Seeds of Opportunity: The African Growth Series
March 2024 | Issue 3
In this week's issue, you will learn more about:
- AFRICA OPPORTUNITY: Kenya Poised to Lead E-Mobility Revolution
- BUSINESS DAY TV INTERVIEW - Africa's Industrial Revolution: The SEZ Blueprint
- AFRICA TREND: Shifting Investor Landscape
- AFRICA TREND: Shifting Investor Landscape
- AFRICA TREND: Water Strategy in African Countries
AFRICA OPPORTUNITY: Kenya Poised to Lead E-Mobility Revolution
Kenya's electric vehicle (EV) market is rapidly accelerating. The government's commitment to reach 5% of new vehicle registrations as EVs by 2025, coupled with tax incentives for local assembly, has fuelled impressive investment growth. In just one year, from 2022 to 2023, investment in the sector tripled to a remarkable USD 93M.
Companies like Roam Electric, BasiGo, and Ampersand are spearheading the charge. Even the national power company Kenya Power, is replacing its fossil fuel fleet with EVs. This transformation positions Kenya as a regional leader in sustainable transportation.
BUSINESS DAY TV INTERVIEW - Africa's Industrial Revolution: The SEZ Blueprint
Africa can create a blueprint for sustainable and inclusive industrialisation if countries are willing to embrace a few Fourth Industrial Revolution (4IR) technologies within Special Economic Zones (SEZs).
Learn more as Consulting Analyst at Frost & Sullivan Africa, Hannro Steenekamp unpacks the details on BusinessDay TV.
AFRICA TREND: Shifting Investor Landscape
In 2023, over 619 unique investors participated in at least one US$100 thousand deal on the continent, with 35% of these investors headquartered in Africa. This statistic contradicts the previous two years when North America, particularly the US, held the top spot. However, a significant decrease in North American-based investors in Africa from 2022 to 2023 (-47% Year on Year) led to Africa-based investors taking the lead in 2023. Whilst Europe's representation improved to 25%, Asia and the Middle East saw significant decreases to 5.5% and 4.5% respectively. The top countries as active investors on the continent have remained consistent since 2021 - the US, South Africa, Nigeria and the UK. However, China, often associated with many investors in African start-ups, did not rank in the top 20 for disclosed active investors. Africa has experienced a significant shift in investor dynamics. It indicates a change in global investor sentiment, but it's also an opportunity for local investors to invest in local talent.
AFRICA TREND: Water Strategy in African Countries
Unsurprisingly, water availability and access are not uniform across the African continent. Still, southern African business hubs such as Johannesburg have experienced water outages more often than anticipated. Thus, the release of a water strategy is even more important.
The strategy aims to understand the current situation and the state of the urban water system, identify key challenges the municipality faces, and codesign key strategic responses to mitigate these challenges. This is outlined in seven strategic responses and 67 short- and long-term action plans.
The City of Johannesburg has noted the disproportionate impact of pollution on marginalised communities, which impacts the equitable access to clean water and the importance of the collective effort to balance competing demands for public resources. By implementing the comprehensive strategy early, it is possible to avoid catastrophe and improve equitable access in an ever-growing urban population.
To find out more about opportunities in Africa, please get in touch with Lynne Martin.
