Laying new tracks: how infrastructure and trade are redrawing Africa's economic map
Statistics from the African Development Bank indicate that trading between African countries is often more costly, leading to a markup on traded goods. Historically, countries have rarely traded with one another, but this trade agreement aims to rectify the issue. For the trade agreement to be effective, the continent must tackle high intra-African trade costs and inadequate logistics infrastructure.
Orderson points to a range of infrastructure projects that are transforming access and logistics. Chief among them is the Trans-Sahara Highway, a 9,000-kilometre motorway linking Algeria to Lagos.
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IOL News
32 minutes ago
- IOL News
How stablecoins are rapidly reshaping Africa's money sovereignty
A notable evolution among African governments has been the significant strides in digital asset regulation. Image: File. The recent 2025 Africa CEO Forum marked a turning point in digital finance discussions, as business and policy leaders highlighted the growing role of stablecoins and digital assets in shaping monetary sovereignty, cross-border trade and financial inclusion across the continent. This was according to Gillian Darko, Chief of Staff and Director of Strategy at Yellow Card, who noted that while discussions at last year's Africa CEO Forum largely revolved around the speculative potential of blockchain, this year's event marked a decisive shift, from theoretical discourse to strategy-driven implementation. 'In previous years, conversations focused on blockchain's possibilities, but in 2025, the emphasis was on practical applications, particularly in the realms of stablecoins and AI. The discussion revealed that financial innovation, including digital currencies, is increasingly viewed as foundational to governance and public service delivery.' she said. This perspective was reinforced by Ghana's Minister of Communication, Samuel Nartey George, who emphasised that the future of governance must incorporate digital currencies and AI to enhance transparency and efficiency. A tangible reality Darko said that these sentiments resonated across the forum, reinforcing how digital tools have evolved from niche, frontier technologies to central economic instruments, underscoring the fact that stablecoins is not just a theoretical concept. but is already a tangible reality in countries like Nigeria and Ghana and other emerging markets in Africa. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ A notable evolution among African governments has been the significant strides in digital asset regulation. The Bank of Ghana announced that it will commence regulation of stablecoins and digital assets by September 2025, following the draft guidelines issued in August 2024. The finalised framework will introduce licensing requirements, anti-money laundering compliance and joint oversight with the Securities and Exchange Commission. 'This shift reflects a broader trend across Africa, where nations like Ghana and Rwanda are being recognised for their investments in digital infrastructure and policy frameworks. This highlighted that cross-border digital alignments, including AI and digital assets, must be a priority, not a luxury, if African governments want sovereign control over future economic levers,' Darko said. 'The growing consensus is clear: regulations should support innovation, not stifle it. Ghana's approach aligns with this sentiment, ensuring that digital finance remains a tool for transparency, efficiency and economic empowerment rather than an unregulated frontier.' Foundational pillar of sovereignty Given the increased focus on the adoption and regulation of digital assets, stablecoins are quietly emerging as a foundational pillar of sovereignty in Africa. At first glance, stablecoins might seem unrelated to supply chain resilience, but Africa's sovereignty will depend on how it manages its infrastructure, including payments. 'By enabling African companies to transact without relying on volatile local currencies or US dollar dependencies, stablecoins offer a practical solution that aligns seamlessly with Africa's ambitions for seamless intra-continental payments,' Darko added. 'Throughout the Forum, I observed synergies; ways in which this technology could be integrated into broader economic frameworks. The key takeaway remains that Africa must build infrastructure that works for its own unique challenges, rather than adopting external models that don't fit its realities.' She added that, across multiple industries, new thinking continues to emerge on how digital assets can be integrated into practical solutions, reinforcing Africa's financial sovereignty and cross-border efficiency. As these discussions evolve, the question remains: How can different sectors leverage this technology to build resilient, inclusive financial ecosystems? Cater to Africa's tech -savvy youth 'The next phase in this ecosystem must cater to the growing, tech-savvy youth population in Africa, which is building massive businesses and driving economic expansion. Data published by the International Monetary Fund shows that by 2050, one in four people globally will be African, with consumer expenditure projected to reach billions. This demographic shift demands a financial ecosystem that keeps pace with their ambitions,' Darko said. 'As a result, regulation will advance, infrastructure will improve, and digital financial solutions must evolve to support Africa's next economic leap. The foundation has been laid; now it is about scaling it to match the aspirations of a rapidly growing, digitally sophisticated population.' 'The momentum is undeniable as Africa is moving at an unprecedented pace, and witnessing this transformation firsthand is both exciting and inspiring,' Darko said. Gillian Darko, Chief of Staff and Director of Strategy at Yellow Card. Image: Supplied.
Daily Maverick
10 hours ago
- Daily Maverick
Novel carbon credits initiative gives Zimbabwe an edge, but concerns remain over cost barriers
A new blockchain-based carbon credit registry could have 'profound' implications, but the costs are prohibitive and the risks of greenwashing remain. Zimbabwe's establishment in May of a regulatory body and launch of a blockchain-based platform for carbon credits – the first of its kind worldwide – has received plaudits from some experts, who say the move will enhance transparency and also make the southern African country a leader in the burgeoning field. However, some are wary that high costs will deter investment. Carbon credits, also known as carbon offsets, are tradeable units in the form of a certificate or permit that represents the emission, reduction or removal of one metric ton of carbon dioxide or equivalent greenhouse gas into the atmosphere in exchange for a monetary payment. There are two main types of carbon credit, namely compliance credits, which are issued under regulated carbon markets, and voluntary credits, which are largely unregulated. Zimbabwe's digital platform has three components, which include the general website for the Zimbabwe Carbon Markets Authority, which oversees all issues related to carbon credits, and the Zimbabwe Carbon Registry, in compliance with the UN Framework Convention on Climate Change and Article 6 of the Paris Agreement. This requires parties participating in the new market mechanism to have a national registry or have access to a registry to track all the carbon credits generated within their jurisdiction. A third component of the platform, which the Ministry of Environment, Climate and Wildlife says is still under development, is the marketplace that will allow buyers to directly purchase credits from the Zimbabwe Carbon Registry, 'eliminating the need for third-party brokers, thereby ensuring that project developers accrue the maximum benefits possible'. In response to questions on the initiative, permanent secretary in the ministry Tadeus Chifamba told Daily Maverick, 'This is critical in making sure that carbon credits generated in Zimbabwe are of the highest quality and standards and fetch the highest possible price on the international market, thereby maximising benefits for the country and communities.' 'Profound implications' According to global carbon market players, Zimbabwe is ranked the third-largest contributor of carbon credits in Africa, providing nearly 13%, behind Kenya and Gabon. In 2023, the government cancelled carbon credit projects and compelled operators to re-register, demanding up to 50% of revenue, following reports of fraudulent activities by a local project, Carbon Green Africa, which was sponsored by Swiss-based South Pole, one of the world's biggest project development firms. Under the new system, Zimbabwe becomes the first country to do away with the issuance and use of voluntary credits, transitioning to a compliance-only market by 2026, but credits issued in the country can still be used for voluntary purposes, with the proviso that they must comply with the higher quality assurance and accountability measures of the compliance market. Kudakwashe Manyanga is the founder and CEO of the Africa Institute for Carbon Trading and an industry expert. He told Daily Maverick that while the global carbon credit market has largely been voluntary, establishing a robust regulatory framework 'can provide necessary oversight and legitimacy'. 'A blockchain-based system can help ensure that carbon credits are genuinely produced, verified and retired, thereby increasing the integrity of the market and potentially attracting more participants. The implications for Zimbabwe could be profound. 'By implementing a well-regulated carbon market with a transparent registry, Zimbabwe is likely to attract both local and international investments in carbon reduction projects. Investors are increasingly seeking assurance that their contributions lead to tangible environmental benefits. A credible carbon registry could enhance Zimbabwe's attractiveness as a destination for climate finance, positioning the country as a leader in sustainable development in the region.' Mnanyanga, however, said the high fees associated with participating in the market were prohibitive and could sideline community-based projects, which he said often lacked adequate funding. The Statutory Instrument on Carbon trading regulations [ S.I. 48 Carbon Trading (General) Regulations of 2025 ] sets out various fees required for participation in the industry. For instance, there are three project categories. The registration fee for the biggest project is US$20,000, the second-biggest is $15,000 and the third-biggest is $10,000. There are other fees, including a first-time registration fee as a project developer, which is set at $5,000 for foreigners and $2,500 for locals. Greenwashing risks Michael Musgrave, of Newt Natural Capital, an advisory firm, is an academic and expert in carbon finance. He agrees that the costs involved in Zimbabwe's new system are prohibitive and says that in an industry which does not yet have many experts, overregulation is not the answer to ensuring that problems like greenwashing – a practice in which corporates may make unsubstantiated claims that their products are environmentally friendly or have greater positive environmental impact than they really do – do not occur. 'There are barriers in place in terms of regulation and certification, and government regulations introducing another layer of costs just make carbon credits less viable. The problems around monitoring, reporting and verification are not unique to Zimbabwe or Africa; they are problems that every carbon project experiences and we need as an industry to solve the problems globally, or at least on the continent, by training or upskilling people and having more expertise applied to the implementation of these projects, not by introducing more regulations. 'I really don't see that as a way of reducing greenwashing. There is a role for government to play, but I think it is a small regulatory role that should be well thought out and avoid the approach of just saying, 'well, everybody else is making money and we are not making money and therefore we will introduce regulations that enable us to make money. The justification is that they are looking out for the interests of Zimbabweans, but this is hardly the case.' The Centre for Natural Resource Governance is a local environmental advocacy group. In its statement on the latest development, the civic organisation also bemoaned that upfront fees required to establish and maintain carbon credit projects could be a hurdle for Zimbabwean businesses and organisations, saying that a lack of financial resources might limit their ability to invest in renewable energy projects or implement carbon emissions reduction strategies. 'Despite the potential financial windfalls that can accrue from carbon trading, we must state that it remains a false solution to climate change and is subject to manipulation by the private sector. Governments can also generate massive revenues for and on behalf of communities without ever ensuring the benefits extend to the communities,' the organisation said. 'National asset' Permanent secretary Chifamba dismissed concerns that the costs were a barrier to entry and that local communities were disadvantaged, saying the regulations actually protected communities 'from prejudice of the past', under the voluntary trade, which he said lacked transparency. 'It costs money for the government of Zimbabwe to assess proposed projects before approval or rejection in line with internationally set environmental integrity, social safeguards and sustainable development guidelines. The government cannot be expected to take money from treasury to subsidise profit-making project developers. 'Additionally, the export of carbon credits should be recognised as the export of any other asset, such as gold, diamonds or platinum and should be subject to royalties and export taxes by the government. These are national assets which belong to all Zimbabweans and there should be a mechanism to ensure that treasury or a designated national fund set out for the purposes of addressing climate change benefits from a certain percentage of the share of proceeds,' he said. Dr Francis Vorhies, the director of Stellenbosch University's African Wildlife Economy Institute and a research associate at the Wildlife Conservation Research Unit at Oxford University, told Daily Maverick that the distribution of revenue from carbon credits was a domestic issue. He believed that in Zimbabwe, the arrangements between government, business and landowners, as well as local communities, could be discussed and debated robustly for the benefit of all parties. Dr Vorhies said that while the initiative could give Zimbabwe a competitive edge because of its technical sophistication, which could guarantee transparency, Zimbabwe's global image could be a setback. 'The country does not have the best of reputations for doing business, and so investors may fear that such a state-run mechanism risks being too burdensome and too costly, and thus stay away.' DM
TimesLIVE
16 hours ago
- TimesLIVE
DaVinci Institute honours its doctoral graduates
The DaVinci Institute held the president's dinner on May 28 to recognise the outstanding achievements of doctoral students who are making a meaningful impact in their industries and communities. The gathering was hosted by the business school's president, Prof Edward Kieswetter, to introduce doctoral graduates to society as leaders whose research holds the potential to change industries, communities and the world. The institute said its doctoral graduates were expected to make significant contributions to society and industry, addressing real-world challenges with innovative solutions. The graduates are: Vincent Blennies, who is redefining how JSE-listed companies manage innovation; Mohamed El Mongy, who is bringing a regenerative model to the Nile Basin that is rooted in African perspectives; Portia Heynes, who addresses unemployment with a stakeholder-aligned employability framework; Skhumbuzo Clement Mtetwa, who pioneers a training approach for digital learning in universities; Kholekile Ntsobi, who offers a practical township economic model inspired by Hammarsdale; and Goni Saar, who enhances cybersecurity readiness for Zambian SMEs through a locally grounded framework. Kieswetter said the National Development Plan (NDP) 2030 seeks to produce more than 100 doctoral graduates per million of the population per year by 2030.
