SpaceX: Reaching the unconnected, Starlink broadband expansion in Africa
Africa continues to embrace satellite technology, with Starlink transforming broadband access and reshaping the telecommunications industry in Africa. The technology has received overwhelming support from different Africa countries, with government, give out operating licenses to Starlink as sign of goodwill, even while local service providers kicks against it. Nigeria the most populous country in Africa, was the first in the continent to accept Starlink operations in January 2023, and since then the technology has spanned across 15 other African countries (Benin, Botswana, Burundi, Cape Verde, Eswatini, Ghana, Kenya , Liberia, Madagascar, Malawi, Mozambique, Niger, Nigeria, Rwanda, Sierra Leone, South Sudan, Zambia, Zimbabwe) and plans to expand to more countries before the end of 2025. Aside Nigeria Starlink also has big market in: Mozambique, Rwanda, Kenya and Malawi. Starlink has over 65,000 subscribers in Nigeria a significant increase from 23,897 subscribers when it first launched in 2023, and has made its way to becoming the second largest internet service provider (ISP) in the country. The technology has over 237,000 subscribers in Africa, with a growing presence in over 15 countries. Starlink deliver high internet speed services through a network of over 5,600 low-earth orbit (LEO) satellite, deployed into the orbit by spaceX since 2019. Series of performance tests shows that Starlink’s download speeds can exceed 100 megabits per second in different countries, enhancing the quality of internet-powered activities including live streaming, online gaming and video calls. meanwhile, the progress Starlink has made within Africa, doesn’t sit right with other local ISP,for its gaining the most subscribers while investing less in ground infrastructure, compare to other local telecom companies. Africa has low internet connectivity rate of 43%, below global average of 66%, its due to the fact that, 57% of Africa population resides in rural areas with most not having access to electricity. To foster broadband connectivity in rural areas, airtel Africa, a leading telecommunications company in Africa has just recently partnered with spaceX to roll-out Starlink’s high-speed satellite internet across nine of its 14 African markets. Broadband access for rural areas. The airtel satellite deal with Starlink will benefit immensely people and businesses in rural areas, for most of airtel customers reside in regions where internet access is relatively low. For airtel, it’s a strategic move to boost and improve connectivity in rural communities within the region while offering customers high internet speeds services. Airtel Africa will leverage Starlink’s low-earth-orbit satellite technology alongside its ground infrastructure to bridge the continent’s digital divide. “This collaboration is a game-changer for digital inclusion,” Airtel Africa said. “This partnership with SpaceX is a significant step to demonstrate our continued commitment to advancing Africa’s digital economy through strategic investments and partnerships. Airtel Africa Managing Director and Chief Executive Officer, Sunil Taldar said. This move will supercharger connectivity in rural areas. For Starlink the deal presents an opportunity to significantly expand its digital footprint in Africa internet service markets. SpaceX has secured operating license in nine countries within Airtel Africa’s foothold, including Nigeria, Kenya, and Zambia, with applications pending for the remaining five. “We are very excited to work with Airtel to bring the transformative benefits of Starlink to the African people in new and innovative ways. Vice President of Starlink Business Operations, Chad Gibbs, said. He further highlighted the immense opportunity the collaboration will provide for the region and also, aid in Starlink market expansion. The partnership targets Airtel’s 163 million customers across markets like Nigeria, Ghana, Zimbabwe, and Cape Verde, where demand for reliable internet in education, healthcare, and commerce is soaring. “this agreement with Airtel highlights how, once licensed, Starlink welcomes the opportunity to join forces with important industry leaders to ensure as many people as possible can benefit from Starlink’s presence.” He added. Collaboration with spaceX will see Airtel Africa integrate Starlink’s satellite tech to boost its offerings, targeting enterprises, health centers, and underserved regions. Barriers with operating license. While spaceX is receiving overwhelming support within Africa, from government waivers – residence acquiring and subscribing to Starlink; however, there’s a stumbling block with South Africa, the birthplace of spaceX owner and founder Elon Musk. South Africa which poses as a potential big market destination for Starlink, for it’s modernize large economy in Africa. However South Africa’s government has not given Elon musk the nod to go ahead and launch spaceX technology in the country, despite several dialogues and negotiations between both parties. The government has been reluctant to give Starlink an operational license, cause Pretoria insists that the company will have to give out 30% of share equity in the country to be owned by natives, women or people with disabilities, which Elon musk is yet to commit. It’s a standard practice for any telecom seeking license in South Africa. Although some report says Elon musk struggles with gaining operational license in the country is due to supporting the narrative of an allege genocide of white farmers in South Africa, which the government has denied countlessly any claim of such act in the country. NWALI CHIDOZIE MICHAEL
Cocoa an alternative for Nigeria oil revenue short falls?
The price surge and increasing global demand for cocoa in 2024 toward the subsequent year, become a wake-up call for the Nigerian government to foster the development of the cocoa industry in the country, with the aim of competing in the global market, this is coming 30 years after the government has shifted attention from the commodity and focused more on crude oil, which price is seen to be declining and cocoa price soaring. Nigeria the 4th largest cocoa producer in the world, only behind Cote d’Ivoire, Ghana and Indonesia. Nigeria contributes approximately 6% of cocoa global supply; with smallholder farmers contributing 80% of the country’s production. The commodity is also the country’s top agricultural export. In 2023 Nigeria exported over 366,286 metric tons of cocoa beans with revenue over $669 million the subsequent year comes a huge revenue increase of $1.8billion, this was driven by higher demand for the commodity, climate change and disruption in supply chain; all this led to the surge in price. The commodity was trading at $2000 per ton in 2023, it soared to over $12000 in 2024 a massive over 500% increase, within 3 years. price surge of cocoa and significant increase in global demand has made trading the commodity more profitable compare to oil trade, which is currently facing lots of global challenges , with western countries advocating for energy shift, away from fossil fuels to renewable energy, for the sake of preserving the climate. Thinkbusiness Africa previously reported the decline in oil price and the low oil production in Nigeria, the risk it poses to the country’s 2025 national budget. The 54 trillion naira budget which was projected on a daily oil production of 2.06 million barrel per day and benchmark of $75 per barrel; however, the projections appears grossly optimistic, as the year kicked off with 1.6 million barrel per day in January and has remained below in the subsequent month, also price has gone below $60 a barrel and currently trading above $65 as reported by Brent crude. The revenue challenges and global barriers associated with crude oil trade, has led the Tinubu administration into looking for means to diversify the economy away from oil revenue, which made administration start looking back at cocoa production, which the country turned away from, decades ago. Recently, the federal executive council drafted a bill for the establishment of the national cocoa management board (NCMB) to revitalize and regulate Nigeria’s cocoa sub-sector for enhanced economic development. This bill is currently on its way to the national assembly for enactment. This is president tinubu’s plan to reposition Nigeria as a giant cocoa powerhouse and ensure the prosperity of local cocoa farmers. According to abubakar kyari, the minister for agriculture and food security, he said the NCMB will rehabilitate old plantations, develop new ones and provide soft credit facilities to support farmers. For the government, the major aim is to create a sustainable cocoa economy to drive significant revenue for the country while massively creating jobs and contributing to the GDP. “the NCMB is designed to create a sustainable cocoa economy that contributes significantly to our GDP” kyari stated. “it will drive increased domestic consumption, industrialization, youth participation and higher foreign earnings” the minister added. Cocoa board? This isn’t the first time the country is having a board to oversee the development in the cocoa industry, the then cocoa board of 1986 was a part of wider economic reforms to deregulate cocoa and produce industries in the country, as part of condition for IMF loans, however farmers and stakeholders hated the board for its influence over the price of the commodity. Most cocoa farmers saw the board as an enemy to their progress. In a very recent interview with tribune newspaper, Oba Dokun Thompson the founder of international cocoa diplomacy (ICD) expressed that, the NCMB drafted by the FEC is very important for the development of cocoa industry in the country, he highlighted that, the industry has suffered greatly over the past 40 years without a central body to back it’s development progress. Stating the creation of a new board will enable the commodity industry “work well within” international regulatory bodies. “Now, the board will be able to work well within ICCO,UNCTAD,ITC,etc with a more concise approach for the well defined and measurable goals” he highlighted. For Mr. Thompson, he sees NCMB as a game changer for the commodity industry, highlighting that Nigeria is in the best position to showcase to the world how revenue from cocoa production can benefit all citizens and boost economic growth. “in short this bill will bring about the transformational power of cocoa in every sense of it” Mr. Thompson noted. EUDR: agricultural export barrier. Cocoa exports significantly contribute to Nigeria’s foreign exchange earnings, being a major non-oil export, the commodity contributed 2.62% to Nigeria GDP in 2024. Netherlands, Italy, Germany, Belgium, Malaysia and Indonesia; are Nigeria’s biggest cocoa buyers, however there’s often traceability barriers from European Union (EU) on agricultural exports, the EU are washing their washing their hands away from environmental degradation across the globe; hence the need to setup laws like the EUDR. The European Union Deforestation Regulation (EUDR), are set of rules designed to ensure that goods traded and consumed in the EU do not contribute to deforestation and forest degradation. It covers key commodities like cocoa, coffee, cattle, palm oil, rubber, soy, and wood, as well as many derived products. The EUDR aims to reduce the EU’s impact on global deforestation and forest degradation by requiring companies to demonstrate that their products are free from recent deforestation. Mr. Thompson expressed that, the NCMB will strengthen framework that will comply with the EUDR standards, so Nigeria won’t have any problems exporting agricultural commodities. He further talked about a plan to transition cocoa farming in Nigeria to organic cocoa production to aid sustainability. “There is also the plan to transition from conventional cocoa to organic cocoa and with the Board in place, the country can now work
ECOWAS: Labour migration strategy to drive mobility, integration in West Africa
Labour migration within the Economic Community of West African States (ECOWAS) region is a significant and vital component of regional integration and economic development in West Africa. Current strategic priorities of the Commission, offer channels to introduce labour migration-specific initiatives in the areas of social protection, small-scale cross-border trade, and youth employment. However, while there are many benefits in terms of economic growth and cultural exchange, issues such as inconsistent policy implementation and migration-related risks (dangers during transit, exploitation, health issues, and social tensions) remain a challenge. As such, addressing these issues through stronger governance, better coordination, and protective measures is crucial for maximizing the potential of labour migration in West Africa. In a historic advancement, ECOWAS and its technical partners,recently convened the implementation of ECOWAS Labour Migration Strategy and Action Plan (2025–2035); in Accra the capital city of Ghana. According to a press release from the commission, the strategy aims to “advance safe, regular, and rights-based labour mobility across the region.” Reports from ECOWAS shows labour immigration within the region concentrates on: Burkina Faso to Côte d’Ivoire (agriculture, cocoa production, domestic work); Niger to Nigeria (construction, informal trade, services); Mali to Senegal (fishing, manufacturing, textile industry), and Ghana to Nigeria (oil & gas, finance, education). Meanwhile Africa union (AU) reported the number of international migrant workers in the ECOWAS region in 2017 was 3.74 million, an increase of 26.2 per cent from the year 2008 when there were 2.97 million migrant workers in the region, and 4.3 million in West Africa which hosts the largest number of migrant workers. Out of the 3.7 million international migrant workers in West Africa, 1.6 million were women and young migrants (15-35 years old) made up 46 per cent of all migrant workers. Speaking on the strategy, The Honourable Minister for Labour, Jobs and Employment of Ghana, Dr. Abdul-Rashid Hassan Pelpuo, expressed optimism about labour immigration strategy, saying it’s time the region work together to integrate members of ECOWAS state in meaningful policies that will strengthen the region. While highlighting Ghana’s commitment to promoting inclusive labour governance. “a timely opportunity to move from fragmented policies to coordinated regional solutions,” Dr. Abdul said. Labour immigration strategy ECOWAS report expressed that a comprehensive Labour Migration Strategy and Action Plan is essential to address the challenges of labour migration and unlock its potential benefits for the socio-economic development of the ECOWAS region. Highlighting that; such a Strategy would ensure that labour migration contributes to economic growth, social inclusion, and regional integration while mitigating its potential risks. Thus, this ECOWAS Labour Migration Strategy and Action Plan (LMSAP) is critical to promoting free movement and labour mobility, protecting men and women migrant workers’ rights, improving data management and research, fostering labour market integration and development, while facilitating regional cooperation and partnerships. Mr. Joseph Akpan, Director of Wages and Employment in Nigeria’s Ministry of Labour, highlighted the importance of ensuring that “the strategy is relevant, realistic, and results-oriented,” underscoring the shared responsibility of all stakeholders in ensuring measurable impact. Strategic objectives 1: promote regular migration, labour mobility, and human security. according to ECOWAS this objective is aimed at the following: -Ensure equitable access to and participation in safe and regular migration opportunities and mobility pathways through the effective implementation of the ECOWAS Free Movement Protocol. -Ensure that labour migration is governed by clear, coherent, harmonized policies and legal frameworks across Member States. -Support development and the recognition of skills, qualifications, and experience across borders to facilitate better labour market integration and enhance employability of migrant workers in the labour markets of Member States. -Develop and operationalize a Labour Market and Migration Information System (LMMIS) to produce comprehensive, accurate and harmonized data on labour market, including labour migration. -Develop and implement strategies to address forced labour of migrant workers and linkages with smuggling, and trafficking in persons, while providing protection and assistance to victims. Strategic objective 2: Protect the rights of migrant workers. -Promote the rights and welfare of migrant workers and their families through ensuring fair and ethical recruitment and access to decent work. -Protection against exploitation and labour rights violations through strengthening of support and social services. Strategic objective 3: maximize the development impact of labour migration. -Leverage remittances and diaspora contributions for socio-economic development, including investment in key sectors such as education, health, and infrastructure. – Encourage the circulation of skills and knowledge between countries through programmes that support the return migrants and brain gain. Strategic objective 4: promote regional cooperation and strengthen governance capacities. -Build the capacity of Member States to manage labour migration effectively through evidence-based policy development, and enhanced coordination. -Enhance the role of ECOWAS institutions in monitoring labour migration trends and ensuring compliance with regional, continental and International agreements. -Foster regional dialogue and cooperation among ECOWAS member states to address common migration challenges and opportunities. -Strengthen partnerships with international organizations, civil society, and the private sector to enhance the governance of labour migration. Strategic objective 5: ensure gender and social inclusion in migration policies. -Integrate gender-responsive approaches in labour migration policies and programmes to ensure that the gender-specific needs as well as the needs of youth, persons with disabilities, and other vulnerable groups are addressed. -Promote social inclusion by reducing discrimination against migrant workers based on gender, ethnicity, or legal status. Further comments on the commission strategy, Ms. Fatou Diallo Ndiaye, Chief of Mission of IOM Ghana, Benin and Togo, emphasised the need for harmonised data systems, protection mechanisms for migrant workers, and actionable national policies. However Ms. Adaeze Emily Molokwu, a representative of AU, further underscored the need for Member States to align national instruments with regional frameworks, and to ensure the effective domestication of the Strategy as a driver of sustainable development, social cohesion, and enhanced labour mobility in West Africa. Meanwhile ECOWAS emphasized that implementation of this Strategy will directly impact the lives of millions of West African workers by formalising mobility pathways, strengthening job-matching mechanisms, and expanding
Nigerian startups take lead at Africa fastest growing companies 2025
The financial times (FT) recently published 130 lists of fastest growing companies in Africa for 2025, with Nigerian technology companies taking the 1st, 2nd and 3rd positions respectively. The list was dominated by South Africa and Nigeria companies, accounting for 79 businesses combined from the two nations. South Africa alone accounts for 51 businesses, the highest for any African country on the list; while Nigeria accounts for 28 businesses on the list. Nigeria continues to show that, indeed, it is the giant of Africa, not only in population but also in economic growth and entrepreneurship development. Nigeria has a population of over 200 million people, the largest in Africa according to world bank; with the 4th largest GDP ($188.27 billion)in the continent, only behind Algeria with $268.86 billion, Egypt $347.34 billion and South Africa with the highest GDP of $410.35 billion. Occupying the FT top3 are Nigerian business giants: Omniretail Inc, an E-commerce company leading the list , palmpay Ltd. a financial technology company ranking 2nd on the list, and Remedial Health Inc. a Pharmaceuticals & Cosmetics business ranked 3rd. The top 3 ranking shows Nigeria’s prowess in economic, technology and innovative domination in Africa. According to financial times, fintech is the fastest growing industry in Africa, with fintech companies making 20% on the overall list, 26 fintech companies around Africa appeared on the list. Subsequently followed by IT& software companies, 21 IT software companies also appeared on the list. This highlights that the shape of financial services in Africa is significantly changing. The FT ranking, compiled in conjunction with research company Statista and now in its fourth year, is backward looking, ranking businesses according to the compound growth rate between 2020 and 2023. Omniretail Inc. Omniretail ranking 1st on the list is an E-commerce company on a journey to accelerate trade value chain stakeholders’ progress by unlocking access to services and the flow of working capital, with the vision to build the largest profitable network of retailers in Africa, by simplifying distribution and retailing of essential goods in the region. Their platform connects manufacturers with retailers, facilitating online ordering and transactions. Omniretail was established in January 2019 in Lagos state, Nigeria. By June 2020 they lunched their app and digitalized their first 1000 retailers in November 2020, they expanded to 5 states by June 2021 and grossed N1billion Naira transactions in July and were able to digitalize 35,000 retailers by the end of 2021. However, within 2022 omniretail secured $3million funding, partnered with over 50 manufacturers and increased number of retailers to 65,000. By 2023 they scaled up heavily after securing $7.5million funding from marquee investors. They grossed over 100billion Naira transactions and launched in Ivory Coast and retailers grew to over 100,000 within the end of 2023. In 2024 omniretail launched in Ghana and transactions grossed over 500billion Naira. Omniretail currently operates in 3 countries (Nigeria, Ghana and Ivory Coast) and is the fastest growing company in Africa. PalmPay Ltd. Ranking 2nd on the FT list, a fintech innovative startup with the aim of making digitized payments more accessible and flexible. Report says palmpay offers faster financial services than traditional banks. By 2018 palmpay launched in Nigeria, and rolled out financial services in Nigeria in 2020, their financial services which includes giving out small loans to users. 2021 comes the big expansion after securing a $100million series A funding. The funding was secured from multiple investors, including: Chuangshi Capital, Yushi Capital, and AfricInvest. 2022 palmpay launched in Ghana, the subsequent year; they recorded revenue of over $63million (2023), 30million users, 2500 plus global employees and over 500000 agents around Africa. Remedial Health Inc. ranking 3rd on the 130 financial times list, is Remedial Health, a health technology company that provides inventory, software, data and financing solutions to healthcare providers and small businesses in Africa. At Remedial Health, they provide a technology-driven platform that streamlines pharmaceutical procurement, enables real-time inventory management, offers actionable business insights, and delivers flexible financing options—empowering healthcare providers to operate more efficiently and serve their communities better, they offer solutions that seek to streamline pharmacy operations and close the gap between pharmacies and wards/patients. Remedial health inc was founded in September 2020 by Samuel Okwuada and Victor Benjamin both has a combined 20 years experience in pharmaceutical and software development sectors in Africa, they launched remedial health in march 2021, by august, they grossed 300 pharmacies network served by Remedial Health. However in October over $800,000 worth of inventories deployed, later in November 2021 they secured a $12 million funding to expand their services around Africa. They recorded $16 million revenue in 2023 and currently employed over 300 staffs.
World bank: Macroeconomic reforms not enough for inclusive growth in Nigeria
Reports from word bank noted Nigeria’s macroeconomic situation is significantly improving as a direct result of sustained economic reforms; however inflation rate will maintain its double digits while it’s expected to fall to an annual average of 22% in 2025. This was disclosed in world bank’s latest edition of Nigeria development update (NDU) titled “building momentum for inclusive growth” The recent NDU shows that economic growth in the last quarter of 2024 increased to 4.6% year-onyear (yoy), pushing growth for the full year 2024 to 3.4%, the highest since 2015 (excluding the 2021-2022 COVID-19 rebound) the growth was driven by service and modest oil production recovery, with business activities expanding in the early months of 2025 from less than 50% in November 2024 to over 54%, according to the CBN and stanbic purchasing managers index(PMI). Recent reforms have also helped to strengthen the foreign exchange (FX) market and Nigeria’s external position, the NDU reported that FX reform has helped achieved “market-reflective, unified, and more stable exchange rate” and has significantly increased Nigeria’s foreign reserve buffer. Nigeria foreign reserve gross over $40billion dollars from $34 billion in February 2024, meanwhile the official exchange rate has been over 1700 Naira per U.S dollar in November 2024 but currently at 1600 Naira per U.S dollar; the NDU shows stability since the FX de facto unification in February 2024. However gross revenue collected by the entire federation soared significantly in 2024, the NDU attributing it to factors like: In 2023 the gross revenue collected from federal government agencies (NUPRC,NNPC,FIRS,NCS,FGN,state IGRs) was 20.7 trillion Naira, then 2024 comes a big increase of 37.1 trillion Naira, 79.2% YOY increase. This revenues changes directly impacted Nigeria’s GDP positively as 2023 revenue collections contributed 8.8% while 2024 contributed 13.3% to the GDP with a 4.5% change in the GDP, according to NDU report. Furthermore the NDU stated that consolidated fiscal position improved in 2024, driven by surging revenues, which was mostly seen at the state level due to revenue increase from federal account allocation committee (FAAC), 43.5 percent of gross revenue collected by the federation was sent to state accounts . The fiscal deficit shrank from 5.4% of GDP in 2023 to 3.0% of GDP in 2024, a major improvement which was driven by sharp increase in revenues of the entire Federation, which rose from N16.8 trillion in 2023 (7.2% of GDP) to an estimated N31.9 trillion in 2024 (11.5% of GDP). Mr. Taimur Samad, Acting World Bank Country Director for Nigeria, speaking on the country’s economic development, applauded Nigeria for the impressive work being done on macroeconomic reforms stability highlighting that the country can now focus more on strategic spending on human capital and infrastructure. “Nigeria has made impressive strides to restore macroeconomic stability. With the improvement in the fiscal situation, Nigeria now has a historic opportunity to improve the quantity and quality of development spending; investing more in human capital, social protection, and infrastructure.” He said. Despite macroeconomic growth, challenges persist. World Bank noted in a recent press release that, while Nigeria’s economic indicators are showing signs of improvement, particularly growth, revenue, and fiscal balance; however price pressures remains elevated. While expressing optimism about inflation rate, noting it’s expected to fall, highlighting monetary policy reforms have anchored market rates and helped contained the inflation surge. “Inflation has remained high and sticky but is expected to fall to an annual average of 22.1% in 2025, as a sustained tight stance firmly establishes monetary policy credibility and dampens inflationary expectations.” The press release noted. while highlightening challenges post macroeconomic reforms, world bank’s NDU report shows there have not been full transparency with the premium motor spirit (PMS) subsidy removal. It pointed out that PMS subsidy ended effectively in October 2024, but the revenue gains from the subsidy removal have not been flowing into the federation account. Also it stated that since October 2024 Nigerian National Petroleum Company Limited (NNPCL) has been using the official exchange rate for fiscal revenues, in October 2024 till December 2024 official exchange rate reached 1700 Naira per dollar but NNPCL refused to make changes during those periods and also stopped reporting FX differential losses. However in January 2025 NNPCL began remitting 50% of the revenue gains from PMS subsidy removal to the federation; while using the remaining half to settle past arrears. Compounding the challenges further is Nigeria 2025 national budget which the world bank’s Nigeria development update (NDU) report has joined other financial experts to describe it as “overly ambitious” while stressing the need for its implementation to be carefully monitored and corrections be made if necessary. NDU stated that “overly optimistic revenue projections may cause financing requirements to exceed budgeted amounts, leading to a build up of arrears and raising the risk of renewed recourse to deficit monetization.” NDU emphasized that, the budget revenue assumptions and early data of 2025 appears to be grossly mismatched. Highlighting some key differences in the budget revenue projections and early 2025 data. Oil production 2.1 million barrels per day (mbpd) as projected in the 2025 budget but, Nigeria has only been able to produce 1.6 mbpd in January- march 2025. Further problem associated with the oil revenue for funding of the 2025 budget is the fall in crude oil price, recently Brent crude has fallen below $60 and is currently trading above $65 but the benchmark used for the 2025 budget crude oil sale was $75 per barrel. Following the subsidy removal and macroeconomic reforms that Nigeria has embarked on since 2023, the government has since then rolled out palliatives to help mitigate the impact of the controversial reforms, which includes 25,000 Naira cash assistance to over 60 million vulnerable Nigerians. The NDU report, stated rollout has been slow but implementation are been scaled up, it reported that as of 1st of may 2025, 5.6 million households has received atleast one time payment of 25,000 Naira, with 2.4 million and 1.24 million Nigerians receiving up-to 2-3 times the palliative, upon being biometrically verified. The
Africa development bank approves €26.5 million support for clean energy in Togo
A significant boost for clean energy initiatives across Africa, the Africa development bank (AFDB) has approved €26.5 million to support the construction of a new solar power plant in Togo Africa is actively pursuing clean energy initiatives to increase energy efficiency, reduce emissions and potentially become a net exporter of clean energy across the globe with renewable sources like: solar, wind and hydro power. A lot of communities have embraced solar energy; it’s one of the cheapest sources of electricity in many areas. According to a press release from AFDB the €26.5 million euro will support the development of a 62 megawatt-peak Greenfield solar photovoltaic power plant in Sokodé, Togo. The plant, in Sokodé, in the centre of the country, will supply clean, renewable energy to more than 700,000 people who currently have limited access to electricity. Report from the press release says financing for the project “includes a loan of up to €18.5 million from the African Development Bank and a concessional loan of up to €8 million from the Bank-managed Sustainable Energy Fund for Africa (SEFA). PROPACO, the French development finance agency focused on private sector growth in emerging markets, will provide additional co-financing, positioning the €61 million project as a model of effective public-private collaboration.” Energy capacity, long term plans. According to word bank reports Togo has a population of 9.3 million people; however 59% of the population has access to electricity; with 41% vulnerable to energy crisis. Leading to the country’s national target of achieving 100% electrification by 2030. The target plans to include renewable energies to its energy mix to achieve a 20% target by 2030. From 3megawatt Togo has been on the journey of increasing its clean energy production to 200 megawatt by 2030. However AFDB hints that the financial support for the Sokodé solar project is to help with the country’s agenda for 100% electrification. Highlighting it will move the country away from fossil power which are cost and also causes pollution. “This project is critical for achieving Togo’s target of installing 200 MWp of renewable energy capacity by 2030. It will pave the way for the country’s energy transition away from costly and polluting thermal generation, enhancing energy security and reliability, and accelerating the path to universal access by 2030.” AFDB noted. Mr. Kevin Kariuki, Vice President for Power, Energy, Climate, and Green Growth at the AFDB. Expressed that the project portrays Togo’s strong commitment to clean energy, and AFDB support for advancing renewable energy across the continent. “The Sokodé solar project is a landmark achievement that highlights Togo’s strong commitment to the transition to renewable energy” he said. He also noted that the project not only supports Togo’s efforts to access to energy through renewable but also stimulates local economic growth and enhances the country’s energy security and reliability. Solar energy projects across Togo. Reports from ESI-Africa shows: the Blitta solar PV plant has enabled the installation of 51,887 individual solar kits for the benefit of 35,000 rural households and 394 solar water pumps for small farmers. The renewable energy development policy in Togo has also enabled the establishment of mini solar power plants in Bavou (Ogou), Assoukoko (Blitta), Takpapiéni (Oti-Sud) and Koutoum (Bassar) for a total production of 600kWp. “The objective is to considerably boost the production of renewable energies from 3MW to 200MW by 2030, and in turn fight against climate change.” Says the Togo presidency. However, the AFDB press release confirms the Sokodé solar project is developed by French multinational power utility company Électricité de France, the project entails the design, construction, and operating of the Greenfield solar plant and an 11 km transmission line in Sokodé. Once operational, the plant is expected to generate 87 gig-watt-hours of electricity annually, delivering clean, reliable, and affordable power to communities while addressing energy deficits. The project also supports Togo’s M300 energy compact by driving least-cost power generation through competitive bidding and boosting private sector involvement. It aligns with the African Development Bank Group’s “Light Up and Power Africa” goal to advance sustainable, inclusive energy solutions across the continent. NWALI CHIDOZIE MICHEAL
ECOWAS moves to expand digital connectivity across West Africa plans on single digital market
The Economic Community of West African States (ECOWAS) has taken steps to boost digital connectivity across the region, with the recent regional workshop held in Abuja, Nigeria. To advance West Africa regional digital integration project (WARDIP). WARDIP a digital project funded by the world bank in collaboration with ECOWAS to Support regional efforts to increase geographic reach and affordability of broadband networks to foster an enabling environment for developing a single digital market at the regional level. According to a press release from ECOWAS, the workshop aims to improve broadband access and regulatory harmonization across West Africa. Speaking at the workshop Ms. Folake Olagunju, Acting Director of Digital Economy at ECOWAS Commission, emphasized the importance of aligning national digital agendas with regional objectives while calling for more collaborations between member states to bridge the digital divide and promote affordable, inclusive connectivity solutions. “This workshop must move us from coordination to commitment” she said. “Only through shared ownership and concrete collaboration can we build an integrated digital market that truly serves our citizens.” She added. Development Strategy Meanwhile Ms. olagunju also noted the workshop is as a result of the implementation of ECOWAS digital development strategy; which include the development of digital technologies across west Africa, this digital technologies will allow large number of online activities to be carried out simultaneously across the region, by creating an affordable single data market for west Africa. ECOWAS digital development strategies: CONSIDERING the need to promote a vibrant digital ecosystem by lowering the cost and expanding the access of connectivity, services, and applications, and guaranteeing their universal accessibility, interoperability, quality and security; CONSIDERING ALSO the need to foster an inclusive society and economy, that bridges the digital divide in telecommunications/ICT usage and provide equal access and opportunities for everyone, regardless of their gender, ethnicity, age or abilities. CONSIDERING THEREFORE that ECOWAS will actively promote and enable digital transformation across various aspects by rethinking ICT infrastructures to enhance their resilience to climate change, and ensure these benefits are accessible to all. “The strategy focuses on developing a conducive policy and regulatory environment, alongside digital infrastructure development.” She said. “The ECOWAS Commission aims to strengthen policy and regulatory frameworks to foster a level playing field for digital connectivity solutions.” Ms olagunju added. She further expressed her optimism for the strategy saying a single data market will enhance connectivity in the region. “This will facilitate the integration of the digital connectivity market in West Africa, promoting a seamless and efficient digital ecosystem.” She said. However delivering the World Bank’s intervention, Ms Rocío Sánchez Figueroa, Senior digital development Specialist and Task Team Leader for WARDIP, underlined the critical role of regional organizations like ECOWAS in promoting harmonized digital markets. He emphasized that the workshop provided a platform for learning and correcting mistakes with challenges that involves implementing digital economy policies. “I’ve worked with different countries that are part of ECOWAS, and it’s essential to share experiences and best practices to promote the single data market within ECOWAS and the African continent.” Ms Sanchez said. Meanwhile the press release noted that This initiative reflects the Commission’s commitment to a people-centered and results-driven approach, ensuring that digital transformation policies are not only technically sound, but also tangibly improve the lives of citizens—by expanding access to information, creating jobs, and enhancing economic inclusion. It also responds to the expectations of policymakers, regulators, and development actors seeking greater alignment and accountability in the region’s digital agenda. NWALI CHIDOZIE MICHEAL
Oil price fall, threatens Nigeria 2025 budget
Crude oil price slips below $60 per barrel on Monday, for the first time in four years. This drastic decline poses a serious threat to oil base economies like Nigeria. Nigeria projected revenue for 2025 national budget on a benchmark of $75 per barrel. Following OPEC+ decision to accelerate crude oil output, stoking fear of oversupply at a time when US tariffs has raised concerns about demand. OPEC+ member which consists of top oil producing countries around the globe agreed to further speed up oil production for a second consecutive month, raising output in June by 411,000 barrel per day (bpd) up from 137,000 bpd in may. OPEC+ said in a report that the decision was made by eight members (Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman) who met virtually to review global market conditions and outlook. They decided to implement a voluntary adjustment that will see to an increase of a combined 2.2million bpd amongst the eight members. “In view of the current healthy market fundamentals, as reflected in the low oil inventories, and in accordance with the decision agreed upon on 5th December 2024 to start a gradual and flexible return of the 2.2 million barrels per day voluntary adjustments starting from 1 April 2025, the eight participating countries will implement a production adjustment of 411 thousand barrels per day in June 2025 from May 2025 required production level.” They said. Since the announcement there’s been panic in the crude oil market as investors fear for oversupply increases. This could be seen in a sharp drop in oil prices as Brent crude tumbled to $59.25 per barrel. At the core of this brewing challenge is the Nigeria 2025 national budget, which was predicated on an oil price benchmark of $75 per barrel, daily production of 2.06 million barrels and at an exchange rate of 1500 Naira per U.S dollar. As of may 2025, these assumptions appear grossly optimistic. Report from the ministry of finance shows the total 2025 budget is 54.99 trillion Naira (approximately $36.6 billion). Oil revenue is expected to fund 56% of the budget while non-oil revenue accounts for 44% funding, fiscal deficit which will be financed through borrowing will accounts for 25.1% of the total budget. Compounding the challenge is Nigeria’s failure to meet its 2.06 million bpd oil production target as it continues to struggle with: vandalism of oil pipelines, oil theft and illegal oil refinery operations. This has made Nigeria unable to meet up with its daily production. Revenue impact. Mr. Chinnan Dikwal, Vice chairman of African energy council, in an interview with channels Television, expressed his fears about oil revenue and prices, he said there’s more “downside” coming and crude oil price could continue to fall, highlighting the nuclear deal discussions between America and Iran. He said if the deal finalizes president trump would put more barrels into the market causing price to fall harder. “Seems to be a more downside coming unfortunately, president trump will put more barrels unto the market” he said. “Trump is negotiating with Iran potentially with a nuclear deal if he gets that deal that would allow them to put more barrels unto the market” he added. He emphasized that with more barrels coming-in there will be a “mismatch” in the market and oil price will fall further. “More barrels coming supply and demand will mismatch ultimately price will take another hit” Mr chinnan said. However reports from Nairametric estimates that Nigeria could lose 19.6 trillion Naira in oil projected revenues if oil prices continue to fall, and if Nigeria fails to meet its 2.06 million bpd target. “Nigeria could lose up to N19.6 trillion in projected oil revenue if these current trends persist through the year”. It noted. Report from Nigerian Upstream Petroleum Regulatory Commission (NUPRC) shows in the first quarter of 2025 Nigeria has not meet up with its 2.06 million bpd as projected in the budget, instead has been experiencing decrease in oil production. NUPRC reported that in January Nigeria crude oil production was at 1.78 million bpd, February it dropped to 1.67 million bpd then march it dropped further to 1.603 million bpd. Nairametrics further attributed the potential loss in projected budget revenue to declining oil production, fall in oil price and weaker exchange rate. “This potential shortfall is a direct consequence of lower-than-budgeted oil prices, underwhelming production, and a weaker exchange rate.” It noted. Navigating low oil prices. The federal government of Nigeria acknowledged the fall in oil prices and the potential danger it poses to the 2025 national budget; Speaking with investors during the International Monetary Fund (IMF)/World Bank Spring Meetings in Washington DC, Mr Wale Edun, the minister of finance and coordinating minister of the economy said government will diversify its revenue and reduce government spending while allocating resources to key sectors in other to mitigate the impact of low oil prices. “The Federal Government of Nigeria will pursue diversification of its revenues and adopt greater prudent resource allocation measures to mitigate the impact of low oil prices should it continue.” He noted. Although experts are calling for the revisiting of the 2025 national budget asking the government to cut it down in the face of lower oil price. Mr. Chinnan during the interview argued that the government needs to work on the budget again. Emphasizing on cutting costs and having a realistic budget. “I think we need to look at that budget again and see if we can redo it.” He said. “What government struggles could we cut down-where can we save money- if we do one or two of those I can assure you that our budget will not be 55 trillion Naira, we will probably end up something very lean.” He added. However finance minister said the government reforms has rightly positioned Nigeria to navigate any global economic crisis. Highlighting the government’s strategy to cope with lower oil prices includes: prioritizing government expenditure, expanding non-oil exports, and optimizing assets through public-private partnerships. Mr.
Trump 100% movie tarrif: Africa movie industries to face severe repercussions
Donald trump is taking his trade war to the cinema with his 100% planned tariff on foreign films. It’s been over 100 days Donald trump was sworn-in as the president of the united state of America (USA). Since he assumed office tariff wars has been the order of the day between the US and its trade partners. Following ‘liberation day declaration’ which wasn’t ‘liberating’ for Africa and other US trade partners; in the spirit of ‘make America great again’ president trump slamed 10% baseline tariff across all US trading partners followed by reciprocal tariff to some countries he considered treats the US badly . in Africa Lesotho got the heftiest tariff of 50% while south Africa 30% and Nigeria the giant of Africa 14%. Although this tariff has been suspended for 90 days as the US look to hold more consultation and dialogue with its trading partners. But recently Donald trump has plans of taking his tariff war to the big screen. On the 4th of May, president trump through his truth social media official handle, instructed the commerce department and US trade representative to place a 100% percent tariff on all movies imported into the US. He said the America movie industry (Hollywood) is dying while accusing other countries of offering bribes and incentives to lure filmmakers and studio away from America. Statista report says: Hollywood has continued to be a dominant force in the global movie industry generating $36.6 billion at global box office in 2016. the highest for any movie industry. The Report also shows Hollywood maintains its foothold on BRICS countries like: Brazil, Russia, India and china. In Africa Hollywood holds significant share of revenue in markets like Nigeria and Ghana. He further empathized that the tariff is a strategic move to save the Hollywood industry. “the movie industry in America is dying a very fast death. Other countries are offering all sorts of incentives to draw our filmmakers and studious away from the united state” trump said. “therefore, I am authorizing the department of commerce, and the united state trade representative to immediately begin the process of instituting a 100% tariff on any and all movies coming into our country that are produced in foreign lands.” He added. However, this tariff when implemented could lead to serious complications in Africa movie industry, particularly, to south Africa the largest site for foreign film production and Nigeria Africa largest movie industry and second largest in the world. “U.S.A., are being devastated.” South Africa reputation as world film destination in Africa could face serious repercussions if president trumps recent policy becomes a reality. Reports from south Africa the good news publication, shows from November 2023 to June 2024 foreign film production investment in south Africa grossed $137.77 million, with future projections exceeding $273.36 million (R5 billion) by October 2025. Between November 2023 to August 2024 international production crews booked over 59000 hotel room, injection nearly $8 million into hospitality industry in south africa, with an average of $137 per night. Bobby Amm, CEO of commercial producer association south Africa (CPASA), emphasized that the money generated from film production touches all sector of the economy quickly. “ for every dollar spent on film production in south Africa an additional 14 cent dollar (2.50 south Africa rand ) is generated in the local economy” he said. With additional spending on dinning, transport, and recreation highlights the significance of foreign filmmakers as high value business tourist. The publication says over 8 months in 2024, film industry generated over 26,577 jobs for local freelance crew members and performers in south Africa. 2025 Projections for the South African film industry: Flights: Total projected flights: 12,036 Total projected revenue: R350,849,400 Airport Transfers: Total projected transfers: 12,036 Total projected revenue: R7,654,896 Meals and Entertainment: Average daily spend per person: R750 Total projected spend: R9,568,620 Hotel Stays: Total projected hotel stays: 68,060 nights Total projected revenue: R180,957,900 Tourism Economy: Total projected turnover: R6.37 billion in 2025 If implemented these tariffs could have reaching implications for international film hubs like south Africa where Hollywood has increasingly turned to shoot films thanks to favorable incentives, lower cost and skilled local crews. However CNN report expressed that many America filmmaker and studios said it’s more economical to shot movie outside the united state due to cheaper labors, and cut in taxes that other countries offer as compare to producing a film in los angels California. “many American movies and shows are shot on location outside the united state. In addition to tax breaks. Many foreign staff demands cheaper pay, making it more economically viable to produce.” It noted. While president trump grappled about production leaving the US due to soaring expenses; international locations, south Africa in particular benefited from this shift. As there’s has been a surge in south Africa international film production. For countries like south Africa, with affordable and efficient movie production destination, the proposed tariff could mean fewer inbounds projects and a significant blow to local film economies. However Trump believes other factors are responsible for the exodus of filmmaker in the united state. He said it’s a coordinated plan by other nations and describe it as a matter of national security to the united state. “Hollywood, and many other areas within the U.S.A are being devastated. This is a concerted effort by other nations and therefore, a national security threat.” He said. Meanwhile, expert says, screening in Nigeria communities abroad contributes to significant international viewership. According to a report from Nigeria entertainment conference (NEClive), the Nigeria entertainment industry would reach an estimated $14.82 billion revenue in 2025, up from $4 billion revenue recorded in 2013, NEClive noted that movie production has surge from 1800 films in 2013 to 2500 films in 2025 this makes Nigeria the 2nd largest film producer in the world only behind Indians Bollywood the largest film producer in the world. “the sector has moved from the production and distribution of 1800 films worth $5.1 billion in 20213 to 2500 film
Africa Development bank paper strategy for Nigeria; Capture climate-smart agricultural infrastructure development aligns with long-term development plan
As Africa development bank (AFDB) strives to promote sustainable economic development and social progress in the region; with the aim of growing the continents GDP, which is predicted to grow from 3.2 percent in 2024 to 4.1percent in 2025. By AFDB. The Africa development bank in a press statement has just recently announced the approval of five year- country paper strategy plans to boost economic growth in the Giant of Africa (Nigeria). This recent strategy will help millions of Nigerians access finance, skills, and infrastructure for farming, business growth and a stronger economy. Report says The AFDB five year- country strategy paper (2025-2030) for Nigeria, is committing about $650 million annually to driving economic transformation, build resilience, and foster broad-based prosperity in the country. Under this new strategy the bank will provide $2.95 billion over the first four years, then complemented by an estimated $3.21 billion in co-financing from development partners. According to the AFDB press release the strategy will be focusing on two “key-priorities”: promoting sustainable climate- smart infrastructure to enhance competitiveness and industrial development, and advancing gender and youth-inclusive green growth. Abdul Kamara, Director General of the African Development Bank’s Nigeria Office. While commenting on the strategy said it’s a “transformative partnership” which will strengthen ties between Nigeria and AFDB. He also expressed optimism that a “new level” will be achieved with the partnership. “This strategy takes a transformative partnership between the Bank and Nigeria to a new level.” He said. Improving Climate-smart framework. Mohammed Dahiru aminu an environmental expert and policy manager at methane pollution prevention; while writing in Abuja, expressed his concerns about how environmental changes is negatively impacting every aspect of our lives in Nigeria, he stressed that climate change is responsible for “present-day realities affecting farmers, food production and rural communities”. “I have seen firsthand how environmental change impacts every aspect of our lives In Nigeria, the effects of climate change are not just statistics or predictions for the future. They are a present-day reality affecting farmers, food production and rural communities.” He wrote. He also noted that; to combat the environmental problems which farmers face today 🙁 reduced crop yields, low productivity, floods, reduced harvest, droughts.) Which has caused: food shortages, rising prices and increased poverty in the Nigeria. He then proceeds to call for the need to embrace climate-smart policies as a solution. “To combat these challenges, it is important to embrace climate-smart agriculture”. He added. The AFDB policy stated that; it aims to combat the challenges of climate-smart development in Nigeria and will be investing in key climate-smart infrastructure projects like: climate-friendly, roads, power and water systems. And boost the country’s critical infrastructure gap over the coming years. “The strategy aims to close Nigeria’s critical infrastructure gap – estimated at $2.3 trillion between 2020 and 2043” it stated. However Mr. Abdul Kamara said with AFDB investment in “inclusive agricultural growth” millions of Nigeria will experience prosperity and huge transformation in the agricultural sector. “By investing in sustainable infrastructure and inclusive agricultural growth, we are not only building roads, power systems, and transforming agriculture – we are building pathways to prosperity for millions of Nigerians.” he said. Women, youth inclusiveness and green economy. AFDB press release confirms that million of Nigerian women, youth and small businesses, micro enterprises , medium sized enterprises – together with state government and rural communities will “benefit” from improved access to finance , enhanced supply chains, trainings, and business opportunities. Further-more, AFDB also reveals that it will be working closely with Affirmative Finance Action for Women in Africa (AFAWA). AFAWA, a pan-African initiative created to bridge the $42 billion financing gap facing women in Africa. AFAWA leverages the African Development Bank’s financial instruments to increase lending to women. Following the approval of this strategy Nigerian women entrepreneurs will benefit “targeted support” from AFDB throw AFAWA program. “Women entrepreneurs will receive targeted support under programs like the Bank’s Affirmative Finance Action for Women in Africa (AFAWA) initiative”. It noted. AFDB through its press release also said this strategy will provide opportunities for youth in Nigeria to gain critical skills that will help end unemployment in the country. “youth will gain critical skills to tackle unemployment.” AFDB noted. Aligning with Nigeria long-term development plans. According to the release, AFDB investments are projected to support Nigeria’s ambition to double the size of its economy to $1 trillion and to create 1,561,000 jobs. However AFDB said this new strategy “ aligns” with Nigeria long-term development plans which include: * Agenda 2050: According to world food and agricultural organization (FOA) This Nigeria Agenda presents the government’s long-term economic transformation blueprint to address the economic and social developmental challenges and transform Nigeria in an upper middle-income country, through a full engagement of all resources, in order to achieve inclusive growth, reduce poverty and unemployment, increase social and economic stability, create a sustainable environment, and reduce global concerns about climate change. * Nigeria’s National Development Plan (NDP). National library of Nigeria explains that the NDP 2021 – 2015, is a medium-term blueprint designed to unlock the country’s potentials in all sectors of the economy for a sustainable, holistic and inclusive national development, developed by the different facet of the Private Sector, Sub-national Government, Civil Society Organization (CSO) and facilitated by the Federal Government of Nigeria. * 2023 Renewed hope Agenda: which the vice president of Nigeria; His Excellency Kashim Shettima has explained as a strategy of President Bola Ahmed Tinubu’s administration in transformative policy thrust, aimed at repositioning Nigeria as a prime global investment destination. He said with the agenda hinged on the core pillars of democracy, development, demographics, and Diaspora engagement, the present moment serves as the opportune time to remind both Nigerians and the global community that Nigeria stands ready to embrace the future and conduct business. NWALI CHIDOZIE MICHAEL