Latest news with #economicTransformation
Zawya
a day ago
- Business
- Zawya
Briefing Highlights: How the African Development Fund is Financing Africa's Future in a Shifting Global Landscape
The African Development Fund, the African Development Bank Group's ( concessional financing arm, was the focus of a special edition of the African Transformation Briefing co-hosted by the African Center for Economic Transformation (ACET) and the Global Strategic Communications Council. Moderated by ACET Communications Manager Belinda Ayamgha, the session was held virtually on 29 July 2025. The media-focused event convened development partners, journalists, and policymakers for an in-depth conversation on the Fund's role in financing economic transformation across 37 low-income African countries, nearly half of which are classified as fragile states. Valerie Dabady, Manager of Resource Mobilization and Partnerships at the African Development Bank, delivered a keynote presentation outlining the Fund's catalytic impact, financing structure, and evolving strategic direction. She underscored the Fund's ability to channel investments in areas such as climate resilience and regional integration through concessional resources tailored to country-specific needs and highlighted plans to expand its resource base. 'With 37 member countries and over $45 billion in investments since inception, the African Development Fund is a cornerstone of Africa's development financing architecture,' Dabady said. 'As we look toward the future, innovations like market borrowing and expanded donor engagement will be critical to increasing our impact.' The briefing also featured a country perspective from Joseph Chanda, Assistant Director for Economic Management and Planning in Zambia's Ministry of Finance. Chanda highlighted how Zambia is leveraging African Development Fund resources to accelerate infrastructure development, build climate resilience, and deepen regional integration. 'ADF financing has played a transformative role in Zambia,' he noted. 'By allocating just 10% of our national resources to the Lobito Corridor, we were able to leverage over $330 million in regional window co-financing. These are the types of investments that build real economies and regional prosperity.' The Lobito Corridor, a strategic rail and road project connecting Angola, the Democratic Republic of Congo, and Zambia, is among the largest regional integration initiatives currently under preparation with support from the African Development Fund. With a $500 million commitment, the Fund is helping to finance and de-risk the project, which is expected to catalyze investment in logistics, agriculture, and mining, particularly in critical minerals vital to the global energy transition. Chanda also referenced the Kazungula Bridge Project, a regional integration initiative co-financed by the Fund with an investment of $68 million. Completed in 2021, the 923-meter-long bridge spans the Zambezi River, connecting Zambia and Botswana and replacing a long-standing ferry service. The project also includes One-Stop Border Posts on both sides of the bridge, significantly streamlining customs procedures and reducing transit times along the North–South Corridor. It supports intra-African trade, enhances regional logistics efficiency, and has become a key node for trade between Southern and Central Africa. Participants raised questions on donor engagement, capital market access, and the future structure of the Fund. Dabady reaffirmed the Bank's ongoing efforts to attract non-traditional partners and finalize approvals that would enable the Fund to access capital markets. 'The ADF has long flown under the radar,' she said. 'But this is a pivotal moment to raise its profile, demonstrate impact, and unlock greater investment for Africa's most pressing priorities.' The session concluded with a call to action from Kerezhi Sebany, Africa Director for Economic Opportunities at the ONE Campaign. 'We must shine a light on the African Development Fund,' she said. 'When people know what the Fund is and what it delivers, it fosters transparency, trust, and partnership. Now is the time to tell the ADF story and tell it boldly.' The African Development Fund is currently undergoing its 17th replenishment cycle (ADF-17). The next consultative meeting with development partner representatives will be held virtually on 18-19 September 2025. This will be followed by a meeting in Lusaka, Zambia in October, where Zambia government representatives will share results and country-level experiences. The final pledging session for ADF-17 is scheduled for December 2025. Watch the briefing: Distributed by APO Group on behalf of African Development Bank Group (AfDB).
Malay Mail
4 days ago
- Business
- Malay Mail
Boom times for Kunak as Sabah govt plans 15-year transformation for east coast
KUNAK, Aug 9 — The development of the Kunak New Township is set to drive local economic transformation and reshape the district's industrial landscape, said Sabah Finance Minister Datuk Seri Masidi Manjun. Speaking during the groundbreaking ceremony, Masidi said the multi-phase project, estimated to take five to 15 years to complete, reflects strong investor confidence and aligns with the State's Sabah Maju Jaya strategic plan. The development comprises three key components: commercial, residential and light industrial zones. 'I'm confident this new township will become a nucleus for economic activity in Kunak and create more opportunities for the district to move forward, like other new towns in Sabah,' he told reporters. Located near the Pan Borneo Highway and Jalan Kunak Spur, the township is also expected to enhance tourism and support local products, potentially reaching markets beyond the district. Masidi noted the strong commitment from local leaders and urged all agencies and stakeholders to play their part in realising the vision for Kunak as a strategic growth hub. He also commended the area's natural beauty, highlighting his visit to the increasingly popular Tasik Impian, surrounded by virgin forest in Mostyn. Amazing Synergy Realty Sdn Bhd Director, Chia Seong Pow, said the 107-acre development will offer a holistic township concept with zones for transit and commerce including shop lots, a hypermarket, hotel, cinema, modern bus terminal and petrol station. The residential area will include 288 terrace homes in two phases and 83 residential lots with community facilities, while 37 industrial lots will cater to light and medium industries, fostering local employment and entrepreneurship. Also present were Kunak Assemblywoman Datuk Norazlinah Arif, Kunak District Officer Majaran Osman and District Council CEO Mohd Nazri Pintal. 'This is a golden opportunity. Kunak sits strategically between Tawau, Semporna and Lahad Datu – making it ideal for long-term development,' Masidi added. — Daily Express
Bloomberg
21-07-2025
- Business
- Bloomberg
Salt Lake City Turns Winter Olympic Bid Into Statewide Bond Boom
Utah is betting that the 2034 Winter Olympics can do more than bring the world to Salt Lake City. It wants the Games to jumpstart a lasting economic transformation. Local governments and agencies issued more than $4 billion of municipal bonds this year, fueling a surge of development across Salt Lake City, nearby ski resorts and the booming tech corridor to the south. Those debt issuances mark a 140% increase compared what Utah-based borrowers sold during the same period last year, according to data compiled by Bloomberg.
Zawya
13-06-2025
- Business
- Zawya
5 things you might not know about South Africa's youth consumer class
Young South Africans between 18 and 37 years, internet-connected and living in households with incomes of R10k+ a month, now make up the majority of the country's tax paying base. This 'youth consumer class', a blend of older Gen Zs and younger millennials, were born into democracy and are now old enough to carry its weight. Their context is defined not just by Wi-Fi and WhatsApp, but by inequality, hustle culture, load shedding, resilience, and hope. While their counterparts in lower income communities are unfortunately still mired in the unending battle for educational and job opportunities, the country's youth consumer class is largely well-educated or getting there, and 24% of them are already earning R20k per month or more. They are making smart decisions by choosing industries with growth potential, upskilling online, and leveraging digital tools to manage money, build personal brands, and work independently. According to the latest BrandMapp survey, 77% of our youth consumer class are Black South Africans, reflecting gradual economic transformation. BrandMapp's director of Storytelling, Brandon de Kock says: 'Too often, youth are seen only through the lens of unemployment. But that's just one side of the story. A huge number are already participating in and reshaping the system from within. They are hyper-connected, socially aware, media-savvy, pure digital natives. "By rethinking careers, finances, and what it means to 'make it', they are defining adulthood on their terms. They are also changing the game for all of us in how they spend, live, move, and choose brands. As the first fully digital generation navigating adult life against a backdrop of economic pressure, social change, and constant digital acceleration they have an incredibly interesting story to tell of being young in South Africa.' SA's youth consumer class skews female According to stats SA, there is a 51–49% female–male split in the South African population, but when you put a 'youth consumer class' lens on this data, it shifts radically to 65% female and 35% male, which is very much in line with published statistics from the education department regarding the female skew in university graduates for the past few years. Adding context, WhyFive's Youth strategist, Ashleigh Cumming explains: 'The dominance of females in the youth consumer class is highly relevant because there is such a difference in shopping behaviour between the genders. This may sound like a generalisation, but our data shows it to be true: female consumers drive more frequent and diverse categories of spend including food, beauty, fashion, health, education and home. They tend to plan ahead and budget carefully while leaving some room for emotional or 'reward' buys. "Male consumers tend to be more goal-oriented in shopping. They are interested in fewer categories, browse less, and have a more 'get what I came for' approach. On the other hand, male consumers often spend more per transaction, especially in electronics, alcohol, and personal tech. As traditional consumers age and shrink as an economic force, this youthful, female-skewed base is where growth will come from in retail, financial services, tech, healthcare, and education. Ignore them, and you risk becoming irrelevant. Invest in them, and you can build loyalty that starts early and lasts long.' Outlook on SA is far from rosy Well-educated and motivated, the taxpaying youth consumer class are unfortunately noticeably less anchored to South Africa's future. Nearly half, 49%, have their passports ready and say they are likely or very likely to emigrate in the next five years, compared to just 26% of older adults. Turning that desire into reality may prove more difficult than they think, but the fact remains that in terms of 'intent', a large percentage of our most educated, highly skilled young people clearly see greener grass outside the borders of South Africa. Cumming says: 'Whether it's about staying ready to move or redefining what success looks like, we also see that South African youth are shifting away from traditional ownership. Owning a home and buying a car is no longer the ultimate goal – instead, they're choosing flexible access to what they need, when they need it. From renting apartments and using e-hailing services to streaming content on demand, this generation is choosing convenience over commitment. Today's youth value mobility and experience over permanence. They want the freedom to move cities, switch careers, or work remotely, and rigid ownership models just don't fit that lifestyle. 'However, when it comes to social causes, they are not afraid of commitment. 86% of the youth consumer class show up for what matters, with education, gender-based violence, health and youth issues at the top of their list.' Freedom to live their best lives As true born-frees, the youth consumer class is almost twice as likely as older South Africans to be themselves and support those that express individuality. In line with global estimates, 9% identify as LGBTQ+. 40% of those who don't, still support the movement compared to just 26% of older generations. Is SA their land of hope and dreams? Aligning with the high rates of young consumers considering emigration, only 37% of youth say that they are optimistic about the future of South Africa, while 41% are unsure. Cumming notes: 'That's a large portion caught between hope and frustration. Uncertainty isn't apathy, perhaps it's a response to a system that keeps letting them down? When you consider that a whopping 41% of the youth consumer class also say they have aspirations to start a business – entrepreneurial energy that the country needs so badly, it begs the question of what South Africa needs to do to not only get more young people upskilled and into the workforce, but also how it can be the place that meets the aspirations of the well-educated, working youth segment.' Always online – the generational difference Masters of the digital landscapes they grew up in, like their global counterparts, South Africa's youth consumer class is exceptionally connected. Their use of generative AI, gaming and streaming services all outstrip the older generations. 68% are streaming music, 42% are job hunting and 26% are upskilling online. De Kock concludes: 'What we are seeing in the emerging youth consumer class is a group of powerful young taxpayers who are employed, connected and active in the economy. Despite economic constraints, they are influential, vocal and central to the future of consumer markets. Rather than focus on traditional home and car ownership, they are hungry for better jobs and far more likely to want to start their own businesses. That kind of ambition isn't just personal – it's the spark South Africa's economy needs.'
Arabian Business
11-06-2025
- Business
- Arabian Business
Analysis: UAE's massive AI investment could redefine its economic future
The United Arab Emirates is betting heavily on artificial intelligence as part of a sweeping economic transformation plan, signing multibillion-dollar technology deals and launching a landmark AI partnership with the United States amid growing global uncertainty. and a broader $1.4 trillion investment commitment over the next decade, underscoring the UAE's intent to anchor its non-oil economy in advanced technologies, including AI, semiconductors and cloud computing. Central to the initiative is the newly announced US-UAE AI Acceleration Partnership, aimed at deepening bilateral cooperation on artificial intelligence and related infrastructure. As part of the effort, the UAE secured a deal to import up to 500,000 Nvidia H100 chips annually, a cornerstone component in generative AI systems. 'Bilateral trade talks focused on artificial intelligence, advanced technologies, and semiconductors, culminating in the launch of the US-UAE AI Acceleration Partnership,' said Vijay Valecha, Chief Investment Officer at Century Financial. The Gulf nation also plans to invest in major U.S. AI firms including OpenAI and xAI, while Abu Dhabi-based Group 42 will build a 5-gigawatt AI data centre, set to become the largest of its kind outside the United States. Diversification drive The AI push forms part of a broader strategy to diversify the UAE economy away from hydrocarbons. Non-oil sectors accounted for 75 per cent of GDP in the first nine months of 2024, according to the UAE Ministry of Economy, with the non-oil economy expanding 4.5 per cent, outpacing overall GDP growth of 3.8 per cent. 'The UAE's projected 4.5 per cent growth in 2025 stands in sharp contrast to a global outlook marked by mounting risks and downward revisions,' Osama Al Saifi, Managing Director for MENA at Traze, told Arabian Business. 'This divergence is largely explained by the UAE's strong performance in non-oil sectors, supported by expansion in tourism, transport, construction, and financial services, as well as sustained momentum in foreign direct investment and trade.' The International Monetary Fund expects the UAE's economy to grow by 4 per cent in 2025 and 5 per cent in 2026, making it the fastest-growing economy in the Gulf Cooperation Council. In contrast, global trade growth is forecast to slow to 1.7 per cent this year, with a possible recession in the U.S. or Europe still looming, according to analysts at JPMorgan and Fitch. Hedge against external shocks The timing of the UAE's AI investment spree coincides with a deteriorating global economic outlook. While a potential recession in major Western economies would weigh on oil demand and trade, analysts say the UAE is better positioned than most to weather external shocks. 'The region is better equipped than in previous cycles, though not entirely shielded,' Al Saifi said. 'A recession in the U.S. or Europe would likely exert downward pressure on global oil demand and weigh on fiscal performance. Nevertheless, substantial sovereign wealth assets, contained inflation, and firm domestic demand provide a degree of protection.' The UAE's inflation rate is expected to remain stable at around 2 per cent in 2025, with consumer spending forecast to expand 4.3 per cent, supported by easing interest rates and robust domestic demand, Al Saifi added. 'A mild recession in the U.S. and parts of Europe during the second half of the year is increasingly likely, as the delayed effects of tight monetary policy, persistent inflation, and weakening manufacturing data converge,' Hamza Dweik, Head of Trading at Saxo Bank MENA, told Arabian Business. 'However, the UAE's strong macroeconomic fundamentals, active IPO pipeline, and diversified revenue streams position it as a relative safe haven in the global landscape.' Despite global volatility, UAE financial markets have shown resilience. Dubai F inancial Market (DFM) welcomed 19,366 new investors in Q1 2025, of whom 86 per cent were foreign nationals. Trading activity surged, with average daily trading value reaching AED 663 million, up 67 per cent year-on-year, according to Century Financial. UAE equity valuations also remain below historical averages. The DFMGI index trades at a trailing P/E of 9.5x, about 16.5 per cent below its five-year average, while the ADSMI index is down 16.3 per cent from its historical norm. 'The indices appear undervalued considering the UAE's solid fundamentals and growth trajectory,' said Valecha. 'With over 74 per cent of GDP coming from non-oil sectors closely linked to market performance, equity markets deserve a better valuation.' Strategic positioning The UAE's AI ambitions are not solely economic. Investments in U.S. data infrastructure, semiconductor supply chains, and critical mineral projects are helping strengthen bilateral strategic ties. Abu Dhabi's $25 billion partnership with Energy Capital Partners, and a $60 billion energy cooperation framework with ExxonMobil and Occidental Petroleum, indicate a multipronged strategy that blends AI leadership with industrial leverage. 'Technology will be central to the UAE's next growth cycle – AI, green innovation, digital finance – these are the sectors that will help insulate the economy from external volatility,' Al Saifi said. PwC estimates the AI sector could contribute over $320 billion to the Middle East economy by 2030, with the UAE positioned to capture the lion's share through early infrastructure deployment, regulatory reform and foreign investment attraction. 'Sectors with strong global linkages – such as logistics, real estate (particularly off-plan investment-driven projects), and non-oil exports like aluminum and petrochemicals – are most vulnerable to a potential U.S. recession,' Dweik said. He added that sectors like tourism, hospitality, and sovereign-backed infrastructure projects are expected to remain resilient, supported by 'robust domestic demand and long-term strategic initiatives.' 'The projected non-oil GDP growth of 4.6 per cent in 2025 indicates the ongoing success of diversification and structural reform initiatives,' Valecha added. Dweik echoed his sentiment, adding that diversification remains essential in the current economic environment. 'Investors should consider blending traditional and alternative assets, such as sukuk, infrastructure, and private equity, while also diversifying geographically… Allocating capital across resilient sectors like healthcare, technology, and tourism will help regional investors navigate uncertainty.'
