Africa

1. Debt worries in Mozambique

2. Africa’s new unicorns

3. Kenyan economy falters

4. Ethiopia’s stock debut

5. Regulating satellites

Also, the Nigerian words entering the Oxford English Dictionary.

Mozambique’s rising default risk

Mozambique is at growing risk of defaulting on its debt as political tensions over last year’s disputed election were heightened with the return of opposition leader Venâncio Mondlane to Maputo on Thursday.

The country’s economy has been devastated by months of deadly protests leading to the shutdown of critical industries including a graphite mine in northern Mozambique operated by Australian firm Syrah Resources that counts Elon Musk’s Tesla among its clients.

David Omojomolo, Africa economist at Capital Economics, told Semafor Africa there was an increasing risk of sovereign default as investors reacted negatively to the political uncertainty. “We expected a slowdown or contraction of economic growth in Q4 2024, and if the present conditions persist, stagnation or further contraction in the coming months,” he said.

African startup funding slows

Startup fundraising in Africa fell by 25% in 2024 to $2.2 billion, a new report showed, marking a second successive year of reduced investment into technology companies on the continent. Kenyan startups drew the bulk of the funding for the second year in a row, driven by climate tech deals, Africa: The Big Deal found, while Nigeria, Egypt, and South Africa together attracted $1.2 billion. The year gave rise to two new unicorns — Nigeria’s payment processing firm Moniepoint, and Tyme Group, a digital banking platform from South Africa.

— Alexander Onukwue

Kenya’s economy faltered last year

Kenya’s economy grew at its slowest pace in nearly four years in the third quarter of 2024 after output declined in key sectors following weeks of anti-government protests. The economy grew 4% between July and September last year compared to 6% in the same period in 2023. A contraction in the construction, mining, and quarrying sectors was highlighted in the statistics bureau’s report. But growth in agriculture, transport, real estate, and financial services prevented the economy from slowing further, it noted.

Ethiopia to open new stock market

Ethiopia will open a stock market on Friday after a five-decade gap in its latest push to attract investors. Ethiopia Investment Holdings is selling shares in the previously state-run Ethio Telecom to raise as much as 30 billion birr ($234 million) in an initial public offering. The government also plans to list other state companies, the Ethiopian Securities Exchange CEO told Bloomberg. Ethiopia’s last stock market closed in 1974 after the military seized power and abolished share trading. Prime Minister Abiy Ahmed has sought to liberalize the economy since taking office in 2018 through policies that include opening up the banking sector to overseas investors in a law passed last month.

Kenya plans internet provider fee hike

The proposed cost of a 15-year license for satellite internet service providers in Kenya, marking a 10-fold increase. The change would affect companies like Elon Musk’s Starlink, which would also be required to pay Kenya’s communications regulator 0.4% of its annual turnover under the new rules. The move comes as Starlink expands its presence in Kenya and demand for high-speed internet rises, noted TechCabal.

Africa Collective Davos 2025 takes place on the sidelines of the World Economic Forum from 20-24 January. The program provides a complementary platform for showcasing African opportunities and is co-created with Afreximbank, the AfCFTA Secretariat, Novartis, and Standard Bank Group. Learn more here.

Deals

🇳🇬 China Development Bank approved a $255 million loan to Nigeria to support a railway project linking the northern states of Kaduna and Kano.

Energy

🇸🇳 Senegal’s energy ministry said the Sangomar offshore oil and gas field produced 16.9 million barrels of crude in 2024, exceeding its target of 11.7 million.

Geopolitics

🇸🇩 The US accused Sudan’s paramilitary Rapid Support Forces of committing genocide and imposed sanctions on its leader.

Governance

🇲🇺 Mauritius issued an arrest order for its former finance minister, Renganaden Padayachy, in connection with an embezzlement investigation.

Tech

🇳🇬 Nigerian motorcycle-hailing startup Gokada filed for bankruptcy protection in October after failing to secure $750,000 in new funding, according to an exclusive report by TechCabal.

Moving beyond identifying barriers to achieving practical, scalable interventions — The Next 3 Billion at Davos will discuss emphasizing collaboration between public and private sectors to mobilize resources and technology for global good. Semafor’s Yinka Adegoke will moderate a conversation with Phuti Mahanyele-Dabengwa, CEO of Naspers South Africa, to discuss digital upskilling and inclusion.

Jan. 23, 2025 | Davos, Switzerland | Request Invitation

Japa, a Nigerian slang word that describes economic migration out of the country, was added to the Oxford English Dictionary. The term, which means “escape” in Yoruba, is among a number of Nigerian words added to the dictionary’s latest edition. It highlights Nigeria’s growing cultural influence in the West. Other words added include “area boy,” a street thug, and “suya,” a grilled meat dish. Kingsley Ugwuanyi, a consultant for the dictionary, told The Guardian Nigeria that editors chose words most widely used across the country.

Nvidia CEO Jensen Huang energized the Consumer Electronics Show with the announcement of a new gaming GPU and his revealing comments about robotics, Semafor’s Reed Albergotti reported. “I think 2025 is going to mark an inflection point for robotics, perhaps not in the form of consumer products, but in breakthroughs that will lead to some mind-blowing advances down the road,” Albergotti wrote.

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— Alexis Akwagyiram, Preeti Jha, Yinka Adegoke, Alexander Onukwue, Martin Siele, and Muchira Gachenge.