Seeds of Opportunity: The African Growth Series

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

CASE STUDY: How Strategy Changed the Game: Structuring Scale in Agriculture​

​When a national initiative reimagined land not as an asset, but as a system, everything changed.​

​Agriculture was meant to be the country’s growth engine, but the reality was far from it. Thousands of hectares sat underutilised, mechanisation rates lagged below 30%, and post-harvest losses reached nearly half of total production. Despite resources and ambition, productivity remained trapped at subsistence level. The real challenge wasn’t access to land but rather how it needs to be structured for impact.​

​Partnering with Frost & Sullivan, the leadership team set out to design a decade-long strategy to shift the sector from subsistence to scale. Using a capital-efficiency and market-readiness lens, we modelled how different partnership structures, investment mechanisms, and technology adoption pathways could accelerate yield, efficiency, and sustainability. ​

​The resulting roadmap emphasised large-scale farm clustering, shared mechanisation, and infrastructure-led partnerships that connected smallholder networks to commercial systems and export value chains. ​

​The outcome was a ten-year strategy to unlock millions of hectares of productive farmland through phased public–private collaboration. By sequencing investments and aligning incentives, the plan projected up to 40% savings in upfront capital costs and a 20–30% improvement in yields. More importantly, it created a replicable model for how emerging markets can transform agricultural potential into measurable economic performance.​

​In emerging markets, scale alone doesn’t create transformation… structure does. Strategic design is what turns land into leverage and ambition into measurable progress.​

AFRICA OPPORTUNITY: Can GETs Close the Energy Investment Gap in Africa?​

​Global energy investment reached USD 3.3 trillion in 2025, with clean energy commanding two-thirds of that total. Yet grid infrastructure remains the bottleneck. While developed regions expand grid spending towards the USD 600–800 billion/year mark needed for renewable integration, emerging markets, including Africa, continue to lag, risking stalled transitions and constrained renewable uptake. ​

​This is where Grid Enhancing Technologies (GETs) present a turning point. From Dynamic Line Rating and power flow control to AI-driven predictive maintenance, these technologies unlock latent capacity within existing infrastructure. Instead of waiting for multi-decade grid expansion plans, GETs enable faster renewable integration, lower congestion costs, and smarter grid management, all without equivalent capital intensity. ​

For utilities like Eskom, facing rising renewable inputs, GETs can serve as a strategic equaliser. When combined with AI systems for real-time demand forecasting, weather-based load balancing, and asset optimisation, they can help South Africa maintain reliability, extend asset life, and accelerate clean energy connectivity.​

​The opportunity is clear: Africa can leapfrog traditional grid modernisation by investing in technologies that stretch the value of every megawatt and every dollar spent. Do you agree?

AFRICA OPPORTUNITY: Fibre Consolidation Set to Close South Africa’s Broadband Gap​

​South Africa’s broadband infrastructure is entering a new chapter. With the approval of the R14 billion merger between Vodacom and Maziv (which houses Dark Fibre Africa and Vumatel), the combined entity inherits more than 5,000 km of metro fibre and fibre-to-home assets. This consolidation positions the company to scale quickly, aiming to pass 50,000 new homes per month and focusing on underserved communities.​

​Broadband capacity is the groundwork for digital economies, AI systems, smart grids, remote health, education, and Industry 4.0 on the continent. Yet many mobile tower sites, around 9,000 in South Africa, still rely on microwave links, and fibre penetration in lower-income areas remains weak. The opportunity lies in leveraging this merger to accelerate the rollout of fibre into mobile sites, township areas, and underserved regions, creating open-access backhaul infrastructure that supports multiple operators and use cases. ​

​Strategically, this is a moment for Africa to reimagine digital infrastructure not as isolated networks, but as connective tissue across energy, mobility, health, and manufacturing. A consolidated fibre backbone, open to multiple services and anchored in underserved areas, can underpin equitable tech ecosystems — especially when combined with edge computing, 5G, AI platforms, and smart-city frameworks. ​

​Can this merger become a blueprint for national digital infrastructure, where scale, open access, and territorial equity converge to support Africa’s leap into a connected, AI-enabled future?

AFRICA OPPORTUNITY: Strategic Asia-Pacific Links Accelerate South Africa’s NEV Growth​

​South Africa’s automotive industry is facing a watershed moment. Minister Tau recently warned that unless South Africa embraces new energy vehicles (NEVs), it risks losing critical export markets. In 2024, NEV sales reached 15,611 units, accounting for about 3% of total vehicle sales. Meanwhile, over R12 billion in new investment has already been attracted to NEV model production, and policies, including a 150% tax deduction for qualifying EV and hydrogen production investments, are set to come into effect in 2026. ​

​A major part of this shift is happening through Asia-Pacific strategic partnerships. The Stellantis-Leapmotor joint venture is one example: Leapmotor, a Chinese EV manufacturer, is entering the South African market with the C10 REEV (range-extended EV) model starting September 2025, with more pure EV models to follow in 2026. The JV leverages Leapmotor’s battery, software, and EV architecture expertise alongside Stellantis’ distribution networks. ​

​These developments are more than product introductions. They mark the beginning of a deeper tech transfer, localisation opportunity, and supply-chain integration. South Africa’s Critical Minerals Strategy, academic partnerships, and EV-component incentives mean that battery materials, assembly, software calibration, and EV servicing are becoming homegrown capabilities. These are essential if South Africa is to move from assembling parts to producing value and competing globally. ​

​Can South Africa turn this Asia-Pacific NEV momentum into an ecosystem that not only assembles or imports, but designs, produces, and exports clean mobility at scale?​

AFRICA OPPORTUNITY: South Africa’s Rail Manufacturing Ramps Up​

​South Africa’s rail manufacturing sector is quietly turning into a frontier for strategic industrial revival. A R47 million investment between Wabtec South Africa and Lucchini South Africa is going into a state‑of‑the‑art CNC machining system for railway‑wheel production, thereby localising a process that has long been outsourced.​

​This move goes beyond a headline investment. It shows promising alignment with South Africa’s broader ambition around import‑substitution, industrial deepening and competitive global exports. Local manufacture of wheels means fewer imports and faster lead times plus new export potential for the region.​

The opportunity for Africa is real: when manufacturing moves from assembly to component‑engineering, the value‑chain shifts deeper. In South Africa’s case, the rail market sits atop a strong freight and logistics base, where current estimates show the railroad market size at around USD 2.33 billion in 2024, projected to reach USD 3.80 billion by 2033. ​

​For investors, policy makers and industrial players, the key question is this: can South Africa scale these niche manufacturing wins into regional hubs of supply‑chain excellence? ​

​If yes, rail manufacturing becomes not just a domestic boost, but a gateway to Africa’s manufacturing resurgence.

AFRICA OPPORTUNITY: Turning Africa’s Coasts into Engines of Growth​

​For the first time since democracy, South Africa is transforming its coastlines with new small harbours that promise jobs, economic growth, and thriving coastal communities. Led by the Department of Public Works and Infrastructure (DPWI) under the Operation Phakisa: Oceans Economy programme, this initiative marks a turning point in the country’s maritime development. It moves beyond maintaining legacy fishing harbours to creating new coastal hubs designed to empower small-scale fishers, stimulate regional economies, and expand the nation’s blue economy.​

​The DPWI has already invested R501 million in refurbishing 13 proclaimed fishing harbours, creating opportunities for 110 SMMEs and awarding contracts worth R116 million. Building on that foundation, attention is now turning to new sites including Port St Johns, Port Shepstone, Port Nolloth, Boegoebaai, and Cape St Francis. The Port Shepstone small-craft harbour alone is budgeted at R1.041 billion, reflecting the scale of the government’s ambition. Nationally, the programme is projected to create around 12,000 jobs and contribute up to R6 billion to South Africa’s Gross Domestic Product.​

​What makes this initiative strategically significant is its potential for replication. Coastal towns across Africa face similar constraints, from Tanzania’s Bagamoyo to Mozambique’s Inhambane and Ghana’s Elmina. If South Africa delivers efficiently, it could validate a model that governments and development finance institutions can scale across the continent, transforming coastal economies everywhere.​

​The question now is, how can local communities, investors, and businesses work together to ensure these new harbours create lasting impact, support local livelihoods, and drive sustainable coastal growth?

AFRICA OPPORTUNITY: Koeberg’s 20-Year Extension Signals Africa’s Nuclear Moment​

It’s not every day that an ageing power plant becomes a symbol of renewal. Yet South Africa’s Koeberg Nuclear Power Station is doing exactly that. The 20-year licence extension granted to Unit 2 marks a quiet but significant milestone that reaffirms nuclear energy’s place in Africa’s long-term energy mix.​

​Koeberg remains Africa’s only operational commercial nuclear plant, supplying around 5% of South Africa’s electricity. The extension signals confidence in the country’s nuclear safety, technical competence, and institutional maturity which are qualities that are critical as Africa seeks reliable, low-carbon power sources to anchor industrial growth.​

​Elsewhere on the continent, momentum is building. Egypt’s El Dabaa plant is well into construction, with four reactors planned. Ghana, Kenya, and Nigeria are progressing through feasibility and regulatory stages, while Morocco and Uganda are exploring partnerships for small modular reactors (SMRs). Together, these efforts mark a clear shift toward long-duration, dispatchable power that complements renewables and supports growing manufacturing and infrastructure bases.​

​Nuclear development also brings wider industrial benefits. It deepens technical skills, creates high-value jobs, and strengthens regional supply chains. Koeberg’s continued operation could therefore serve as a cornerstone for shared expertise and collaboration across Africa’s emerging nuclear markets. ​

​As South Africa embraces this head start, the question becomes how to scale this nuclear experience into a regional model that turns nuclear capability into jobs, technology transfer, and infrastructure confidence.​

​If the continent gets this right, Africa’s next leap in energy resilience might not come from solar power or wind alone but from a reimagined, future-ready nuclear network. Do you agree?​

AFRICA OPPORTUNITY: Powering Growth Through Digital Infrastructure​

​Did you know Africa now has over 530 million people online, representing nearly 40% of its population? Connectivity is no longer optional. It is shaping how economies grow and how people access opportunity. The continent has more than 77 submarine cables and 2.1 million kilometres of fibre, expanding bandwidth and lowering costs across regions.​

​MTN Group, with nearly 300 million subscribers, leads alongside Vodacom, Airtel Africa, and Orange, while infrastructure providers such as Helios Towers and IHS Towers are expanding coverage into rural areas. Morocco has 92% internet penetration, and Seychelles leads with 185 mobile subscriptions per 100 people.​

​Mobile money, with over 800 million accounts, has transformed financial inclusion. At the same time, data centres and AI infrastructure are strengthening Africa’s digital economy. In South Africa, Teraco’s expansion of the Cape Town CT2 data centre to 50MW positions the city as a hub for cloud and connectivity, supporting global platforms and local enterprises. In Kenya, Atlancis Technologies’ launch of a GPU-powered AI Factory brings high-performance computing to the region, enabling businesses and researchers to train and deploy AI models locally.​

Cross-border collaborations and government digital policies are supporting regional integration and attracting global technology investment. Africa’s connectivity story is one of growth, innovation, and increasing capability. As digital access expands, what could a fully connected Africa mean for its people, economies, and future?

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