Africa’s Top 10 Stories – December 2024

This year’s BRICS summit underscored a pivotal shift towards economic and financial independence among member states from Western influence. Held in late October in Russia, the summit aimed to fortify economic integration by advancing trade in local currencies, streamlining cross-border payments and ensuring de-dollarisation. Russian President Vladimir Putin outlined that the newly expanded BRICS group, welcoming Egypt, Ethiopia, Iran, and the United Arab Emirates (UAE), is creating a multipolar world, set to challenge the Western-dominated global order. Key outcomes included the testing of BRICS Pay, a new payment system facilitating smoother trade and reducing currency volatility. In addition, the proposal of a BRICS grain exchange was touted to instil fair price indicators. Members also backed the creation of a common cross-border payments system to stimulate intra-BRICS trade. The summit’s resolutions highlighted BRICS’s commitment to an emerging world order that prioritises diversified, regionally empowered financial frameworks, reflecting aspirations for enhanced global sovereignty.

Southern Africa’s largest economy assumed the G20 presidency in late 2024, championing the theme of ‘Solidarity, Equality, and Sustainability’. As the first African country to lead the group, South Africa aims to position Africa and the Global South at the forefront of the world development agenda. South African President Cyril Ramaphosa has outlined a vision centred on inclusive economic growth, food security, and support for low-income countries. In addition, a key priority is amplifying Africa’s role in global business affairs through platforms such as the B20, a private-sector engagement group. Concurrently, agriculture and sustainable development were also emphasised, with AgriSA highlighting the need for policies that address food insecurity. South Africa’s presidency of the G20 represents a strong endorsement of its foreign policy and provides an opportunity to reshape global governance structures in line with Africa’s development goals.

In November 2024, the world’s first ‘Made in Ghana’ energy drink launched in Germany with the key ingredient of cocoa juice marking a ground-breaking moment for sustainability and serving as a boost for the Ghanaian cocoa industry. Developed by Koawach, a German organic cocoa specialist, and Koa, a Swiss-Ghanaian start-up that upcycles the entire cocoa fruit, the beverage utilises cocoa pulp – a by-product often discarded in traditional cocoa processing – to create a new revenue stream for small-scale Ghanaian farmers while promoting sustainable practices. The initiative aligns with global trends in upcycling, turning agricultural waste into high-value products. By tapping into the growing demand for natural energy drinks, the product also positions Ghana’s cocoa industry as a leader in eco-conscious innovation within the fast-moving consumer goods sector. The increased income opportunities and reduced waste are set to benefit smallholder farmers, who provide the bulk of Ghana’s cocoa.

South Africa’s Medium-Term Budget Policy Statement unveiled in October marked a critical moment for the newly formed Government of National Unity. With a cautious yet hopeful stance, the budget focused on addressing South Africa’s longstanding fiscal challenges while laying the groundwork for modest economic recovery. Finance Minister Enoch Godongwana outlined a path centred on debt stabilisation, reducing the fiscal deficit, and targeting infrastructure investment to spur growth, despite the expected widening of the fiscal deficit to 5% of GDP. The budget also committed nearly 60% of expenditure to social services, underscoring its commitment to the ‘social wage’ and support for vulnerable populations. Key structural reforms, including measures to streamline public-sector costs and introduce early retirement options, aimed to rein in the public-sector wage bill. Business responses were generally positive, although calls for deeper cuts in public-sector spending were noted. While economic uncertainties linger, the budget was seen as a step towards building economic stability and public trust.

Southern Africa’s political landscape shifted dramatically in Q4 as elections in Mozambique, Botswana, Mauritius and Namibia captured regional attention. In Mozambique, FRELIMO, led by Daniel Chapo, overwhelmingly retained power amid allegations of fraud, prompting widespread protests that raised concerns over democratic integrity. In parallel, Botswana saw a historic change as the ruling Botswana Democratic Party lost control after nearly six decades, with the Umbrella for Democratic Change securing governance, signalling voter fatigue and demand for reform driven by the youth population. Similarly, Mauritius experienced a landslide victory for the opposition Alliance of Change, highlighting citizens’ call for renewed leadership and governance. In Namibia, the disputed election count paved the way for the nation’s first female president, a milestone for gender representation in leadership positions within the region, with the South West Africa People’s Organisation, led by Netumbo Nandi-Ndaitwah, maintaining power. The elections underscore growing public demands for transparency, accountability and inclusion, aimed at instilling regional stability, political alliances, and governance reform.

In December, the African Union (AU) unveiled a landmark energy efficiency programme aimed at bridging the continent’s persistent energy access gap. Launched at the COP29 climate summit, the African Energy Efficiency Strategy (AfEES) and African Energy Efficiency Alliance (AEEA) are expected to bolster energy productivity and generation across the continent. With over 600 million Africans lacking electricity, the AU’s strategy prioritised scalable solutions such as decentralised renewable energy systems, enhanced grid reliability, and improved energy conservation measures across strategic sectors of Africa’s economy. The programme also sought to foster private-sector collaboration, driving investments into innovative technologies and regional energy markets. In parallel, the overarching goal of the AfEES and AEEA is to enhance Africa’s energy productivity by 50% by 2025, and 70% by 2063, in alignment with global targets to double energy efficiency. The AU’s effort marked a significant step toward achieving universal energy access and unlocking the continent’s potential for inclusive growth and development.

South Africa’s cryptocurrency regulations continued to evolve as the year drew to a close, highlighting a cautious yet dynamic approach to the booming market. Amid rapid adoption across the country and continent, regulatory measures have become increasingly stringent, with the South African Revenue Service urging digital currency holders to declare assets via its Voluntary Disclosure Programme. Meanwhile, the Financial Intelligence Centre introduced a ‘travel rule’ mandating identification in crypto transactions. In addition, Capitec Bank blocked payments to exchanges, citing fraud risks, but this has not curbed enthusiasm. Leading platforms Luno and VALR expanded payment support, while cryptocurrency can now be used to purchase property in the country. Elsewhere in Africa, crypto start-up Yellow Card secured US$33 million for expansion, and Binance’s mobile money integration increased access in West and Central Africa. Kenya has implemented a real-time crypto tax system, showcasing regulatory innovation, while Morocco signalled its readiness to regulate the sector.

Gulf states solidified their growing influence in Africa in Q4 through strategic investments and trade initiatives that spanned multiple sectors. Saudi Arabia pledged US$41 billion in African investments over the next decade, focusing on infrastructure, energy, and agriculture. The Kingdom strengthened investment ties with Egypt, most notably through a US$1.8 billion Egypt-Saudi interconnection project and the first undersea cable connecting the two nations. In addition, Morocco is set to welcome a US$800 million wind project, powering the upcoming Gotion Power Morocco EV battery gigafactory, while South Africa’s Barloworld commenced discussions with Saudi Arabia’s Zahid Group for joint ventures. Meanwhile, the UAE emerged as Uganda’s largest export market and negotiated a US$1.5 billion commercial loan with Kenya to bolster economic development. UAE investors also targeted agriculture; Al Dahra committed US$30 million to expand operations in Egypt, and Rosyson funded a US$24 million cashew processing plant in Côte d’Ivoire.

The West African energy giant secured a US$1.2 billion agreement with China to overhaul a critical gas processing plant, reinforcing China’s influential role in African energy infrastructure. Nigerian investment firm BFI Group entered a deal with Chinese National Chemical Engineering Company to revamp a 135 million standard cubic feet-per-day processing facility at the Aluminium Smelter Company of Nigeria’s aluminium plant. The plant is expected to generate 540MW of electricity, facilitating the production of up to one million tonnes of aluminium annually – propelling Nigeria to a leading position in aluminium production. The deal underscores the importance of natural gas in the nation’s transition to cleaner energy and industrial growth. For China, the agreement highlighted its continued dominance in Africa, leveraging strategic investments to strengthen geopolitical ties and secure access to vital resources. Additionally, China’s financing and technological input demonstrate its commitment to African development while expanding its influence, particularly in energy-rich nations.

Africa’s space race accelerated in Q4 with various nations unveiling ambitious satellite and space technology initiatives. In early November, Ghana launched its National Space Policy, aiming to boost space technologies for agriculture and communication. South Africa announced its intention to develop a communications satellite focused on bridging its digital divide while simultaneously striking a partnership agreement with Tanzania to expand regional capabilities in space technologies. Concurrently, Zimbabwe launched ZIMSAT-2, designed to enhance environmental monitoring and urban planning. Further north, the Democratic Republic of Congo collaborated with Monacosat to enhance connectivity in underserved areas. Telco giant MTN also expressed interest in exploring partnerships with Starlink to improve internet access in rural areas. Satellite service providers Q-KON and Eutelsat OneWeb similarly expanded their partnership to deliver connectivity through Smart LEO networks to reach more remote locations in sub-Saharan Africa. The developments collectively highlight the continent’s strategic push and embrace of space innovation as a cornerstone for broader development.

Djibouti advances fight against malaria with the first full flight of ‘friendly mosquitoes’
The East African nation launched a ground-breaking pilot project utilising British biotechnology company Oxitec’s genetically engineered mosquitoes to combat the invasive ‘Anopheles stephensi’ mosquito. This innovative approach launched in October aims to suppress invasive mosquito populations by introducing male non-biting mosquitoes incapable of producing viable offspring. Early results from similar Oxitec projects have shown promise, suggesting potential scalability across malaria-endemic regions, aligning with broader efforts to combat the disease in Africa.

E-commerce giant Temu enters Nigerian market
In late 2024, Chinese e-commerce giant Temu expanded its Africa footprint to Nigeria, targeting Africa’s largest consumer market. Leveraging factory-direct pricing and a 90-day money-back guarantee, Temu aims to disrupt Nigeria’s e-commerce sector, and challenge Jumia’s dominance. Despite significant global marketing investments of US$500 million quarterly, Temu encounters challenges in Nigeria’s complex economic climate, particularly regarding logistics infrastructure and delivery efficiency.

BRICS currency grinds to a halt as Donald Trump warns nations
In December 2024, South Africa dismissed speculation of a BRICS currency following President Donald Trump’s threat of 100% tariffs on proponents of de-dollarisation. South Africa’s Department of International Relations reaffirmed BRICS’ focus on promoting trade in national currencies rather than creating a unified currency. In addition, the bloc’s New Development Bank continues to rely on the dollar, highlighting the challenges of reducing global dollar dominance.