World
10 Reasons to Consider African Trade and Investment Opportunities in 2022
By Lerisha Naidu, Lodewyk Meyer, Mike van Rensburg and Virusha Subban
- Visible green shoots – rising commodity prices
The pandemic closed borders and stopped trade, other than for essentials, across the continent and was the principal reason for a decline in investment in 2020. A lack of available capital and acquisition finance, as well as difficulties pricing deals in an uncertain market, also affected investment.
Other reasons for declining investment, included that the levels of economic activity have slowed in the major African economies, such as Nigeria and South Africa.
However, green shoots are visible and market fundamentals are signalling a region with underlying resilience. Commodity prices are rising and landmark deals are returning to the continent.
- The launch of AfCFTA
To date, 38 countries in Africa had ratified the African Continental Free Trade Area (AfCFTA) agreement and 54 countries have signed it. The start of trading in 2021 resulted in an increase in investor sentiment as dealmakers took note of the agreement’s first movers.
AfCFTA is unlocking significant growth opportunities for the continent, providing the chance for countries to diversify their economies, scale production capacity and widen the range of products made in Africa, in particular boosting the production of manufactured goods.
Closer integration of neighbouring economies is providing a potential avenue for creating scale and competitiveness through domestic market enlargement, promoting development through greater efficiency. AfCFTA is also acting as an impetus for African governments to address their infrastructure needs as well as to overhaul regulations relating to tariffs, bilateral trade, cross-border initiatives and capital flows.
- Shifting patterns and alternative financing
There has been an urgent imperative to identify and enable new sources of finance, outside of traditional lenders and international partners, to address Africa’s infrastructure gaps in, for example, transportation, energy provision, internet access and data services, and education and healthcare infrastructure in Africa.
In the commodity financing space in Africa, international banks have withdrawn as they focus on managing their liquidity and current debt positions. As a result, Development Finance Institutions (DFIs) are increasingly anchoring the infrastructure ecosystem in Africa.
Local and regional banks, specialist infrastructure funds and private equity and debt are also stepping in to collaborate with DFIs and access returns. Multi-finance and blended solutions are expected to grow in popularity as a way to de-risk deals and support a broader ecosystem of lenders.
- Global interest
Trade data from China’s Ministry of Commerce showed China’s trade with Africa has risen 20-fold in twenty years – firming China’s position as Africa’s biggest bilateral trading partner. However, fewer infrastructure financing projects are expected out of China going forward.
Those that do occur will be of higher quality, using sophisticated structures and new finance options, such as supply chain finance structures to deploy finance to the region. The United States is renewing its focus on impact-building and financing strategic long-term projects in the region, with the Export-Import Bank of the United States supporting infrastructure development in the continent. The US recently announced the renewed Prosper Africa initiative, which focuses on improving reciprocal trade and investment between the two regions. The European Union has always been clear about its commitment to strong relationships with African countries.
Recently, DFIs from the US, France and Germany collaborated to finance a substantial transaction in the African healthcare sector. The United Kingdom is also making a strong play for influence, investment and trade with Africa post-Brexit. Further to key summits in 2020 and 2021, finance is being redirected into Africa.
- Post-pandemic sector potential
Investors with strong market positions and an appetite for risk are capitalizing on the bargains in challenged sectors, such as retail, transport, energy, construction, hospitality and leisure, and eyeing opportunities in well-performing sectors like technology, healthcare and Fintech. The oil & gas industry and non-core infrastructure sectors have faced significant stress, producing opportunities for buyers.
An unabated demand for technology has caused extensive cross-sector disruption, with the financial, energy, transport, retail, agricultural and health sectors all seeking opportunities to expand their tech infrastructure.
- Digitization
Digitization is enabling the development and harmonization of a regulatory framework to integrate Africa’s digital economies, crucial to be able to operate in the post-pandemic environment. The African Virtual Trade-Diplomacy Platform was implemented this year to allow parties across different timelines, languages and legal frameworks to meet in a secure online environment, streamlining cross border negotiations.
Digitization is also aiding lenders with assessing risk more accurately through access to previously unavailable data before they deploy capital in the region. This is allowing projects that would otherwise seem too risky to go ahead.
- Leapfrogging traditional energy systems
Access to power in the continent is hampered by the lack of access to competitive funding, the dire state of Africa’s utilities infrastructure, and the need for energy policy and legislation to be adapted to boost investment.
However, new systems and networks are being designed around future environmental stressors and energy demands, without having to consider the limitations of old infrastructure. With the use of mobile technology and the lack of existing electricity transmission networks, these developments are providing an opportunity for African communities to gain access to power by leapfrogging the traditional model of centralized generation and transmission of power.
New and cost-effective solutions that utilize renewable energy, green hydrogen, battery storage and smart power technologies, as well as the global drive towards a decentralized, decarbonized and secure energy supply that addresses climate change and stimulates economic growth, are all leading to investment opportunities.
- Mending chains
Before the pandemic, supply chains were already under pressure in Africa due to inadequate infrastructure, corruption and security issues, poor logistics and onerous regulatory requirements. During COVID-19, these chains became longer and more vulnerable to breaks.
When AfCFTA became operational, it highlighted the crucial need for improved infrastructure and stronger supply chains to facilitate the free flow of trade across the continent.
Last year, the African Union African Peer Review Mechanism highlighted Africa’s supply chain challenges and overreliance on foreign trade and suggested the continent boost its manufacturing capacity to build a supply chain that could not be weakened by global blockages. As a result, many African countries have begun assessing ways to improve their manufacturing capacities so that they can produce local components.
- Competition law and enforcement
Competition policy continues to be viewed by regulators as a key driver of economic growth. Across Africa, competition policy enforcement is increasingly being employed as a tool to boost economic performance and to promote the revitalization of trade and industry.
Numerous jurisdictions have strengthened their competition and antitrust regimes through amendments to existing legislation, the introduction of new laws and regulations, and have renewed fervour and political will to enforce laws. These developments draw attention to the continent’s collective enthusiasm in ensuring competition compliance, and its determination in promoting and protecting more effective economies.
- Environmental Social and Governance
As Africa reduces its over-dependence on natural resources and increases its manufacturing capacity, it must ensure it develops in a sustainable way – spurring investment in projects focused on clean energy, community development initiatives, wildlife protection, sustainable agriculture and low-carbon development, for example.
A commitment to Environmental Social & Governance principles is now a primary focus in the quest for post-pandemic funding, with access to capital for large projects almost certainly containing sustainability requirements.
Lerisha Naidu is a Partner, Competition & Antitrust; Lodewyk Meyer is a Partner, Banking and Finance; Mike van Rensburg is a Partner, M&A; and Virusha Subban is a Partner, Customs and Trade, Baker McKenzie Johannesburg
World
Today’s Generation of Entrepreneurs Value Flexibility, Autonomy—McNeal-Weary
By Kestér Kenn Klomegâh
The Young African Leaders Initiative (YALI) is the United States’ signature step to invest in the next generation of African leaders. Since its establishment in 2010 by Obama administration, YALI has offered diverse opportunities, including academic training in leadership, governance skills, organizational development and entrepreneurship, and has connected with thousands of young leaders across Africa. This United States’ policy collaboration benefits both America and Africa by creating stronger partnerships, enhancing mutual prosperity, and ensuring a more stable environment.
In our conversation, Tonya McNeal-Weary, Managing Director at IBS Global Consulting, Inc., Global Headquarters in Detroit, Michigan, has endeavored to discuss, thoroughly, today’s generation of entrepreneurs and also building partnerships as a foundation for driving positive change and innovation in the global marketplace. Here are the excerpts of her conversation:
How would you describe today’s generation of entrepreneurs?
I would describe today’s generation of entrepreneurs as having a digital-first mindset and a fundamental belief that business success and social impact can coexist. Unlike the entrepreneurs before them, they’ve grown up with the internet as a given, enabling them to build global businesses from their laptops and think beyond geographic constraints from day one. They value flexibility and autonomy, often rejecting traditional corporate ladders in favor of building something meaningful on their own terms, even if it means embracing uncertainty and financial risk that previous generations might have avoided.
And those representing the Young African Leaders Initiative, who attended your webinar presentation late January 2026?
The entrepreneurs representing the Young African Leaders Initiative are redefining entrepreneurship on the continent by leveraging their unique perspectives, cultural heritage, and experiences. Their ability to innovate within local contexts while connecting to global opportunities exemplifies how the new wave of entrepreneurs is not confined by geography or conventional expectations.
What were the main issues that formed your ‘lecture’ with them, Young African Leaders Initiative?
The main issues that formed my lecture for the Young African Leaders Initiative were driven by understanding the importance of building successful partnerships when expanding into the United States or any foreign market. During my lecture, I emphasized that forming strategic alliances can help entrepreneurs navigate unfamiliar business environments, access new resources, and foster long-term growth. By understanding how to establish strong and effective partnerships, emerging leaders can position their businesses for sustainable success in global markets. I also discussed the critical factors that contribute to successful partnerships, such as establishing clear communication channels, aligning on shared goals, and cultivating trust between all parties involved. Entrepreneurs must be proactive in seeking out partners who complement their strengths and fill gaps in expertise or resources. It is equally important to conduct thorough due diligence to ensure that potential collaborators share similar values and ethical standards. Ultimately, the seminar aimed to empower YALI entrepreneurs with practical insights and actionable strategies for forging meaningful connections across borders. Building successful partnerships is not only a pathway to business growth but also a foundation for driving positive change and innovation in the global marketplace.
What makes a ‘leader’ today, particularly, in the context of the emerging global business architecture?
In my opinion, a leader in today’s emerging global business architecture must navigate complexity and ambiguity with a fundamentally different skill set than what was previously required. Where traditional leadership emphasized command-and-control and singular vision, contemporary leaders succeed through adaptive thinking and collaborative influence across decentralized networks. Furthermore, emotional intelligence has evolved from a soft skill to a strategic imperative. Today, the effective modern leader must possess deep cross-cultural intelligence, understanding that global business is no longer about exporting one model worldwide but about genuinely integrating diverse perspectives and adapting to local contexts while maintaining coherent values.
Does multinational culture play in its (leadership) formation?
I believe multinational culture plays a profound and arguably essential role in forming the kind of leadership required in today’s global business environment. Leaders who have lived, worked, or deeply engaged across multiple cultural contexts develop a cognitive flexibility that’s difficult to replicate through reading or training alone. More importantly, multinational exposure tends to dismantle the unconscious certainty that one’s own way of doing things is inherently “normal” or “best.” Leaders shaped in multicultural environments often develop a productive discomfort with absolutes; they become more adept at asking questions, seeking input, and recognizing blind spots. This humility and curiosity become strategic assets when building global teams, entering new markets, or navigating geopolitical complexity. However, it’s worth noting that multinational experience alone doesn’t automatically create great leaders. What matters is the depth and quality of cross-cultural engagement, not just the passport stamps. The formation of global leadership is less about where someone has been and more about whether they’ve developed the capacity to see beyond their own cultural lens and genuinely value differences as a source of insight rather than merely tolerating them as an obstacle to overcome.
In the context of heightening geopolitical situation, and with Africa, what would you say, in terms of, people-to-people interaction?
People-to-people interaction is critically important in the African business context, particularly as geopolitical competition intensifies on the continent. In this crowded and often transactional landscape, the depth and authenticity of human relationships can determine whether a business venture succeeds or fails. I spoke on this during my presentation. When business leaders take the time for face-to-face meetings, invest in understanding local priorities rather than imposing external agendas, and build relationships beyond the immediate transaction, they signal a different kind of partnership. The heightened geopolitical situation actually makes this human dimension more vital, not less. As competition increases and narratives clash about whose model of development is best, the businesses and nations that succeed in Africa will likely be those that invest in relationships characterized by reciprocity, respect, and long-term commitment rather than those pursuing quick wins.
How important is it for creating public perception and approach to today’s business?
Interaction between individuals is crucial for shaping public perception, as it influences views in ways that formal communications cannot. We live in a society where word-of-mouth, community networks, and social trust areincredibly important. As a result, a business leader’s behavior in personal interactions, their respect for local customs, their willingness to listen, and their follow-through on commitments have a far-reaching impact that extends well beyond the immediate meeting. The geopolitical dimension amplifies this importance because African nations now have choices. They’re no longer dependent on any single partner and can compare approaches to business.
From the above discussions, how would you describe global business in relation to Africa? Is it directed at creating diverse import dependency?
While it would be too simplistic to say global business is uniformly directed at creating import dependency, the structural patterns that have emerged often produce exactly that outcome, whether by design or as a consequence of how global capital seeks returns. Global financial institutions and trade agreements have historically encouraged African nations to focus on their “comparative advantages” in primary commodities rather than industrial development. The critical question is whether global business can engage with Africa in ways that build productive capacity, transfer technology, develop local talent, and enable countries to manufacture for themselves and for export—or whether the economic incentives and power irregularities make this structurally unlikely without deliberate policy intervention.
World
Russia Expands Military-Technical Cooperation With African Partners
By Kestér Kenn Klomegâh
Despite geopolitical complexities, tensions and pressure, Russia’s military arms and weaponry sales earned approximately $15 billion at the closure of 2025, according to Kremlin report. At the regular session, chaired by Russian President Vladimir Putin on Jan. 30, the Commission on Military and Technical Cooperation with Foreign Countries analyzed the results of its work for 2025, and defined plans for the future.
It was noted that the system of military-technical cooperation continued to operate in difficult conditions, and with increased pressure from the Western countries to block business relations with Russia. The meeting, however, admitted that export contracts have generally performed sustainably. Russian military products were exported to more than 30 countries last year, and the amount of foreign exchange exceeded $15 billion.
Such results provide an additional opportunity to direct funds to the modernization of OPC enterprises, to the expansion of their production capacities, and to advanced research. It is also important that at these enterprises a significant volume of products is civilian products.
The Russian system of military-technical cooperation has not only demonstrated effectiveness and high resilience, but has created fundamental structures, which allow to significantly expand the “geography” of supplies of products of military purpose and, thus strengthen the position of Russia’s leader and employer advanced weapons systems – proven, tested in real combat conditions.
Thanks to the employees of the Federal Service for Military Technical Cooperation and Rosoboronexport, the staff of OPC enterprises for their good faith. Within the framework of the new federal project “Development of military-technical cooperation of Russia with foreign countries” for the period 2026-2028, additional measures of support are introduced. Further effective use of existing financial and other support mechanisms and instruments is extremely important because the volumes of military exports in accordance with the 2026 plan.
Special attention would be paid to the expansion of military-technological cooperation and partnerships, with 14 states already implementing or in development more than 340 such projects.
Future plans will allow to improve the characteristics of existing weapons and equipment and to develop new promising models, including those in demand on global markets, among other issues – the development of strategic areas of military-technical cooperation, and above all, with partners on the CIS and the CSTO. This is one of the priority tasks to strengthen both bilateral and multilateral relations, ensuring stability and security in Eurasia.
From January 2026, Russia chairs the CSTO, and this requires working systematically with partners, including comprehensive approaches to expanding military-technical relations. New prospects open up for deepening military-technical cooperation and with countries in other regions, including with states on the African continent. Russia has been historically strong and trusting relationships with African countries. In different years even the USSR, and then Russia supplied African countries with a significant amount of weapons and military equipment, trained specialists on their production, operation, repair, as well as military personnel.
Today, despite pressure from the West, African partners express readiness to expand relations with Russia in the military and military-technical fields. It is not only about increasing supplies of Russian military exports, but also about the purchase of other weapons, other materials and products. Russia has undertaken comprehensive maintenance of previously delivered equipment, organization of licensed production of Russian military products and some other important issues. In general, African countries are sufficient for consideration today.
World
Trump Picks Kevin Warsh to Succeed Jerome Powell as Federal Reserve Chair
By Adedapo Adesanya
President Donald Trump has named Mr Kevin Warsh as the successor to Mr Jerome Powell as the Federal Reserve chair, ending a prolonged odyssey that has seen unprecedented turmoil around the central bank.
The decision culminates a process that officially began last summer but started much earlier than that, with President Trump launching a criticism against the Powell-led US central bank almost since he took the job in 2018.
“I have known Kevin for a long period of time, and have no doubt that he will go down as one of the GREAT Fed Chairmen, maybe the best,” Mr Trump said in a Truth Social post announcing the selection.
US analysts noted that the 55-year old appear not to ripple market because of his previous experience at the apex bank as Governor, with others saying he wouldn’t always do the bidding of the American president.
If approved by the US Senate, Mr Warsh will take over the position in May, when Mr Powell’s term expires.
Despite having argued for reductions recently, “Warsh has a long hawkish history that markets have not forgotten,” one analyst told Bloomberg.
President Trump has castigated Mr Powell for not lowering interest rates more quickly. His administration also launched a criminal investigation of Powell and the Federal Reserve earlier this month, which led Mr Powell to issue an extraordinary rebuke of President Trump’s efforts to politicize the independent central bank.
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