Seeds of Opportunity: The African Growth Series
February 2025 | Issue 1
In this week's issue, you will learn more about:
- AFRICA MEGA TREND: The Beneficiation Opportunity
- AFRICA TREND: Urbanisation in Africa
- AFRICA MEGA TREND: Urbanisation in Africa Part One
- AFRICA MEGA TREND: Urbanisation in Africa Part Two
- AFRICA OPPORTUNITY: Zambia's Copper Boom Driven by AI-Powered Mining
- AFRICA TREND: 5G Smart Mines Disrupting the Mining Landscape
- WEBINAR TOMORROW: Complex Manufacturing Outlook 2025
- UPCOMING EVENT: Africa’s Green Economy Summit 2025 | Cape Town, South Africa
AFRICA MEGA TREND: The Beneficiation Opportunity
Africa's reliance on raw material exports leads to significant value loss. In 2022, the value of processed commodity imports into Africa exceeded USD 100 billion, more than doubling from USD 48.2 billion in 2019, with refined petroleum products being the largest contributor. By investing in beneficiation, Africa can transform its commodity exports into engines of sustainable growth, creating jobs, reducing import dependency, and retaining value locally. Frost & Sullivan’s research shows opportunities across energy, agriculture, mining, and more.
AFRICA TREND: Urbanisation in Africa
Over the last twenty years, people have gravitated towards urban areas for employment opportunities, social upliftment, and new prospects. This influx has necessitated the growth of cities and urban areas, resulting in strained public services, urban sprawl, and the establishment of informal settlements. It is vital to understand that the movement of people will continue, which means that proactive and future-resilient planning and action must be taken now to sustain this growth.
Core characteristics of African economies, such as significant informal economies, reliance on extractive commodities, and institutional shortfalls, limit how much a city can evolve to cater to an increasing population. One answer to this complex conundrum is industrialisation, particularly urban construction centred on industrial practices, to shift both the economy and the city’s inhabitants towards higher-value commercial activity.
Should urbanisation be linked to industrialisation, a world of new opportunities will open up that will impact global sustainability, Africa’s role in the global market, and the renewed quality of life for those who call Africa home? This bright future will be unlocked through multi-level government programs, economic diversification, and climate-resilient development.
The key takeaway is that these cities will expand to accommodate the people who flock to places such as Lagos or Johannesburg; the question is: will you play a part in planning and executing an intentional growth path for the African continent? To get involved with Frost & Sullivan, contact Lynne Martin at lynne.martin@frost.com.
AFRICA MEGA TREND: Urbanisation in Africa Part One
Urbanisation is the movement of people to urban areas, resulting in the formation of towns and cities. In 2023, the rate of urbanisation across the African continent averaged 44,6%, and is expected to continue growing until 2050. In this current state, the influx of people to urban areas is placing strain on public infrastructure, impacting public service delivery, and increasing pollution, poverty, and unemployment. The lack of housing and accommodation also necessitates informal settlements and urban sprawl, which further inhibits urban development planning and displaces agricultural and natural land.
To alleviate this, urban development needs to be centred on industrialisation in a sustainable, resilient, and inclusive manner. Creative solutions are required to suit Africa-specific needs and contexts to achieve such development. These can include, but are not limited to, public-private partnerships, green bonds, development finance institutions, impact investing, and crowdfunding. Africa has the potential to be an epicentre for growth and future-oriented development, setting the standard for sustainable and inclusive urban practices.
AFRICA MEGA TREND: Urbanisation in Africa Part Two
Urbanisation entails the evolution of our understanding of urban environments as a more diverse range of people begins to influence towns and cities across Africa. This presents several opportunities, such as introducing a dynamic workforce searching for new opportunities daily. Additionally, the social nature of urban areas results in a more inclusive and diverse population as economic, social, and cultural perspectives are renewed. Ultimately, the potential for success for Africa and those who call it home is endless with the assistance of intentional urban planning and sustainable practices.
Challenges include the current strain on public resources and urban infrastructure as more people gravitate towards African cities. Urban policy does not proactively direct urban development and employment, necessitating informal housing and an informal sector. This aggravates situations of poverty and inequality, as well as unplanned urban expansion, which inhibits sufficient public service delivery.
Nevertheless, these issues can be overcome through future- and growth-oriented policies to create a thriving continent. This post forms part of a series on the mega-trends in Africa, specifically urbanisation. Find Part ONE below in the comments, and tell me what Africa’s greatest opportunity will be! To get involved with Frost & Sullivan, contact Lynne Martin at lynne.martin@frost.com.
AFRICA OPPORTUNITY: Zambia's Copper Boom Driven by AI-Powered Mining
KoBold Metals, backed by Bill Gates and Jeff Bezos, just secured USD 537M in Series C funding, valuing the company at USD 2.96B. This AI-powered mining startup invests heavily in Zambia, with 40% of the new capital earmarked for developing its Mingomba copper mine. This project alone is estimated to cost USD 2B and yield 300,000 tonnes of copper annually from the 2030s. KoBold Metals is also partnering with industry giants BHP and Rio Tinto on other projects. With total funding of USD 1B, KoBold uses AI to revolutionise mineral exploration, creating a more secure and sustainable energy future.
AFRICA TREND: 5G Smart Mines Disrupting the Mining Landscape
The future of African mining is smarter and more connected. MTN, in collaboration with Huawei and China Telecom, has launched Africa's largest 5G-enabled smart mine in South Africa’s Northern Cape. This pioneering project leverages private 5G networks to enhance operational efficiency and safety through real-time data, vehicle tracking, and paving the way for autonomous vehicles. This initiative signals a significant opportunity for technology integration in the sector across the continent, driving productivity and sustainability. MTN envisions this as part of a broader transformation, leveraging 4IR technologies to reshape African industries.
WEBINAR TOMORROW: Complex Manufacturing Outlook 2025
Join Kelly Kucera (Senior VP, Marketing Global, SYSPRO), Gavin Verreyne (Senior VP, Professional Services, SYSPRO and Hendrik Malan (CEO & Partner, Frost & Sullivan Africa) as they explore key factors for implementation success in EMEA and beyond on Wednesday 19 February at 18h00 SAST.
This webinar is tailored for executive decision-makers in mid-sized manufacturing and distribution organisations. It offers essential information on investment considerations, avoiding common pitfalls, and highlighting best implementation practices for sustainable value, gathered from research and interviews with customers, service providers, and channel partners across EMEA.
To register, click here: https://www.mmsonline.com/events/details/global-complex-manufacturing-outlook-2025?utm_bmcr_source=Syspro
UPCOMING EVENT: Africa’s Green Economy Summit 2025 | Cape Town, South Africa
Africa's Green Economy Summit (AGES) 2025 will take place from tomorrow, February 19, to 21, 2025, at the Century City Conference Centre in Cape Town.
Join Hendrik Malan, Partner & CEO for Frost & Sullivan Africa, on Thursday, 20 February, at 12h20, as he moderates the session ‘Building Africa’s Green Supply Chains'.
Panellists will include:
- Matthew Cullinan (CEO, Atlantis Special Economic Zone for Green Technologies)
- Reitumetse Molotsoane (Head of Sustainability, RFG FOODS)
- Liesl De Wet (Head: Accelerated Organisational Sustainability, UNITRANS)
- Feroz Koor (Group Sustainability Officer, Woolworths Holdings Limited)
- Martin Kromat (Senior Partner, Phatisa)
👉 There is still time to register: https://wearevuka.com/green-economy/ages/tickets-options/?utm_campaign=AGES25%20-%20Social%20Media&utm_content=355725529&utm_medium=social&utm_source=linkedin&hss_channel=lcp-86939397
👉 To visit the Summit website: https://wearevuka.com/green-economy/ages/
👉 To download the programme brochure: https://wearevuka.com/green-economy/ages/programme/
.png)
To find out more about opportunities in Africa, please get in touch with Lynne Martin.
