G20's Big Bet

UAE announces $1 billion initiative to expand AI in Africa

The United Arab Emirates has unveiled a transformative $1 billion 'AI for Development' initiative targeting education, healthcare, and climate adaptation across Africa. This landmark investment comes as the continent's 1.4 billion population and expanding mobile connectivity create unprecedented opportunities for AI-driven solutions to address development challenges. The initiative positions the UAE as a strategic long-term investor in Africa's digital transformation, complementing recent partnerships like Vodacom's multi-year Google Cloud collaboration that will deploy advanced generative AI tools across African markets.

Africa's digital economy is at an inflection point, with rising demand for technology solutions that can leapfrog traditional infrastructure limitations. The UAE's commitment signals growing confidence in Africa's ability to scale AI applications, particularly in sectors where the continent faces acute needs. With fragmented data systems and limited access to advanced technology historically constraining growth, these international partnerships provide crucial infrastructure and expertise transfer.

G20 Africa Energy Investment Forum Highlights Critical Role of Pension Funds in Closing Africa's Investment Gap

The G20 Africa Energy Investment Forum has spotlighted a critical opportunity: Africa's pension funds hold over $1.5 trillion in assets yet allocate less than 3% to infrastructure projects. With annual infrastructure needs estimated at $130-170 billion and current investment falling dramatically short, mobilizing domestic capital has become urgent. South African and Nigerian asset managers alone control 74% of regional infrastructure investment capacity, while African pension funds are projected to grow to $7.3 trillion by 2050.

The forum emphasized regulatory reforms, blended finance mechanisms, and de-risking instruments as essential tools to unlock this capital. Recent initiatives include the establishment of new Competition Regulatory Authorities and expanded PPP frameworks designed to improve transparency and reduce barriers to pension fund participation in energy and infrastructure projects.

Privatization trends in Angola

Angola is executing an ambitious privatization program targeting over 190 state-owned enterprises by 2026, with major opportunities in infrastructure, power, logistics, and telecommunications. The government has already privatized 96 smaller companies and is now tackling strategic assets including partial stakes in Sonangol (oil), Endiama (diamonds), and TAAG (airlines). New PPP and private investment laws, coupled with the establishment of a Competition Regulatory Authority, are improving transparency and governance while reducing barriers to foreign investment.

Early engagement with local partners and understanding the evolving regulatory landscape will be crucial, as will focusing on infrastructure and green economy projects that align with national development goals.

Morocco, second-largest destination for renewable energy investments in MENA

Morocco has attracted $38.1 billion in renewable energy investments (2003-2024), financing 55 projects and creating 12,000+ jobs while targeting 52% renewable electricity by 2030. The Kingdom's proven execution capabilities and strategic regional positioning offer gateway opportunities for energy trade and value chain integration.

Sinopec signs agreement with Algeria to expand national refinery capacity

Sinopec will construct a new $437M heavy naphtha hydrotreating unit at Algeria's Arzew refinery, boosting gasoline production capacity from 550,000 to 1.2M tons annually within 30 months, part of Algeria's $60B energy transformation plan through 2029.

Africa-Europe summit pushes science, technology investment

The 7th AU-EU Summit's Luanda Declaration commits to deeper STI investment through expanded clean energy partnerships, digital cooperation, and innovative financing tools, with debt reform mechanisms expected to unlock capital for African startups and research institutions.