Egypt's tax incentives spark $7.7B FDI in mining

April 19, 2025

Weekly African Market Insights

April 16, 2025

Executive Summary

Africa’s economic momentum accelerated this week, driven by robust GDP growth in Ethiopia (6.5%)[9][10] , Kenya (4.7%)[7] , and Côte d’Ivoire (6.4%)[14] . Foreign direct investment (FDI) surged in Egypt’s manufacturing sector following new tax incentives[6] , while Nigeria grappled with inflation hitting 24.23%[4] . Key developments include Morocco’s 524-proposal foreign trade roadmap[8] and Angola’s $7.7B mining investments in rare earths[16] .

Detailed Insights

Economic Indicators

  • Nigeria: Headline inflation rose to 24.23% YoY in March 2025, driven by food prices and supply chain disruptions[4] .

  • South Africa: GDP growth forecast revised to 0.8–1.3% for 2025, with inflation stabilizing at 4.5%[3] .

  • Ethiopia: IMF projects 6.5% GDP growth in 2025, supported by infrastructure investments and agricultural modernization[9][10] .

  • Zambia: Economic growth expected to rebound to 6.6% in 2025 after a drought-induced slowdown to 2.3% in 2024[18] .

Foreign Direct Investments

  • Egypt: Law 160 introduced tax refunds of 35–55% for industrial projects[6] .

  • Angola: $7.7B allocated to mining investments in 2025, targeting rare earths and diamond processing[16] .

  • Ghana: FDI in luxury real estate surged, with Accra’s property market drawing South African and Indian developers[13] .

  • DRC: Draft budget proposes $7.7B for infrastructure and energy projects[17] .

Sectoral Insights

  • Technology: Kenya’s fintech sector grew 12% YoY, with mobile money adoption reaching 83.7%[20] .

  • Agriculture: Ethiopia’s Commodity Exchange recorded 1.5M monthly calls, streamlining agricultural trade[1] .

  • Renewable Energy: South Africa’s SARB flagged energy costs as a mid-term inflation risk[3] .

  • Mining: Zambia aims to revive copper production through tax reforms and partnerships with BHP[18] .

Regulatory Developments

  • Morocco: 524 proposals finalized for 2025–2026 trade roadmap[8] .

  • Senegal: Vision 2050 launched to address regional inequality[15] .

  • Rwanda: World Bank urged private sector-led growth[12] .

Geopolitical Considerations

  • AfCFTA: Operationalization of the Pan-African Payment System reduced cross-border transaction costs by 15%[19] .

  • Debt Restructuring: Ethiopia negotiated IMF-supported debt relief[11] .

Investment Opportunity Spotlight

1. Ethiopian ICT Sector

Opportunity: Digital Ethiopia 2025 strategy prioritizes data centers and fintech, with $404.7B GDP (PPP) projected[10] .

Risk Mitigation: Partner with local firms like CBE Capital to navigate evolving regulations[11] .

2. Egyptian Industrial Zones

Opportunity: Tax refunds of up to 55% and 10-year utility exemptions for manufacturers[6] .

Risk Mitigation: Leverage free zone licensing for energy-intensive industries to bypass bureaucratic hurdles[6] .

Forward-Looking Perspective

Short-Term (Q2–Q3 2025): Nigeria’s inflation likely to peak at 25% before monetary tightening takes effect[4] .

Strategic Watch: Angola’s AMC 2025 conference to unveil rare earth partnerships[16] .

Sources & References

© 2025 African Market Insights | Daily Intelligence Report

Disclaimer: This report is for informational purposes only. Always conduct independent research and consult financial advisors before making investment decisions.