Seeds of Opportunity: The African Growth Series

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

AFRICA OPPORTUNITY: Smarter Transmission, Faster Growth​

​Africa’s electricity systems are being challenged on multiple fronts. Rapid demand growth, expansion of renewables, and ageing infrastructure are straining transmission networks. But innovation in materials and AI-powered grid management is opening a new frontier for building transmission systems that are more resilient, efficient, and capable of handling higher loads.​

High-temperature, low-sag (HTLS) conductors are leading the way. These advanced cables operate at temperatures up to 200°C, reducing sagging and enabling higher transmission volumes without requiring new pylons or towers, marking a significant development for both urban expansion and rural electrification efforts. Equally promising is the aluminium–calcium (Al–Ca) composite, which offers exceptional conductivity and mechanical strength. It promises lighter, stronger transmission lines with fewer infrastructure costs over the long haul.​

On the digital side, AI is transforming grid operations. Dynamic line rating systems now use real-time data and weather forecasts to safely increase power flow based on actual environmental conditions, unlocking as much as 30% more capacity. Predictive machine learning applications are also advancing outage readiness and fault detection, helping utilities anticipate issues and improve reliability, especially as climate-related disruptions grow more frequent.​

Africa already hosts some cutting-edge examples of integrated transmission innovation. The Ethiopia–Kenya HVDC interconnector, with its 500 kV, 2,000 MW capacity, showcases how modern high-voltage systems can enhance regional energy trade and stability. Meanwhile, feed-in from renewables and better grid visibility are making AI-enabled optimisations increasingly viable.​

​The nexus of advanced materials is in enabling modern grids that can support industrialisation, connect more people, and integrate new energy sources seamlessly. The opportunity for Africa lies in scaling these technologies not only in single projects, but across regional systems, to ensure that power infrastructure is future-ready.​

​What would it take to accelerate the deployment of smarter transmission lines and intelligent grid platforms across African markets?​

AFRICA OPPORTUNITY: Smart Systems Powering Africa’s Renewable Future​

​Africa’s renewable energy sector is entering a defining moment. Imports of solar modules surged by 60% in 2023, signalling a decisive shift toward clean power and a clear acceleration in deployment. At the same time, governments are moving with greater urgency. South Africa, for example, has released a masterplan that maps the path toward scaling its renewable energy industry.​

​But the opportunity does not stop at the shift to renewables. With the energy ecosystem undergoing a fundamental transition toward decentralisation, digital will be playing an enabling role across the value chain of the industry. Artificial intelligence platforms, IoT-enabled sensors, and predictive analytics are already demonstrating how to optimise grid performance, balance variable supply, and manage demand in real time. The combination of new renewable assets with digital intelligence opens the door to building smarter, more resilient systems at scale.​

​The traditional model of centralised power generation, from coal plants to large hydro, solar, and wind installations, is no longer sufficient to meet Africa’s future energy needs. The real opportunity lies in building decentralised, intelligent energy ecosystems, where renewables are supported by digital platforms, AI-driven optimisation, and smarter grid management. The shift is not just about adding capacity, but about fundamentally reshaping how energy is produced, managed, and consumed across the continent.​

​Could Africa leapfrog into the future by combining renewable energy expansion with digital intelligence to create advanced energy ecosystems?​

AFRICA OPPORTUNITY: Rail Modernisation as the Backbone of South Africa’s Transport Revival​

​South Africa is finally activating long-overdue reforms and investments to modernise its rail network. The government’s freight rail reforms now allow private operators onto the network, with 11 firms awarded access to 41 corridors; a move expected to add about 20 million tons of freight annually starting from 2026-2027. Rail traffic is therefore being pushed upward toward the target of 250 million tons per annum by 2029. ​

Capital follows the intent. A US$266 million (R5 billion) loan from the New Development Bank is aligned with broader programmes of rail renewal: network rehabilitation, fleet overhauls, and infrastructure upgrades across freight and bulk mineral export corridors. Meanwhile, structural rail policy reforms, such as third-party access, institutional restructuring, and the forthcoming National Rail Master Plan, are setting the legal and regulatory foundations for modern rail operations. ​

The opportunity now lies in pairing infrastructure with technology. Predictive maintenance, data-driven scheduling, condition monitoring, smart signalling, and hybrid or electrified locomotives offer ways to reduce delays, cut costs, and improve efficiency. Investments in digital platforms and skills development will be central to bringing rail’s full potential to bear in supporting export corridors, shifting freight off roads, and enhancing regional logistics resilience.​

​Is South Africa prepared to use this moment of reform and investment to build rail systems that are not only rehabilitated, but rendered high-performance, tech-enabled, and globally competitive?​​

AFRICA OPPORTUNITY: Southern Africa’s ICT Deals Are Driving Growth in 2025​

Southern Africa is solidifying its position as a hub for ICT infrastructure innovation in 2025, with strategic investments shaping the region’s digital backbone across cloud platforms, data centres, AI infrastructure, and enterprise connectivity.​

Africa Data Centres raised US$110 million to expand its hyperscale, carrier- and cloud-neutral data centres, strengthening interconnectivity across Southern Africa. Meanwhile, Routed is scaling its managed hosting services, providing businesses with secure and flexible cloud solutions. Snapt is enhancing its software-defined application delivery and load-balancing platform, optimising performance and security for cloud applications. ​

Global players are also contributing, with Visa opening its first African data centre in Johannesburg with a US$57 million investment to support VisaNet operations, while Microsoft committed US$297 million to AI infrastructure in South Africa, including digital skills development for 50,000 professionals.​

The opportunity in Southern Africa lies in bridging the infrastructure gap. While South Africa provides a strong foundation, neighbouring countries such as Namibia, Botswana, and Zambia represent untapped demand for cloud services, data centres, AI, and cybersecurity solutions. Combined with strong investor support, this cross-border potential positions the region as a launchpad for scalable, impactful digital infrastructure.​

With these strategic investments and a growing ecosystem, Southern Africa is poised to lead the next wave of ICT infrastructure innovation in Africa, building the digital backbone that will power the continent’s transformation.​

Which ICT infrastructure developments do you think will have the biggest impact on Southern Africa’s digital economy in the coming years?​

UPCOMING EVENT: Carbon Markets Africa Summit 2025 | Johannesburg

The countdown to the Carbon Markets Africa Summit 2025 is on.
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​Don’t miss Africa’s leading platform for shaping high-integrity, investable carbon markets. Secure your place today and be part of the change.

CMAS 2025 will take place from October 21st to 23rd in Johannesburg. This event will bring together African governments, project developers, investors, and global experts for actionable dialogue, technical workshops, and high-level roundtables focused on unlocking carbon value.

👉 Register today to help shape a just, transparent, and investable carbon market for Africa: https://www.carbonmarketsafrica.com/register

UPCOMING EVENT: Africa's Green Economy Summit 2026 | Cape Town

Hendrik Malan (Managing Partner & Africa CEO) will once again serve as an Advisory Board Member for the upcoming Africa's Green Economy Summit in Cape Town from 24 - 27 February.

Having been part of this journey before, I have seen firsthand how powerful this platform is for driving meaningful dialogue, shaping policy, and accelerating investment into Africa’s green economy. It’s an honour to continue contributing to a summit that is not only shaping the continent’s sustainable future but also placing Africa at the heart of the global green transition.

The 2026 edition promises to be even more impactful—deepening the conversation around climate finance, green infrastructure, renewable energy, and the just transition.

Let’s keep building momentum. 🌱

To get involved - https://lnkd.in/en8mbP2H

UPCOMING EVENT: Infrastructure Africa 2026 | Cape Town

The Infrastructure Africa Business Forum is set to highlight the continent’s dynamic growth and innovation.

Here’s what to expect:

👉 Explore Strategic Projects across energy, transport, ICT, and water sectors

👉 Showcase Bankable Investment Opportunities across Africa

👉 Foster Regional and Global Partnerships to drive forward infrastructure financing

👉 Highlight Sustainable Solutions that are shaping Africa’s future

Join us at Infrastructure Africa 2026 on 2-3 March, hosted at the CTICC in Cape Town, where this transformative journey comes to life.

Click here to register now: https://lnkd.in/d8fgK6Ef

UPCOMING EVENT: Africa Energy Indaba 2026 | Cape Town

We’re proud to be an Endorsing Partner of the Africa Energy Indaba, taking place in Cape Town from 3–5 March 2026 at the CTICC.

This premier event is a vital platform for driving the conversation around Africa’s energy future, and we’re thrilled to support and align with its mission to accelerate sustainable, inclusive energy development across the continent.

As an Endorsing Partner, Frost & Sullivan Africa stands behind the Indaba’s commitment to unlocking opportunity, innovation, and investment across the African energy landscape.

💡 Join us and other key stakeholders in shaping solutions that power Africa forward.

🔗 Register here: https://lnkd.in/dbpTrUvc

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