General
Igniting Innovation-Based Growth in Africa
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
General
Daystar Power Expands Nestlé Solar Partnership Across West Africa
By Adedapo Adesanya
Daystar Power Group has expanded its renewable energy partnership with Nestlé in West Africa, commissioning solar power systems with a combined capacity of 6.884 megawatts across four manufacturing facilities in Côte d’Ivoire, Ghana, and Senegal.
According to a statement, the deployments bring the total installed capacity across Nestlé’s sites to 6,884 kWp, nearly 7 megawatts, making it one of the largest commercial and industrial solar partnerships in the region.
The four sites, two in Abidjan, one in Tema, and one in Dakar, are all fully operational, with each system designed around the specific grid and operational profile of its location.
“Nearly 7 megawatts across four Nestlé facilities is a number we are proud of, but what it represents matters more than the figure itself. It means that one of the world’s most demanding manufacturers has tested our model, trusted it, and come back. Our job now is to keep earning that, across every market where industry needs energy it can count on,” Mr Yischai Beinisch, CEO, Daystar Power Group said in a statement.
The partnership began with a single commissioning and expanded to span three countries and four facilities. In Côte d’Ivoire, Daystar Power has delivered 3,447 kWp across two Abidjan sites. In Ghana, a 2,547 kWp system powers Nestlé’s Tema factory. In Senegal, an 890 kWp installation operates at the Dakar facility.
The company said each system is sized and configured to deliver measurable environmental and social impact, including reduced greenhouse gas emissions and improved energy resilience. The design is tailored to the operational and grid conditions at each location, ensuring reliable, clean energy access while supporting local development and aligning with Nestlé’s publicly stated net-zero commitments.
Adding his input, Mr Samer Chedid, CEO, Nestlé Central and West Africa Region, said the investment reflects its commitment to building a business that not only grows but does so responsibly.
“By advancing solar energy projects in Ghana, Côte d’Ivoire, and Senegal, we are embedding sustainability into our growth, reinforcing our role as a force for good, creating long-term value for communities, and ensuring that our footprint actively contributes to a cleaner, more resilient future,” he said.
General
Nigeria Adopts New Security Framework to Safeguard Oil Assets
By Adedapo Adesanya
Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Federal Ministry of Defence have agreed to deepen collaboration on the protection of critical oil and gas infrastructure through a new non-kinetic security framework designed to curb threats, strengthen community relations and sustain rising output.
The initiative comes as Nigeria recorded crude oil production of nearly 1.8 million barrels per day, one of the highest production levels in recent years, amid intensified efforts to combat crude oil theft, pipeline vandalism and other security challenges across the Niger Delta.
Speaking during a courtesy visit by a delegation from the Ministry of Defence to the Commission’s headquarters in Abuja, the chief executive of NUPRC, Mrs Oritsemeyiwa Eyesan, said the country’s recent production gains were directly linked to coordinated interventions involving security agencies and industry stakeholders.
“Today, we are benefiting from those efforts. Last month, we recorded production of nearly 1.8 million barrels per day throughout the month,” Mrs Eyesan said.
She noted that sustained investments in security operations, technology deployment and human capacity development had significantly improved production stability and operational efficiency in the upstream petroleum sector.
According to her, maintaining and expanding the gains has become critical as Nigeria seeks to increase crude oil output, attract fresh investments and maximise revenue generation from the petroleum industry.
“As we look to the future, we desire to grow production and must have assurances that security threats can be effectively managed. We can only achieve this through stronger collaboration with security agencies and industry stakeholders,” she stated.
Mrs Eyesan stressed that safeguarding oil and gas assets remains central to Nigeria’s energy security strategy and economic growth objectives, noting that production assurance has become a key requirement for investors considering new upstream projects.
She disclosed that the Commission was exploring wider deployment of advanced technologies, including drone surveillance systems, to improve monitoring of the country’s vast oil and gas infrastructure network and detect threats before they escalate into operational disruptions.
The NUPRC boss further revealed that the Commission would work closely with operators to refine and implement a new security framework, while providing leadership in stakeholder engagement and governance structures needed to ensure long-term sustainability.
The Minister of Defence, Mr Christopher Gwabin Musa, said the Ministry was introducing a non-kinetic security intervention model aimed at addressing the underlying causes of insecurity in oil-producing communities.
Rather than relying solely on military operations, he explained that the strategy would focus on community engagement, youth empowerment and social inclusion programmes to build lasting peace around critical energy infrastructure.
“One of the best ways to engage youths in oil-producing areas is through sports-based interventions,” Mr Musa stated.
He explained that the initiative would utilise sports development programmes to channel youthful energy into productive activities, reduce vulnerability to criminal networks and strengthen community ownership of critical national assets.
The Defence Minister, who was represented by one of his aides, added that the intervention would also include structured programmes for persons living with disabilities, creating broader opportunities for participation and economic inclusion in host communities.
According to him, the initiative aligns with the Host Community Development provisions of the Petroleum Industry Act (PIA) and is expected to strengthen relationships between operators and host communities while promoting sustainable development.
General
PTML Unveils $50m Expansion Plan for Tin Can Island Port
By Adedapo Adesanya
Port and Terminal Multiservices Limited (PTML) has disclosed the investment of $50 million to expand its terminal at Tin Can Island Port, Lagos, as part of efforts to strengthen Nigeria’s bid to become the leading maritime hub in West and Central Africa.
PTML Managing Director, Mr Ascanio Russo, made the disclosure on Wednesday during a visit to the Minister of Marine and Blue Economy, Mr Adegboyega Oyetola, in Abuja.
The investment by PTML, a member of the Grimaldi Group, will expand berthing capacity and acquire additional modern port equipment.
“The Grimaldi Group remains deeply committed to Nigeria and believes in the country’s potential as the leading maritime and logistics gateway in West and Central Africa,” Mr Russo said.
“This $50 million investment is designed to expand our berthing capacity and deploy modern equipment that will enhance operational efficiency, cargo handling, and service delivery.”
He said the upgraded berths would enable PTML to receive next-generation Container/Roll-on Roll-off, Con-Ro, vessels, including the largest Con-Ro ships currently operating globally, directly at the Lagos terminal.
“The maritime industry is evolving rapidly, with larger vessels becoming the standard for international trade. Through this expansion, PTML will be fully equipped to accommodate these next-generation Con-Ro vessels and keep Nigeria competitive for global shipping lines,” Mr Russo stated.
He added that the project responds directly to the Federal Government’s call for increased private-sector participation in port modernisation.
Mr Russo said the expansion would facilitate trade, increase cargo throughput, create jobs during construction and operations, and boost government revenue through higher port activity.
On his part, Mr Oyetola welcomed the investment as a vote of confidence in the Federal Government’s maritime reforms.
“This investment shows our reforms are yielding results and that international investors recognise the opportunities in Nigeria’s maritime sector,” the minister said. “We are determined to transform our ports into modern, efficient, and globally competitive gateways that support economic growth and position Nigeria as the maritime hub of West and Central Africa.”
Mr Oyetola said the government was implementing measures to improve port efficiency, reduce bottlenecks, upgrade infrastructure, and strengthen the ease of doing business.
He said these include port modernisation, deeper collaboration with private operators, digitalisation of port processes, and policies to attract more maritime trade.
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