Capital On The Move

Africa Insights AI
Capital On The Move
February 12, 2026  |  Issue #47
📈 THIS WEEK'S KEY INSIGHTS
  • Cross-Border Capital Mobilization: Multi-billion dollar investment commitments spanning Egypt's €125M renewable energy grants, Tanzania's $100M agricultural partnership, and Nigeria's N1T mining geomapping signal sustained institutional confidence in African infrastructure and resource sectors
  • Energy Transition Acceleration: From Egypt's grid modernization supporting 22 GW renewable capacity additions to Nigeria's strategic coal-to-AI energy positioning, African nations are positioning themselves as critical players in global energy supply chains
  • Resource-to-Revenue Transformation: Nigeria's comprehensive approach combining N1T geomapping for 44 critical minerals, coal reserves for AI infrastructure, and Egypt's green hydrogen initiatives demonstrates Africa's shift from raw material exports to value-added industrial development
🏗️ SPOTLIGHT: Infrastructure & Development

Egypt Secures €125M EU Investment to Anchor Mediterranean Energy Hub

Investment for Mediterranean energy hub
The Development:The European Union has committed €125 million in strategic grants to Egypt's renewable energy infrastructure, with €90 million channeled through the European Investment Bank for grid modernization and €35 million supporting Scatec's pioneering green ammonia project in Ain Sokhna. This funding represents the highest tier of EU-Egypt Strategic Partnership and positions the country as a critical energy transition hub.
The Scale:Egypt's renewable energy program targets 22 GW of clean energy capacity additions by 2030, requiring 3-4 GW annually from current 8.9 GW baseline. The country has already mobilized $5 billion in private sector investments over three years, deploying 4.2 GW through its NWFE platform, while planned electricity interconnections will add 3,900 MW export capacity to six regional markets including Cyprus, Greece, and Saudi Arabia.
Business Impact:Grid loss rates of 16.5% represent immediate efficiency opportunities, while Egypt's privatization strategy—evidenced by recent wind farm asset sales—creates acquisition pipelines for institutional infrastructure funds. The integrated financing model combining EU grants, EIB concessional funding, and multilateral guarantees reduces investor risk premiums and accelerates permitting across the €60 billion green hydrogen opportunity.
Investment Opportunity:
  • Grid Infrastructure Players: Battery energy storage and transmission upgrades benefit from €90M EIB-managed modernization program with guaranteed power purchase agreements
  • Green Hydrogen Investors: €35M Scatec allocation signals government tax incentives and strategic positioning on major shipping routes for export markets
  • Equipment Suppliers: Localization requirements favor solar component and battery manufacturers establishing regional assembly operations
  • Regional Energy Traders: 3,900 MW interconnection capacity creates cross-border electricity trading opportunities across Mediterranean and Middle East markets
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💰 INVESTMENT WATCH

Tanzania and Al Dahra Sign MoU for $100M Agricultural Transformation

Agricultural Transformation

Tanzania's Investment and Special Economic Zones Authority has partnered with UAE-based Al Dahra Group for up to $100 million investment targeting 10,000 hectares of irrigated farmland, expandable to 20,000 hectares. The initiative leverages Tanzania's vast agricultural potential—44 million hectares arable with only 24% cultivated and minimal irrigation utilization—while addressing Africa's $83 billion annual food import dependency.

The sovereign-backed partnership provides land identification, regulatory support, and investment incentives under President Samia Suluhu Hassan's agricultural transformation agenda targeting 10% GDP growth in the crop subsector by 2030. Al Dahra brings proven expertise in smart agritech, climate-smart irrigation, and high-yield crops with potential for diversified revenue streams across food security and export markets.

Investment Implications:
  • Tanzania's untapped arable land offers scalable returns for agribusiness investors, while TISEZA's facilitation reduces regulatory risk.
  • The tech-driven model with expansion potential positions early movers to capture first-mover advantages in East Africa's agricultural investment surge.
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🌐 MARKET OPPORTUNITIES

Nigeria Advised to Leverage $650B AI Expansion Through Strategic Coal Development

Strategic coal development to power AI data centres

Nigerian policy advisors are urging the government to develop the country's 5 billion metric tonnes of coal reserves to power AI data centers, positioning Nigeria to capture a projected $650 billion global AI expansion in 2026. The strategic pivot reframes coal assets as industrial energy inputs for AI-linked growth amid surging energy demands from tech giants like Google and Meta.

Nigeria's coal reserves in Enugu, Benue, and Kogi states represent an underleveraged asset while global AI energy demand is projected to double data center electricity use by 2030. The proposed Nigerian Green Energy and Chemicals Corporation could transform coal into high-value products, reducing debt reliance and boosting industrial competitiveness for resource investors seeking exposure to Africa's AI boom.

Action Items:
  • Engage Nigerian policymakers to advocate for coal development incentives targeting power purchase agreements with AI data center operators.
  • Deploy government relations teams in Abuja to position for sovereign economic engineering projects emphasizing energy security while monitoring President Tinubu's policy response.
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📊 QUICK HITS

Nigeria Approves N1T Geomapping Budget to De-Risk Mining Investment

Nigeria has approved a N1 trillion nationwide geomapping program for 44 critical minerals, providing reliable geological data to attract investors and reactivate 2,000 dormant mines. The initiative contributed to 79% revenue growth to N68.1B in 2025 and $1.3B in foreign investment.

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Egypt's Badawi Courts Global Investment Banks for Energy Sector Acceleration

Egypt's Petroleum Minister hosted roundtables with JPMorgan, BlackRock, and Rothschild & Co. showcasing reforms and opportunities in oil, gas, mining, and green hydrogen. The engagement follows cleared IOC arrears and 5.3% Q1 GDP growth with 40% private investment surge.

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PE Fund Harith Moves to Acquire South Africa's Dominant FlySafair Airline

$3 billion infrastructure investor Harith General Partners signed a deal to acquire FlySafair's 60% domestic market share, subject to Q4 2026 regulatory approvals. The transaction resolves ownership compliance issues while supporting regional aviation expansion across Harith's pan-African transport ecosystem.

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