The agreement, which spans 25 years, will ensure a steady supply of natural gas from the Calub field in the Ogaden Basin. The gas will be transported via a 108-kilometer pipeline to a fertilizer plant under development in Gode.

The fertilizer facility, estimated to cost $2.5 billion, is expected to produce up to 3 million tons of urea annually once operational, with completion targeted for 2029. The project is a joint venture between Dangote Group, which holds a 60% stake, and Ethiopian Investment Holdings, which owns the remaining 40%.

Ethiopia currently relies heavily on imported fertilizer to support its agricultural sector, bringing in millions of tons each year. The new plant is expected to significantly reduce this dependence by meeting domestic demand while also supplying neighboring markets across East Africa.

By integrating natural gas production with fertilizer manufacturing, the project establishes a full domestic value chain that could enhance productivity in agriculture and strengthen food security in the region. It also positions Ethiopia as a potential fertilizer export hub, helping stabilize supply and prices in a market often affected by global disruptions.

Beyond agriculture, the initiative is expected to drive broader economic benefits, including job creation, infrastructure development, and increased industrial capacity. It also reflects a growing trend of strategic partnerships between African industrial players and international energy firms, particularly from China.

The deal underscores Dangote Group’s continued expansion beyond Nigeria and its commitment to large-scale industrial projects across Africa. If successfully executed, the Ethiopia fertilizer plant could become one of the largest in the region, reinforcing the continent’s efforts to harness local resources for sustainable development.

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A newly executed supply agreement between carbon asset manager Econetix and SCB Environmental Markets signals that African‑origin credits are moving toward eligibility under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), the framework overseen by the International Civil Aviation Organization to curb airline emissions growth.

The deal, involving credits sourced from projects in the Democratic Republic of the Congo, reflects a broader push to position African carbon assets within compliance markets rather than the voluntary offset space, where prices have been volatile and scrutiny over environmental integrity has intensified.

It is also part of Econetix’s goal to originate, certify and commercialise high‑integrity carbon credits that fully comply with the requirements of the aviation reduction scheme.

“This deal marks the starting point for Econetix as a leading CORSIA supplier. We have demonstrated our ability to originate, certify and transact high‑integrity carbon assets at the level and integrity the aviation market demands,” said Jakob Zenz, founder of Econetix.

CORSIA, which enters a more demanding phase later this decade, is expected to generate demand for hundreds of millions of tonnes of eligible credits through 2035.

While much of that supply has historically come from Latin America and parts of Asia, African governments and project developers are increasingly seeking to align with Article 6 mechanisms under the Paris Agreement to ensure credits meet international compliance standards.

Market participants say the shift requires navigating complex authorisation procedures, including corresponding adjustments to prevent double counting and registry labelling processes that satisfy both host governments and airline buyers.

“For African countries, this is less about one transaction and more about building institutional capacity,” said one market adviser involved in the deal. “Compliance markets require a different level of governance.”

Econetix, which is active in 16 African countries, has been working with national authorities to structure projects capable of meeting CORSIA eligibility requirements. SCB Environmental Markets will distribute the credits to aviation buyers through its global network.

“For Africa, this is not just about carbon credits — it is about long‑term investment, institutional capacity building and predictable revenue streams for governments and local communities,” said Paul Nimmerfall, founder of Econetix. “Through this and upcoming CORSIA transactions, millions of dollars will flow directly into African project countries.”

Econetix has developed expertise in navigating the regulatory and certification processes required to bring African carbon credits to full CORSIA eligibility, giving it an edge in the market. This includes Article 6 authorisations, corresponding adjustment procedures and registry labelling.

The successful execution of this transaction shows that Econetix can originate high‑integrity African carbon assets and structure and close large‑scale international CORSIA transactions. It positions the company among a small group of global players with technical expertise and a commercial track record in the multi‑billion‑dollar aviation carbon market.

Analysts say the emergence of compliance‑grade supply from Africa could reshape how carbon finance flows into the continent. Voluntary carbon markets have often been criticised for unpredictable pricing and limited fiscal transparency.

By contrast, CORSIA‑aligned transactions require host‑country approval, potentially creating more stable revenue streams for governments.

The Democratic Republic of the Congo, home to vast tropical forest reserves, has been positioning itself as a key player in Article 6 carbon markets, though implementation remains at an early stage across much of the continent.

If additional projects progress through certification, Africa could begin to occupy a more central role in the aviation carbon market, providing compliance‑ready supply at a time when airlines face tightening emissions obligations.

Whether that translates into sustained development gains will depend on governance, price stability and the integrity of credit issuance. For now, however, the transaction signals that African carbon assets are edging into one of the world’s most regulated offset markets.

OPA News

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Total capital raised rose to $3.2 billion, up from $2.2 billion in 2024, yet the number of companies securing more than $100,000 remained largely unchanged.

Latest data from Africa The Big Deal, a research initiative that tracks start‑up investment across the continent, shows that while headline figures improved, the underlying structure of the market continued to consolidate around a small group of capital‑intensive companies.

Fintech retained its position as the continent’s largest sector, attracting $1.2 billion across 124 companies. But the breadth of activity continued to narrow. The top five fintech recipients — M‑Kopa, Wave, MNT‑Halan, Moniepoint and ValU — accounted for 52 per cent of all capital raised in the sector, down from 58 per cent in 2024 but still indicative of a market dominated by repeat mega‑raisers.

Debt played a growing role, with Wave’s $137 million facility and MNT‑Halan’s bond issuance helping lift the sector’s total despite fewer funded companies. Fintech also led on liquidity, contributing 19 of the year’s 49 exits, more than double the 22 recorded across all sectors in 2024.

The most dramatic shift occurred in energy, where funding nearly doubled to $857 million, returning to levels last seen in 2023. The sector has become structurally dependent on large debt packages: 71 per cent of all capital raised came through debt, with d.light’s $300 million facility and Sun King’s $156 million raise accounting for much of the total.

The top five companies absorbed 82 per cent of all energy funding, underscoring the extent of concentration. Analysts say the pattern reflects both investor caution and the capital‑intensive nature of distributed energy models.

Outside these two dominant sectors, activity was more diffuse. Logistics and transport raised $309 million across 63 companies, almost entirely through equity. Healthcare attracted $211 million, though nearly half of that came from a single $100 million round for LXE Hearing. Agriculture and food remained modest in capital terms at $122 million but continued to show broad participation, with 62 companies securing funding.

Climate tech — which cuts across energy, agriculture, logistics and other verticals — has emerged as one of the continent’s most resilient themes. Companies in the category raised $1.2 billion in 2025, representing 38 per cent of total funding, in line with 2023 levels and up from 34 per cent in 2024.

Participation has risen steadily, with climate‑linked ventures accounting for 29 per cent of all funded companies, compared with 18–20 per cent just three years earlier.

The data suggests a market bifurcating between a small cohort of capital‑intensive platforms able to secure large debt and equity rounds, and a broader base of early‑stage companies raising modest sums. While the headline rebound in 2025 signals renewed investor appetite, the underlying concentration raises questions about the depth and resilience of Africa’s venture ecosystem as it enters 2026.

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Finance Minister Ahmed Kouchouk said the planned issuance is expected in the second half of the 2025/26 fiscal year, which runs from July 2025 to June 2026. The move aims to attract a wider pool of international investors while easing reliance on short-term domestic borrowing and bilateral or multilateral financing.

The eurobond will form part of Egypt’s wider external funding programme, under which total international bond issuance is projected to be capped at around $4 billion in 2026. Authorities say the approach is designed to strike a balance between maintaining market access and managing debt sustainability.

Egypt last tapped international capital markets in January 2025, raising $2 billion through five- and eight-year bond tranches. The issue drew solid investor demand despite relatively high yields, reflecting cautious but improving sentiment toward the country’s debt.

The planned eurobond issuance comes as Egypt continues discussions with the International Monetary Fund under its Extended Fund Facility and Resilience and Sustainability Facility, while pursuing fiscal reforms aimed at stabilizing public finances and easing pressure on borrowing costs.

By diversifying funding instruments and extending maturities, the government hopes to improve debt management, lower refinancing risks and support macroeconomic stability amid ongoing economic adjustments.

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The institute is led by Anaïse Kanimba, daughter of Rwandan activist Paul Rusesabagina, whose story inspired the film Hotel Rwanda. Backed by the Human Rights Foundation and the Massachusetts Institute of Technology (MIT), the initiative aims to ensure that research and policy on Bitcoin reflect African realities rather than being shaped solely by global precedents.

Kanimba emphasized that many African governments often adopt digital currency policies modeled on international examples, overlooking local needs and challenges. The institute intends to address this gap by promoting Africa-driven research, leadership, and innovation in the Bitcoin space.

The move comes as Bitcoin adoption accelerates across Africa, driven by unstable currencies, inflation, and costly cross-border transactions. From community-level use in places like Nairobi’s Kibera settlement to institutional experiments in countries like Kenya, the continent has become an important testing ground for digital financial solutions.

By placing African experiences and perspectives at the center, the Africa Bitcoin Institute seeks to ensure that the continent is not just a passive recipient of digital finance trends but an active contributor to shaping them.

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According to fresh data from Africa: The Big Deal, the milestone was reached in August—weeks earlier than in comparable years—putting 2025 on course to outpace last year’s totals with less than $250 million still to go.

The crossing of the threshold carries symbolic weight in a market where confidence has been fragile since the global venture slowdown. 

“It is a good performance in itself, and encouraging if we compare to previous years,” the Africa-focused tracker noted, recalling that the $2 billion level was only hit in August during both 2021 and 2023. The early arrival of the mark this year suggests funding momentum is steadily returning.

The shift is being powered by a series of large-ticket deals and renewed participation from a wider pool of investors. Already in the first half of 2025, startups on the continent had secured more than $1 billion, with April standing out as one of the strongest months on record. In that single month, companies raised $343 million in transactions above $100,000—4.5 times more than April 2024.

South Africa and Egypt have provided much of the firepower. HearX, a South African healthtech company, drew $100 million through a merger with U.S.-based Eargo, marking the year’s first mega-deal. 

Payments platform Stitch added $55 million from existing backers to extend its end-to-end services, while Egypt’s Islamic fintech Bokra raised $59 million via a sukuk issuance—just a year after its pre-seed round.

These deals not only expanded balance sheets but also mended investor sentiment. Analysts say the pipeline of substantial rounds has been critical in pulling the ecosystem out of its post-pandemic stagnation. “This is the kind of momentum we like to see,” Africa: The Big Deal observed in an earlier note.

Exit activity has also injected confidence. Egyptian fintech ADVA was bought by UAE’s Maseera, Nigerian firm C-One Ventures acquired Bankly, and South Africa’s Peach Payments snapped up PayDunya to enter Francophone West Africa. Such moves highlight a maturing ecosystem where consolidation is beginning to shape regional strategies.

Beyond headline-grabbing transactions, the breadth of engagement has widened. By April, 225 unique investors had participated in African startup deals above $100,000, underscoring a diversification of capital sources. 

While U.S. and European funds remain influential, Middle Eastern and Asian players are increasingly active, creating alternative avenues of financing.

This diversification is viewed as a stabilising factor. It reduces dependency on a handful of traditional sources and aligns with governments’ efforts to deepen cross-border investment partnerships. 

For example, several Gulf funds have been scouting African fintech and renewable energy ventures, while Asian investors are expanding exposure to e-commerce and logistics.

Sectorally, fintech retains its dominance, but health tech, agritech, and clean energy are gaining traction. Angel investor groups had flagged these areas as growth drivers earlier this year, a prediction that appears to be materialising as more deals close in non-fintech verticals. 

The demographic shifts and digital adoption rates across the continent continue to underpin demand for solutions in these sectors.

The recovery in activity can be traced back to late 2024, when Nigerian payments firm Moniepoint closed a $110 million Series C round, becoming a unicorn with a valuation above $1 billion. South Africa’s Tyme Group followed in December with a $250 million Series D that raised its valuation to $1.5 billion. 

These back-to-back announcements served as inflection points, reasserting Africa’s relevance on the global startup map.

Momentum carried into 2025, as funding flows accelerated and the ecosystem reached the halfway mark of $1 billion by June. At that point, funding was already 43% higher than the same period in 2024. The progress since then reflects a consolidation of that trajectory rather than a one-off rebound.

For startups themselves, the return of investor appetite translates into sharper competition for capital but also larger potential payouts. Companies are being urged to demonstrate clearer paths to profitability as investors apply lessons from the global “funding winter.” Leaner operations and more disciplined scaling strategies are now part of the pitch deck expectations.

The early crossing of the $2 billion milestone sets the stage for a strong finish to 2025. If the pace holds, this year could be one of the continent’s best since the record-breaking highs of 2021. Analysts caution, however, that the funding landscape remains vulnerable to global economic shifts and investor sentiment swings.

Still, the numbers suggest that Africa’s startups have re-entered a growth phase, backed by deeper capital pools and widening sectoral interest. As new players arrive and established ones double down, the market appears to be building resilience that was absent during previous cycles.

The question now is less about whether funding will surpass last year’s totals, and more about how high it can climb in the months ahead.

Second Eye Africa

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Digitel’s most visible leap came last year when it launched South Sudan’s first 5G trial, beating long-established players like MTN and Zain to market. 

The pilot, conducted in partnership with Chinese vendor ZTE, clocked download speeds of 1.2 Gbps in Juba’s Hai Neem district. 

Digitel believes that if there is a new technology out there that can help connect the people, it will try to bring that technology to South Sudan.

The company’s strategy hinges on local insight. Digitel offers phones with extended battery life to suit areas with limited electricity, and its data bundles are priced to match the spending power of a population where 85% remain offline. The firm is also working toward building its own towers and backhaul systems, aiming to reduce dependence on imported bandwidth and leased infrastructure.

South Sudan’s telecom market has long been dominated by MTN, which held over 60% of mobile subscriptions by the end of 2024. The South African operator added 1,556 4G sites across its African footprint last year, helping drive a 25% increase in mobile subscribers in South Sudan alone. 

But Digitel’s entry has begun to shift the competitive landscape. While full market data remains scarce, Digitel insiders say the company is adding users at a faster clip than its rivals, particularly in underserved urban corridors.

The expansion comes amid severe economic headwinds. The civil war in neighbouring Sudan has disrupted oil exports, South Sudan’s primary source of foreign currency. Inflation has surged, and the South Sudanese pound has weakened sharply against the dollar, making it harder to import telecom equipment. Insecurity in several states has delayed tower construction and forced operators to reroute logistics.

Still, telecoms have proven resilient in conflict zones. “Telecom companies should be quite familiar with war,” Nzioka Waita, Africa director at the Tony Blair Institute told The Economist. He pointed to Somalia’s thriving mobile sector and Ethiopia’s state-owned Ethio Telecom, which posted record revenues despite ongoing unrest.

Digitel’s growth is concentrated in Juba, Wau, and Malakal, where mobile broadband penetration is highest. But the company is also testing renewable-powered towers to push coverage into rural counties, where infrastructure is sparse and electricity unreliable. The firm’s long-term goal is to blanket the country with basic voice and data services, eventually enabling mobile money and cloud-based enterprise tools.

The startup’s ambitions have drawn cautious optimism from analysts. “Digitel is one of the first serious homegrown attempts to expand digital access in South Sudan,” said Martin Macharia, a technology analyst based in Nairobi. “They’re trying to build a digital ecosystem.”

The company’s leadership team includes Paul Onek, chief technology officer, and Wilson Kyumba, chief operations officer, both of whom have backgrounds in regional telecom deployments. Their focus has been on operational efficiency and local hiring, with Digitel recruiting engineers and technicians from South Sudanese universities and vocational programs.

Government support has been limited but not absent. The Ministry of Information has praised Digitel’s 5G trial as a “gateway to unprecedented opportunities,” and the Universal Service and Access Fund has called for rural deployment beyond Juba. However, regulatory clarity remains a challenge, and tax exemptions granted to Digitel have sparked debate over market fairness and fiscal sustainability.

Digitel is betting that local engagement will give it an edge, since foreign firms don’t always understand the nuances of that complex market.

On the wall behind Awuol desk hang portraits of Che Guevara and Tupac Shakur the Economist reported—figures he says represent defiance and vision. 

Whether Digitel can emulate their legacy in the telecom space remains to be seen. But in a country where connectivity is still a luxury, the startup’s rapid expansion is already reshaping expectations.

Second Eye Africa

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Seth Onyango, Second Eye Africa 

African startups have surged past expectations in the first half of 2025, raising over $1.4 billion in deals exceeding $100,000 — a striking rebound from the slower pace of 2024.

Buoyed by a robust $365 million haul in June alone, the continent’s venture capital activity is proving that last year’s funding freeze may well be behind it.

June’s milestone marks the strongest monthly performance in nearly a year and seals a promising H1 for Africa’s startup ecosystem.

Monthly funding has consistently exceeded $250 million on four occasions this year, with a monthly average of $237 million — up from $133 million in H1 2024 and $187 million across all of 2024.

This 78% year-over-year increase underscores the ecosystem’s accelerated momentum and places H1 2025 on par with H2 2024, despite a modest 1.5% dip.

Equity funding saw a healthy climb with $950 million raised, significantly outpacing the $531 million recorded in H1 2024.

Debt financing also saw a rebound, closing at $400 million, up 55% year-over-year, thanks largely to June’s explosive $227 million in debt deals, including $137 million raised by Wave, the highest monthly debt total in more than two years.

After a protracted chill in Africa’s venture capital (VC) activity, the continent’s startup scene had already begun showing strong signs of revival earlier in the year.

Mega deals in the period helped restore momentum. South African healthtech hearX merged with U.S.-based Eargo in a $100 million transaction, while Egyptian fintech Bokra issued a $59 million sukuk, and Stitch raised $55 million from existing investors.

Exits have also been active, with Egypt’s ADVA acquired by Maseera (UAE), Nigerian firm Bankly taken over by C-One Ventures, and Peach Payments of South Africa acquiring PayDunya to expand into Francophone West Africa.

From January to April, startups raised $803 million across 163 deals, a 43% rise over the same period last year. Notably, at least 225 unique investors participated in deals over $100,000, signalling broader engagement across the ecosystem.

The end of 2024 laid the groundwork for this surge. Unicorn announcements from Moniepoint and Tyme Group reignited interest, while more diverse capital sources—including Middle Eastern and Asian investors—began flowing into the continent’s tech sector.

With robust numbers and a diversified investor base, African startups appear poised for sustained growth across fintech, healthtech, agritech, renewables, and e-commerce. The freeze may be over—and this time, the warmth seems here to stay.

SEA

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As political calm starts to settle in Libya, the country’s sovereign wealth fund is repositioning itself across Africa, reshaping its investment playbook to focus on high-yield, growth-driven sectors in a bid to reignite its economic influence.

Second Eye Africa

Amid a fragile but promising calm, Libya is reactivating its sovereign wealth strategy, reengaging with a broad African investment portfolio that had been left dormant through years of political chaos.

With civil unrest having frozen the operations of the $67 billion Libyan Investment Authority (LIA) for years, a slow recovery is now allowing the fund to breathe new life into assets long-held across the continent.

Spearheading this revival is the Libyan African Investment Company (Laico), a key LIA subsidiary, which has begun trimming underperformers while revamping core holdings in pursuit of profitability.

Laico is now actively courting international partners to revive its once-dominant presence in sectors like hospitality, energy, and telecommunications—pillars of Libya’s former economic outreach.

Its newly updated digital presence outlines plans to “apply next-generation technologies to optimise operations” and “promote sustainable development.”

That includes updating assets from the Gaddafi era and chasing growth in emerging areas such as agritech and clean energy.

“Laico is engaged in a strategic overhaul, aimed at boosting the value of high-performing holdings while offloading unproductive ones,” it notes.

The strategy is increasingly reminiscent of Gulf-style investment diplomacy, with Tripoli taking cues from regional heavyweights like Saudi Arabia and Qatar to pivot from oil dependency to diversified growth.

The LIA, long hamstrung by sanctions and internal conflict, is most widely recognised for its historical equity in landmark infrastructure ventures—including Kenya’s Ola Energy and Johannesburg’s iconic Michelangelo Hotel.

Its recent moves, however, suggest a sharpened business instinct, following a more commercially focused model akin to those of Gulf sovereign funds seeking regional influence through capital deployment.

A more stable government in Tripoli is creating room to re-enter key markets, especially in hospitality and tourism, where Libya retains substantial equity.

In a bold move, Laico’s Ensemble Hotel Holdings has gone to court in South Africa, seeking to force the sale of Legacy Hotels—a luxury brand with 19 properties—positioning Libya for its most aggressive post-sanctions acquisition yet.

That ambition dovetails with the broader repositioning of Ola Energy (formerly OilLibya), which now operates 3,000+ fuel outlets in 17 countries spanning North, West, Central and East Africa—putting it head-to-head with giants like TotalEnergies and Shell.

Laico’s diversified portfolio spans 27 African nations, managing 20 hotels and two resorts offering more than 3,500 rooms.

Meanwhile, a US$300 million oil pipeline in Uganda—frozen for over a decade due to contract disputes—is seeing renewed momentum as diplomatic relations improve.

The company’s website underscores a shift in revenue strategy: “We are expanding beyond hospitality to reduce exposure and tap into high-growth areas like agriculture, fintech, and clean energy.”

This push is powered by the extensive African footprint Libya established under Gaddafi’s pan-African investment strategy.

Examples abound: Laico helped fund Chad’s Kempinski N’Djamena hotel and telecom operator SOTEL. In Mali, the long-paused Malibya agribusiness project—spanning 100,000 hectares—is being cautiously revived.

In Guinea-Bissau, Libya has four cashew processing plants and a luxury hotel. In Gabon, it owns a controlling 52% share in Africa N°1, a Pan-African radio station with an audience of 20 million.

Zimbabwe’s CBZ Bank counts Libya Foreign Bank as a 14% shareholder. In Niger, Libya backs major hotels and religious infrastructure. In Rwanda, following the 2011 collapse of Rwandatel, Laico has pivoted to investing in data centres.

Laico describes its approach as “capitalising on its broad African presence to uncover trade and business prospects.”

Among newer ventures is a push to draw investors into Rascom Star-Qaf, a satellite firm delivering telecom and broadband across the continent.

In Mozambique, Laico’s subsidiary Lap Ubuntu.SA runs a 20,000-hectare rice and milling project aimed at enhancing food production and rural livelihoods.

To shed its outdated image, Laico has polished its investor pitch. The company now promotes blockchain-traced supply chains and AI-integrated dashboards to appeal to innovation-focused markets in Lagos and Cape Town.

In Senegal and Tanzania, Ola Energy is trialling solar-powered microgrids. The Laico Regency Hotel in Nairobi, acquired in 2008, has become a nerve centre for regional deal-making.

Still, Libya’s resurgence is not without obstacles. The country’s internal divisions—particularly the ongoing tug-of-war between Tripoli and the eastern factions—continue to cloud investor confidence.

“There’s a real concern that the sudden deal activity may be driven by short-term brokerage interests rather than a coherent long-term strategy,” warns Aly-Khan Satchu, a financial analyst based in Nairobi.

Even so, Satchu sees the LIA as a heavyweight contender: “They have deep financial reserves. Optimising the portfolio is long overdue, and if executed properly, Libya could easily reclaim its stature as a top-tier investor across the continent.”

Cross-border risks linger, with Uganda’s pipeline contract dispute serving as a cautionary tale. But the LIA is pressing ahead, riding on the back of Africa’s forecasted 4% economic expansion this year.

SEA

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