Despite a challenging global economic environment, African tech startups have continued to attract record levels of investment in 2024. In the first half of the year alone, African startups raised over $4 billion in venture capital, a 20% increase compared to the same period in 2023. Investors are increasingly drawn to sectors such as fintech, e-commerce, and agritech, with Nigeria, Kenya, South Africa, and Egypt leading the way.
Notable deals include Nigerian fintech giant Flutter wave raising $500 million in a Series E funding round, making it one of Africa’s highest-valued startups at over $3 billion. Similarly, Kenya’s M-Kopa , a solar energy fintech company, secured $150 million to expand its operations across East Africa and develop new green energy solutions.
The influx of foreign investment highlights the growing global interest in Africa’s digital economy, which is viewed as a key driver of economic growth on the continent. Analysts expect the African tech sector to continue its upward trajectory, despite global market volatility, as investors look to emerging markets for long-term growth.
Oil prices hit a new high this month, surpassing $90 per barrel for the first time in over a year, driven by supply cuts from OPEC+ and increased demand from Asia. This surge has significantly boosted the economies of Africa’s major oil producers, including Nigeria, Angola, and Algeria.
Nigeria, the continent’s largest oil exporter, has benefited from rising revenues, which have eased some of the fiscal pressures caused by inflation and high debt levels. Angola, another key producer, has also seen an uptick in government revenue, which it plans to use for infrastructure development and social programs.
However, while oil producers are seeing gains, other African economies that rely on oil imports are facing challenges. Countries such as Kenya and Ghana have been hit hard by rising energy costs, leading to inflationary pressures and increased costs for businesses and consumers alike. Policymakers in these countries are considering measures such as subsidies and tax relief to ease the burden on citizens and businesses.
South African retail giants are accelerating their expansion into West Africa as they seek to tap into the region’s growing middle class and consumer demand. Shoprite, Africa’s largest supermarket chain, recently announced plans to open 10 new stores in Ghana and Nigeria by the end of 2024, doubling its footprint in West Africa.
Similarly, Woolworths and Pick n Pay are exploring opportunities to enter or expand their presence in the region. Woolworths is in talks to open its first stores in Senegal and Côte d’Ivoire, while Pick n Pay has partnered with local companies to establish a distribution network in Nigeria.
This expansion reflects the increasing importance of West Africa as a key growth market for retail businesses, driven by rising incomes, urbanization, and a young, tech-savvy population. The move also highlights South African retailers’ efforts to diversify beyond their home market, where economic growth has slowed in recent years.
Ghana and Côte d’Ivoire, the world’s two largest cocoa producers, have announced the formation of a new Cocoa Alliance aimed at strengthening their negotiating power in global markets and stabilizing prices. The alliance seeks to address the challenges posed by fluctuating cocoa prices, which have often left farmers vulnerable to income volatility.
Under the agreement, both countries will coordinate their cocoa production strategies and jointly negotiate with international buyers. This includes setting a minimum price for cocoa exports to ensure that farmers receive fair compensation for their produce.
The alliance has been welcomed by farmer cooperatives and trade unions in both countries, who have long called for measures to improve the livelihoods of cocoa farmers. Industry experts believe that the alliance could lead to more sustainable pricing mechanisms in the global cocoa market, benefiting producers in the long term.
Egypt is ramping up efforts to attract foreign investments in its renewable energy sector as it seeks to become a regional leader in green energy. The Egyptian government recently announced plans to build several large-scale solar and wind projects, with a total capacity of 10 gigawatts, as part of its goal to source 42% of the country’s electricity from renewable sources by 2035.
Several international companies have already expressed interest in these projects, with the European Investment Bank and the World Bank pledging financial support. Additionally, agreements with renewable energy firms from the UAE and Germany have been signed to develop wind farms in the Red Sea region.
This move is part of Egypt’s broader strategy to diversify its energy mix, reduce reliance on fossil fuels, and position itself as a hub for renewable energy exports to Europe and Africa. The Egyptian government is also offering incentives such as tax breaks and reduced land lease costs to attract foreign companies.
The African Continental Free Trade Area (AfCFTA) is gaining momentum as more countries finalize their trade agreements and streamline customs procedures. AfCFTA, which aims to create the largest free trade area in the world, covering 54 African countries, has the potential to significantly boost intra-African trade and economic growth.
Several key industries are expected to benefit from the agreement, including agriculture, manufacturing, and logistics. With tariffs being reduced or eliminated, African businesses will have easier access to regional markets, increasing competition and fostering innovation.
However, challenges remain, including infrastructure bottlenecks, regulatory differences, and political instability in certain regions. Nonetheless, experts believe that AfCFTA could be transformative for Africa’s economies in the long term, creating jobs, enhancing industrialization, and promoting sustainable development.
Today’s business news across Africa reflects the continent’s growing influence on the global stage, from tech startups attracting record investments to strategic alliances in cocoa production and renewable energy. As African countries continue to diversify their economies and strengthen regional cooperation, the continent’s business environment is poised for further growth and development in the coming years.
Ennywealth
