estimated 5.3% in 2024 and is projected to reach around 5.5% over the medium term, barring major adverse shocks. Inflation has continued to slow, to 2.8% in February 2025 (annual average). During the visit, IMF staff reiterated the necessity to continue implementing reforms towards a disciplined fiscal approach and a sustainable public debt and to continue reforms to enhance inclusion, improve the business environment, and limit risks.”
Source: IMF
The Stamp Duty Act (Cap. 339) is set to be amended by the Stamp Duty (Amendment) Bill, 2025. The Bill proposes that, with effect from 1 July 2025, no stamp duty will be payable on agreements or memoranda of agreement, mortgage deeds (including any related collateral, auxiliary, additional or substituted security), and mortgages of a crop. This means that businesses and individuals will no longer incur stamp duty when entering into contracts or when securing loans using land or crops. This most welcome change is expected to promote investment and debt transactions, with the aim of boosting the economy. In a market where mortgages over land and real estate are still the most prevalent security taken by lenders, doing away with the current 0.5% stamp duty requirement on mortgage deeds will significantly reduce the cost of borrowing. This proposal builds on the 2020 amendment to the Stamp Duty Act, which removed stamp duty on specific security instruments being debentures, further charges over mortgaged property and equitable mortgages.
Source: ENS
The Ugandan government and its joint venture partner, Dubai-based Alpha MBM Investments LLC, have signed a USD4-billion (UGX14.6-trillion) implementation agreement for the oil refinery project. The agreement gives a green light for the government and its joint venture partner to start the design, construction, and operation of the 60 000-barrels-per-day oil refinery in Kikuube District in Midwestern Uganda (Lake Albert Basin). The Uganda Investment Authority (UIA) facilitated the oil refinery project from inception up to the signing of the agreement, and will continue throughout the implementation stage. Uganda’s first oil is expected by the end of 2026. The agreement was signed at State House Entebbe on 30 March at a function convened by President Yoweri Museveni. The agreement also sets a framework for the oil refinery investment, provides timelines for the work, which is expected to be completed within three years, and outlines the obligations of the partners. The oil refinery project also covers construction of the 320-million-litre Kampala Oil Storage Terminal in Mpigi District in central Uganda, and a 212-kilometre finished product pipeline linking the refinery to the storage terminal, as well as construction of a water abstraction facility in Mbegu.
Source: UIA
