Resilience and growth in Africa: Partnering for sustainable futures with Absa

Infrastructure deficit: Energy shortages, poor logistics, and high cost of connectivity hinder productivity and competitiveness.

Unemployment: Africa will account for nearly 40% of the global youth population by 2030, yet unemployment and underemployment remain high.

Urbanization pressures: Rapid city growth without matching investment in housing, sanitation, and transport creates informal economies and strains public services.

Skills mismatch: Education systems lag in STEM, digital skills, and vocational training needed for modern economies.

African economies are increasingly distinguished by their adaptability and long-term promise. With youthful populations, rapidly advancing digital ecosystems, and deeper integration into global supply chains, many African nations are positioning themselves as pillars of stability and opportunity, even amid global turbulence.

Investors and businesses are consistently developing innovative approaches to address swiftly changing demands that extend beyond conventional strategies. There is a growing demand for solutions that provide certainty, diversification, safety, and sustainability. For instance, green finance instruments such as green bonds and sustainability-linked loans are gaining traction, while digital innovation in trade and payments is enabling businesses to operate more efficiently and securely across borders.

Sustainability has become a central theme in this landscape. The transition to renewable energy, adoption of climate-smart agriculture, and development of sustainable infrastructure are not only about reputational risk; increasingly, they serve as powerful sources of competitive advantage.

Consider Rwanda’s strategic investment in solar mini-grids, exemplified by projects like InfraCo Africa and Equatorial Power’s initiative to connect 2,500 households in southeastern Rwanda, providing clean electricity to over 35,000 people, alongside ARC Power’s plan to deploy up to 100 mini-grids, reaching 145,000 individuals with early deployments already serving 14 villages and 10,463 people.

Morocco has ambitious renewable energy targets, excellent solar and wind resources, and strong political support. The Noor Ouarzazate complex is world-class, and the country aims for over 50% renewables by 2030 while exporting its solar expertise across Africa.

Egypt boasts abundant land, strong sunlight, robust infrastructure, and government incentives supporting renewables. Notable projects include the Benban Solar Park (~1.65 GW) and major wind farms like Gabal El-Zeit, with a target of 42% renewable electricity by 2035 and green hydrogen initiatives underway.

South Africa has a robust renewables procurement programme, strong wind and solar resources, solid infrastructure, and experience with large-scale PPAs. The REIPPPP has attracted significant private investment, making the country a leader in large solar, wind, and hybrid projects.

Kenya possesses a well-balanced energy mix, including significant solar, wind, and geothermal resources, and demonstrates robust activity in off-grid and mini-grid development. The country is recognized as a geothermal leader, exemplified by projects such as Olkaria, and continues to expand its solar and wind capacities, with an emphasis on rural electrification through renewable energy solutions.

These initiatives aim to improve energy availability and encourage entrepreneurship and economic development in rural regions, while addressing associated challenges. This illustrates how leveraging abundant natural resources, and entrepreneurial drive can advance inclusive, sustainable growth across African markets and offer valuable lessons for other regions.

Additionally, it is important to acknowledge the challenges investors and businesses face in today’s uncertain environment. Balancing innovation with prudence, growth with sustainability, and opportunity with risk management is essential. Those who can adapt to shifting dynamics, diversify their portfolios, and build future-proof strategies will not only weather uncertainty but also thrive in the emerging global order.

Mauritius' Commitment to Renewable Energy

Mauritius is actively advancing its renewable energy agenda, aiming to achieve 60% of its electricity usage from renewable sources by 2030. The government is putting in place various policies to encourage investment in solar farms, wind power, and storage technologies to transition towards a more renewable-based energy mix.

Lately, we have witnessed some U.S. policy changes that have reduced support for ESG, that have nudged some global banks to scale back visible sustainability programs making green financing less certain from American sources. For Mauritius, this poses a risk such as reduced U.S. private capital for green projects, potential shortfalls in MDB (Multilateral Development Bank) green financing, and increased compliance complexity due to regulatory divergence. but also offers an opportunity to attract sustainable investment from other markets that remain committed to sustainability.

Africa’s growth formula: Unlocking resilience and opportunity

Beyond Africa’s internal reforms, global dynamics create powerful tailwinds:

• The global energy transition positions Africa as a future green energy hub, with vast solar, wind, and green hydrogen potential.
• Rising demand for critical minerals such as lithium and cobalt opens the door for beneficiation industries, not just raw exports.
• Supply chain diversification and nearshoring trends provide opportunities for Africa to attract manufacturing and logistics investments as firms seek alternatives to Asia.
• Growing global appetite for impact and ESG investments gives Africa access to new pools of capital if sustainability and governance frameworks are strengthened.

Africa’s growth is not accidental; it follows a clear formula that captures both the foundation of our strength and path to resilience.

Growth = ƒ (Natural Resources + Land + People + Capital * Governance + Technology)

Africa's natural resources continue to serve as a significant driver for the continent's growth, adaptability, and long-term transformation. At this pivotal moment, Africa's wealth of resources, coupled with its population, land, and access to capital, positions it to enter a new phase of sustainable growth and strengthened tenacity.

Africa’s status as a supplier of strategic minerals and food positions the continent at the heart of global economic interests, offering both significant opportunities and challenges. While the heavy reliance on natural resources exposes many African economies to the risks of commodity price volatility, these resources also provide a degree of resilience during global shocks.

With 60% of the world’s uncultivated arable land, Africa is positioned to feed itself and the world. Land also powers renewable energy projects, urban growth, and industrial zones that build regional value chains.

Africa’s 1.55 billion citizens, the youngest population globally, are its greatest source of strength. Their skills, entrepreneurship, and creativity drive innovation and adaptation in the face of global disruption.