Adams Top 10 Stories – May 2025

In the first quarter of 2025, a wave of new US policies introduced by President Donald Trump reshaped Africa-US relations. These included extensive freezes on foreign aid, aggressive tariff proposals, withdrawals from climate finance agreements, and public criticism of land reform efforts, leading to recalibrated engagement between the US and African nations. With South Africa facing halted aid and market tremors, President Cyril Ramaphosa entered into dialogue with Elon Musk and US policymakers on expropriation laws and trade priorities. The South African rand wavered but ultimately stabilised as investors adjusted expectations. In addition, Ghana and Malawi began pivoting towards alternative development partners. Meanwhile, the African Development Bank deepened cooperation with the US government initiative, Prosper Africa and the US Treasury to boost capital flows – an encouraging sign that productive economic ties could persist despite political friction. In parallel, the DRC advanced a minerals-for-security deal with the US, suggesting targeted collaboration remained possible.

As US engagement with Africa turned unpredictable at the beginning of the year, the continent adjusted its global strategy, strengthening partnerships and tightening control over strategic resources. The EU and China emerged as key allies, with Brussels announcing a US$5 billion investment package for South Africa, focused on green energy. Additionally, both entities publicly backed South Africa amid rising tensions with the Trump administration over land reform. As a result of declining US aid, African governments also sought alternative partners to safeguard development financing and strategic influence. At the same time, various resource-rich nations moved to assert sovereignty over their minerals. Ghana introduced blockchain traceability to combat gold smuggling, unveiled a gold board, and mandated the exit of foreign actors from artisanal mining by the end of April. Malawi imposed a temporary ban on all mineral exports to review its regulatory framework, with the DRC likewise suspending cobalt exports and considering quotas. In parallel, Zambia lifted export taxes to attract new investment.

In early 2025, South Africa enacted two significant reforms aimed at amending agricultural development and industry oversight. In late January, the Preservation and Development of Agricultural Land Bill was signed into law to prevent the loss of valuable farmland to residential and mining developments. By introducing a structured regulatory framework, the law aims to optimise land use, enhance food security, and sustain farming communities, contributing to long-term economic growth. Agricultural organisation, AgriSA endorsed the move as critical to safeguarding rural stability. In early March, the government tightened regulations in the cannabis sector, banning cannabis-infused edibles, such as weed brownies, to address public health risks and enforcement gaps. Concurrently, the sector attracted fresh investment, with Medigrow, a South African cannabis consulting firm, announcing a US$52 million medical cannabis project in the Eastern Cape. Together, these developments reflect South Africa’s strategy to balance governance with growth, anchoring both agriculture and emerging industries in long-term legislative reform.

Africa’s artificial intelligence (AI) trajectory accelerated in April with the Africa Declaration on Artificial Intelligence adopted at the Global AI Summit in Rwanda. Endorsed by 54 signatories, the declaration established the Africa AI Council, launched a US$60 billion AI Fund, and set shared goals on ethical innovation, digital infrastructure, and data sovereignty. In its wake, Namibia launched its strategy to become a hub for ‘AI for Emerging Economies’, targeting sectoral innovation and inclusive growth. Kenya’s 2025–2030 AI blueprint further articulated not only local ambitions but also signalled operational clarity for multinational entities. In parallel, Ghana’s 10-year AI governance initiative and Egypt’s national strategy, which aims to train 30 000 AI specialists and boost public adoption by 36%, underscore a commitment to regulatory depth and long-term planning. Concurrently, Nigeria’s investment in AI and cybersecurity, and the establishment of Africa’s first AI factory in Zimbabwe, costing US$720 million and backed by Nvidia, reinforce the continent’s growing infrastructural capacity for emerging technologies.

Since the start of 2025, South Africa’s budget has dominated national discourse, reflecting the high stakes of economic recovery amid political complexity. Despite coalition tensions, the budget passed its first legislative test, anchoring close to US$54 billion in infrastructure investments and earmarking support for energy reform, logistics upgrades, and youth employment. Finance Minister Enoch Godongwana’s emphasis on targeted industrial revitalisation and public sector wage stability signalled a shift from austerity to growth facilitation. Meanwhile, the Treasury’s decision to reverse a proposed VAT increase following public and political pushback revealed an evolving, more responsive fiscal posture. Key initiatives include the US$21.6 billion Shumani programme, which underscores a coordinated drive to revive local manufacturing and job creation. Other development priorities for the year include expanding electricity generation, modernising rail and ports, stimulating small business ecosystems, and investing in early childhood development, each aimed at addressing structural constraints and unlocking inclusive growth.

Rail infrastructure became a focal point in Africa’s development agenda in the first quarter, indicating a move towards enhanced regional integration and industrial growth. Kenya’s Standard Gauge Railway extension, supported by a new partnership with the United Arab Emirates, joins Morocco’s US$9.6 billion National Rail Plan aimed at connecting key economic hubs. In Tanzania, the US$3.3 billion Northern Zone Standard Gauge Railway expansion and a separate US$2 billion rail line to the Kabanga nickel mine, built by Chinese firms, highlight rail’s growing role in resource corridor development. China is also injecting US$1.4 billion into upgrading the Tanzania-Zambia Railway Authority (TAZARA) line, revitalising a crucial regional transport corridor. Angola’s Luena-Zambia rail link, Botswana’s domestic network upgrade initiative, and the Beira-Mutare corridor agreement between Mozambique and Zimbabwe reflect a continental effort to modernise freight and trade infrastructure.

Africa’s green hydrogen sector matured steadily through the first quarter of 2025, as key markets transitioned from policy ambition to global partnerships and technological breakthroughs. Namibia led this shift as the HyIron project achieved the world’s first zero-emission iron production, positioning the country at the forefront of green steel. In parallel, Namibia formalised a strategic partnership with the EU, expected to attract US$21 billion in private investment. A separate US$2.2 million EU grant will empower local civil society groups to ensure equitable participation in the green transition, with a focus on youth and gender inclusion. South Africa, while in early phases of industrial scale-up, launched a hydrogen potential atlas, environmental assessment impact guidelines, and regulatory tools to drive project development. Meanwhile, Morocco approved US$32.5 billion in green hydrogen investments and secured German backing for an OCP-linked green ammonia project for fertiliser production.

Africa’s electric vehicle (EV) ambitions accelerated late in the first quarter as countries deepened commitments to mobility electrification and industrial renewal. South Africa launched a US$52 million industrial support programme to incentivise EV production, battery assembly, and operational efficiency. This was complemented by plans for a local battery gigafactory. Additionally, Enviro Automotive introduced the Riddara RD6, South Africa’s first electric 4×4, manufactured by China’s Geely. In parallel, China’s Chery Automobile announced plans for a multi-product EV plant in Uganda. LOXEA Nigeria introduced Chinese Build Your Dreams (BYD) EVs, becoming the first to offer the brand locally. At the same time, Nigeria launched its first solar-powered EV ride-hailing service. Meanwhile, Namibia secured a lithium deal with Chilean mining giant SQM, bolstering battery supply chains, and Ethiopian Airlines partnered with Archer Aviation to develop an electric air taxi network. In Kenya, EV company Spiro launched Africa’s first all-women EV assembly line for motors and chargers, reinforcing inclusive, future-ready manufacturing.

In the latter part of the first quarter of 2025, North Africa achieved considerable progress in developing a digitally integrated economy. This advancement was driven by the mutual reinforcement of fintech innovation and 5G connectivity throughout the region. Building on its national strategy for digitalisation, Egypt welcomes Visa’s Tap-to-Add card, redefining mobile wallet usability, while TerraPay partnered with Banque du Caire, a leading bank in the country, to streamline cross-border remittances. Simultaneously, the country confirmed that its rollout of 5G services would begin by year-end, framing next-gen connectivity as a magnet for investment and innovation. In Morocco, fintech momentum grew with ORA Technologies, a local super-app, raising US$1.9 million in pre-Series A funding to expand its digital service suite. Maroc Telecom also announced its upcoming 5G deployment, signalling the convergence of consumer tech and connectivity. Meanwhile, Tunisia became the first in the region to activate commercial 5G services, supported by a nationwide expansion from Tunisie Télécom and Ericsson.

Nigeria intensified efforts over the first quarter of 2025 to position itself as a leading investment destination by leveraging strategic memberships and policy reforms. In mid-January, the country became the ninth partner of BRICS, signalling a geopolitical shift toward South–South cooperation and access to expanded development financing. Shortly after in March, Nigeria joined the European Bank for Reconstruction and Development as its eighth African shareholder – a strategic move that opens new funding avenues for infrastructure, green energy, and private sector development. Complementing these alliances, the Nigerian government announced plans to become the third African country to introduce a citizenship-by-investment programme, following Egypt and Mauritius, to attract high-net-worth individuals and global capital. These developments reflect a deliberate shift towards diversified economic diplomacy and investor outreach. As global capital becomes more selective, Nigeria’s alignment with multilateral institutions and its use of financial innovation underscore a recalibrated growth strategy focused on credibility, connectivity, and long-term investor confidence.

African markets commit to nuclear energy through international partnerships 

African countries deepened their nuclear energy ambitions in the first quarter of 2025 through several strategic partnerships. Ghana selected build vendors from China and the US, while Kenya formalised a nuclear agreement with China to begin infrastructure development. Namibia opened cooperation talks with Russia, and Malawi advanced its uranium project through agreements with Australia’s Lotus Resources. The developments signal a growing continental shift towards nuclear power as a long-term solution for energy security and industrial competitiveness.

Niger, Mali and Burkina Faso leave ECOWAS, as bloc is set to launch regional currency

 In a bold geopolitical shift, Niger, Mali and Burkina Faso formally exited the Economic Community of West African States (ECOWAS) in January 2025, citing sovereignty and security concerns. The decision was led by their military governments amid growing regional tensions. Despite the split, ECOWAS reaffirmed its commitment to the 2027 launch of a regional currency, signalling that monetary integration efforts will proceed, with or without the breakaway states.

South Sudan and Somalia launch first-ever instant payment system, improving financial access

In a major step toward financial inclusion, South Sudan and Somalia launched their first national instant payment systems in the first quarter of 2025. The platforms enable real-time, interbank transfers and are expected to transform domestic transactions and digital financial services. These rollouts mark a foundational shift in the financial infrastructure of two of Africa’s most underserved economies, improving access for both consumers and small businesses.