World
The Impact of COVID-19 on China’s Belt and Road Initiatives in Africa
A new report by Economist Corporate Network, supported by Baker McKenzie and Silk Road Associates, BRI Beyond 2020 (report), shows that the ripple effects of COVID-19 are affecting the nature, pace and scope of China’s Belt and Road Initiative (BRI) activity in Africa, mostly for the short term.
The report also explains how the virus has led to an increased interest in digital programmes in BRI countries, as well as a heightened focus on sustainability, including workforce health. The BRI is China’s multi-billion dollar plan to link Asia, Europe and Africa.
“The COVID-19 epidemic definitely has a dampening effect on BRI activities as Chinese companies focus their resources and efforts on dealing with the various types of impact caused by such epidemic.
“However, this effect will likely be relatively short term and we are already seeing the resumption of BRI activities by our Chinese clients.
“It is also heartening to see foreign sellers and partners adjusting their deal timetables to make allowances for the impact caused by this epidemic,” says Bee Chun Boo M&A Partner at Baker McKenzie in Beijing.
Ben Simpfendorfer, CEO of Silk Road Associates, explains in the report that the BRI will remain a priority for China, but that it will affect the Chinese government’s short-term and long-term response to COVID-19, because shortfalls in China’s health sector, and the economic fallout for the country’s financially challenged SME sector, will divert official attention and resources away from BRI over the next 12 months and potentially longer.
“This may mean reduced investments into BRI’s smaller, less critical markets where the opportunities to connect such investments to the global supply are limited. Central Asia, Sub-Saharan Africa, and Eastern Europe will accordingly see a short-term dip in BRI related activity, relative to Southeast Asia. The exception to this view is where China seeks to share its valuable experience of battling COVID-19 with other BRI countries,” he says.
Healthcare
Mike van Rensburg, Partner and Head of the Healthcare and Pharmaceuticals Sector at Baker McKenzie in Johannesburg notes, “Any largescale outbreak of COVID-19 in Africa will put pressure on already strained public health systems in the continent and as such African nations are being vigilant in order to contain the spread of COVID-19. Detection of the virus in African has been challenging due to lack of laboratory capacity and medical supplies, but World Health Organisation (WHO) has said it is equipping countries with virus testing kits, and that it has helped to train and provide personal protective equipment to health workers. Further, most African countries are identifying quarantine centres and stocking up on medication.”
The outlook is far from bleak however. The report highlights that one key area of potential for the BRI is in projects focused on strengthening the health systems of low-income countries, even if focused on soft processes rather than hard infrastructure.
It points to Chinese tech companies such as Alibaba’s DingTalk, Tencent’s WeChat Work and Huawei’s WeLink potentially bidding for market share outside of China, especially in the BRI region. China’s MedTech sector may similarly find opportunities abroad. Online doctor consultation platforms have seen consultations soar in the past few months (Alibaba Health, Ping An Good Doctor) and similar technologies may work abroad if staffed by locals, given health sector shortfalls in many BRI countries.
Simpfendorfer notes that China’s success in using AI and other technologies to identify and monitor virus carriers may also have application across the BRI, including in Africa.
Infrastructure
The report further outlines how, in the years before COVID-19 struck, China had increasingly become an important stakeholder in Africa’s infrastructure development. In recent years, there has been a notable shift in the pattern of China’s overseas direct investment in the region, with a repositioning of its focus from the mining sector to Africa’s construction, manufacturing and financial services sectors. These investments have been supporting Africa’s efforts to diversify its economy and reduce its over-reliance on natural resources for growth.
Political and policy commitments between China and Africa have strengthened and expanded in their scope since the BRI was launched, the report shows. During the 2018 Forum on China Africa Cooperation (FOCAC), an official forum between China and all states in Africa, Mr Xi proposed eight major areas for nations to collaborate on: industrial promotion, facility connectivity, trade facilitation, green development, capacity building, health and hygiene, humanities exchanges, and peace and security. Since then, there have been further announcements signalling continued interest to deepen this bilateral relationship, including a desire from African nations to leverage on the BRI.
In August 2019, the Southern African Development Community (SADC) affirmed its plan to link the BRI with its industrialisation strategy, especially on the construction of infrastructure. These developments build on the foundations that were established over the past decade.
Further, the report shows how Chinese companies have supported the construction of three major economic zones in sub-Saharan Africa, including Zambia-China Economic and Trade Cooperation Zone, Eastern Industrial Zone in Ethiopia and China-Nigeria free trade zone. Such investments have been helping to create jobs and develop local industry.
Trade
Trade between China and Africa has also been thriving. In 2018, China’s trade with Africa increased by 19.7%, a pace of growth that is considerably higher than China’s average trade growth with the world (12.6%), the report indicates.
The report shows how these strengthening trade links are in part a result of favourable financial incentives offered to Africa by China. Thirty-three of the poorest countries in Africa export 97% of their exports to China with no tariffs and no customs duties. Bilateral trade is still heavily centred on China’s import of Africa’s natural resources. Nevertheless, in recent years China has modestly increased its import of manufacturing products from more diversified economies such as South Africa.
Virusha Subban, Partner specialising in Customs and Trade at Baker McKenzie in Johannesburg, points out, however, that “as one of Africa’s biggest trading partners, the effects of COVID-19 in China have already been felt in the continent. With China having shut down its manufacturing centre and closed its ports, there has been resultant decrease in demand for African commodities. Importers in China cancelled orders due to port closures and as a result of reduction in consumption in China. Sellers of commodities in Africa were forced to offload products elsewhere at a discounted rate.
“Over three quarters of African exports to the rest of the world are still heavily focused on natural resources and any reduction in demand impacts the economies of most of the continent. Countries such as the DRC, Zambia, Nigeria and Ghana are significantly exposed to risk in terms of industrial commodity exports, such as such as oil, iron ore and copper, to China,” she notes.
Subban explains that the impact of COVID-19 will also be felt in the manufacturing sectors. Because China is part of the global supply chain, factory closures raised the risk of supply chain disruptions for multinational companies with delays, raw material shortages, increased costs and reduced orders affecting manufacturing plants around the world, including in Africa. As production lines and factories begin to reopen in affected regions, imports and exports will be further delayed by the resultant congestion and backlog.
“External imports from outside of Africa account for more than half the total volume of imports to African countries, with the most important suppliers being Europe (35%) China (16%) and the rest of Asia including India (14%). The manufacturing and industrial sectors in Africa have been impacted by a decreased supply of key components from China (and other relevant countries affected by COVID-19).
Although Africa’s untapped manufacturing and consumer markets represent significant potential opportunity, the short term impact on China’s investments in Africa after COVID-19 will be further constrained by the challenges inherent in the region’s business environment. The report lists poor governance, currency risks, complex regulatory systems and high levels of corruption as issues that will continue to pose hurdles to investment. To navigate the market opportunities, companies—from China and elsewhere—will need to be fully prepared and equipped to deal with potential legal and regulatory disputes in Africa.
African nations are also hoping that once the African Continental Free Trade Area (AfCFTA) is implemented (due to take place in July this year but now postponed due to COVID-19) intraregional trade in Africa will decrease the continent’s reliance on foreign investment.
Wildu du Plessis, Partner and Head of Africa at Baker McKenzie in Johannesburg, says that according to research from Baker McKenzie and Oxford Economics – AfCFTA’s US$ 3 trillion Opportunity – there is a vast infrastructure gap in Africa, including transport and utilities infrastructure, which must be urgently addressed so as not to restrict increased trade integration.
“AfCFTA is expected to act as an impetus for African governments to address their infrastructure needs as well as to overhaul regulation relating to tariffs, bilateral trade, cross-border initiatives and capital flows. Both domestic and foreign trade, including with China, will benefit from reforms to regulation, political climate and trade policies that enhance competitiveness and improve the ease of doing business, but effective solutions will take time.”
Sustainability
If the BRI is to remain a major force in global infrastructure development after COVID-19, sustainability will have at the heart of its projects. According to the report, the definition of BRI sustainability is also by necessity growing to encompass a focus on protecting the health of those involved in BRI projects, including both workers and the wider local populations where projects are underway.
And as Africa reduces its over-dependence on natural resources for boosting economic growth, it also needs to ensure it develops other industries in a sustainable way. To this end, the report outlines how China and Africa have agreed to work together on improving Africa’s capacity for green, low-carbon and sustainable development, and to roll-out more than 50 projects during 2019-2021 on clean energy, wildlife protection, environment-friendly agriculture and low-carbon development.
Du Plessis adds, “While the impact of COVID-19 on African economies will be detrimental, there is light at the end of the tunnel in that the project delays are expected to be mostly short term; and future initiatives will now have a heightened focus on sustainability – improving not only their long-term outlook, but also the sustained health of the environment and, most importantly, Africa’s people.
By Kestér Kenn Klomegâh
One year after launching a continental initiative designed to make excellence in public governance the foundation of a new drive to transform Africa, LEAD, the Africa CEO Forum’s pan-African leadership programme, takes stock of its first cohort and announces the launch of its second class. Built around a community of senior public decision-makers committed to modernising the state and to the continent’s digital transformation, this new cohort gathers for three days, from 28 to 30 August 2026, on the campus of Mohammed VI Polytechnic University (UM6P) in Rabat, Morocco.
A second cohort that confirms the programme’s durability
For its second class, LEAD brings together 50 fellows, senior public decision-makers engaged in the design and implementation of the continent’s economic and social policies. Over three days, participants take part in collective and collaborative working sessions, peer exchanges and meetings with figures from the public, business and academic spheres, in order to compare their practices and build shared responses to the major challenges of governance.
Speakers include Mehdi Jomaa, former Head of Government of Tunisia, Donald Kaberuka, Managing Partner & Founder, SouthBridge Group, and former President of the African Development Bank, Serge Ekue, President of the West African Development Bank (BOAD), Sanjay Jain, co-creator of India Stack and Director of Digital Public Infrastructure, Gates Foundation, and Mauricio Cardenas, Professor of Professional Practice in Global Leadership, Columbia SIPA, and former Finance Minister of Colombia (2012-2018).
They share their reform experience, their public policy trade-offs and their view of continental priorities. Throughout the programme, the cohort benefits from the dedicated support of Mohammed VI Polytechnic University, Asafo & Co, BOAD, BCG and the African Development Bank, LEAD partners that have chosen to invest in the transformation of African public action.
LEAD, a pan-African community serving public action
Created by the AFRICA CEO FORUM, LEAD is a leadership programme whose ambition is to reposition Africa’s administrative elite as a driver of reform, of performance and of dialogue with all the continent’s stakeholders.
Designed for senior African public decision-makers, LEAD sets out to build a lasting community of public officials able to share their experience, compare their practices and build common solutions to the major economic, technological and institutional transformations under way in Africa. That community is structured around three pillars: modernizing the state, improving public services, and strengthening cooperation between governments, development institutions and private-sector players.
From fellows to alumni: a long-term initiative
Made up of 36 fellows drawn from a range of administrations and institutions and representing 24 countries across the continent, LEAD’s first cohort demonstrated the quality and the potential of this community from its very first year. In less than twelve months, six of its members have taken a significant step forward: two have been appointed ministers, two have moved into strategic positions at the highest level of the state and two have been promoted to chief executive roles. These moves, which account for 16.7% of the first class, show the role LEAD plays as an accelerator of impact within African administrations.
By bringing together a new cohort of fellows every year, each of them joining the LEAD alumni community, the initiative follows a long-term trajectory: in time, to unite several hundred African public decision-makers around a shared culture of transparency, performance and regional cooperation.
A first year devoted to public service and digital public infrastructure
Throughout the year, the fellows devoted their work to strengthening African public action, to make excellence in public governance a central lever of transformation. An awareness campaign, run as part of Africa Public Service Day, brought to light those who, within the continent’s administrations and institutions, are concretely transforming public policy and improving the services offered to citizens.
Members of the cohort also took part in a special round table held in Kigali during the ACF 2026, in order to carry their thinking to a wider community of public and private leaders. That forum reinforced LEAD’s role as a platform for dialogue between the administrative elite and the continent’s economic players. Digital public infrastructure (DPI) formed the main thread of this first year of work.
Discussions covered issues at the heart of the digital sovereignty of African states: digital identity, payments, secure data exchange, interoperability, governance and the protection of citizens. This work examined the conditions under which African states are developing, in some cases, and can develop, in others, shared, open infrastructure robust enough to improve the quality of public services while supporting local innovation and preserving the capacity of public authorities to set the rules of the game.
A white paper to move from consuming technology to creating value
This year of work concludes with the publication, in collaboration with BCG, LEAD’s Knowledge Partner, of a white paper on Africa’s place in the digital economy and in artificial intelligence. With the digital economy still accounting for around 5% of African GDP, against close to 15% worldwide, the paper calls on the continent to shift from a logic of technology consumption to one of value creation.
The white paper identifies three structuring priorities for African public actors:
- Building shared digital infrastructure that serves as the backbone of public services and private innovation.
- Pooling investment in order to reach critical mass and avoid the fragmentation of efforts across the continent.
- Favouring open and interoperable architectures, with trust and governance built in by design, so as to protect citizens while stimulating the entrepreneurial ecosystem.
The white paper is available here to all public decision-makers, technical partners and institutions concerned.
“LEAD’s first cohort confirms a simple conviction: Africa already has the women and men capable of profoundly transforming public action. Our responsibility, either with our partners, is to give them, at pan-African level, a space in which to compare experience, build common solutions and bring forward a new generation of public policy. With this second cohort, we want to accelerate the move from ambition to execution, in particular on digital public infrastructure and artificial intelligence, two decisive issues for sovereignty, for the effectiveness of the state and for value creation across the continent,” says Amir Ben Yahmed, President of the Africa CEO Forum.
By Kestér Kenn Klomegâh
Africa is set to make history as it hosts the World Public Summit for the first time, with Addis Ababa, Ethiopia, welcoming global leaders and changemakers from July 29–30, 2026, for the landmark gathering under the theme “New World: Africa in Shaping a Shared Future.”
The inaugural African edition of the World Public Summit marks a significant milestone in the continent’s growing role in shaping international dialogue on governance, sustainable development, human-centred leadership and global cooperation.
Hosted by the World Peoples Assembly in partnership with African and international organisations, the summit will convene government officials, diplomats, business leaders, academics, journalists, youth representatives, civil society organisations and cultural leaders from across Africa and around the world.
According to Andrey Belyaninov, General Secretary of the World Peoples Assembly, “the Summit is not just a meeting—it is a space for unity. A space where the ‘values that unite us’ come to life: respect for people, openness to the world, responsibility for the future, and a commitment to creation.
“Today, we understand more clearly than ever: the future cannot be built alone. It is born in dialogue, in trust, in the ability to listen to one another and to act together.”
The programme begins on July 29 with a series of high-level roundtables and expert discussions covering Pan-African economic integration, civil society, education, scientific cooperation, cultural diplomacy and humanitarian partnerships.
The opening plenary, “Values, Development and Partnership as the Basis of a Sustainable and Just World,” will explore how African values—including Ubuntu—can help shape a more inclusive and sustainable global future. Discussions will also focus on youth leadership, innovation, civil society, ethical AI, public initiatives and international partnerships.
The summit will also showcase Africa’s creativity and innovation through the “Innovations for the Future” exhibition, the contemporary African art exhibition “Unity,” and the international exhibition “The World Paints Happiness.”
Another featured initiative is “The Zambezi River: Economy, Society, Soul,” an international interdisciplinary project exploring the river’s socioeconomic importance across Angola, Botswana, Mozambique, Namibia, Zambia and Zimbabwe, highlighting the shared heritage and development potential of one of Africa’s most important waterways.
The event will conclude with the adoption of the African Communiqué, reflecting the summit’s shared vision for stronger international cooperation, sustainable development and people-centred leadership.
Tsegaye Chama, General Secretary of the Global Black Centre, promised that, “The Summit will be delivered with exceptional distinction, reflecting the magnitude and spirit of the World Peoples Assembly. It embodies a unity that is not transactional, but purposeful and conscious, a unity that shapes new contours for a world that works for all peoples of the World.”
As delegates prepare to arrive in Addis Ababa, anticipation continues to build for what promises to be one of Africa’s most significant international gatherings of 2026—one that will place the continent firmly at the centre of global conversations about the future.
By Adedapo Adesanya
Nigeria regained its position as Africa’s leading destination for equity startup investment in the first half of 2026, raising $214 million in equity financing and a total of $254 million across equity and debt, according to the latest Africa: The Big Deal report.
The report, titled H1 2026: Mapping the Money, showed that Nigeria ranked second on the continent in total funding, behind Egypt, which attracted $327 million, while Kenya and South Africa followed with $126 million and $83 million, respectively.
However, the report noted that Egypt’s top position was largely driven by a single fundraising by electric mobility company Spiro, which secured $327 million, including $270 million in equity and $57 million in debt. Excluding debt financing, Nigeria emerged as Africa’s largest equity funding market in the first six months of the year.
According to the breakdown by Africa: The Big Deal, Nigeria’s equity funding of $214 million was higher than Egypt’s $183 million, while South Africa and Kenya attracted $66 million and $46 million, respectively.
Beyond funding value, Nigeria also led the continent in the number of startups that raised at least $100,000 during the review period, reclaiming the top spot after what the report described as an “underwhelming” second half of 2025.
The publication observed that Nigeria’s fundraising performance has remained relatively stable over the past few years and exceeded the $250 million mark for the first time since 2022, pointing to renewed investor confidence in the country’s startup ecosystem.
It also found that while the Big Four startup markets—Nigeria, Egypt, Kenya and South Africa—continued to dominate Africa’s investment landscape, their combined share of total funding stood at 58 per cent in the first half of 2026.
“Zooming back on the Big Four (110 out of 190 $100k+ deals, i.e. 58%), Nigeria is head and shoulders above its peers, with Egypt and Kenya almost tying, and South Africa in fourth position again,” the report noted.
The report highlighted contrasting performances among the continent’s largest startup ecosystems. While Nigeria and Egypt maintained strong funding momentum, Kenya recorded its weakest funding performance since early 2021 after a strong second half of 2025, and South Africa failed to attract $100 million in funding during the period despite leading the continent a year earlier.
Africa: The Big Deal also noted a broader shift in investor behaviour, with funding increasingly concentrated in larger transactions while early-stage investments continued to decline. According to the publication, the drop in smaller funding rounds reflects growing concerns about limited capital available for early-stage startups across Africa.
