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Igniting Innovation-Based Growth in Africa

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Tolu Oyekan Inclusive Economic Recovery

By Tolu Oyekan

Despite being the second largest continent by population and its huge landmarks, Africa still lags behind in several indicators vital for a successful industrial revolution. The region is still behind in the most important measures of innovation capacity.

Although Africa has 18% of the world’s population, it accounts for only 0.3% of global R&D spending and 0.5% of patent applications. Trade statistics paint a picture of a relatively low-tech, low value-add region: Africa produces 0.4% of global high-technology exports and 0.8% of middle-technology exports, such as industrial machinery, autos and chemicals.

Unlike previous waves of industrial change, competing in the digital age doesn’t require deep scientific expertise or massive capital investment. Instead, innovators and entrepreneurs in emerging markets are in a position to tap into flows of talent and digital knowledge; and convert them into novel goods, services and business models.

Specifically, Nigeria has been making steady progress in digitalization, technological advancement and innovation. The advent of the internet has impacted Nigeria positively; connecting businesses, individuals and enterprises in a seamless manner. Internet access and mobile phone usage have grown dramatically, as has Science, Technology, Engineering and Mathematics (STEM) education.

Nigeria has the potential to unleash innovation that could transform industries and improve well-being across the region. These innovations can be seen in the transport, health, education, payment and fintech sectors.

Nigerian startups have attracted hundreds of millions of dollars in equity funding. Voltron Capital is one of the well-known active investors in Nigeria tech startups and Africa at large.

Since its inception in 2014, it has invested in 33 startups. The Fintech (Financial technology) sector is one of the major and fastest-growing start-up ecosystems in Nigeria and these companies in Nigeria are driving tangible change for businesses.

According to a study by Boston Consulting Group (BCG), the number of African tech startups receiving funding between 2015 and 2020 increased by 46%, nearly six times faster than the global average.

However, the progress Africa has achieved has been concentrated in a handful of nations: Nigeria and five other African countries (Egypt, Kenya, Morocco, South Africa, and Tunisia.) These six countries account for half of all African mobile communication subscriptions, for example. Internet access and mobile phone usage have grown dramatically.

In 2021, Nigeria had 108.75 million internet users. This figure is projected to grow to 143.26 million internet users in 2026.  Four nations receive around 85% of the continent’s venture capital investments and 70% of STEM graduates.

South Africa, Egypt and Morocco account for 70% of public R&D spending in Africa. By their analysis, only two nations—South Africa and Kenya—have comprehensive regulations related to innovation.

In a recent report by BCG, Morocco’s 200-company automotive cluster is launching R&D initiatives linking manufacturers to universities and Kenya has emerged as a hotbed for fintech. South Africa’s dynamic health technology ecosystem includes more than 120 companies. Incubators, entrepreneurship training and investment funds are making Egypt the region’s fastest-growing startup ecosystem.

The good news is that talents in the region who are trained in the skills needed for fields like AI and advanced analytics are proving that they can integrate seamlessly into global value chains.

Freelance workers in such digital disciplines are in high demand, and the COVID-19 epidemic has made leading corporations far more receptive to remote work. This means that, for once, governments that invest in training can create jobs at home that will contribute to socio-economic development and innovation in Africa—rather than a brain drain.

Given the region’s diverse markets, there is no uniform approach to building and nurturing an innovation-driven economy that will work in all of Africa. The most appropriate strategies and mixes of policies will depend on which types of innovators—such as Multinational corporations, local champions, or startups—are being targeted.

There are, however, three basic steps that African governments need to follow to activate their national innovation system: build a national innovation strategy, stimulate domestic innovation activity, and enable the new national innovation ecosystem.

Building a National Innovation Strategy

Governments need to set their sights on innovation-driven fields that can create value well into the future by defining a national ambition and targeting priority innovation sectors. This can be done by considering the evolving opportunities in the emerging, digitally connected, Industry 4.0-driven global economy. Based on this analysis, policymakers should identify industrial sectors that are in the strongest position to achieve key national goals.

Nigeria has taken the initiative to adopt a National Strategy for the development and expansion of the tech ecosystem into communities, schools and innovation-driven enterprises (IDEs), thereby providing an opportunity for various sectors of the economy to leverage technology to transform business models, enhance productivity and efficiency; while also creating jobs and wealth for operators.

Stimulating Domestic Innovation Activity

To successfully launch different innovation clusters to stimulate innovation activity and attract foreign partners, African governments should provide operational, technical and financial support; encourage collaboration, invite open innovation and provide an innovation-friendly regulatory environment.

Enabling the New Innovation Ecosystem

A well-designed policy framework can lay the ground for a thriving innovation economy. But governments—especially in developing economies such as those in Africa—must also play a lead role in driving the investments that are needed to build innovation capacity.

Governments can leverage the success of leading-edge companies to support the development of innovation ecosystems by collaborating with the private sector to build supporting infrastructure, develop the talent pool and actively pursue and support pro-innovation investment.

While there is no single innovation strategy that can work across such a diverse region as Africa, the basic approach of defining national strategies, stimulating innovation activity and enabling the innovation system applies. Success in these areas will require collaboration among all actors in the innovation ecosystem: local companies, small entrepreneurs, academic institutions and investors. The specific policy formula should vary according to each country’s level of economic maturity, existing innovation capacity, competitive strengths, market ambitions and national needs.

As African nations continue to aggressively invest in their innovation capacity and implement the right blend of strategies and policies, we believe the continent is poised to write a new chapter in its economic history. But Africa should move now while there is still ample opportunity to get on the top deck with innovation cycles that are redefining the future.

Tolu Oyekan is a Partner at BCG

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Middle East Crisis: AfDB, Others Task Africa on Long‑term Structural Reforms

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Africa Long‑term Structural Reforms

By Dipo Olowookere

The need for Africa to protect itself from many external shocks not of its making has again been emphasised by the African Development Bank (AfDB), the African Union Commission (AUC), the United Nations Development Programme (UNDP), and the UN Economic Commission for Africa (UNECA).

On the margins of the 58th session of the Economic Commission for Africa in Tangier, Morocco, the continent was tasked to strengthen regional integration, accelerate African-led financial solutions, and invest decisively in energy, food, and trade resilience so as to move from vulnerability to preparedness.

The meeting focused on the spikes in energy, food and fertiliser prices caused by the ongoing conflict in the Middle East.

The United States and Israel launched airstrikes on Iran in February 2026, and since then, global oil prices have surged by more than 50 per cent as of late March. Twenty-nine currencies in Africa have weakened, raising the cost of servicing external debt and importing food, fuel, and fertiliser.

Disruptions linked to Gulf energy supplies limit access to ammonia and urea during the critical March–May planting season. This will affect agricultural production, compounding risks of crisis and emergency levels of food insecurity, especially for low‑income households and import‑dependent economies.

To address these issues, the quartet has asked African leaders to, in the short-term, stabilise fuel, food, and fertiliser supply, and execute medium‑term reforms to strengthen energy security, targeted social protection, and regional trade under the African Continental Free Trade Area (AfCFTA).

They also tasked leaders to come up with long‑term structural reforms towards stronger domestic resource mobilisation and African financial safety nets, including accelerated implementation of the African Financing Stability Mechanism.

“Continued escalation of the conflict worsens global instability, with serious implications for energy markets, food security, and economic resilience, particularly in Africa, where economic pressures remain acute,” the chairperson of AUC, Mr Mahmoud Ali Youssouf, said.

Also commenting, the UN Under-Secretary-General and Executive Secretary of UNECA, Mr Claver Gatete, said, “Africa has been hit by too many external shocks not of its making. Crises like this reinforce why Africa must finance more of its own future and strengthen regional solutions that build resilience before the next shock hits.”

On her part, the UN Assistant Secretary‑General and Director of UNDP’s Regional Bureau for Africa, Ms Ahunna Eziakonwa, submitted that, “With the right mix of policy choices, financing tools, and political resolve, Africa can weather this shock and emerge more resilient, more self-reliant, and better positioned to shape its own economic future.”

“As global crises multiply, Africa’s response must evolve from managing shocks to fostering resilience. African institutions and development partners need to act swiftly and in concert, leveraging their comparative advantages to cushion short-term shocks while laying the foundations for long-term resilience,” the president of AfDB, Mr Sidi Ould Tah, stated.

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Oyetola Sets Accountability Bar for Maritime Agencies

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By Adedapo Adesanya

The Minister of Marine and Blue Economy, Mr Adegboyega Oyetola, has issued a strong warning to heads of agencies under the ministry, demanding strict accountability and measurable results.

Mr Oyetola issued the warning during the signing of performance bonds with heads of maritime agencies at the Ministerial Management Retreat, held alongside the 2026 first-quarter stakeholders’ engagement in Lagos on Thursday, where he emphasised the need for performance-driven governance.

“Let me emphasise that all Departments and Agencies under the Ministry must remain firmly focused on delivering tangible results,” he said.

In a statement by Mr Bolaji Akinola, Special Adviser to the Minister, Mr Oyetola noted that performance bonds to be signed during the retreat are binding commitments that will be closely monitored and rigorously evaluated.

“These are not ceremonial documents. They are binding commitments. Accountability will not be optional,” the Minister declared.

Mr Oyetola reiterated the need for data-driven decision-making, robust monitoring and evaluation frameworks, and alignment with the Ministry’s strategic objectives.

“At the institutional level, we must remain disciplined and accountable. Every department and agency must deliver measurable outcomes,” he added.

He explained that the retreat was designed to foster alignment between policy formulation, implementation, and stakeholder expectations.

“The integration of this engagement enables us to listen, reflect, and recalibrate,” he said.

The agencies include the Nigerian Ports Authority (NPA), Nigerian Maritime Administration and Safety Agency (NIMASA), Nigerian Shippers’ Council (NSC), National Inland Waterways Authority (NIWA), Maritime Academy of Nigeria, and the Council for the Regulation of Freight Forwarding in Nigeria.

He also announced a 160 per cent increase in revenue generated by agencies under the ministry, attributing the growth to sweeping reforms and a renewed focus on accountability.

“In 2023, our agencies generated N700.79 billion. By the end of 2025, this figure had risen to approximately N1.83 trillion. This remarkable achievement is the result of deliberate and sustained reforms,” he stated.

The Minister explained that the gains were driven by strengthened regulatory oversight, improved revenue assurance mechanisms, digitalisation of key processes, and a firm commitment to blocking leakages.

“This gathering reflects our commitment to a governance approach that is inclusive, transparent, and results-driven,” he added, noting that the convergence of stakeholders, policymakers, and institutional leaders was designed to align policy with implementation and public expectations.

Mr Oyetola linked the ministry’s improved performance to broader sectoral reforms, including port modernisation, approval for disbursement of the Cabotage Vessel Financing Fund (CVFF), and ongoing efforts to enhance indigenous participation in maritime activities.

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Presidency Explains Reason Tinubu Met Jos Attack Victims at Airport

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Tinubu Angwan Rukuba jos victims

By Modupe Gbadeyanka

The Special Adviser to the President on Information and Strategy, Mr Bayo Onanuga, has explained why Mr Bola Tinubu addressed the victims of the Plateau attacks at the airport on Thursday evening.

The decision of President Tinubu to console victims of the attacks, which left over 20 persons dead, at the Yakubu Gowon Airport in Jos last night has continued to generate reactions.

He was criticised for not visiting the victims at the epicentre, Angwan Rukuba, instead of having them to travel to meet with him at the airport.

In a statement on Friday, Mr Onanuga said his principal’s itinerary for yesterday included two main engagements: receiving the Chadian President, Mahamat Idriss Déby Itno, and proceeding to Iperu, Ogun State.

“After Governor Caleb Mutfwang’s briefing, President Tinubu suspended the trip to Ogun. Overnight, the Presidential Villa made arrangements for the visit to Jos, with presidential assets quickly deployed. However, the President could not postpone the scheduled visit by the Chadian leader.

“The President of Chad was at the Presidential Villa for a very important bilateral meeting focused on strengthening security collaboration between the two countries. The meeting ran longer than expected, affecting President Tinubu’s scheduled departure for Jos.

“Upon arrival in Jos, the visit encountered some logistical challenges. While the road distance from the airport to Jos township is approximately 40 minutes, the runway does not support night flights due to the absence of navigational aids. The constraints made it unfeasible to drive into town,  meet victims for on-the-spot assessment and return to the airport before dusk.

“Consequently, state and federal officials decided to bring representatives of the affected community to a hall adjoining the airport so the President could meet with them promptly while adhering to flight restrictions. Among the people in the hall were the Minister of Defence, the Chief of Army Staff and the Inspector General of Police, who had visited Rukuba, the epicentre of the conflict.  President Tinubu deployed the high-level team to Rukuba, including the Senior Special Assistant on Community Engagement, to undertake critical groundwork on security and community engagement, with a view to stabilising the area before his arrival.

“Beyond expressing his condolences to the victims, President Tinubu’s objective was to engage with critical stakeholders in Plateau State on ending the recurring, decades-old conflict that has resulted in needless loss of lives and property.

“President Tinubu’s visit to Jos was not merely symbolic. It was a strategic, high-level engagement aimed at bringing all stakeholders together to address the root causes of conflict and insecurity in the state.

“He interacted with the victims, consoled them, and listened to them. He also listened to local leaders and assured them that the federal government would deliver justice and end the cycle of violence. He promised the deployment of 5000 AI-enabled cameras to monitor the city and enhance the identification and arrest of troublemakers.

“Furthermore, the President invited the community leaders to Abuja for further talks on finding a lasting solution to the recurring violence in the state.

“The meeting, televised live, was solemn and reassuring, boosting residents’ confidence. President Tinubu achieved the purpose of his visit, despite the naysayers’ attempts to ridicule it. He dropped an unmistakable message:  sustainable peace must be built with the people, not imposed on them,” the presidency explained.

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