Africa

1. Africa Web Services
2. $5 billion opportunity
3. Stargazers
4. Pretty speakers

Also, where have Nigeria’s Top 100 students from 2009 ended up?

Hello! Welcome to Semafor Africa Weekend, where we’re not embarrassed to state the obvious from time to time. I’ve been away for a couple of weeks to get recharged and one of the things you don’t miss as an editor is having to serve up old narratives, even if the research is new. That’s how it felt at first reading Alexander’s exclusive look at a report by Bridgewater, the world’s largest hedge fund. The paper’s authors estimate that sub-Saharan Africa requires a doubling of current investment to see a “much steeper development trajectory.” Yes, most of you who read this newsletter regularly would have been able to tell us that, but most of us are not hugely influential global investors. Sometimes the messenger is as important as the message.

You could say the same with today’s story by Martin about Naspers’ research showing how investing in high-speed internet access and a better regulatory environment could give the South African economy a boost of over $5 billion in the next 10 years. It’s not surprising that Naspers, the largest digital business on the continent, would argue for investing in digital infrastructure. But the benefits go well beyond Naspers. When it works well, you will see more investments like Amazon Web Services’ $1.7 billion bet on Africa below.

🟡 The team had a fabulous run while I was out. Alexis did essential reporting by connecting the dots on the UK’s ongoing migrant policy crisis and its negative impact on Nigerian students planning to attend universities there. Martin reported on Uber and Bolt drivers in Kenya forcing fare rises by organizing over a walkie talkie app.

🟡 🟡 We’re back to our usual newsletter schedule this month publishing on Tuesday, Thursday and Sunday. To keep up to date in between, follow us on WhatsApp or social media.

AWS bets on Africa

The investment budget that cloud computing giant Amazon Web Services will deploy in Africa by 2029, it revealed during the AWS Summit 2024. The news comes as the tech company, which offers on-demand cloud computing platforms, celebrates its 20th anniversary in Africa. AWS also unveiled plans to promote the use of artificial intelligence on the continent and demonstrated some of its generative AI capabilities, which it said would make it more accessible and user friendly.

A $5 billion digital opportunity

South Africa’s digital transformation is “lagging” despite its immense potential and rising demand for digital skills, but getting it right could generate over $5 billion for its economy, says a new report.

Improving digital infrastructure and enhancing the regulatory environment are among changes recommended in the report by digital conglomerate Naspers and the Mapungubwe Institute for Strategic Reflection. The authors say investment could help the country’s digital platform economy — driven by companies that facilitate e-commerce, deliveries and transportation services — inject 91.4 billion rand ($5.2 billion) into South Africa by 2035.

The projected growth would increase the sector’s contribution to South Africa’s economy to 1.38% of GDP, up from 0.02% in 2022.

Naspers is Africa’s largest tech and media company, valued at some $37 billion. Its portfolio includes online store Takealot, delivery service Mr. D, and real estate platform Property24.

The report recommends that South Africa authorities establish regulatory “sandboxes” to encourage growth and innovation and thereby accelerate the sector’s development. Researchers found that it can take “up to 180 days” to secure various approvals. It also calls for the expansion of high-speed internet access to be fast-tracked, a greater emphasis on science and technology education, and incentives for local producers to sell on e-commerce platforms.

“Though still in its early stages, the shift to digital mirrors global trends and offers a rare chance to unlock significant economic potential for our nation,” Naspers South Africa CEO Phuthi Mahanyele-Dabengwa said.

— Martin K.N Siele

South Africa welcomes stargazers

South Africa is set to unveil a new tourism strategy geared towards attracting stargazers and space enthusiasts.

Minister of Tourism Patricia de Lille, who announced the plan, said it would be launched in late September. She said South Africa was the first African nation to develop an astro-tourism strategy.

The minister said the strategy focuses on infrastructure development and transforming communities to take advantage of conditions in the country. South Africa’s minimal light pollution and favorable weather conditions make it an ideal astro-tourism destination.

Tourism plays a key role in South Africa’s economic growth. The tourism minister noted that the sector contributed 8.8% to the country’s GDP in the first quarter of 2024, which was higher than contributions from transport, mining, and agriculture sectors.

South Africa hosts two global initiatives that make it a prime location for professional astronomers: the Square Kilometre Array (SKA), and the Southern African Large Telescope (SALT).

SKA is an international radio telescope hosted in South Africa and Australia that seeks to answer questions in astrophysics and cosmology. And SALT is the largest optical telescope in the southern hemisphere. It is located in the southern town of Sutherland, an astronomical hub whose climatic conditions have earned it the nickname “Gateway to the Universe” and attract both researchers and amateur stargazers.

— Muchira Gachenge

September 24, 2024 | New York City | Request Invitation

President Julius Maada Bio, Sierra Leone; Aliko Dangote, Founder, Dangote Group; and Mcebisi Jonas, Chairman, MTN Group will join the stage at The Next 3 Billion summit — the premiere U.S. convening dedicated to unlocking one of the biggest social and economic opportunities of our time: connecting the unconnected.

Well-designed speakers

Award-winning South African visual artist Lulama “Wolf” Mlambo collaborated with Danish electronics maker Bang & Olufsen for the brand’s “Art of A9” series. It unveiled the limited edition of the Beosound A9 speaker during this year’s exhibition at Decorex Africa, an interior design convention. The collaboration involved turning the Beosound speaker into a canvas by Mlambo. The artist merged together art, futuristic technology, and cultural exchange. Mlambo, whose style embodies neo-expressionism and modern African art, said she references “jazz as a big part of my themes, pioneers of the genre,” as part of visualizing artistic diversity.

Weekend Reads

🇳🇬 What do Nigeria’s brightest pre-college students do after passing national exams? “They leave,” according to newspaper archiving platform Archivi.ng. Researchers Ayodimeji Ameenat and Fu’ad Lawal looked back at the 100 top performers in Nigeria’s 2009 West African Senior School Certificate Examination, to track what’s become of them. An estimated 47% of the students have left Nigeria in the years since, reflecting an ongoing migration trend.

🇹🇷 Turkey’s ambitions to grow its influence in Africa is exemplified by recent efforts to mediate between Somalia and Ethiopia, continuing a thread of Africa expansion that stretches back to the beginning of this century. The Financial Times reports that Turkey has “invested in soft power initiatives to help it win hearts and minds in Africa.”

🇳🇬 Nigeria President Bola Tinubu’s reforms have “neither focus nor a clearly-articulated growth agenda,” Ken Opalo of Georgetown University argues. Tinubu notched wins on unifying the exchange rate and empowering the central bank to fight inflation but his government seems to be counting reforms “as ends in themselves” rather than measurable improvements in the lives of Nigerian citizens, Opalo writes.

🇸🇩 Sudan’s 500-day war can be ended by ramping up pressure on the United Arab Emirates to stop arming the rebel group Rapid Support Forces, Yasir Zaidan writes in Foreign Policy. Zaidan says that the arms supply enabled RSF to “carry out ethnic cleansing in Darfur and commit massacres in Khartoum, Jazira, and Sennar.”

🇿🇦 South Africans in Cape Town are flocking to a Chinese hospital located on a ship for free medical care, the BBC reports. The development is a consequence of harsh economic difficulties that have made affordable healthcare out of reach for many struggling young people in the city.

🗓️ Week Ahead

Sept. 2 — A Nigerian judge will hear the money laundering case against cryptocurrency exchange Binance and its detained staffer.

Sept. 3 — South Africa’s biggest grocery retailer Shoprite and Africa’s biggest pharmaceutical group, Aspen Pharmacare, will each report full-year results.

Sept. 3-4 — The World Congress on Industrial Biotechnology will convene in Harare, Zimbabwe.

Sept. 3-4 — The International Conference of Education, Research and Innovation will bring together scientists and researchers in Maseru, Lesotho.

Sept. 4-6 — African presidents including Ghana’s Nana Akufo-Addo, South Africa’s Cyril Ramaphosa, Nigeria’s Tinubu, and Senegal’s Bassirou Diomaye Faye will attend the ninth Forum on China-Africa Cooperation in Beijing.

Sept. 4-5 — The World Conference on Soil, Water, Energy and Air will take place in Victoria, Seychelles.

Sept. 4-6 — The 11th Africa Fintech Summit will bring together fintech decision makers including AfCFTA secretary-general Wamkele Mene and Paystack co-founder Shola Akinlade in Nairobi.

Sept. 4-6 — The African Union Commission will hold the first ever Africa Urban Forum at the Adwa Memorial Museum in Addis Ababa.

For Your Consideration

Sept. 16 — Doctoral students are invited to apply for the 2024/2025 CAPSI-Mastercard Foundation PhD Fellowship at Wits Business School.

Oct. 18 — Applications are open for the 2024 Commonwealth Youth Awards for Excellence in Development Work, organized and delivered by the Commonwealth Youth Programme.

• German officials look to push social platforms on image verification.
• Brazil’s top court suspends Elon Musk’s X following free speech dispute.
• Kamala Harris uses first interview to insist ‘my values have not changed.’

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— Yinka, Alexis Akwagyiram, Alexander Onukwue, Martin Siele, and Muchira Gachenge