Seeds of Opportunity: The African Growth Series

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

AFRICA OPPORTUNITY: Harnessing Atmospheric Water in Kenya​

​Kenya is under intensifying water scarcity, with over 17 million people lacking access to safe drinking water. Traditional water infrastructure is often unreliable or absent in rural and arid regions, and climate variability is compounding this challenge. Therefore, the need for decentralised and climate-resilient water solutions is urgent.​

​Majik Water, a Kenyan-founded startup, is demonstrating the potential of atmospheric water harvesting (AWH) to address these gaps. By capturing moisture from the air using solar-powered systems, Majik Water provides an alternative water source for off-grid schools, communities, and institutions. Unlike conventional AWH systems that are often energy-intensive and poorly suited to low-humidity conditions, Majik Water has adapted its technology to operate efficiently in arid environments while maintaining low operational costs.​

​While the technology is innovative, the business model is also noteworthy: systems are locally assembled, designed for low maintenance, and operated by trained community members. This creates both water access and livelihood opportunities, and positions Majik Water as a scalable solution for broader deployment across water-stressed regions of the continent.​

As Africa’s demand for resilient, off-grid water infrastructure grows, atmospheric water harvesting presents a compelling avenue for investment and innovation, particularly when led by local entrepreneurs who design for local realities. What conditions are necessary to successfully scale locally-engineered water solutions across Africa’s most water-stressed regions?

AFRICA OPPORTUNITY: Djibouti’s Digital Leap and Its Continental Impact ​

​Djibouti Telecom is at a pivotal juncture, embracing transformative strategies that redefine its national infrastructure and boost Africa's digital connectivity. With over USD100 million invested in telecom infrastructure and data centres in the last decade, Djibouti is now connected to over 11 international submarine cables, enabling high-capacity bandwidth that powers East Africa and beyond. ​

​Djibouti Telecom cable landings without direct capital investment, maintaining long-term revenue through landing agreements while reducing financial exposure. This innovative approach ensures both scalability and sustainability. ​

​Djibouti's strategic location has made it a hub for submarine cables, connecting Africa to Europe, the Middle East, and Asia, thereby strengthening the continent's global digital links. These advancements position Djibouti as a critical player in Africa's digital transformation, offering opportunities for enhanced trade, education, and innovation across the continent. ​ ​

AFRICA OPPORTUNITY: Abidjan-Lagos Highway to Drive West African Growth

The USD 15.6B Abidjan-Lagos Corridor Highway, set to begin construction in 2026, will transform West Africa’s economic landscape. Spanning 1,028 km across Côte d’Ivoire, Ghana, Togo, Benin, and Nigeria, this toll-free motorway will connect vibrant hubs like Abidjan, Accra, and Lagos, serving 173M people by 2050. The African Development Bank is also promoting a Spatial Development Initiative for the highway project, which targets USD 6.8B in private investments for sectors like renewable energy, manufacturing, and agriculture, projecting USD 16B in economic impact and 70,000 jobs. Backed by ECOWAS and partners like the European Investment Bank, this project exemplifies innovative public-private partnerships. What are your thoughts on this game-changer?

AFRICA TREND: Private Capital Investments in Africa​

​2024 exhibited a resilient private investment environment, with growing deal numbers in the consumer staples and financial sectors. It was also the year that closed on the third-highest recorded final close value in the last decade at approximately 4 billion USD. Within this final close value, private equity funds were the largest contributors to investment in Africa, accounting for just under one-third of investment activity in 2024. ​

​The volume of deals increased by 8% from 2023, despite the average value of deals decreasing by 7%. This reflects investors’ preference for smaller deal sizes. Sub-Saharan Africa accounted for 81% of private investment deals on the continent, with Southern Africa being the most popular region for deals in 2024, followed closely by West and East Africa. ​

AVCA CEO Abi Mustapha-Muduakor is positive about Africa’s growing investment landscape and market sentiments, stating that the growth indicators suggest a deepening and maturing African private capital market. This is significant considering the complex broader environment and clearly demonstrates private capital’s role in realising long-term value creation and sustainable growth.​

Manufacturing Indaba 2025 Announces Power-Packed Conference Programme!

Join Africa’s leading manufacturers, policymakers, and innovators as we unpack the most critical trends, challenges, and opportunities shaping the future of African manufacturing.

Under the theme: “Igniting Africa’s Industrial Revolution: Innovation, Integration, and Inclusive Growth”, the conference will cover a dynamic range of high-impact topics.

Why Attend?

Book your spot today and be part of the continent’s premier manufacturing event.

Click REGISTER to attend the conference and be part of the discussions!

Exhibit your energy solutions at the Manufacturing Indaba Exhibition: https://manufacturingindaba.co.za/exhibitor-enquiry/

Visit: https://manufacturingindaba.co.za/ to learn more!

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