Seeds of Opportunity: The African Growth Series
November 2024 | Issue 3
In this week's issue, you will learn more about:
- AFRICA TREND: The Consumer Electronics Market’s Growth
- AFRICA TREND: Tantalum Mining
- EXPERT INSIGHT - Unlocking Africa's Golden Potential: How Digitisation Can Transform the Continent's Gold Mines and Combat Illicit Mining Activities
- AFRICA TREND: Sustainability Shaping Africa's Finance Industry
- UPCOMING EVENT: Africa’s Green Economy Summit 2025 | Cape Town, South Africa
- UPCOMING EVENT: Africa Energy Indaba 2025 | CTICC, Cape Town, South Africa
- UPCOMING EVENT: Transport Evolution Africa Forum & Expo 2025 | JHB, South Africa
AFRICA TREND: The Consumer Electronics Market’s Growth
The cost of manufacturing consumer electronics has significantly decreased throughout the years, making these products more accessible to a wider demography. African consumers are eagerly buying telephones and computers as a result. In 2023, the revenue for this market reached USD 67.6 billion, and it is projected to grow to USD 93.8 billion by 2029 - reflecting a CAGR of 5.61%. Among the six segments, telephony will remain the largest revenue generator and is expected to experience the fastest growth, with a 5.95% CAGR over the period. Telephony, computing, and TV, Radio & Multimedia are currently (and will remain) the dominant market segments, with approximately a 99% share throughout this period.
This growth trend again highlights Africa's increasing digital adoption and willingness to be digitally connected, demonstrating that it refuses to be left behind in this Digital Age!
AFRICA TREND: Tantalum Mining
Tantalum is a lesser-known but important critical mineral. It is primarily used in capacitors for electronics. Global production reached 2,400 metric tons in 2023. The Democratic Republic of Congo (DRC), Rwanda, Nigeria, and Burundi rank among the top global producers. The DRC leads with 980 metric tons (40.83% of global output), followed by Rwanda with 520 metric tons (21.67%). Nigeria and Burundi are smaller contributors, producing 110 metric tons (4.58%) and 36 metric tons (1.5%). These four African countries account for over 67% of global tantalum production. These figures highlight Africa's pivotal role in supplying the critical minerals needed for the Green Transition. Therefore, the world cannot achieve a sustainable economy without Africa's natural endowments.
EXPERT INSIGHT - Unlocking Africa's Golden Potential: How Digitisation Can Transform the Continent's Gold Mines and Combat Illicit Mining Activities
Introduction
Africa, the world's top regional gold producer, is experiencing a modern-day gold rush driven by soaring gold prices and strategic economic empowerment initiatives. However, the continent's gold industry is also plagued by illicit mining activities, which harm the environment and local communities and deprive governments of much-needed revenue. This article will explore the transformative potential of digitisation in African gold mines, highlighting its role in combating illicit mining activities and empowering local mining companies to thrive.
The State of Africa's Gold Industry
With countries like Ghana, South Africa, and Mali significantly contributing to the continent's 27% share of global gold production, Africa's gold industry is a vital economic driver. The recent surge in gold prices, exceeding USD 2,750 per ounce, has led to increased investment in the sector, with central banks, including those in Africa, purchasing over 1,100 tons of gold last year to diversify their reserves. However, the sector's growth is hindered by illicit mining activities, estimated to account for nearly half of the continent's annual gold production, with smuggled gold valued between USD 23 billion and 35 billion annually.
Digitisation: A Game-Changer for African Gold Mines
The introduction of digital technologies, such as the geoforensic passport, optical AI, and blockchain, is revolutionising the gold supply chain, enhancing transparency and traceability. The World Gold Council's (WGC) Gold Bar Integrity (GBI) platform, part of its broader Gold247 vision, aims to create a global network for tracking and verifying gold products. This platform has already shown promising results, with over 30 participants involved in the pilot program, including Rand Refinery and Argor-Heraeus.
Geoforensic Analysis: Enables refineries to determine the origin of gold doré, reducing the risk of illicit material entering the supply chain.
Optical AI (FeaturePrint): Creates a unique digital identity for gold bars, allowing for irrefutable identification, authentication, and tracing.
Blockchain: Provides a secure, centralised ledger for certified gold bars, ensuring the integrity of the supply chain.
Combatting Illicit Mining Activities
Digitisation can effectively combat illicit mining activities in several ways:
Formalising Artisanal and Small-Scale Mining (ASM): The WGC's London Principles, adopted by central banks, aim to structure and formalise ASM, reducing the likelihood of illicit activities. However, challenges remain, such as the limited market access and poor pricing faced by smaller players. By leveraging digital tools, ASM operators can connect to larger, regulated markets, secure better rates, and operate within transparent frameworks, thereby reducing the incentives for illicit activities.
Enhanced Regulatory Frameworks: Standardised regulations and increased enforcement can prevent informal mining sector fragmentation.
Increased Transparency: Digitisation enables real-time monitoring, making it more challenging for illicit activities to go undetected.
Empowering African Mining Companies
By embracing digitisation, African mining companies can:
Improve Supply Chain Management: Enhance transparency, reducing the risk of illicit material entering the supply chain.
Increase Efficiency: Streamline processes, reduce costs, and improve competitiveness.
Access New Markets: Meet global standards, enabling access to previously inaccessible markets.
Conclusion
Africa's gold industry is at a crossroads. As the continent experiences a modern-day gold rush, mining companies, governments, and stakeholders must harness the transformative potential of digitisation to combat illicit mining activities and empower local mining companies to thrive. With the WGC's Gold247 vision and the adoption of digital technologies, a more transparent, efficient, and sustainable gold industry is within reach.
Source: Frost & Sullivan, Engineering News, Swissaid, The Economist
AFRICA TREND: Sustainability Shaping Africa's Finance Industry
Africa contributes just 5% to global emissions, yet it bears the brunt of climate change—facing harsher droughts, rising sea levels, and their severe impact on livelihoods. This paradox highlights the continent’s urgent need for solutions that align environmental, social, and governance (ESG) principles with financial systems.
Despite challenges like limited market depth, high debt, and data gaps, African nations are making remarkable strides in sustainable finance. Regulatory advancements are paving the way, fostering ESG growth across the region and inspiring innovation in green finance.
As climate risks mount, African nations are also adopting cutting-edge tools like climate stress testing to enhance financial resilience. While some countries already have established frameworks, others are starting this journey—working closely with international partners to build robust systems.
Africa’s commitment to balancing resilience and sustainability is a story of determination and progress.
UPCOMING EVENT: Africa’s Green Economy Summit 2025 | Cape Town, South Africa
Frost & Sullivan Africa is excited to announce that its Partner and Africa CEO Hendrik Malan will be an Advisory Board Member at next year's Africa's Green Economy Summit (AGES), which will take place at the Century City Conference Centre, Cape Town from 19 to 21 February.
👉 Register now and use his discount code AG3SADB20 for 20% off the final price: https://lnkd.in/dfVZYpJh
👉 To visit the Summit website: https://lnkd.in/dqwCPVPk
👉 To download the programme brochure: https://lnkd.in/dBYDXshA
.png)
UPCOMING EVENT: Africa Energy Indaba 2025 | CTICC, Cape Town, South Africa
The Africa Energy Indaba Exhibition is a relevant platform for companies showcasing solutions beneficial to Africa, including services for energy projects, rural energy solutions, urbanization and energy needs, and the renewable & sustainable energy industry.
Why Exhibit?
Meet Decision-Makers: Engage with top executives, policymakers, and investors who are shaping Africa's energy landscape.
Showcase Innovation: Position your products, services, and technologies as solutions for Africa’s energy challenges.
Drive Business Growth: Connect directly with potential clients, partners, and collaborators at this highly targeted industry event.
Be a Part of the Conversation: Demonstrate your commitment to Africa's energy future by participating in the continent's most impactful energy discussions.
Secure your stand: https://lnkd.in/diyAqKHG today and put your business at the forefront of Africa's energy transformation.
Visit https://lnkd.in/deRuba77 to learn more!
UPCOMING EVENT: Transport Evolution Africa Forum & Expo 2025 | JHB, South Africa
Join us in Johannesburg for the 12th annual Transport Evolution Africa Forum & Expo from 17-19 June 2025 to be part of Africa’s journey towards an integrated, sustainable transport infrastructure. This event will drive economic growth and support the realisation of Agenda 2063 and the vision of #TheAfricaWeWant.
Africa’s transport and logistics sectors are critical to economic growth and regional integration, yet significant challenges hinder their full potential. The Transport Evolution Africa Forum & Expo, under the theme “Supercharging Regional Connectivity: Driving Intermodal Transport and Logistics Growth in Africa,” will bring together industry leaders, policymakers, and stakeholders to address these challenges, explore solutions, and develop strategies to strengthen connectivity and advance intermodal transport systems across the continent.
Click on the link to learn more about Transport Evolution Africa's upcoming event - https://lnkd.in/d9FDHSEa
You can download the brochure here - https://lnkd.in/dr3DrPi8
To find out more about opportunities in Africa, please get in touch with Lynne Martin.
