BUSINESS - The African Mirror

Jun

24

2025

Nigeria’s economy is growing but rural poverty is rising: 5 key policies to address the divide

BUSINESS

THE Nigerian economy grew at a robust rate of 3.4% in 2024, the highest it has been since 2019 (except 2021 when the COVID rebound occurred). This should have been cheering news, worthy of firecrackers and champagne-popping. Rather, it came with a catch: the country’s poverty profile worsened. In its annual review of the country, the World Bank applauded Nigeria for its economic reforms. These include the removal of fuel subsidies, liberalisation of the foreign exchange market and maintenance of a contractionary monetary policy. This is a policy of raising interest rates, reducing the money supply and increasing borrowing costs…

Jun

20

2025

By BONFACE ORUCHO, BIRD STORY AGENCY

Africa draws record US$97 billion FDI in 2024 as reforms win investor confidence – report

BUSINESS

AFRICA attracted a record US$97 billion in foreign direct investment (FDI) in 2024, defying a global downturn in capital flows, according to UNCTAD’s latest World Investment Report released on June 19. While global FDI fell 11% compared to last year, Africa recorded a 75% surge — the highest of any region. Even after excluding Egypt’s US$35 billion Ras El-Hekma mega land deal with the UAE, inflows still rose 12%, reaching US$62 billion. The continent’s share of global FDI climbed from 4% to 6%. According to Fredrick Nyalwal, an economist and member of the Institute of Economic Affairs (IEA Kenya), a…

Jun

19

2025

By ADRIENNE LEES

Uganda’s tax system is a drain on small businesses: how to set them free

BUSINESS

UGANDA is one of the countries most exposed to recent cuts in international aid, particularly with the dissolution of the US Agency for International Development (USAID). In 2023, about 5% of gross national income – a measure of a country’s total income, including income from foreign sources – was received in aid. The cuts have given new impetus to the drive to increase taxes raised from domestic businesses. Less than half (45%) of the Ugandan budget is financed through domestic revenue. The remainder is funded largely through debt and budget support (grants) from bilateral and multilateral donors. Corporate income tax…

Jun

19

2025

By SETH ONYANGO, BIRD STORY AGENCY

Global logistics firms race to deliver as more Africans click ‘buy’ online

BUSINESS

GLOBAL logistics firms are steadily expanding their footprint across Africa as the continent’s digital commerce surge outpaces the existing delivery infrastructure. Already, rising smartphone use and increasing online purchases have reshaped consumer habits, highlighting logistics as a critical battleground. The ‘Hunger Games’ have also reached Africa’s food delivery scene, where global contenders like Uber Eats and Glovo are battling for market share in the fast-paced race to satisfy the continent’s growing appetite for convenience. For years, fragmented supply chains, poor road networks, and high logistics costs have slowed the continent’s ability to meet consumer demand in the digital space. Even…

Jun

18

2025

By The African Mirror

Wiring dreams: How Botswana women are powering Africa’s industrial future

BUSINESS

CLARA Kaekane adjusts her safety glasses and examines the intricate web of colored wires spread across her workstation. As a product and process engineer at Delta Automotive Technologies, she knows that each connection she perfects will eventually course through a Volkswagen or Nissan vehicle, carrying electrical signals across highways from Johannesburg to Lagos. But for Clara, every wire harness represents something far more profound. "Every component we make is a challenge to outdated assumptions about gender and engineering work," she says, her voice carrying both pride and determination. "I'm not just building car parts—I'm building a new perception of what…

Jun

18

2025

By The African Mirror

Safi, an entrepreneur committed to her family

BUSINESS

IN the village of Pongo, in Tanganyika province, Safi Fungwa smiles proudly as she holds up the fish she now sells at the local market. Just a few months ago, she started her small business thanks to a cash transfer programme implemented through a partnership between the Irish Government, UNICEF and the World Health Organisation (WHO). “Community volunteers came to my house and asked questions about my children, whether I was breastfeeding or pregnant,” she recalls. “At the time, I was breastfeeding a child who was already showing signs of malnutrition.” Safi’s family was registered in the programme, and she…

Jun

13

2025

By RICHARD CALLAND

Development finance in a post-aid world: the case for country platforms

BUSINESS

WITH the Trump administration slashing US Agency for International Development budgets and European nations shifting overseas development aid budgets to bolster defence spending, the world has entered a “post-aid era”. But there is an opportunity to recast development finance as strategic investment: “country platforms”. Country platforms are government-led, nationally owned mechanisms that bring together a country’s climate priorities, investment needs and reform agenda, and align them with the interests of development partners, private investors and implementing agencies. They function as a strategic hub: convening actors, coordinating funding, and curating pipelines of projects for investment. Think of them as the opposite…

Jun

12

2025

By SETH ONYANGO, BIRD STORY AGENCY

South Africa revives national shipping line as African nations ramp up fleet, port investments

BUSINESS

SOUTH Africa is reviving plans to establish a national shipping line, joining a growing list of African states investing in ports and maritime logistics to capture more value from global commerce. The carrier, dubbed South African Shipping Company (Sasco), if realised, would be the country’s first state-owned carrier in more than 25 years, following the sale of its predecessor, Safmarine. Safmarine, founded in 1946, served as South Africa’s flagship commercial shipping company until its acquisition by Denmark’s Maersk in 1999. South Africa’s Department of Transport will front Sasco as a vessel-owning and chartering enterprise with a long-term mandate to serve…

Jun

10

2025

By SETH ONYANGO, BIRD STORY AGENCY

Nigerian fintechs chase East Africa’s boom as home market cools

BUSINESS

MORE Nigerian fintech firms are driving expansion beyond domestic borders into East Africa, drawn by the region’s strong venture capital activity and its innovation-friendly regulatory space. It comes as the region continues to attract significant venture capital investment, while Nigeria, once Africa’s fintech frontrunner, experiences a slowdown. “Nigerian fintechs see East Africa as the logical next step for expansion,” said Martin Macharia, a tech and fintech analyst based in Nairobi. “The mobile money ecosystem here is mature, with high adoption rates and established consumer trust. Rather than building from scratch, they’re integrating into a system primed for scale.” Kenya alone…

Jun

07

2025

By MISHECK MUTIZE

African countries are bad at issuing bonds, so debt costs more than it should: what needs to change

BUSINESS

OVER the past two decades, African countries have increasingly turned to international capital markets to meet their development financing needs. For example, Kenya and Benin raised a combined US$2.5 billion through bond issuances during the first half of 2025. Proceeds were used to repay maturing bonds. This means new bonds, with unfavourable terms, are being issued to pay previous lenders. Yet African bonds are substantially mispriced, resulting in excessively high yields that are not justified by fundamentals, based on economic, fiscal and institutional strengths. Mispricing occurs when a country has high economic growth, stable institutions that support government policy implementation,…