Unlocking Africa’s Project Finance: Opportunities and Strategies for Sustainable Growth

Welcome to your February edition of the Africa Bulletin.

This month, our spotlight is on Africa’s project finance and its role in unlocking sustainable growth. The continent’s economic growth hinges significantly on robust infrastructure, affecting various sectors and reducing the cost of doing business. As Africa expands, the demand for strategic infrastructural projects to foster regional integration and diversify economies intensifies, particularly in energy and infrastructure sectors rich in natural resources.

Across the region, we look back at the recently concluded Nigeria edition of the ALN Ready Business Roadshow. This edition brought together industry experts and business leaders to discuss business opportunities in key sectors and address the impact of recent private and public sector developments on the general business environment.

Our focus also explores major African business narratives impacting the region and the globe. These stories interconnect with comprehensive reports centred on Africa's economic outlook, macroeconomic performance, regional integration and global cybersecurity.

As always, we've curated news stories to navigate you through today's business environment, offering a global perspective on the legal issues relevant to your industry.

We are ALN. One region, One vision, One ALN.

Top Story

Africa’s diverse economies and rapidly growing industries present a dual landscape of opportunities and challenges for project finance. The continent’s economic growth hinges significantly on robust infrastructure, affecting various sectors and reducing the cost of doing business. As Africa expands, the demand for strategic infrastructural projects to foster regional integration and diversify economies intensifies, particularly in energy and infrastructure sectors rich in natural resources. According to the Carnegie Endowment for...Read more.

1. Africa | Africa, Italy Announce USD 6 Billion Plan to Strengthen Partnership - The government of Italy recently unveiled a USD 6 billion plan to support African development at the Italy-Africa summit in Rome. The summit – which took place as Italy assumes...Read more.
2. Africa | African Carriers Outpace Global Peers in Air Traffic Growth - African carriers’ traffic grew 38.7 percent in 2023, compared with the year before, ahead of Latin and North American and European airlines according to The East African. According to the data from the...Read more.
3. Africa | Sub-Saharan Africa’s GDP to Double by 2040 to USD 4.5 Trillion - Market research company Euromonitor International has forecasted that the GDP of Sub-Saharan Africa will double by 2040 from the 2022 figure of USD 2 trillion to over USD 4.5 trillion. Euromonitor’s report, Sub...Read more.
4. East Africa | Tanzania, Burundi, Rwanda Set for Power Plant Handover - The three East African countries will inaugurate the transboundary Rusumo Hydropower Project in April 2024. The 80-megawatt (MW) project, nearing completion at 99.9 percent, represents a joint investment...Read more.
5. Ethiopia | Country’s Affordable Electricity Attracting Cryptocurrency Mining Companies - Crypto mining companies are increasingly turning towards Africa, and Ethiopia in particular, for their mining operations, most of which are Chinese companies, according to a new...Read more.
6. Egypt | Egypt, Norway Sign 1 GW Solar Power Station Agreement - Aluminium Company of Egypt – Egyptalum, affiliated with the holding company of metallurgical industries, recently signed an agreement with the Norwegian company Scatec to establish a 1 GW solar power...Read more.
7. Rwanda | Record USD 1 Billion Mineral Revenue Inspires Social and Economic Growth - According to players in the mining sector, the record-high mineral export revenue of USD 1.1 billion is a commendable stepping stone to scaling up investment and growing to greater...Read more.
8. Senegal | Senegal to Lead Rail Infrastructure, Logistics Renaissance - Senegal is set for major economic changes in 2024, expecting a 10.6 percent boost in GDP. The country’s commitment to modernising its infrastructure ahead of its first oil and gas production is encapsulated in its - Read more.

Reports

Foresight Africa 2024 | Brookings’ Africa Growth Initiative

The Foresight Africa 2024 report urges African leaders to take action. It highlights the particular importance of development finance to tackle climate change. The 2024 priorities set by the authors of the report, who include multiple experts at the Brookings Institution, involve the high level of indebtedness of African economies lurking in the background. However, despite the negative impact of public debt, Africa is set to be the world’s second-fastest-growing region in 2024, as outlined during the report’s launch.

Click here to read and download the full report.

Africa’s Macroeconomic Performance and Outlook | African Development Bank

This report outlines actions to address economic challenges and accelerate Africa’s structural transformation. A credible monetary policy framework to rein in higher inflation, increase domestic resource mobilisation, and strategic global partnerships, peace and stability are the keys to achieving a prosperous Africa.

Click here to read and download the full report.

Action Plan to Accelerate Global Business and Investment in Africa | World Economic Forum

Building off the Forum’s inaugural insight report, AfCFTA: A New Era for Global Business and Investment in Africa, launched in January 2023, this action plan announces initiatives and commitments from industry leaders in four priority sectors of the AfCFTA Secretariat: automotive, agriculture and agro-processing, pharmaceuticals, and transport and logistics, which have a combined worth of USD 130 billion. By bringing together Forum partners, the action plan delivers a bold and visionary blueprint for private sector involvement in Africa by announcing specific initiatives, projects and investments to which each company has committed.

Click here to read and download the full report.

Global Cybersecurity Outlook 2024 | World Economic Forum

In 2023, the world faced a polarised geopolitical order, multiple armed conflicts, both scepticism and fervour about the implications of future technologies, and global economic uncertainty. Amid this complex landscape, the cybersecurity economy grew exponentially faster than the overall global economy and outpaced growth in the tech sector. This year’s outlook also finds cause for optimism, especially considering the relationship between cyber and business executives.

Click here to read and download the full report.

Thank you for being a part of our community, and we hope you find this edition of the Africa Bulletin informative and inspiring.