Seeds of Opportunity: The African Growth Series
February 2025 | Issue 2
In this week's issue, you will learn more about:
- EXPERT INSIGHT: How Africa Can Thrive Amid U.S. Policy Shifts
- AFRICA OPPORTUNITY: Modernising Nigerian Agriculture with Drone Technology
- AFRICA OPPORTUNITY: Sweet Sorghum Catalysing Sustainability in Burundi
- AFRICA OPPORTUNITY: Nigeria's Untapped Cashew Shell Potential
- AFRICA TREND: Diversified African Economies Set for Rapid Growth
- NEXT WEEK: Africa Energy Indaba 2025 | Cape Town, South Africa
EXPERT INSIGHT: How Africa Can Thrive Amid U.S. Policy Shifts
Why Africa Must Pivot Amid US Policy Shifts
In early 2025, the Trump administration introduced sweeping changes to US foreign policy, including significant cuts to funding for Africa. Programmes like USAID faced freezes, and targeted reductions hit nations like South Africa hard. At first glance, these shifts spell uncertainty for a continent long reliant on American aid. Yet, beneath the surface lies a powerful opportunity. The purpose of this shift is not merely to cope with loss but to catalyse a transformation—one where African nations harness their resilience and adaptability to chart a new course. This moment invites Africa to break free from aid dependency, seize control of its development, and emerge stronger on the global stage.
How Africa Can Seize the Moment
The path forward hinges on bold, actionable strategies. Here’s how African nations can turn adversity into advantage:
- Mobilising Self-Reliance: With US aid waning, the spotlight turns inward. Countries must bolster domestic resources—improving tax collection and budgetary allocation tracking to curb corruption and unlock funding for critical projects. Tanzania, for instance, has already begun closing budgetary gaps left by external cuts, proving that internal strength can fill the void.
- Diversifying Partnerships: Africa need not stand alone. The Middle East has stepped up here, offering a robust alternative to US support. Saudi Arabia has committed USD 41 billion over the next decade for development in low-income sub-Saharan African countries, Qatar has pledged USD 5 million to aid Rwanda’s poorest families and participates in a USD 50 million global initiative including Africa, and the UAE has allocated USD 4.5 billion plus an additional USD 10 billion through Masdar for clean energy projects across the continent, focusing on sustainable development and energy transition. Beyond filling funding gaps, these partnerships unlock new trade and investment prospects, broadening Africa’s global reach.
- Sparking Innovation: Scarcity breeds ingenuity. In healthcare and agriculture—sectors hit hard by aid reductions—digital tools can maximise efficiency. Across the continent, health tech investments are already showing how innovation can stretch limited resources further.
- Strengthening Regional Ties: Unity is Africa’s ace. By pooling expertise and resources, nations can soften the blow of funding cuts. The African Continental Free Trade Area (AfCFTA) lays the groundwork, driving intra-African trade and infrastructure projects that reduce reliance on distant donors, though its implementation needs to be accelerated to maximise these benefits swiftly.
- Broadening Economic Horizons: Less aid means less dependence on a single lifeline. This is Africa’s chance to cultivate new industries—like renewable energy, where investment is surging. Diversification draws private capital and shields economies from external shocks.
These steps, grounded in real-world momentum, form a blueprint for progress. They demand action, but the tools are already within reach.
What a Reinvented Africa Could Achieve
The payoff? A continent reshaped by its own ambition. Picture this: nations with robust domestic revenue streams, unshaken by foreign policy whims. Trade alliances with rising powers like the Middle East fuel economic dynamism. Homegrown innovations deliver sustainable solutions in critical sectors. A tightly knit region thriving on shared strength through frameworks like AfCFTA. And economies diversified enough to compete globally, powered by industries that attract investment rather than charity.
This isn’t a distant dream—it’s a tangible future. The US policy shifts of 2025 could mark the moment Africa pivots from dependence to dominance, crafting a legacy of self-sufficiency and strategic influence. In the face of challenge, the continent can redefine its story of resilience, reinvention, and remarkable growth.
Sources: Frost & Sullivan, CNBC Africa, Reuters
AFRICA OPPORTUNITY: Modernising Nigerian Agriculture with Drone Technology
Nigeria is positioning itself at the forefront of agricultural innovation, with the Federal Government set to deploy drones to modernise farming practices for year-round farming. The country, with 34 million hectares of arable land and 6.5 million hectares under permanent crops, relies heavily on agriculture as a vital sector, providing livelihoods for millions. The agriculture sector accounts for approximately 24% of Nigeria’s GDP. However, challenges such as inefficiency and food insecurity persist.
In response, the Nigerian government is leveraging advanced technology to accelerate land clearance, harvesting, and the application of agricultural chemicals. The Minister of Agriculture and Food Security, Sen. Abubakar Kyari, states, “What one drone can do, a hundred people cannot do in a day.” This move aims to increase productivity, ensure year-round farming, and improve food security for the growing population.
Drones are gaining popularity in the agricultural sector with their increased use in assisting with precision farming. Precision farming involves analysing and considering several factors to scientifically determine the correct inputs for maximum outcomes, thereby ensuring efficiency despite tough climate and economic conditions.
Therefore, with this push towards technology-driven agriculture, Nigeria has a unique opportunity to boost sustainable agricultural practices and reduce labour-intensive tasks. What innovative solutions do you see driving the future of farming in Africa?
AFRICA OPPORTUNITY: Sweet Sorghum Catalysing Sustainability in Burundi
Burundi is poised to revolutionise its agricultural and energy sectors through a unique approach to sustainable development. A new partnership between Facet Power, Jitmat (U) Ltd, and Jeni Eco Company aims to transform the country's agriculture by integrating innovative technologies across the food, water, and energy nexus. This collaboration will benefit up to 3 million Burundian households through job creation and regenerative farming training.
At the heart of this venture is the large-scale cultivation of sweet sorghum, a crop that offers multiple benefits across industries. Processing sorghum into high-value products will not only support food security and create new energy sources but will also help reduce carbon emissions and restore soil fertility. Aligned with Burundi’s 2040 Vision—which emphasises increased agricultural productivity, improved smallholder farmer livelihoods, and robust climate adaptation strategies—this model offers a scalable, inclusive solution for East African nations such as the Democratic Republic of Congo and Tanzania. Through this visionary project, Burundi addresses immediate challenges, paves the way for a sustainable and thriving future, and welcomes opportunities for businesses, investors, and innovators eager to engage in Africa’s green economy.
How do you see climate-smart agriculture and renewable energy reshaping the future of East Africa?
AFRICA OPPORTUNITY: Nigeria's Untapped Cashew Shell Potential
Nigeria's cashew industry is booming, with shelled cashew exports growing from 1.1 thousand Mt in 2016 to 6.4 thousand Mt in 2022. This growth presents a massive, yet underutilised, opportunity: cashew shells. The volume of these shells is projected to explode from 18 thousand Mt in 2023 to a staggering 112.9 thousand Mt by 2033, a CAGR of 20.1%!
Currently, these shells are primarily used as fuel or in animal feed. However, the real potential lies in extracting Cashew Nut Shell Liquid (CNSL) for resins, coatings, and biofuel! Consider Nigeria's biofuel advantage because of its climate, policy, and resources. The ComCashew Nigeria Project, the National Cashew Association of Nigeria (NCAN), and major processors like Sonata, Valency, and Olam are key players. With increased investment in processing infrastructure and supportive government policies, Nigeria could become a major producer of valuable CNSL and related bioproducts.
AFRICA TREND: Diversified African Economies Set for Rapid Growth
Sub-Saharan Africa is experiencing a dynamic economic shift. While resource-dependent nations like Angola and Nigeria navigate challenges, the IMF highlights a compelling “two-track growth pattern”. Non-resource-intensive economies like Rwanda, Ethiopia, Ivory Coast, and Tanzania are projected to be among the world’s fastest-growing, with at least 6% GDP growth expected in 2025. Nine of the world's top 20 fastest-growing economies will be in Africa! This presents a significant opportunity to invest in and learn from these agile, diversified markets.
NEXT WEEK: Africa Energy Indaba 2025 | Cape Town, South Africa
Don’t miss the opportunity to connect with over 1,500 energy leaders, decision-makers, and innovators at the Africa Energy Indaba 2025.
Join the energy revolution at Africa Energy Indaba 2025, which will be held from March 4 to 6 in Cape Town, South Africa.
Click HERE to register!
To find out more about opportunities in Africa, please get in touch with Lynne Martin.
Lynne Martin
Rebecca Mabika