TAR131-Q2-2025-APR-JUNE_Extract

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MADEIN AFRICA

WITH AFRICA FOR AFRICA

With arevenueof€8.3billion,access to 45ofthe54 countriesonthe continentandmorethan23,100employees, theCFAO Group,CorporationFor Africa &Overseas, contributes to the growthoftheAfrican continent,its industrializationandtheemergenceofthe middleclass, drawingonitsin-depth fieldknowledgeandlocal expertise. TheGrouppartnerswithleadinginternationalbrandsand coverstheentirevaluechain –import,production,distribution–inlinewiththebest international standards.

AFRICA SEEKS APOST-WEST ACTION PLAN

Seismicchanges arelikelyasschisms work throughthesystem.WillitreinforcerivalrybetweentheUSandChinaorusherinamorecompetitivemultipolarorder?CouldAfricachoose partnersinwhatNigeria’sForeignMinister Yusuf Tuggarcalls ‘strategicautonomy’?

Onpublichealth,theUS exitfromthe WorldHealthOrganization leaves agapof some$500ma year,whichcanbequickly filled by contendersinthesoftpowerstakes. ItmaydamageUSdrugcompanies,shutting themoutofmarketsand debatesoverpatents.

“Stopdreaming,the Westisn’tcomingback,” the veteranFrenchdiplomatwarned.“We’re in anew era, adifferent worldnow.” We were mullinghowAfrican statesshouldrespond totradewars,rumblingpolycrisesanda US exitfromtheinternationalsystem.

ForthoseAfrican governmentswith leverage –marketaccessandnatural resources–asplinteringofthe Westmay soundpositive. The rapidcollapseofthe internationalaidsystemhasprompted more griefamong Westernliberalsthan frompowerpoliticiansinAsiaandAfrica. Neitherwillsuffer ontheground.

Thoseinthefiringlinearedependent onpublichealthbudgets.TheUSPEPFAR schemeforHIV-AIDStreatment,credited withsaving over25millionlives,has beenshuttered.NicholasEnrich,director forglobalhealthatUSAID,says71,000166,000could diefrommalariaandanother millionchildrenfrommalnutritioneachyea Afterhe warnedtheadministration,Enrich wassenton leave.

YettheeviscerationofUSAIDfitsthepattern ofcrashing Westernaidbudgets overthepast decade. Sevengovernmentsandthe European Unionannounced$17.2bn in aidcuts last year. In February,Britainannouncedcutsof$7.6bn, shiftingfundstoEurope’s rearmament.

Morestrategically important,theUSwithdrawalfromtheParisclimateaccordwillboost companies fromChinaandthe Gulfstatesin renewableenergy.Chinaalreadydominatesthe solarenergyandelectriccarsector.African economiesarenegotiatingdealsthatprioritise accessto reliablepower, includingoilandgas reservesenroutetorenewableenergy.These newalignmentswillbetestedattheUNCOP30 climatesummitin BrazilinNovember. elycontested. theUShasallbut Organization.The key hinaandIndia. could help cdemands rporatetax sare also USannouncedits upuglyjurisdicultinationals. aimtocutthecostsofcapital eformingtheIMF llbetough shington-basedmulinonfunds rivemore economies nderwritten forAfrica’s y.

38 MADEINAFRICA/ Canthecontinentmove beyondextraction?

Africa hasthe critical minerals, rising industrial capacityand investment interest to buildan electric vehicle manufacturing base. Butunless it overcomes supply chainconstraints and China’srisingdominance, the continentrisksbeing stuckat thebottomofthe valuechain.

56 ZAMBIAFOCUS

Despiteinvestments andan improved business climateunder PresidentHakainde Hichilema, thecopper miningsectorbattles to recoverproduction loss underongoing economichardship.

FEATURES

48 INTERVIEW /JoãoLourenço

As he takesoverthehelm of theAfrican Unionfor theyearahead,Angolan PresidentJoão Lourençoanswers ourquestions in an exclusive interview.

78

SOUTHAFRICAFOCUS

PartnersinSouth Africa’s fledgling coalitiongovernment race againstthe clock asleadersseekinclusive growth policies to keepvotersonside.

66 INSURANCE TRANSFORMATION

Thenew SanlamAllianz jointventure promises to shakeupAfrica’s limitedinsurance industry.Regulators have approvedthe merger in five countries and sixmoreare poised to join.

96 GETON THEGRID

Mission300 is an ambitiousattempt at global cooperation forpowering Africa, in theera of me-first.

106 MAURITIUSFOCUS

Awiretappingscandal and economiccrisisledtoa victoryfor NavinRamgoolam’sLabourParty-MMM alliance –and tothearrestofformerprime minster PravindJugnauth.

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ABIDJAN 12 &13MAY 2025

Q2 /APRIL

BOOK

Magical realist Ben Okri brings to life possibilities for change when main character Viv, a member of the House of Lords, decides to commemorate the 20th anniversaryof her husband leaving her. It culminates in a costume ball in a French chateau with Madame Sosostris, known as the wisest woman in Europe, and not seen since the pagesof T.S. Eliot’s The Waste Land.Will she actually show up? Will Viv’s current marriage survive the night asparty-goers wander in the woods?

(Bloomsbury, 208 pages)

‘They use expropriation as a scarecrow, as a smokescreen. Their fundamental grievance is the scale and pace of the transformation project. They’ve been forum shopping, and now they’ve found an ally.’

KGOSIENTSHO RAMOKGOPA

South Africa’s electricity minister responding to claimsfrom conservative Afrikaans rights groups, which have long lobbied US politicians with warnings of land seizures and white persecution. Theireffortsappear to have gained traction–on 7 February, US President Donald Trump announced that Afrikaners would be eligiblefor refugee status in America.

BREADBILL

Kenya’s Treasury Cabinet Secretary John Mbadiwill present theFinance Bill 2025 tothe cabinet by mid-April andsubmititto parliamentby 29 April. The bill is expected to spark political debates, especiallyafterpublic backlash against last year’s tax proposal.

NewAUCommissionchair

MahamoudAli Youssouf

4.1%

AfDB projections indicate that the average real GDP growth for thecontinent will increase by 0.9% to 4.1% in 2025 andconsolidate higher at 4.4% in 2026.

MULTILINGUAL

MahamoudAli Youssouf, from Djibouti, was elected as the chairperson of theAfrican Union Commission He hasa busy intray, which Sudanand east Congo will dominate However, figuring outhow African diplomacy best works in a multipolar world caught between White House ideologues, ineffective Eurocratsand ruthless pragmatists in Beijingand Russia will take up all his time.

38 MADEINAFRICABeyondextraction

AfreshwaveofAfricancompaniesisinvestinginmanufacturing, technologyandvalue-addedservices,challengingthenarrativeof Africaasmerelyasupplierandexporterofrawmaterials.

48 AT THEHELMLourenço,theshrewdstrategist

TheAngolanpresidenthasassumedtherotatingAfricanUnion chairmanshipandisclear-eyedaboutthechallengesahead, particularlythecrisisineasternDemocraticRepublicofCongo.

Whatdoes‘Made inAfrica’mean?

In aworldwhere manufacturingisa globalsport,theidea ofbuildinganything fromscratchisincreasinglyimprobable.Butthatdoesnot meanAfricacannot play acrucialrolein globalsupplychains.

Withsurging investmentandshiftingtradepolicies, thecontinenthas achancetobecome akeyelectricvehicle manufacturinghub.

WhileAmerican TeslasorChinese BYDswon’tberolling offAfricanproduction linesovernight,opportunitiesincomponentproductionand assemblyareripefor thetaking.However, ifAfricafailsto addresssupplychain bottlenecksand China’sdominance in batteryproduction,it risksremaining justa supplierofrawmaterials.Andifdomestic banksdonotfinance localmanufacturers, muchofthe value createdwillcontinue tobesiphonedoffby foreignsuppliers.

Thequestionis: canAfricanleaders, industrialistsand financiersforgea pathtotrueeconomic transformation?The battleovercritical minerals –andthe EVsthatdependon them –willoffera tellinganswer.

EVREVOLUTION

CANTHE CONTINENT MOVE BEYOND EXTRACTION?

Africahasthecriticalminerals,rising industrialcapacityandinvestment interesttobuildanEVmanufacturing base.Butunlessitovercomessupply chainconstraintsandChina’srising dominance,thecontinentrisksbeing stuckatthebottomofthevaluechain

BYKANIKASAIGAL

Theglobalelectricvehicleindustryis expectedto reach$56.7trn by 2050,withannualproductionrising from 3millionto160million vehicles,accordingto Bloomberg.TheInternationalEnergyAgencyprojects thatby2035,over50%ofallnewcarssoldglobally willbeelectric. IfAfricacaptures even afractionof thisboomingmarket,itcouldunlockmassive economic growth,createthousandsofjobsand develop ahigh-valuemanufacturingsector.

CanAfricabreakintoChina’s batterymonopoly? Historically asupplierof rawmaterials,Africais positioningitselftomovebeyondextractionintolocal battery,vehicleandcharginginfrastructuremanufacturing. CompanieslikeKenya’s Spiro, Ampersand Rwanda,Nigeria’sJet Motor Companyand East Africa’s BasiGoare leadingthecharge.

“Bytheendof2025, we willhave threeassembly plantssupplyingthesevenoreightcountries where we operate,alongwith abatterymanufacturing facilityin Kenya,”saysKaushikBurman,CEOofSpiro. Electricmotorbike manufacturers’expansionreflects abroaderpushtoanchormoreofthesupply chaininAfrica.InJune2024, Chinesebatterygiant

INTERVIEW

JOÃO LOURENÇO

‘Dialogueisthe only solution to peace in theDRC –including with M23’

TheDRC-Rwandacrisis,oil dependencyandnational politics…Ashetakesover thehelmoftheAfricanUnion fortheyearahead,Angolan PresidentJoãoLourenço answersourquestionsin anexclusiveinterview

AAppearancescanbe deceiving.Beneath thetaciturn,unremarkableexteriorof themodelapparatchikheonce was, liesa shrewd, formidablestrategist –undeniably intelligentandhighlyarticulate.Theson of anurseand aseamstress, born70 years agoinLobito,João Lourençobecame thenextAfricanUnionchairperson on15 February.

Asoldierduringthefinalepisodes of Angola’s liberationstrugglebeforebeing thrownintothecivil warin1975,Lourenço climbedthe ranksoftherulingMPLA, becomingvice presidentand,in August 2017,succeedingJoséEduardodosSantos aspresident.Eight yearslater,Lourenço hasconsolidatedpower, sidelining most ofthe keyfigures from hispredecessor’s 38-yearreignwhilerejuvenating,feminisingandprofessionalisingAngola’s political class.Reelectedin2022,he faceda competitiveracein whichtheopposition, ledby UNITA, secured 90 parliamentaryseats.

Lourenço isclear-eyed aboutthescale ofthechallenges ahead –inequalities persist, corruption remainsentrenched and economicdiversificationlagsinthe oil-dependentcountrywhere hydrocarbonsaccount for90%of exportsand debt levelsarehigh. Heis determinedto ensurehisnationof38millionis akey playerinthehallsofthe AU.Onthe eve ofthismilestone,hesat downwith The AfricaReport atthe Presidential Palacein Luanda.Thoughheprefers Portuguese, Angola’s officiallanguage, this avid chess playerspeaksEnglish, French,Spanishand Russianfluently.Theselinguisticskillswill beassetsinthe demandingmissionthat awaitshim.

A M B I A

Bright future forcopper Z

BarrickGoldCEOMarkBristow,Zambian

Despiteinvestments andanimproved businessclimate underHichilema, thecoppermining sectorbattlesto recoverproduction lossunderongoing economichardship

Zambia’s underperformingcopper sectorcouldsee arevivalthanksto $10bnininvestments,potentially reversing decades of lowoutputand missedeconomicopportunities.

“Thereisrenewedfaith by investorsinZambia’sminingsector andthecountryshallstartseeing the resultssoon …thebrownfield developmentsalonecantakeoutput to 1.6milliontonnesinthenext fourtofiveyears,” says Anthony Mukutuma,countrydirectorat Canada’s FirstQuantumMinerals.

Thescrambletosecurecritical minerals forthe globalgreentransitionhasputZambia’s copperassets inthespotlight.FQM,whichowns KansanshiandSentinelcopper mines, invested$1.25bnin2022 to restoreKansanshi’soutputto 270,000tonnesby2026.

BarrickGoldinvested$2bnatits Lumwanacoppermineto double outputto290,000 by 2028. UAE’s InternationalResourcesHolding acquired a51%stakeinZambia’s Mopani CopperMinesfor$1.1bnin March2024 andBillGates-backed KoBold Metal –whichusesartificial intelligenceto findcriticalmineral deposits –couldinvestupto$2bn in anew mineinMingomba.

“With[PresidentHichilema’s] support,injustthree yearsZambiais sittingon well over$10bninforeign directinvestmentand we’retargeting tominebeyondcopper,”saysmines ministerPaulKabuswe.

Sanlam’sJohannesburg offices.SanlamAllianz isbasedinSouthAfrica

ThenewSanlamAllianzjointventurepromises toshakeupAfrica’slimitedinsuranceindustry. Regulatorshaveapprovedthemergerinfive countriesandsixmore arepoisedtojoin

In2024, Sanlam,Africa’s leading non-bankfinancialgroup,and Allianz, Germany’svastinsurance firm,unveiled ajoint venturethatwill reshapeAfrica’s insurancemarket. DubbedSanlamAllianz,itaimsto rolloutacrossmorethan adozen countries,startingwith Côted’Ivoire, SenegalandCameroon.

The forecastsarestriking.Inthe three countries,wherethemerger hasbeenapprovedbetweenSouth Africa’s Sanlam,thesixth-largest Africaninsurer –with$1.6bnin insurance revenuesin2023,according toour 300ChampionsofFinance 2024 ranking –andthe Germanfirm Allianz,the world’sfourth-largest insurer($148bnin revenuein2023), thenewSanlamAllianzentity would claimthetopspot.

Côted’IvoireandCameroon In Côted’Ivoire, thetwocompanies arealreadythetopprovidersin insurance.SanlamAllianz Côte d’Ivoirecouldpostmorethan$153m inturnoverandsecureover18%ofthe non-lifeinsurancemarket.Thatis well aheadofrunner-upAXA,whichhad $42.5minturnoverand a5%market sharein2022.

InCameroon,thegapwithAXA —still insecondplace —wouldbeless stark,at9.51%compared with 8.48%. Thenewentity wouldovertakethree keylocalinsurers: SAAR,Chanasand Activa(ownedbyRichardLowe).

SANLAM

PresidentCyril Ramaphosagives theStateofthe NationAddress attheCape Town CityHall,South Africa,on 6February

No time to be timid

PartnersinSouthAfrica’sfledglingcoalition governmentraceagainsttheclockasleadersseek inclusivegrowthpoliciestokeepvotersonside

SouthAfrica’s nonracial democracy has entered itsthird decade,but its10-party coalition government, bornmid-last yearafterjusttwo weeksofnegotiations,is stillinits infancy. Aconstantquestionthat arisesduring spatsis:Arethese growingpains, or do they pointto thecoalition’s imminent demise?

“Whena childlearnsto walk, they fall,theystand up,they fall, theystandup,but eventuallythey get it right,” says the ministerin the presidency responsible for planning,Maropene Ramokgopa. She isoptimistic thatthings will work. “TheonethingIcantell you

isthatthe commitmentto making it workcomesfrom allthepolitical parties,sotheGNU will not fall.”

The GovernmentofNational Unity,asthecoalition hadbeen dubbed, faceditsfirstmajorhurdle eightmonthsintoits existence withthepassingoftheR2trn ($120bn)-plusNationalBudget.It waspostponed atthelastminuteon 19 Februaryafter FinanceMinister Enoch Godongwanaproposed a 2% VAThike–aimedatplugging aR60bn revenue shortfall.That ideadropped likea leadballoon ata cabinetmeetingcalled at theeleventh hourtomuster

GETONTHEGRID

Lake TurkanaWindPower projectinLoiyangalani district,northernKenya

Can Mission 300 deliver?

Anambitiousattempttoestablishglobal cooperationtoensurethatAfricacanprovide powertoallherpeopleinaneraofme-first

No electricitymeansno productivity. Itmeans factories and families pay for expensive generatingsets Andiftheycan’taffordit, that means lesspeoplehired andkids thatcan’tstudy forschool. “Africa hasa demographic boom– young peoplewhoneed jobs,” says World Bankpresident AjayBanga. “Electricityis essential forjobs”, yetaround600millionAfricans arewithout reliableelectricity. Itmeans farmersdraw water by hand, drastically reducingyields andincreasing the costof food for thoseinthecities.That reduces theamountofsparecash leftatthe endofthemonthto pay fora new setof wheels,or extramobiledata –thediscretionaryspend thatlifts otherpartsofthe economy.

Thedarkages

Speakingonstagewithhis World BankcolleagueattheMission 300conferencein Dar es Salaam, AfricanDevelopmentBank(AfDB) presidentAkinwumi Adesinaput itthis way. “Africa loses3% to4% of its GDP every yearbecauseof alack of electricity. We have 571 million Africanswithoutaccessto power–83%ofthe world’speople areinthatpredicament.”

Witha GDPofaround$2trn in2024, a3%increase would makesub-Saharan Africa$60bn –a workingpowersectorisanobrainer.Butinvestment in Africa’s powersectorhasbeenlagging Nigeria,with200millionpeople, operateswiththeamountof power ittakes torunamidsizeUScity. Why? One key hurdleis financial–manystate utilitieslack investment-grade ratings, forcing currencymismatchesandhigher costs. Chronicunderfunding leadstoinadequatemaintenance, agingpowerplantsandfrequent poweroutagesacrosssub-Saharan Africa. Regulatoryframeworksare often unclear, withpolitical

MAURITIUS Ramgoolam’s paradise regained

Awiretappingscandalandeconomiccrisisledtoa landslidevictoryforNavinRamgoolam’sLabourPartyMMMallianceintheNovemberelections –andtothe arreston15FebruaryofformerPMPravindJugnauth

Just weeksbeforetheelections, aseries ofsecret recordings–dubbedthe“MissieMoustass” leaks–sentshockwaves through Mauritius,exposingallegations ofmasssurveillance,political espionageandabusesofpower. The revelations,whichdirectly implicatedthe governmentof PravindJugnauthandhisclose entourage, paintedadamning pictureofastateapparatus weaponisedagainstjournalists, diplomatsandpoliticalopponents. Theaftermathhasseenthearrest ofJugnauthandhiscentralbank governor,HarveshSeegolam, casting doubtontheislandnation’s futureasatrustedfinancialhub.

Uponassumingoffice,Prime MinisterNavin Ramgoolam wasted notimeinlaunchinganinvestigation.Inhis 4Februaryaddress toparliament,helaidbarethe scaleofthesurveillanceinfrastructurebuilt by hispredecessor andthestaggeringfinancial waste

thataccompanied it.“Peopleare strugglingwiththecostofliving, yettheprevious regimespent millionsspyingonits owncitizens. Howisthisjustifiable?”

Accordingto Ramgoolam,the previous governmenthadspent over$110mon amasssurveillancesystem,with$7.5minannual maintenance fees funnelled to Dubai-basedcompany Pertsol.

Falsifiedfigures

As investigations deepened,an independentauditcommissioned by thenewgovernment exposed the falsificationof keyeconomic indicators.GDPgrowth,public debtandbudget deficitfigures inMauritiushadbeenartificially inflatedsince2022,furthereroding publictrustinthecountry’s financial governance.

Formerfinanceministerand economist RamaSithanen, recently appointedasgovernoroftheBank ofMauritius,revealedthatthe

INSIGHT

ThevictoriousNavin Ramgoolam,Mauritius’s newprimeminister

AIDPARADIGM DISRUPTION BY WOOD CHIPPER

BRIGHTSIMONS

FounderofmPedigreeinGhana

Africamust respondcrediblyto President Donald Trump’s demolitionoftheUSaid model. On20January,two executiveorders announcedarealignmentofUS foreign developmentcooperationinlinewith ‘America First’principles.Aweeklater,USAID was marked fordismantlingandElonMusk “spent the weekend feedingUSAIDintothe wood chipper”. Onlyabout5%of itsstaffstayon. Pandemoniumbrokeoutintheaidworld. TheUSaccounts forroughly42%ofglobal humanitarianspending.InHIV-AIDSpreventionandtreatmentalone,its $5.4bn annual spendingis over25%oftheglobalbudget, benefitingabout30millionpeople. Aid andadvocacysaw pricesofHIVdrugs fallfrom$14,000perpatientper yearin1990to$96today.

However, muchofthestructuralmessthatthe Westerndominatedaid system facespredates Trump. Rising geoeconomicpowers(BRICS+andthe Gulf states)have nointerestin theclassicalaidparadigm. Trump’s pushtoalignaid withUS foreignpolicy goals is ascrambletocatchupwith China, the UAEandSingapore.

Iftheworldisgoingmultipolar,thefutureof governmentaidistowardstheChinese,UAE andSingaporeanmodels,whichspells doom forEurope’s classicalparadigm.Someargue that amoremultipolar developmentsystem willdrivemorefinancetoinfrastructureand stimulategrowthin poorcountries.

Thisunderestimatesthe governanceissuesinthe developmentarena.InGhana,the government awardedacontractto aChinese companytobuildamajordamin Pwalugu. Fiveyearsand$24m(halfindebt)later,thesite isabandonedwithnothingbuilt. Poorproject design,lackofbankabilityand ineffectual monitoring were exacerbatedbytheopacity ofthisnew formof developmentcooperation.

Multilateralisminaidisdeclining fast.In 2021,therewere565majoractorsin developmentcooperation,almosttriplethenumber in 2000.In2019, therewerenearly223,000 transactionsacross manifoldfocusareas. The loudestcries againsttheattacksonaid budgetshave comefromtheUSandEurope, not recipientcountries –theclassical aid paradigmhas failed toliveuptoitsnorms ofaccountability to domesticcivilsociety. Fortoo longtheclassicalaidsystemwasin thralltoeliteinsiders.Overtwo decades asa developmentactivist,Ineverpenetrated its arcaneness; lessactivistcitizensbarelyhada look.Theclassicalparadigmhas fallenshort, but Iquestionthe redemptivequalityofits replacements –for example, itisimpossible totrackIndia’s aidprogrammeinAfrica. Aworldwithoutmultilateral governance criteria wouldnotbeonewheredevelopment fundsarespentmoreefficiently.Country-level actorsmustscrutinise developmentspending toensurecoordination,prioritisation and wasteelimination.Cheeringona post-imperial,multipolaraidsystem won’thelpourcountries.Theclassicalaidsystemistottering –butit isnaivetothinkthatits fall would bepretty,orthat itssubstitutes wouldbemoreeffective.

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