Seeds of Opportunity: The African Growth Series

In this month's issue, you will learn more about:

AFRICA OPPORTUNITY: Mini-Grids and the Rise of Decentralised Power in Nigeria​

Nigeria is taking bold steps to address one of the continent’s most pressing challenges: access to reliable electricity. In a landmark move, the Nigerian government has partnered with WeLight to deploy 400 solar mini-grids and 50 mid-sized MetroGrids. Backed by the African Development Bank and the World Bank, the $200 million initiative will bring clean, stable power to an estimated 1.5 to 2 million people across rural and peri-urban areas. By replacing diesel generators and connecting underserved communities to stable electricity, mini-grids unlock the potential for rural industry, cold storage for agriculture, improved health and education services, and the expansion of small enterprises. ​

The urgency to scale up this solution is clear: around 90 million Nigerians still lack access to electricity, and more than half rely on costly, polluting diesel as their main power source. Mini-grids offer a commercially viable, lower-emission alternative that can scale faster than national grid extension. They also align with Nigeria’s goal to shift its energy mix from 22% to 50% renewables by 2030.​

Importantly, Nigeria is not alone. Across East and West Africa, distributed energy providers are building out mini-grid infrastructure at scale. In Kenya, Tanzania, and Sierra Leone, public-private partnerships are delivering community energy access models that are attracting investor interest and policy innovation. The broader ambition, coordinated under Africa’s “Mission 300” plan, is to connect 300 million people by 2030 through decentralised systems like these.​

The opportunity is immense. With the right financing, policy frameworks, and commercial partnerships, mini-grids can anchor value-added services in agriculture, manufacturing, and digital health. They also create space for African innovators to lead in grid-edge technologies and rural infrastructure design. In this context, how can private capital accelerate the roll-out of scalable, off-grid energy infrastructure across Africa?​

AFRICA OPPORTUNITY: Expanding Automotive Manufacturing Across Africa​​

Africa’s automotive industry is shifting gears from vehicle imports to homegrown manufacturing. Across the continent, governments and industry leaders are prioritising local production to reduce import dependency, build industrial capability, and create skilled employment.​

In Botswana, Delta Automotive Technologies plans to triple production output by 2027. South Africa remains the continent’s automotive anchor, with Volkswagen investing over $200 million to retool its Eastern Cape plant and exporting a record 131,000 vehicles in 2024 alone. Morocco, now Africa’s top vehicle exporter, produces over 700,000 vehicles annually and is rapidly expanding its EV supply chain with new battery investments.​

Nigeria is advancing its National Automotive Industry Development Plan to revive domestic assembly through tax incentives and infrastructure support. In Ghana, Volkswagen and Kantanka continue to grow their local presence. Kenya’s Mobius Motors is scaling vehicles designed for local road conditions, while Egypt and Rwanda are making strategic moves toward electric mobility and higher local content requirements.​

The African Continental Free Trade Agreement (AfCFTA) adds further momentum, offering an integrated platform for regional production and cross-border market access. With vehicle demand projected to grow rapidly alongside urbanisation and income growth, the case for scaling manufacturing within Africa has never been stronger. ​

As Africa deepens its automotive capabilities, what are the most effective levers for building a globally competitive industry?

WEBINAR RECORDING: Monetising Climate Action in Africa’s Carbon Markets​​

Carbon markets offer Africa a strategic dual opportunity: attract much-needed climate finance while supporting homegrown projects that reduce emissions, restore ecosystems, and improve livelihoods. As countries across the continent scale up their climate ambitions, voluntary carbon markets are emerging as a bridge between global capital and local impact.​

Yet many African developers still face a steep learning curve. From determining eligibility and selecting the right methodology to securing validation and attracting investment, the journey from concept to credit issuance is often unclear. Without the right guidance, promising projects risk delay or derailment.​

This webinar, recently hosted by Africa's Green Economy Summit unpacks these challenges and offers clear direction on building viable, high-integrity carbon projects in Africa. The session walked participants through the full project lifecycle, drawing on real-world examples across clean energy, reforestation, and clean cooking sectors.​

​Incase you missed the webinar, click HERE to register and watch the recording. ​

AFRICA OPPORTUNITY: Expanding Intra-African Trade with CCI’s Trans Africa Initiative​

Logistics is the backbone of trade, yet intra-African freight flows still lag at just 16% of total exports. CCI Worldwide Logistics is addressing that gap with a $12.7 million investment in its new “Trans Africa” initiative. This is a technology-led, multimodal logistics platform spanning Nigeria, Kenya, South Africa, Ghana, Egypt, Uganda, Zambia, and beyond.​

Trans Africa combines air, sea, road, and rail freight into a unified digital system. It features AI-driven route optimisation, real-time tracking, and mobile-first tools that function even in low-connectivity environments. By integrating customs protocols and automating documentation across more than 20 countries, the platform aims to simplify trade processes and reduce cross-border friction.​

This supports more than operational efficiency; it also enables greater scale by streamlining trade in sectors such as automotive components, pulses, pharmaceuticals, and e-commerce. Platforms like Trans Africa strengthen the foundations for competitive regional supply chains and support AfCFTA’s ambition for continental integration.​

But the real opportunity lies in execution: for these systems to deliver inclusive growth, they must be embedded into local ecosystems. This means forming strategic partnerships with carriers, border agencies, and logistics SMEs, and ensuring they serve the interests of African producers, not just facilitating throughput for global re-exporters.​

As Africa ramps up its trade infrastructure, how can digital freight platforms be designed to drive local industrial development as much as regional connectivity?​

AFRICA OPPORTUNITY: Advancing Mineral Beneficiation through Regional Collaboration​

Africa holds over 30% of the world’s critical mineral reserves, yet much of the value continues to leave the continent in raw form. While investment in extraction is accelerating, the Manufacturing Indaba has highlighted that a lack of regional collaboration remains one of the greatest barriers to scaling up beneficiation capacity and developing competitive value chains across Africa.​

The IMF emphasises that harnessing Sub-Saharan Africa’s mineral wealth requires more than just mining; it demands local processing, stronger governance, and investment in skills to drive sustainable economic transformation. Challenges like infrastructure gaps and commodity price volatility persist, but strategic efforts are underway.​

Countries such as Namibia, Zimbabwe, and South Africa are already making targeted investments in mineral processing. Namibia is pioneering green hydrogen-powered refining, Zimbabwe is expanding lithium battery manufacturing, and South Africa continues to grow capacity in specialised metals and alloys. These developments illustrate that technical expertise and political will for beneficiation are emerging across the continent.​

Yet, fragmented policies and limited coordination risk slowing progress. Without harmonised regulations, integrated infrastructure, and regional trade mechanisms, Africa’s critical minerals may remain underutilised within global value chains.​

If the capacity is present and the opportunity immense, the critical question is one of integration. Can African nations transform emerging national strengths into a continent-wide ecosystem that anchors value where minerals are extracted?​

UPCOMING EVENT: Carbon Markets Africa Summit 2025

Frost & Sullivan Africa is delighted to announce its partnership with Carbon Markets Africa Summit (CMAS) 2025 as a Knowledge Partner!

As Africa emerges as a significant player in the global carbon economy, Frost & Sullivan Africa joins CMAS at a pivotal moment. Together, we are committed to supporting efforts to establish a carbon market that upholds integrity, maximises impact, and promotes inclusive growth.

Frost & Sullivan Africa, a leading global strategy consulting and market intelligence firm with deep roots in Africa, empowers organisations by providing critical insights into market trends. We offer strategic advice and facilitate connections with key stakeholders across Africa and beyond.

This partnership reinforces our shared commitment to building a high-integrity, African-led carbon market. Together, we aim to drive investment, foster policy innovation, and build capacity in areas such as nature-based solutions, clean energy, and climate-resilient infrastructure. 🚀🌿

⏳ Mark your calendars!

CMAS 2025 will take place from October 21st to 23rd in Johannesburg. This event will bring together African governments, project developers, investors, and global experts for actionable dialogue, technical workshops, and high-level roundtables focused on unlocking carbon value.

👉 Register today to help shape a just, transparent, and investable carbon market for Africa: https://www.carbonmarketsafrica.com/register

To find out more about opportunities in Africa, please get in touch with Lynne Martin.

Lynne Martin

Sales Contact, Frost & Sullivan Africa

• lynne.martin@frost.com
• +27 21 680 3260