<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="719" height="480" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/03/image002.png" alt="" class="wp-image-602043" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/03/image002.png 719w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/image002-300x200.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/image002-135x90.png 135w" sizes="auto, (max-width: 719px) 100vw, 719px" /><figcaption class="wp-element-caption">UAE officers participated in Operation Jungle Shield, jointly with officers from the Lusaka Agreement Task Force (Credit: UAE Ministry of Interior)</figcaption></figure>



Lt. Col. Dana Humaid, Director General of the International Affairs Bureau, Ministry of Interior, United Arab Emirates. 



Modern criminal networks operate with increasing sophistication, their operations unconstrained by national borders. Law enforcement agencies are rising to meet these challenges through collaborative approaches.&nbsp;&nbsp;



As Director General of the International Affairs Bureau at the UAE Ministry of Interior and Secretary of the International Security Alliance, I&#8217;ve witnessed the remarkable effectiveness of coordinated security responses. Africa stands as an inspiring example of transnational police collaboration—pioneering a model for successfully tackling global crime in our interconnected world.&nbsp;



The evidence for this approach is compelling. Criminal enterprises thrive on the inability of national agencies to coordinate. A trafficker stopped in Lagos reroutes through Mombasa; funds stolen in Johannesburg finance extremism in Mogadishu within hours. Yet when law enforcement agencies pool intelligence and resources, the results are transformative.&nbsp;



Through the International Security Alliance, I have witnessed first-hand how the power of coordinated action can disrupt networks in ways that isolated efforts never could.&nbsp;



Interpol’s Operation Screen West Africa provides a striking example. Over 12 nations united in a joint effort that conducted 1.3 million database checks, unearthing 82 individuals traveling with fraudulent documents and arresting 11 internationally wanted criminals. Drug traffickers, counterfeit medicine suppliers, and stolen vehicle syndicates saw their operations dismantled. These figures translate into real-world security: safer streets, disrupted crime rings, and lives protected.&nbsp;



Technology plays a crucial role. Mobile devices linked to INTERPOL’s databases now allow border officers to verify travelers’ identities against international criminal records in seconds. A once-vulnerable border post is transformed into a security stronghold.&nbsp;&nbsp;



But the true value of such tools lies in sustainable capacity-building, not dependency. The advanced technological training initiatives I have personally overseen focus on equipping police forces with the skills to use these systems effectively, creating long-term security capabilities rather than short-term solutions.&nbsp;



Security collaboration flourishes when built on a foundation of trust, with technology serving as a powerful enabler. African nations have shown remarkable progress in overcoming historical hesitations about international partnerships. When officers train together, share intelligence, and conduct joint operations, they forge professional relationships that transcend political boundaries. In my experience, these human connections are proving just as valuable as the cutting-edge tools they employ—creating a powerful synergy that strengthens security cooperation across the continent.&nbsp;



Protecting the vulnerable is another area where international cooperation is making a real impact. As the overseer of the UAE Ministry’s Child Protection Centre, I have witnessed how well-coordinated global efforts can dismantle human trafficking networks. A recent example is INTERPOL’s Operation Liberterra II, which brought together 15 specialized units from INTERPOL’s General Secretariat, along with partner organizations, national agencies, and NGOs. Through cross-border coordination, the operation rescued 3,200 potential trafficking victims. These are not just statistics—they are lives forever changed.&nbsp;



By fostering relationships between specialized units and enhancing cross-agency collaboration, such operations not only provide immediate relief but also build long-term capacity for countries to tackle these difficult and complex issues.&nbsp;



Environmental crime, too, demands a collaborative response. The Congo Basin, a vital carbon sink, is under assault from illegal logging and poaching. Operation Jungle Shield, a 2024 initiative led by the International Initiative of Law Enforcement for Climate (I2LEC), saw agencies from seven African nations unite to combat environmental destruction. The results: 2,111kg of ivory, 34kg of pangolin scales, and $11.2 million in illicit goods seized; 58 arrests; and the disruption of criminal operations responsible for deforestation equivalent to 728 football fields.&nbsp;



The remarkable success of existing collaborative initiatives provides a strong foundation for even greater achievements ahead. Continued investment in African law enforcement capacity is opening new horizons of possibility. I&#8217;ve witnessed the transformative impact of specialized training—from environmental protection investigations to seaport resilience strategies—empowering officers to confidently tackle emerging threats. INTERPOL&#8217;s Support Programme for the African Union (ISPA) is already delivering impressive results in strengthening transnational crime-fighting capacity, showcasing the tremendous potential for future growth.&nbsp;



The groundwork for a safer, more prosperous Africa is being established through enhanced intelligence-sharing, successful joint operations, and deepening mutual trust. The frameworks are firmly in place, ready to be energized by political will and commitment to extend these capabilities across the continent. As Africa experiences accelerating economic growth, robust security cooperation serves as a catalyst for protecting and amplifying these gains. Secure borders, safe cities, and trusted law enforcement create the ideal environment for investment, trade, and development to flourish.&nbsp;



The vision of an Africa where police agencies collaborate seamlessly, where criminal networks find no refuge, and where citizens move freely without fear is now within our grasp. Realizing this inspiring future requires the continuation of our shared commitment to security excellence. By strengthening cross-border cooperation, leveraging innovative technology, and investing in world-class training, we ensure that Africa&#8217;s security partnerships today will powerfully drive its prosperity tomorrow.&nbsp;

image002

Building a Safer Africa Through Global Police Cooperation

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="414" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/03/DIL08644-820x414.jpg" alt="" class="wp-image-601712" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/03/DIL08644-820x414.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/DIL08644-300x152.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/DIL08644-160x81.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/DIL08644-768x388.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/DIL08644-1536x776.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/DIL08644-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



By Ahmed Bin Sulayem, Kimberley Process (KP) Chair 2024 – 2025 and Executive Chairman and CEO of DMCC (Dubai Multi Commodities Centre)



In response to a recent article published on CNBC Africa, titled, <a href="https://cnbcafrica.com/2025/the-kimberley-process-an-illusion-of-ethics/">’The Kimberley Process: An Illusion of Ethics?’</a>, I’ve been compelled to pen a response that not only corrects its false narratives and commentary, but also takes the opportunity to clarify certain underlying facts about the KP’s successes, challenges and responsibilities since its foundation, almost 25 years ago.&nbsp;



Originating in May 2000 in Kimberley, South Africa, as an item on the agenda of the 55th session of the UN General Assembly, the Kimberley Process (KP) was first discussed as a mechanism to mitigate the damaging social effects of the trade in conflict diamonds, and how a framework could be established to reduce these influences. Three years later, the Kimberley Process Certification Scheme (KPCS) was launched as a joint government, industry, and civil society initiative that to date, <a href="https://dmcc.ae/ecosystems/diamonds/kimberley-process">has stemmed the flow of 99.8% of the global production of conflict diamonds</a>.



In the opening paragraph of the ‘Illusion of Ethics’, the writer, Dr. M&#8217;zée Fula-Ngenge, chairman of the African Diamond Council, states that the KPCS “is beset by a confluence of structural, operational, and ethical deficiencies that collectively undermine its legitimacy, efficacy, and relevance within the global diamond industry. These challenges are not merely incidental but are deeply entrenched in the Kimberley Process’ (KP) institutional framework, rendering it ill-equipped to address the evolving demands of ethical sourcing, transparency, and accountability. A critical examination of these issues reveals that the KP’s failures are systemic, necessitating transformative reforms to restore its credibility and ensure its continued relevance.”



Underpinned by United Nations mandate, the KPCS is widely documented as the only successful, collaborative effort to reduce the circulation of conflict diamonds from above 15 per cent in the 1990s, to well under 1 per cent today. Additionally, the KPCS is the only reason for an international framework for regulating the trade of rough diamonds. For these reasons alone, I contest that the KPCS’s significant achievements to date, and its ongoing development have only been possible courtesy of its structural, operational, and ethical strengths, which have demonstrably delivered on its mission of stemming the flow of conflict diamonds into wider circulation – a role it continues to fulfil and refine.



Stating that the KP should be “confronting its limitations, failures, and the broken promise of a ‘Year of Delivery’,” I would like to clarify that 2024 included several significant milestones, namely, the admittance of Uzbekistan as a new KP member, and the readmittance of the Central African Republic to the body following its decade-long ban. The ‘Year of Delivery’ also included the UAE’s initiative of a proof-of-concept for the digitalisation of the KP certification process, one of its key objectives.



The author goes on to cite that the KP’s “inability to address well-documented cases of non-compliance among member states, such as the infiltration of conflict diamonds from regions like the Central African Republic (CAR), demonstrates a systemic failure to enforce its own mandate. This lack of accountability is compounded by operational inefficiencies, including mismanagement and a lack of transparency, which further erode the KP’s credibility.”



As one of the KP’s key accomplishments, it was my personal pleasure to visit the CAR on behalf of the KP in order to fast-track the country’s reintegration in light of an improving security situation – an achievement that was not only widely supported by Jaff Bamenjo of the Civil Society Coalition, but also Feriel Zerouki, President of the World Diamond Council.



Moving onto what Dr. Ngenge referred to as the KP’s “over-reliance on consensus-based decision-making [[which]] exacerbates these issues by stifling critical thinking and suppressing dissenting viewpoints”, while consensus can slow decision-making, it is also what makes the Kimberley Process unique as a rare example of what a truly global multi-stakeholder initiative looks like. Without consensus, the process would risk becoming another top-down regulatory body that lacks the buy-in of key participants, particularly diamond-producing nations in Africa. The Kimberley Process was designed to ensure that all voices are heard, including those from artisanal mining communities. A unilateral approach dictated by a few dominant nations (like the G7) would be far less effective and could potentially alienate the very countries that need the KP the most, i.e., Africa’s diamond-producing nations.



Ngenge’s remaining criticisms can be addressed in a single statement, which can also serve as an important reminder to both diamond industry stakeholders and critics, who remain unclear about the KP’s function.



In brief, Ngenge states that “The economic downturns and shifting consumer preferences have further exposed the KP’s inadequacies in the most unexpected manner”, that the “glaring structural flaws in the KP’s framework is its narrow regulatory scope, which focuses exclusively on rough natural diamonds” and “the KP’s failure to address issues such as smuggling and fraudulent certification.”



It has become common place among detractors to criticise the KP for not being a universal solution for the diamond sector’s global challenges, including, as illustrated by Dr. Ngenge’s comment, what it’s not mandated to do. As a result, I feel this is a timely opportunity to remind the international community that one of the KP’s many key strengths is its function of fitting into a far wider network of organisations that play complementary roles in ethical diamond sourcing.



Let me be absolutely clear: The Kimberley Process was never designed to be a global financial watchdog, an anti-money laundering agency, or a tax enforcement mechanism. Expecting the KP to solve challenges outside its jurisdiction is as illogical as blaming Interpol for failing to regulate corporate tax fraud. Yet, the debate surrounding the KP has taken on an emotional tone, particularly in claims that it is a &#8220;massive greenwashing operation&#8221; or that it &#8220;certifies blood diamonds as legitimate.&#8221; These statements are false and misleading. They do not serve the interests of responsible stakeholders seeking real reform. For the sake of clarity, the Kimberley Process Certification Scheme (KPCS) focuses on the trade of rough diamonds, not polished diamonds. Once rough diamonds are cut and polished, they fall outside the scope of the KPCS.



While I am in admiration of Dr. Ngenge’s commitment to transparency, I am concerned about his promotion of Authentia.io, a yet-to-be-developed traceability platform for which he has claimed to have worked with its developers over the past three-and-a-half years. While this may be true, it indicates a clear conflict of interest, with his ADC standing to gain from its implementation. By positioning the ADC as an authority in diamond traceability while promoting a specific platform, I have several concerns about whether his advocacy is driven by industry ethics or business interests.



Contrary, Dr. Ngenge fails to recognise the Kimberley Process’s recent advances in digitalisation and traceability, particularly through its Verifico platform. Currently in proof-of-concept for digitalisation of the KP, Verifico represents a major step forward in strengthening supply chain integrity by leveraging modern technology. By implementing blockchain and other digital tools, Verifico enhances the tracking and certification of diamonds, making it more difficult for illicit stones to enter the legitimate supply chain. Ignoring this development significantly undermines the credibility of arguments that the KP is outdated or ineffective.



Towards the end of the article, Dr. Ngenge states that “The KP must implement stronger enforcement mechanisms to remove non-compliant members and ensure accountability. This could include the establishment of an independent monitoring body with the authority to investigate and sanction violations, which the ADC is willing to set up and assist with.”



This neatly brings me onto the credibility of Dr. Ngenge and the African Diamond Council.



In the world of African diamond governance, two organisations are often erroneously confused: the African Diamond Producers Association (ADPA) and the African Diamond Council (ADC). While the ADPA is indisputably recognised as the legitimate intergovernmental body for African diamond-producing nations, the ADC remains a lesser-known and often controversial entity. At the centre of the ADC is Dr. Ngenge, a self-proclaimed diamond industry strategist who has made bold claims about his role in shaping the industry, including asserting that he was instrumental in the formation of the DMCC (Dubai Multi Commodities Centre). However, the truth about the ADC, its legitimacy, and Dr. Ngenge&#8217;s claims reveal inconsistencies, self-promotion, and potential vested interests.



The African Diamond Council presents itself as “Africa’s official diamond governing body”, supposedly composed of the heads-of-state from Africa’s diamond-producing countries. It claims to have been founded in January 2000 in Luanda, Angola, with a mission to regulate Africa’s diamond trade. It also frequently positions itself as the supreme authority, even referring to the ADPA as “a continental branch of ADC”. However, no legal or governmental documentation supports this claim.



Unlike ADPA, an intergovernmental body, <a href="https://www.kimberleyprocess.com/observer-groups-and-roles">formally recognised as one of the KP’s Observer Groups</a>, the ADC is not officially acknowledged by any major international regulatory body. It operates as a private advocacy group, relying on self-proclaimed authority rather than government backing. The African Union and other multinational African institutions do not officially recognise the ADC, and there is no evidence of heads-of-state formally convening under the ADC’s leadership.



<a href="https://www.kimberleyprocess.com/observers/african-diamonds-producers-association">The African Diamond Producers Association (ADPA),</a> on the other hand, was officially established in 2006 via the Luanda Declaration and serves as a recognised intergovernmental organisation headquartered in Angola. It consists of the mining ministers from its member states and represents African diamond-producing nations in global forums. It also actively participates in the Kimberley Process, influencing policies that govern the trade of rough diamonds. In total, ADPA includes at least 15 African nations, including major producers such as Angola, South Africa, and Zimbabwe.



In contrast, the ADC has no formal government membership and is not involved in policy-making. Additionally, it isn’t listed as an observer in the Kimberley Process and holds no official standing in diamond trade governance. Its underlying authority and credibility comes almost exclusively from self-published materials and the reputation of its chairman, Dr. Ngenge.



In his capacity as chairman of the ADC, Dr. Ngenge has presented himself as an influential figure in African diamond policy. Previous claims include pivotal roles in:



<ul class="wp-block-list">
<li>The establishment of the Kimberley Process (KP) – he states that he was “Chief Administrative Developer” in 2000 and “Project Launch Team Coordinator” in 2001.</li>



<li>Shaping Dubai’s diamond industry and founding DMCC – he has asserted that he was a “principal trustee and decisive proponent” in forming the DMCC (Dubai Multi Commodities Centre) in 2002.</li>



<li>Advocating for diamond traceability and governance reforms – he promotes the ADC as a leading authority in shaping Africa’s diamond sector.</li>
</ul>



While his involvement in early Kimberley Process discussions may be partially accurate, there is no tangible evidence to support this claim – nor is there any verifiable evidence to support his claims regarding the formation of DMCC.



DMCC (Dubai Multi Commodities Centre) was established in May 2002 by a royal decree issued by Sheikh Mohammed bin Rashid Al Maktoum, the Ruler of Dubai. The official DMCC narrative credits Dubai’s leadership and executives, including myself, as the primary forces behind its creation. Nowhere in DMCC’s official records, government statements, or founding documents does Dr. Ngenge’s name appear.



DMCC categorically denies Dr. Ngenge’s involvement in its founding or the establishment of the Dubai Diamond Exchange. Courtesy of these revelations, I am pleased to confirm that Rough &amp; Polished has deleted its reference to Dr. Ngenge&#8217;s false claim about DMCC from the English version of its website.



While I cannot speak for the reasons behind Ngenge’s OpEd, his outspoken criticism coincides with his attempts to participate in the KP’s Intersessional meeting in May 2024, where he was removed by security for attempting to enter closed sessions without verifiable invitation.



In the same way that the KP should be held to account and scrutiny, the industry should also pay close attention to those that criticise it, including their status, credibility, and potential motivations for undermining it. While I will be the first to admit that no organisation is perfect, the KP’s empirical status as the only vehicle of collaborative efficacy in the diamond industry’s global fight against conflict diamonds should not be underestimated, nor disposed of due to ‘room for improvement’.



As we continue with the ‘Year of Best Practice’, I once again look forward to welcoming back all credible members of the diamond community, where we will continue to uphold our mission in stemming conflict diamonds from our global supply chains.

DIL08644

The Kimberley Process: The only demonstrable vehicle of collaborative efficacy in the diamond industry’s global fight against conflict diamonds

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/03/Thabani-Ndwandwe-820x546.jpg" alt="" class="wp-image-596999" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/03/Thabani-Ndwandwe-820x546.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/Thabani-Ndwandwe-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/Thabani-Ndwandwe-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/Thabani-Ndwandwe-768x511.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/Thabani-Ndwandwe-1536x1022.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/Thabani-Ndwandwe-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Thabani Ndwandwe, Chief Risk Officer, Standard Bank</figcaption></figure>



South Africans were eagerly awaiting Finance Minister Enoch Godongwana’s 2025 Budget Speech, hoping for measures to ease financial pressure. However, the budget presents a mixed bag—while it seeks to stabilise government finances, the cost of living is set to rise due to tax changes. The question is: how will this affect the average South African?



Let’s unpack the key changes and what they mean for consumers:



VAT Increase – Higher Prices for Everyday Goods



One of the most notable changes is the increase in Value-Added Tax (VAT), which will rise from 15% to 15.5% on May 1, 2025, with another 0.5% increase coming in 2026.



For consumers, this means everyday goods and services will become more expensive—from electricity and clothing to transport and personal care products. While basic food items remain VAT-exempt and more items were added to VAT- exempt, the reality is that many essentials will see price hikes, adding further strain to household budgets.



This increase will hit low- and middle-income earners the hardest, as VAT is a regressive tax—meaning it takes a bigger proportion of income from the poor than from the wealthy.



Income Tax Bracket Freeze – More Tax Without a Tax Hike



While there is no direct increase in personal income tax rates, the government has not adjusted tax brackets for inflation. This means that as salaries rise due to inflation, many South Africans will be pushed into higher tax brackets, effectively paying more tax without actually earning more in real terms.



Middle-class and working professionals will feel the impact the most, as their take-home pay shrinks despite salary increases.



Fuel Levies – A Small Relief



In a small win for motorists, the general fuel levy and the Road Accident Fund (RAF) levy will remain unchanged for another year, continuing the freeze introduced in 2022. This move provides around R4 billion in tax relief, preventing an even bigger fuel price hike.



Sin Taxes – Alcohol and Cigarettes Just Got Pricier



For those who drink or smoke, the budget brings another annual increase in excise duties:



&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; •&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Alcohol duties up by 6.75%:



&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; •&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A 340ml beer will cost about 15 cents more.



&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; •&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A bottle of wine will increase by 38 cents.



&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; •&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A 750ml bottle of spirits (whisky, brandy, vodka) will go up by R5.97.



&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; •&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tobacco duties up by 4.75% (6.75% for cigars and pipe tobacco):



&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; •&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A pack of cigarettes will cost more.



&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; •&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Vapes and e-cigarettes are also taxed higher.



The government justifies these increases as a public health measure while raising revenue. However, for consumers, this means that drinking and smoking will take an even bigger chunk of their budgets.



Social Grants – Modest Increases Amid Rising Costs



Millions of South Africans depend on social grants.&nbsp; While grant payments will increase slightly, they may not keep up with food inflation, meaning beneficiaries will still struggle to afford essentials as prices continue to rise.



Public Transport &amp; Infrastructure – Will It Deliver?



The government is allocating R19.2 billion to the Passenger Rail Agency of South Africa (PRASA) to improve train services, alongside an additional R11.8 billion for infrastructure projects.



If these funds are managed efficiently, commuters could benefit from better, cheaper transport options. However, given past mismanagement of infrastructure budgets, accountability will be key to ensuring that South Africans see improvements.



What Should Consumers Do?



Given these changes, South Africans must adapt their financial strategies. Here’s what consumers can do:



<ol class="wp-block-list">
<li>Adjust household budgets – Anticipate higher prices for essentials and non-essentials alike.</li>



<li>Maximize tax savings – Take advantage of tax-free savings accounts, medical aid deductions, and retirement contributions to reduce taxable income.</li>



<li>Monitor fuel and transport costs – If PRASA upgrades succeed, rail transport could be a cheaper alternative to private vehicles.</li>



<li>Consider lifestyle changes – With sin taxes rising, cutting back on alcohol and smoking could save significant money.</li>
</ol>



Final Thoughts: A Tough Year for Consumers



While the government has made some strategic investments, this budget largely increases the financial burden on South Africans through higher VAT, unchanged tax brackets, and rising sin taxes.



For the economy to grow sustainably, South Africa must prioritize job creation, economic growth, and efficient public spending—or risk placing even greater strain on consumers in the years ahead.

Thabani Ndwandwe

How the 2025 Budget Will Impact Consumers: What You Need to Know

<div class="wp-block-image">
<figure class="aligncenter"><img decoding="async" src="https://media.licdn.com/dms/image/v2/D4D12AQGZgUKtuFABRg/article-cover_image-shrink_720_1280/B4DZWKXODKG8AQ-/0/1741783123488?e=1747267200&amp;v=beta&amp;t=bYfWpPJC2NYEWFH2eX9eBeyRetdw7Zc7rlfWzUc95yY" alt="Dr M'zée Fula Ngenge, Chairman of African Diamond Council (ADC)"/><figcaption class="wp-element-caption">Dr M&#8217;zée Fula Ngenge, Chairman of African Diamond Council (ADC)</figcaption></figure></div>


Confronting its Limitations, Failures and the Broken Promise of a &#8216;Year of Delivery&#8217;



The Kimberley Process Certification Scheme (KPCS) is beset by a confluence of structural, operational, and ethical deficiencies that collectively undermine its legitimacy, efficacy, and relevance within the global diamond industry. These challenges are not merely incidental, but are deeply entrenched in the Kimberley Process’ (KP) institutional framework, rendering it ill-equipped to address the evolving demands of ethical sourcing, transparency and accountability. A critical examination of these issues reveals that the KP’s failures are systemic, necessitating transformative reforms to restore its credibility and ensure its continued relevance.



At the heart of the KP’s internal challenges lies a leadership crisis characterized by poor decision-making, a lack of strategic vision and instances of unethical behavior at the highest levels of governance. These leadership failures are not isolated incidents, but are symptomatic of a broader institutional culture that prioritizes political expediency over ethical rigor. For example, the KP’s inability to address well-documented cases of non-compliance among member states, such as the infiltration of conflict diamonds from regions like the Central African Republic (CAR), demonstrates a systemic failure to enforce its own mandate. This lack of accountability is compounded by operational inefficiencies, including mismanagement and a lack of transparency, which further erode the KP’s credibility.



It is clear that the KP’s over-reliance on consensus-based decision-making exacerbates these issues by stifling critical thinking and suppressing dissenting viewpoints. While consensus is often lauded as a democratic ideal, in practice, it has led to a culture of complacency and inaction, particularly from KP member states. This is evident in the KP’s repeated failure to adopt meaningful reforms, such as expanding its definition of conflict diamonds to include human rights abuses or implementing robust traceability mechanisms. The result is a certification scheme that is increasingly perceived as outdated, ineffective and out of touch with the realities of the modern diamond industry.



Externally, the KP faces mounting skepticism from consumers, civil society organizations (CSOs), and industry stakeholders, who view its failure to address critical issues as a betrayal of its founding principles. The economic downturns and shifting consumer preferences have further exposed the KP’s inadequacies in the most unexpected manner. Younger generations, in particular, are demanding ethically-sourced and sustainably mined diamonds, with many turning to lab-grown alternatives. This shift in consumer behavior underscores the KP’s inability to adapt to changing market dynamics and its failure to provide credible assurances of ethical sourcing.



The rise of independent certification programs and traceability solutions, such as <a href="http://authentia.io/">Authentia.io</a>, further highlights the KP’s declining relevance. These initiatives, which leverage blockchain technology and other digital innovations, offer greater transparency and accountability than the KP’s outdated self-regulation model. The European Union’s decision to postpone the implementation of stringent diamond traceability requirements until 2026, a delay that has been widely criticized, serves as a stark reminder of the KP’s inability to drive meaningful change within the industry.


<div class="wp-block-image">
<figure class="aligncenter"><a href="https://authentia.io/" target="_blank" rel="noreferrer noopener"><img decoding="async" src="https://media.licdn.com/dms/image/v2/D4D12AQG2j4kydPNuOw/article-inline_image-shrink_1000_1488/B4DZWKYVF0GcAY-/0/1741783398305?e=1747267200&amp;v=beta&amp;t=KLwpf60_80J8x5VVifWXIca74B6eVqk2bVqW8x94OcE" alt="Authentia.io"/></a><figcaption class="wp-element-caption">Authentia.io</figcaption></figure></div>


One of the most glaring structural flaws in the KP’s framework is its narrow regulatory scope, which focuses exclusively on rough natural diamonds, while neglecting cut and polished diamonds. This regulatory gap has allowed conflict diamonds to infiltrate the supply chain, undermining the KP’s stated mission of preventing the trade in blood diamonds. The African Diamond Council (ADC) has repeatedly highlighted this issue, noting that participant countries often remain non-compliant while retaining their KP membership. This duality not only undermines the KP’s credibility, but also raises serious questions about its commitment to ethical sourcing.



Moreover, the KP’s failure to address issues such as smuggling and fraudulent certification further erodes its legitimacy. Despite repeated calls for stronger enforcement mechanisms, the KP has consistently failed to take decisive action against non-compliant members. This lack of accountability has created a culture of impunity, in which member states face no meaningful consequences for violating the KP’s guidelines. The ADC’s observation that even self-proclaimed advocates of ethical practices may be complicit in perpetuating the very issues they claim to oppose underscores the need for independent monitoring and oversight.



To restore its credibility and relevance, the KP must undertake a series of comprehensive reforms that address both its internal deficiencies and external challenges. The ineffective certification scheme must expand its definition of conflict diamonds to include human rights abuses, such as forced labor and environmental degradation, which are often associated with diamond mining. This would align the KP’s mandate with contemporary ethical standards and address the growing demand for responsible sourcing. The KP must implement stronger enforcement mechanisms to remove non-compliant members and ensure accountability. This could include the establishment of an independent monitoring body with the authority to investigate and sanction violations, which the ADC is willing to set up and assist with. The KP must adopt digital technologies to enhance transparency and traceability across the entire supply chain. This would not only restore consumer confidence but also provide a credible alternative to independent certification programs. The KP must move beyond self-regulation by member states and establish independent oversight mechanisms to ensure compliance with its guidelines. This would address the inherent conflict of interest that typically arises when member states are responsible for monitoring their own compliance. The KP must engage more effectively with industry stakeholders, including consumers, CSOs and industry professionals, to rebuild trust and foster a culture of accountability. This could include the creation of a multi-stakeholder advisory board to provide input on key decisions.


<div class="wp-block-image">
<figure class="aligncenter"><a href="https://preciousworld.online/" target="_blank" rel="noreferrer noopener"><img decoding="async" src="https://media.licdn.com/dms/image/v2/D4D12AQGq0eC9gf5Q_g/article-inline_image-shrink_1500_2232/B4DZWKZJg5HIAc-/0/1741783603907?e=1747267200&amp;v=beta&amp;t=AgL7DkZQbkBJJQtPXyVEd-eyWwQRXGPuQA73ebYHysg" alt=""/></a><figcaption class="wp-element-caption">Precious World Online</figcaption></figure></div>


As I conclude, the current trajectory of the Kimberley Process Certification Scheme (KPCS) is unsustainable. Its failure to address internal deficiencies, adapt to external challenges, and implement meaningful reforms has rendered it increasingly irrelevant in a rapidly evolving industry. The KP’s desperate plea for support letters entwined with the energy currently being exerted to circulate a strategically planned set of activities that are designed to positively impact the scheme&#8217;s reputation or achieve specific objectives will not suffice; only through comprehensive and transformative reforms can the KP hope to regain its credibility and restore confidence among its stakeholders. The time for action is now, as the KP’s continued failure to act will only hasten its decline and further erode trust in the global diamond industry.

1741783123488

The Kimberley Process: An Illusion of Ethics?

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="216" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/03/south-africa-country-focus-hero-820x216.jpg" alt="" class="wp-image-596892" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/03/south-africa-country-focus-hero-820x216.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/south-africa-country-focus-hero-300x79.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/south-africa-country-focus-hero-160x42.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/south-africa-country-focus-hero-768x202.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/south-africa-country-focus-hero-1536x405.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/03/south-africa-country-focus-hero-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



Improving the business environment, strengthening governance, and reforming the labor market are among the keys to economic success&nbsp;&nbsp;



South Africa is well-positioned to confront significant longstanding challenges that have been holding the economy back: declining real per-capital income, persistent unemployment, pervasive poverty, and one of the highest inequality rates in the world. These outcomes reflect deepening structural rigidities and governance weaknesses, evidenced by the negative contribution of Total Factor Productivity to growth over the past 15 years.



A new Government of National Unity, in power since June 2024, has committed to tackle these challenges by providing new impetus to the ongoing structural reforms initiated in 2020.&nbsp;&nbsp;



“We are steadily removing the obstacles to meaningful and faster growth&#8230; [through] economic reforms that we are implementing as part of Operation Vulindlela,” South African President&nbsp;Cyril Ramaphosa&nbsp;recently remarked.&nbsp;Major electricity sector reforms are underway, allowing for private-sector participation in electricity generation, including from renewable sources. Reforms to the logistics sector are also ongoing, allowing for private sector participation in freight rail and port operations. The government is also moving to streamline digital communications regulations and water licensing procedures and modernize the eVisa system.



<figure class="wp-block-image"><img decoding="async" src="https://www.imf.org/-/media/Images/IMF/News/Country-Focus/2025/03/sa-cf-operation-vulindlela-infographic-portrait.ashx?w=1545px" alt=""/></figure>



These reforms are an important step in the right direction—necessary to alleviate binding constraints to growth, but on their own not sufficient to generate the productivity gains needed to put the economy on a path toward permanently higher growth.&nbsp;



To help unlock South Africa’s full growth potential, the&nbsp;<a href="https://www.imf.org/en/Publications/CR/Issues/2025/01/30/South-Africa-2024-Article-IV-Consultation-Press-Release-Staff-Report-and-Statement-by-the-561414">IMF recommends</a>&nbsp;fully implementing the reforms already underway as well as pursuing a package of further structural reforms:



<ul class="wp-block-list">
<li>Actions to enhance the business environment—by cutting excessive red tape and administrative requirements and ensuring that small and medium enterprises have fair access to markets—are essential to help support entrepreneurship, firm growth, and job creation. </li>
</ul>



<ul class="wp-block-list">
<li>Further efforts to fight corruption, professionalize public administration, and improve the governance of state-owned enterprises are paramount to build trust in public institutions and create a more stable and predictable business climate. </li>
</ul>



<ul class="wp-block-list">
<li>Complementary labor-market reforms to reduce spatial disparities, help young people enter the labor force, and make regulations for small and medium-sized enterprises more flexible are key to durably reduce the high unemployment rate—and particularly crucial with one in three adults and two in three young people out of work.</li>
</ul>



<a href="https://www.imf.org/en/Publications/CR/Issues/2025/01/30/South-Africa-Selected-Issues-561419" target="_blank" rel="noreferrer noopener">Recent IMF analysis</a>&nbsp;suggests reforms halving South Africa’s business regulation, governance, and labor-market gaps relative to peers could increase medium-run output by 9 percent and further boost employment. By raising employment and growth, such reforms are also key to reducing poverty and ensuring the benefits of growth are widely shared. IMF staff estimates that South Africa’s Gini coefficient—a measure of inequality, with higher numbers reflecting higher income disparity—would decline by 10 points, bringing South Africa closer to its peers.



<figure class="wp-block-image"><img decoding="async" src="https://www.imf.org/-/media/Images/IMF/News/Country-Focus/2025/03/SA-Reform-output-chart-v1.ashx?w=1200px" alt=""/></figure>



Building broad social support for reform efforts is essential to achieve their full benefits. Recent IMF analysis highlights that communication and engagement, along with policies to support vulnerable groups, are vital to increase acceptance of reforms. For example, providing information about the cost of electricity in South Africa, which is 68 percent higher than in the US, was found to boost support for electricity reforms by 9 percentage points. Furthermore, providing compensatory support to vulnerable groups affected by the reforms would lead 75 percent ofindividuals initially opposed to reforms to become reform supporters.



While the challenges are massive, South Africa’s new government has a unique opportunity to use its fresh mandate to implement an ambitious package of reforms that can put the economy on a path toward higher growth and prosperity for all. The IMF stands ready to support South Africa in its efforts to work towards a brighter future.&nbsp;



****



Delia Velculescu&nbsp;is the IMF’s mission chief for South Africa.&nbsp;Kamil Dybczak&nbsp;is a senior economist for South Africa in the IMF&#8217;s African Department.

south-africa-country-focus-hero

Boosting Growth and Prosperity in South Africa

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3335" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/03/MFT5KPTY55OPPPKFL2CKGKSG2E.avif" alt="" class="wp-image-596444"/><figcaption class="wp-element-caption">African heads of state and delegates attend the opening of the 38th Ordinary Session of the Heads of State and Government of the African Union at the African Union Commission (AUC) headquarters in Addis Ababa, Ethiopia, February 15, 2025. REUTERS/Tiksa Negeri/File Photo</figcaption></figure>



In 1989, John Conyers—the longest-serving African-American member of Congress in history—first introduced the “Commission to Study and Develop Reparation Proposals for the African-Americans Act,” or United States House Resolution 40 (H.R. 40), referring to the unmet promise of granting “40 acres and a mule” to freed slaves. H.R. 40 has been reintroduced in each session of the US Congress since then, but has not been enacted into law.



Its passage into law is unlikely to happen under the current 119th Republican-controlled Congress and administration, which has made dismantling diversity, equity &amp; inclusion (DEI) one of the cornerstones of its domestic agenda. According to the Pew Research Center, only 8% of Republicans and GOP leaners support reparations, compared to 48% of Democrats and Democratic-leaning independents. Yet reparatory justice is essential to addressing the US’s long and continuing history of racial inequality, and supporting the American ideal of “life, liberty, and the pursuit of happiness” for all people irrespective of race.



The consequences of the transatlantic slave trade have, of course, extended far beyond the US, affecting Africa and its diaspora all around the world. The historical injustice that started on the continent of Africa in the 15th century has invariably affected all people of African descent worldwide, with the cultural holocaust, loss of identity, and legacy of discrimination and unequal access to opportunities born out of it continuing to stifle their growth and personal development centuries later.



With this in mind, reparatory justice was the overarching theme of the 38th African Union summit held in Addis Ababa, Ethiopia, last month. The summit, involving heads of state and government from throughout the region, aimed to bring together Africa and its diaspora and to galvanize the international community to confront the historical injustice and long-term effects of slavery. To further sustain that momentum the African Union has made “Building a united front to advance the cause of justice and payment of reparations to Africans” the theme of the year for 2025.



Millions of young Africans forcibly transported across the Atlantic Ocean died during the infamous Middle Passage. Those who survived the journey were subjected to atrocious, dehumanizing treatment and exploited. In his 1805 illustrated publication “Injured Humanity”, Samuel Wood provided a vivid representation of what the children of Africa endured as slaves in America, how enslaved people were flogged and branded with a ‘red-hot iron’, how families were ‘violently separated; probably never to see each other more.’



Enslaved Africans and their descendants were given new names by their captors, names with no African root or meaning in their native languages. Superstrate European tongues dominated, contributing most of the vocabulary to the Creole languages that evolved in the ‘New World’, and the African languages became substrate. Today, in Africa itself, European languages also predominate, and African languages are at risk of extinction, reflecting the long-term impact of the colonial education system under which intergenerational transfer of knowledge is no longer carried out through endogenous vectors. The war-torn Democratic Republic of Congo (DRC) provides a tragic case in point—though many millions of Congolese were killed under the bloody colonial rule of King Leopold II of Belgium, the DRC is the second-largest French-speaking country in the world after France, and its capital Kinshasa is today home to more French speakers than Paris.



Across Africa, the continent’s flourishing civilizations were systematically destroyed by slavery and the colonial regime, and ordered systems of governance were brought down. Precious symbols of cultural meanings and artefacts were either looted or destroyed, engendering a sense of cultural discontinuity that has fueled alienation and a loss of identity. The slave trade, which primarily targeted Africa’s young and most-able workforce, stunted economic growth and long-term development, setting the region down a lasting path of external dependency, which has become the root cause of aid dependency as well as intergenerational poverty and systemic inequality.



Several factors have contributed to the transatlantic slave trade’s legacy. First, when imperial powers did finally abolish slavery they did not go through a period of atonement or attempt to reverse the hierarchization of races, which fundamentally transformed the world. Second, those countries that benefitted from slavery were more concerned with preserving wealth accumulation and global economic dominance than with ensuring the emergence of equal-opportunity societies after abolition.



So lucrative was slavery to European imperial powers that they felt compelled to compensate slaveholders after its abolition, further widening wealth and income inequality between races within and between countries. For instance, the Slavery Abolition Act of 1833, which abolished slavery in most British colonies, included a compensation package for enslavers worth £20 million (equivalent to more than £2 billion today), representing around 40% of the government’s total annual expenditure at the time. British taxpayers only finished repaying the money borrowed by the government to compensate enslavers in 2015.



Similarly, France granted reparations to enslavers and colonists to compensate for their lost revenues from slavery. The most emblematic case is Haiti, where France imposed a huge independence debt of 150 million Francs (representing 10 years of the Haitian government’s entire revenue) on former slaves. The payment ran for 122 years, from 1825 to 1947, and the money went to more than 7,900 former slave owners and their descendants in France. French economist Thomas Piketty estimates that France should repay at least US$28 billion to Haiti in restitution. Moreover, Napoleon reinstated slavery in 1802, positioning France as the only country in the world that has had to abolish slavery twice.



And because the abolition of slavery had no cost to France, it was reinstated and later abolished again, still at no cost to the state; because it had no cost to all European imperial powers, it was immediately followed by colonialism and apartheid to perpetuate the system of exploitation and domination which had led to stratified societies in which race and class intersect. People carry the memory of their past sufferings and are often defined by it. For people of African descent, digitalization has created an intercontinental collective imaginary of historical traumas associated with slavery, which is snowballing.



The enslavement of Africans is belatedly being recognized specifically as a crime against humanity. In 2001, France was the first country to declare that the transatlantic slave trade represented a crime against humanity, though President Emmanuel Macron ruled out reparations in 2017, calling instead for reconciliation. In 2020, the European Parliament recognized slavery as a crime against humanity. Last year, California joined a half-dozen US states to officially apologize for slavery, though the state legislature shied away from taking substantial actions relating to reparations. In a more encouraging move, in December 2022, the government of the Netherlands apologized for the country’s role in slavery and established a fund of €200 million (around $208 million) to raise awareness of the Netherlands’ history as a colonial power, as well as “fostering engagement” and “addressing the present-day effects of slavery”. 



International law recognizes that those who commit crimes against humanity must make reparations. Several countries have received compensation under this law, including the Republic of Korea, which suffered under the Japanese invasion, and Israel, which received compensation from Germany after World War II. Several communities have also received reparations for state crimes committed within national borders, including Japanese Americans after their internment and ill-treatment at the hands of US authorities and the Maoris of New Zealand, who received compensation for the seizure of their land by British colonizers in 1863.



In a departure from international norms, African slaves and states did not receive compensation. Instead, the abolition of slavery was associated with costs to slaves in a world where imperial nations had the memory of abolitionists and not of slaves. The restorative justice being championed by the African Union prioritizes repairing the damage suffered by the victims of slavery and their descendants rather than punishing the perpetrators. In addition to acting as insurance against the repetition of past and ongoing historical harms, this process is inherently collaborative, bringing together the descendants of enslaved people and slaveowners for a genuine dialogue to create a better world, going beyond monetary compensation. It also outstrips the piecemeal approach underpinning DEI programs, which often serve as ‘reparations-washing’—true justice demands systemic, structural changes to individual mindsets and corporate behaviors.



Despite the increasingly volatile political rhetoric, the long arc of the moral universe is bending toward justice, to paraphrase Martin Luther King Jr. Even in the US, the process of restorative justice is gaining momentum. The country’s experience after the Civil War can also inform current efforts in the quest for restorative justice at the global level. The original 40-acres-and-a-mule proposal, which was reversed by US President Andrew Johnson, resulted from a consultation between Union General William T. Sherman, African-American leaders, and Christian ministers. By endowing former slaves with means of production to strengthen the foundation of entrepreneurship within the African-American community and equalize access to opportunities in a largely agrarian economic environment, the model would have smoothed the transition of landless and uneducated free slaves into a new world of self-reliance.



Restorative justice today should prioritize the renewal of productive capacities across African and Caribbean nations, but also within the African diaspora in the US and other countries. This will drive entrepreneurship, expand their contribution to global output and trade, and break the vicious cycle of economic dependency and recurrent balance of payment crises that have dominated the post-abolition and independence era. This requires significant investment in physical and human capital to drive endogenous growth and structural transformation in a world where growth is increasingly powered by technology, as well as support from the international community as the African Union intensifies its efforts to pursue restorative justice.



At the same time, African leaders should, in memory of the victims of slavery, establish an International Day of Commemoration to be observed throughout Africa and beyond. They must also reform their institutions and education systems to memorialize and reappropriate their history and cultural heritage. It is equally important and urgent for African leaders to aggressively invest in preserving and restoring their cultures and revitalizing their languages. Language is identity; it is also a powerful vector of projection into the future, and Africa, the cradle of civilization, cannot afford to miss out on the ongoing digital and Artificial Intelligence (AI) revolution. That revolution is also taking a linguistic shape and will be represented by voice.



The process of restorative justice cannot be unidirectional. It requires more than atonement and money—if we are all to heal, collaboration between both descendants of slaves and slave owners is crucial. Recognizing slavery’s lasting impact as a crime against humanity, in addition to the steps being taken now by the African Union and other world leaders, are essential milestones amid ongoing efforts to create a better and equitable future for all people. But genuine success will depend on the commitment of all actors on both sides of the restorative justice equation.



Hippolyte Fofack, a former chief economist at the African Export-Import Bank, is a fellow with the Sustainable Development Solutions Network at Columbia University, a research associate at Harvard University, a distinguished fellow at the Global Federation of Competitiveness Councils, and a fellow at the African Academy of Sciences.

MFT5KPTY55OPPPKFL2CKGKSG2E

Reparatory Justice and Africa’s Emancipation

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/QB6JRHKB7ZP6ZHQH64RWM3XN7A-820x547.jpg" alt="" class="wp-image-562084" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/12/QB6JRHKB7ZP6ZHQH64RWM3XN7A-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/QB6JRHKB7ZP6ZHQH64RWM3XN7A-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/QB6JRHKB7ZP6ZHQH64RWM3XN7A-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/QB6JRHKB7ZP6ZHQH64RWM3XN7A-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/QB6JRHKB7ZP6ZHQH64RWM3XN7A-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/12/QB6JRHKB7ZP6ZHQH64RWM3XN7A-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">U.S. President Joe Biden stands with Angolan Minister of Transport Ricardo Daniel Sandao Queiros Viegas de Abreu, during a visit to the Lobito Port Terminal to receive a briefing on the Lobito Atlantic Railway, in Lobito, Angola, December 4, 2024. REUTERS/Elizabeth Frantz</figcaption></figure>



Joe Biden’s early-December trip to Angola—his first to Sub-Saharan Africa as US president, and likely his last overseas trip in the role—underscored the stickiness of the colonial development paradigm of resource extraction that has long debilitated Africa. The major highlight of Biden’s visit related to a transnational railway initiative, which is considered by some to be the quickest and most efficient way to export raw materials and critical minerals from the Central African ‘Copperbelt’ via the Angolan port city of Lobito.



While indicative of a new era of US engagement with Africa, the Lobito Corridor project nonetheless perpetuates a highly volatile development model that focuses unduly on resource extraction and commodity dependence. Africa is the most commodity-dependent region in the world, with a median value of commodity exports of 90% of all merchandise exports, according to UNCTAD data. Such a high degree of dependency has stymied African economic development for decades, and risks undermining regional economies’ integration into emerging green global supply chains. The economic and social costs could be colossal, ranging from exporting resource rents and rising unemployment to mounting migration pressures, the latter already being exacerbated by climate crises.



Mine-related transport infrastructure that typically connects mines directly to ports—a pattern most prevalent in Sub-Saharan Africa—has been one of the most important physical representations and lasting legacies of colonialism. During the colonial era, transport and infrastructure networks in Africa were not designed to foster endogenous growth or support commodity-based industrialization. Instead, their principal objective was to maximize the extraction and transfer of natural resources and raw materials used in manufacturing processes across various industries to Europe.



Commodity-abundant nations in the Global South were reduced to resource stockpiles in the context of global economic integration, entrenching the divide between developed and developing countries. By holding the monopoly on technology and dominating the production and export of higher-value commodities, European powers widened the income gap with emerging economies in the Global South, locking the latter into a perpetual cycle of intergenerational poverty and aid dependency. Balance of payments crises became commonplace in the Global South, with the deterioration of commodity terms of trade sustaining structural current account deficits in the exclusive bilateral trade relationships between each imperial power and its respective former colonies.



Despite the multiplicity of actors both within the African continent and destination countries in the developed world, the Lobito Corridor project exemplifies these historical patterns. The 800-mile railway will connect Zambia’s Copperbelt as well as the copper, lithium, and cobalt mines of the Democratic Republic of Congo to the Angolan port city Lobito. Backed by the US and European Union (EU), the project will expedite the transportation of essential minerals—including many green minerals critical to the manufacture of electronics and electric vehicle (EV) batteries—significantly reducing transit times from 45 days by road to just 45 hours. For the EU and US, improved access to these critical minerals allows them to diversify and make their supply chains more resilient as geopolitical tensions and great power rivalries deepen and increase the weaponization of commodities.



Biden’s trip was eminently geopolitically motivated, with two key related objectives in a world set on an irreversible energy transition as the combustion engine-led growth model enters its waning years. First, securing access to minerals vital to the green transition and, second, countering China’s growing influence across Africa. China has become a significant economic player in the region, particularly in the natural resource sector and in infrastructure development. For decades, China’s engagement with Africa has prioritized infrastructure projects and investment in the region’s transportation networks, often financed by natural resource-backed loans.



China’s growing influence in Africa is also visible in the trade arena, in which it overtook the US as Africa’s largest trading partner in 2009. China has consolidated that pole position in the years since, while US imports from Africa collapsed following the country’s shale oil revolution and bid for energy independence. Angola, one of the most natural resource-dependent countries in the world—the oil sector accounts for more than 90% of Angolan exports and 70% of government revenues—was particularly affected by US’s shale revolution. Between 2012-23, Angola’s exports to the US fell by more than 88% to around US$1.2 billion, and the country’s direction of trade shifted towards Asia, with China becoming the top destination for Angolan crude oil.



However, though Africa may now be trading with different parties, the nature of the region’s trade patterns has not changed. Under the sticky colonial development paradigm of resource extraction, primary commodities and natural resources continue to dominate Africa’s exports, including around 60% of Sub-Saharan African exports to China. The region’s increasing reliance on China for manufactured goods has led to increasingly large trade deficits—the most recent estimates put Africa’s trade deficits with China at US$45.9 billion in 2022 and US$63 billion in 2023, a record high.



When challenged on the persistence and scale of trade imbalances between China and Africa, Chinese Vice Commerce Minister Qian Keming responded, “Africa must have things to sell [for China to buy].” This candid assessment again underlines the consequences of the costly development paradigm of resource extraction.



But the obstacles to growing African exports—particularly today, when trade is driven largely by intermediate and manufactured goods with increasing technological content—have a long history and have colored Africa’s engagement with both China and the US. Over the years, these hurdles have also skewed the distribution of African trade towards extra-African trade—intraregional trade has remained very low at around 15% of total African trade, compared to 60% in Asia and 70% in Europe.



Despite trade preference programs such as the African Growth and Opportunity Act (AGOA) along with benefits extended under the Generalized System of Preferences program, Africa’s trade with the US remains marginal, accounting for less than 1% of total US trade in 2023. In comparison, consider Vietnam, which accounted for more than 2.5% of total US trade last year. Vietnam’s exports to the US exceeded US$119 billion in 2023, dwarfing the US$29 billion of total exports from the 50 combined Sub-Saharan African nations.



Beyond boosting exports and sustaining high economic growth, Vietnam’s integration into high-value global supply chains has significantly raised per capita incomes and lifted millions out of poverty. It is not a natural resource-rich country, but has successfully leveraged the increasing foreign value-added content of exports to diversify its sources of growth and trade, including the production of critical electronics and other high-demand goods in the technology sector. For instance, 40% of the components in Samsung’s phones are made in Vietnam, while none are made in Africa where countries have remained confined to the bottom of global value chains as feedstocks that provide the raw materials used to produce them.



The colonial development model of resource extraction has been very costly in terms of growth, macroeconomic stability, and welfare. The ongoing net-zero transition provides the opportunity to transcend that model to promote the rise of downstream industries and boost domestic value addition from natural resources. This would enhance Africa’s integration into emerging green global supply chains, including those connected with the EV industry. More than catalyzing the injection of patient capital and technology transfer, that transition will mitigate the substantial foreign exchange reserve leakages and deadweight losses that underpin Africa’s balance of payments pressures. It would also accelerate the diversification of sources of growth to boost African trade and expand employment opportunities, stemming migration pressures in a region where abject poverty and destitution has compelled young people to relocate overseas.



Globally, transitioning to localized value chains in Africa aligns with environmental and economic priorities. That transition will accelerate the diversification of global supply chains for greater resilience and, in the process, address the persistent global macroeconomic imbalances that have become the source of trade frictions between nations. Furthermore, it will enhance the net-zero transition by reducing the shipping industry’s carbon footprint, exacerbated over the years by the highly polluting round-tripping model under which Africa’s raw materials are first exported and then imported as manufactured goods at higher prices. Demographic trends are such that this model is no longer sustainable and will only intensify carbon emissions and external imbalances.In the climate change era, boosting domestic value added from natural resources within Africa is not just good economics, but also environmentally sound.



The world has an interest in increasing downstream processing in Africa to maximize the value of and development impact of commodities and minimize the negative externalities of growth. This historical shift will ensure that African countries have things to sell to the rest of the world and to each other, boosting long-languishing intra-African trade and compounding the benefits of the African Continental Free Trade Area (AfCFTA). The returns on the Lobito Corridor investment project will be even higher if the transnational rail line is the locomotive that sustainably bolsters the export of both primary and higher-value commodities. &nbsp;



For the region to truly benefit from the project, policymakers and investors must look beyond short-term resource extraction and prioritize long-term, sustainable economic development. Only then can Africa move beyond its colonial legacy and become a competitive contributor to global value chains.

U.S. President Joe Biden vistis the Lobito Port Terminal

Biden’s Africa trip spotlights colonial legacies and dangers of commodity dependence

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="768" height="593" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/Neema-Lugangira-1-1.jpg" alt="" class="wp-image-590216" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/Neema-Lugangira-1-1.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/Neema-Lugangira-1-1-300x232.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/Neema-Lugangira-1-1-117x90.jpg 117w" sizes="auto, (max-width: 768px) 100vw, 768px" /><figcaption class="wp-element-caption">Neema Lugangira, MP, Tanzania, and Ex-officio Lead Group member of the Scaling Up Nutrition (SUN) Movement </figcaption></figure>



For&nbsp;the first time, African countries have made nutrition a key focus of their continent-wide agricultural development strategy. The recent endorsement of the latest 10-year Comprehensive Africa Agriculture Development Programme (CAADP)&nbsp;<a rel="noreferrer noopener" target="_blank" href="https://rr-africa.woah.org/app/uploads/2025/01/English-CAADP-Strategy-and-Action-Plan-2026-2035_250111_165547.pdf">Strategy and Action Plan</a>&nbsp;marks a significant shift in which food quality is prioritised alongside quantity to sustainably improve food production while also ensuring healthy diets.



Nutrition is central to all of the objectives of the Kampala Declaration. By addressing malnutrition in all of its forms, as well as its underlying drivers, societies are better equipped to cope with the risks of climate change and disasters, and the erosion of human capital that comes as a consequence of unhealthy diets.



However, each African country faces its own unique set of challenges, from barriers to agricultural production and climate variations to specific dietary and&nbsp;health&nbsp;concerns. In particular, the different manifestations of malnutrition across Africa, from undernutrition to overweight and&nbsp;obesity,&nbsp;mean that fulfilling the Kampala Declaration will&nbsp;require&nbsp;country-level&nbsp;strategies that address individual contexts as a whole-of-society endeavour.



Governments in every African country must therefore find their own ways to integrate nutrition across all relevant departments and ministries, which include&nbsp;health, agriculture, education, and economy. And there is no time to waste. With just two months until the&nbsp;<a rel="noreferrer noopener" target="_blank" href="https://nutritionforgrowth.org/">Nutrition&nbsp;for&nbsp;Growth Summit</a>&nbsp;(N4G),&nbsp;a&nbsp;global&nbsp;event that fosters financial and political commitments, countries have a narrow window in which to set out their commitments and garner support from the international community.



New data mean parliamentarians across the continent now have a greater understanding of the scale of all forms of malnutrition in Africa alongside the cost of inaction. A staggering&nbsp;<a rel="noreferrer noopener" target="_blank" href="https://www.unicef.org/reports/child-food-poverty">64 million children</a>&nbsp;under five years of age are estimated to live in severe food poverty. This results in inadequate nutrition or undernutrition, which inhibits physical and cognitive development, limiting children’s future productivity to just&nbsp;<a rel="noreferrer noopener" target="_blank" href="https://openknowledge.worldbank.org/entities/publication/2c0b8b5e-0f67-47fe-9eae-d4707d9ed195">40%</a>&nbsp;of its potential and hampering Africa’s future development.



Beyond undernutrition, obesity – another form of malnutrition – is identified as an equally pressing challenge stalling progress in many African countries. Nearly a&nbsp;<a rel="noreferrer noopener" target="_blank" href="https://openknowledge.fao.org/server/api/core/bitstreams/d5be2ffc-f191-411c-9fee-bb737411576d/content">third</a>&nbsp;of adults in Northern and Southern Africa are classified as obese, a trend linked to dietary shifts toward processed foods. Combined, all forms of malnutrition leave Africa’s entire population vulnerable to shocks, including climate extremes, poverty, and disease outbreaks. Integrating nutrition into all sectors can help governments future-proof communities against the impact of these shocks.



Moreover, the benefits of integrating nutrition into national strategies and budgets extend to human development and economic growth.&nbsp;For&nbsp;instance, a&nbsp;<a rel="noreferrer noopener" target="_blank" href="https://openknowledge.worldbank.org/entities/publication/2c0b8b5e-0f67-47fe-9eae-d4707d9ed195">return</a>&nbsp;of up to $23 is expected&nbsp;for&nbsp;every dollar invested in addressing undernutrition in a typical African country. At the same time, investing in nutrition interventions supported by national policy actions to address the underlying causes and impacts of malnutrition would allow healthy growth and development of the population, which, in turn, increases a country’s productivity.



Tanzania’s National Nutrition Strategy is an inspiring&nbsp;<a rel="noreferrer noopener" target="_blank" href="https://scalingupnutrition.org/resource-library/case-studies/case-study-leveraging-office-prime-minister-enhance-nutrition">example</a>&nbsp;of how integrating nutrition into national development agendas could help African leaders address the different forms and impacts of malnutrition. Under the leadership of H.E. President Samia Suluhu Hassan, Tanzania actively raised awareness about nutrition among parliamentarians and fostered partnerships with private and civil society actors.



This led to the development of the country’s National Nutrition Strategy, which established nutrition coordination committees and interventions across all regions, councils and sectors, leading to&nbsp;improvements in nutrition outcomes, particularly among women and children. As an early member of the&nbsp;<a rel="noreferrer noopener" target="_blank" href="https://scalingupnutrition.org/">Scaling Up Nutrition Movement</a>&nbsp;in 2010, Tanzania has benefited from&nbsp;global&nbsp;networks that have helped build the capacities of local communities to implement effective nutrition interventions and sustain these efforts into the future.



Like Tanzania, other African countries must now focus their attention on how each can incorporate nutrition across all regions and sectors to deliver on the objectives of the CAADP Strategy and Action Plan.



The year ahead offers multiple opportunities, including South Africa’s&nbsp;<a rel="noreferrer noopener" target="_blank" href="https://g20.org/g20-south-africa/g20-presidency/">Presidency of the G20</a>, to consolidate new commitments to tackling malnutrition at national levels. Alongside the&nbsp;<a rel="noreferrer noopener" target="_blank" href="https://nutritionforgrowth.org/">Nutrition&nbsp;for&nbsp;Growth Summit</a>&nbsp;in March, the extension of the&nbsp;<a rel="noreferrer noopener" target="_blank" href="https://www.who.int/teams/nutrition-and-food-safety/global-targets-2025">World&nbsp;Health&nbsp;Assembly&#8217;s targets on nutrition</a>&nbsp;to 2025 also provide critical moments&nbsp;for&nbsp;reinforcing the urgency of tackling malnutrition. The&nbsp;<a rel="noreferrer noopener" target="_blank" href="https://scalingupnutrition.org/">Scaling Up Nutrition Movement</a>’s own&nbsp;Global&nbsp;Gathering at the end of the year will be an important moment to work on the implementation of commitments made at the Nutrition&nbsp;for&nbsp;Growth Summit, showcase country case studies and further galvanise support from the&nbsp;global&nbsp;community. All will be essential&nbsp;for&nbsp;driving investment into the special fund established under the CAADP Strategy and Action Plan to support nutrition-sensitive agricultural development.



By aligning national policies, budgets, and actions with the goals of the Kampala Declaration, African countries can foster well-nourished populations that are better equipped to adapt to climate change, improve economic productivity, and build more resilient societies. I am confident that the opportunities in 2025 will help to underpin the collective effort we need from all stakeholders—governments, the private sector, and civil societies alike.

CSIS Tanzania Arusha Day Two-2019-Sala Lewis-221

Africa’s renewed focus on nutrition will help build resilient and productive societies

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="615" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/Credit-Mulapwa-Mukopole-UNDP-Zambia-820x615.jpg" alt="" class="wp-image-587471" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/Credit-Mulapwa-Mukopole-UNDP-Zambia-820x615.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/Credit-Mulapwa-Mukopole-UNDP-Zambia-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/Credit-Mulapwa-Mukopole-UNDP-Zambia-120x90.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/Credit-Mulapwa-Mukopole-UNDP-Zambia-768x576.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/Credit-Mulapwa-Mukopole-UNDP-Zambia-1536x1152.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/Credit-Mulapwa-Mukopole-UNDP-Zambia.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Strengthening climate resilience of agricultural livelihoods in Agro-Ecological Regions I and II (GCF), Zambia. Credit: Mulapwa Mukopole/UNDP Zambia&nbsp;</figcaption></figure>



In 2024, Zambia faced one of its most severe droughts in recent history, that placed a deep strain on water and electricity supplies, deepened food insecurity, and exacerbated a deadly cholera outbreak. While the arrival of rain this year has somewhat eased water shortages, electricity supply remains limited, and other challenges persist. A year on from the crisis, President Hakainde Hichilema has effectively led his government towards a new approach; one that transforms these pressing issues into opportunities for sustainable solutions.



Drought Impact and Response



The drought, considered the worst to hit Zambia in two decades, resulted in a widespread food shortage, and an estimated 33% of the Zambian population were expected to face hunger between October 2024 and March 2025, before an expected strong maize harvest in the second quarter this year. In response, at the time, President Hakainde Hichilema declared the drought a national disaster in February last year, enabling the immediate mobilisation of national and international resources &#8211; marking a shift from the delays seen under previous administrations.



The government showed similar decisive action when water scarcity in 2024 exacerbated a brief cholera outbreak which had begun in October 2023. A multi-sectoral ministerial response team was swiftly mobilised to tackle the disease from various fronts. Internal resources were allocated to community awareness campaigns,



Public sanitation efforts, and personal hygiene promotion



Partner organisations, including the Africa CDC, answered the government’s call for support, contributing by training health workers, supplying medical equipment, and enhancing cross-border disease surveillance.



Beyond these measures, the government has taken significant steps to strengthen Zambia’s long-term healthcare resilience. In October 2024, President Hichilema oversaw the signing of a $37 million Memorandum of Understanding (MoU) between the Industrial Development Corporation and China’s Jijia International Company to construct the country’s first cholera vaccine plant.



This domestic production capability addresses a critical gap exposed during the 2023/24 outbreak when vaccine shortages hampered response efforts. Furthermore, it puts Zambia on course to eliminate the disease by 2030, aligning with global health targets.



The government&#8217;s containment efforts in 2024 have yielded promising results. So far, Zambia has recorded 208 cases and 9 deaths &#8211; an enormous improvement compared to nearly 20,000 cases and over 600 deaths at the same time last year. This sharp decline highlights the effectiveness of the government’s proactive health measures.



While managing the health crisis, the government also had to address the drought’s severe impact on energy supply. Water levels in the country’s two major hydropower water basins have been drastically depleted, leading to frequent blackouts with disruption to industries and communities alike.



In response, the government introduced regulations to fast-track the importation and deployment of renewable energy solutions, particularly solar power. It also implemented net metering and enhanced electricity open access, encouraging increased private sector participation in the power sector. These measures align with the broader strategy to diversify Zambia’s energy mix and reduce dependence on centralised hydroelectric power.



Comprehensive steps have also been taken to address food security, moving beyond emergency responses toward sustainable solutions, with a focus on urban agriculture. A key milestone in this effort was the development of Zambia’s first National Rainwater Harvesting Strategy to improve water security, supported by the European Union’s Green Nexus Programme. In 2024, the government strengthened this approach by launching the Comprehensive Agricultural Transformation Support Program (CATSP), designed to enhance food security, create jobs, and boost agricultural exports. This commitment is further reflected in the 2025 national budget, which allocates K15.4 billion to agriculture, fisheries, and livestock interventions &#8211; up from K11.2 billion in



2023 and K13.8 billion in 2024. Of this, 60.1% (K9.27 billion) is earmarked for the Farmer Input Support Programme (FISP), ensuring small-scale farmers have better access to agricultural resources. Support for small-scale farming has been further strengthened through the National Agricultural Mechanisation Strategy, developed in collaboration with universities, farmers, the private sector, and international partners such as the EU, the UN’s Food and Agriculture Organization (FAO), and the International Maize and Wheat Improvement Centre. This strategy aims to increase agricultural productivity across crops, livestock, and fisheries, with a strong focus on maize, wheat, and soya production. Under the same strategy, the government launched the &#8216;Mechanise 360 Ulimi Okwana&#8217; campaign aimed at modernising agricultural practices for smallholder farmers across 500,000 hectares of arable land.



To tackle the broader issue of food security and challenges to public health, the government is also investing in water, sanitation, and infrastructure. The 2025 budget allocates K2.3 billion to water and sanitation projects &#8211; 21% higher than the previous year’s allocation. Under the Food Security and Drought Response Plan, 12 new dams will be constructed, 14 rehabilitated, and 385 will undergo maintenance, with plans to construct 947 boreholes, install 500 piped water schemes, and develop 1,835 water points. These projects aim to improve water management, enhance public health, and reduce the prevalence of waterborne diseases while ensuring reliable water access for over 3.5 million Zambians.



Transforming Crisis into Development Opportunities



By declaring the drought a national disaster and emergency, the government was able to swiftly mobilise resources and coordinate assistance with international partners. Citizens have adapted by finding new ways meet their food and energy needs, shifting away from rain-fed maize farming and increasing their uptake of solar power and alternative energy sources for cooking and heating. Increased government funding and active engagement have strengthened public trust in its capacity to address Zambia’s most pressing challenges.



While the drought tested Zambia’s resilience last year, it catalysed sustainable solutions, demonstrating the country’s capacity to adapt to the evolving demands of climate change and food security.

Credit Mulapwa Mukopole UNDP Zambia

Turning Crisis into Opportunity

PHOTO-2025-02-13-14-00-59 1

Nigeria: Leading Africa’s Digital Trade Revolution

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="630" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/AdobeStock_176683551-820x630.jpeg" alt="" class="wp-image-585512" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/AdobeStock_176683551-820x630.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/AdobeStock_176683551-300x231.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/AdobeStock_176683551-117x90.jpeg 117w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/AdobeStock_176683551-768x590.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/AdobeStock_176683551-1536x1180.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/AdobeStock_176683551-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Green industries drive skilled job growth</figcaption></figure>



Too often, discussions of the “green transition” focus myopically on dirtier fossil energy we must leave behind, as opposed to the opportunities ready to be seized. The result is that, for many young Africans, the global conversation around the new green economy sounds ominous. Just as Africa’s economies begin to really transform, and tens of millions of Africans prosper from the fruits of accelerating industrialisation and technological modernisation, we are cautioned that our economic aspirations are unfulfillable, or must necessarily come at the expense of our planet.



My generation of Africans are not prepared to defer our aspirations for economic security and development any longer. Scolding rhetoric and apocalyptic warnings which seem to present “de-growth” or a slowing of modernisation as our moral obligation will only entrench our attachment to hydrocarbons.



No, let’s appeal to the ambitions and ingenuity of young Africans, instead of our fears. Let’s make the positive case for renewable energies and the green transition: far from an ideology suppressing Africa’s growth, these emerging technologies are the only way to guarantee this continent’s continued development and deliver the economic opportunities my peers quite rightly demand.



For more than a decade now, luminaries have advanced a moral and ecological case for the energy transition. But too few have made the employment case for this most exciting of sectors –renewable energy. The good news is that the employment case for renewable energy is compelling and, until now, largely untold.



Renewables form part of a set of technologies and industrial innovations which are revolutionary and will, alongside AI and robotics, come to define this century. Renewable power generation is a rapidly expanding and evolving space in which Africans have a real opportunity to lead the world. But this leadership is not abstract – it translates into concrete benefits, in the form of millions of high-quality jobs conferring dignity, autonomy, and as renewables mature, global authority, agency and economic power.



And climate isn’t the only reason to embrace this new energy frontier. Africa’s population is growing at a dramatic rate. Just as a limited stock of hydrocarbons dwindles, the continent will have to create jobs to provide for 42% population growth before this decade’s end.



However much traditional hydrocarbon industries have supported communities historically, we have a duty to recognise that this economic model is unsustainable, and may be in its final decades. How, then, can educated Africans gain white-collar, skilled employment, which contributes to the continent’s economic development? A report by the specialist development agency FSD Africa and recruiters Shortlist – drawing on research by Boston Consulting Group – offers a conservative, near-term forecast of the new direct job creation potential of 12 “green” sub-sectors by 2030.



The landmark research predicts the creation of up to 3.3 million new direct green jobs across the continent by 2030, with the majority in the renewable energy sector, particularly solar. Focusing on five focus countries (the Democratic Republic of Congo, Ethiopia, Kenya, Nigeria and South Africa) which together account for more than a fifth of new jobs, and in key sectors such as renewable energy, e-mobility, agriculture, construction and manufacturing, the report is most striking in the kind and quality of jobs its analysis predicts.



60% of employment created by the green economy over the coming six years will be skilled or white collar in nature, this research suggests. Breaking that headline percentage down, 10% of this new employment is via “advanced jobs” (highly skilled, requiring university degrees to fulfil), whilst a further 30% are projected to be “specialized” (requiring certification or vocational training) and 20% will be administrative in emphasis.



The traditionally prestigious, well-paying roles in hydrocarbon extraction which have underpinned much of the growth of Africa’s middle-class will not last forever; and Africa has not seen any of the significant dividends and prosperity seen in other regions. This we knew. But the really important news is that renewables and e-mobility can, for the countries which develop these high-growth sectors, underwrite a wider economic transformation.



The benefits of developing these sectors and the associated jobs they support are exponential: even where employment growth is unskilled, the stability and formalising effect of these industries will expand governments’ tax bases and accelerate the growth of domestic financial markets. Put simply, without a formal salary, access to credit remains nigh-on impossible.



However, for me and my peers, the possibility of green job creation in Africa is more personal than structural. An increasingly educated, ambitious, and restless generation are graduating our schools and universities in ever greater numbers, and we will not be convinced to forfeit prestigious and well-paid careers on the altar of what can sometimes seem like Western preoccupations. But create green jobs, in exciting new sectors, which promise opportunities for global leadership, and Africa’s young people will not fail to grasp the opportunities.

Recycling Plastic Environment Savings Reduce Junk

Green Jobs – the energy transition must be framed as an economic opportunity, not a moral obligation

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/1S6A0960-820x547.jpg" alt="" class="wp-image-585508" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/1S6A0960-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/1S6A0960-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/1S6A0960-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/1S6A0960-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/1S6A0960-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/1S6A0960-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



As South Africans, we have long been on a transformative journey – one marked by remarkable achievements and challenges, but most importantly, a spirit of unity and determination.



President Ramaphosa’s recent State of the Nation Address underscored the government’s commitment to driving inclusive growth, creating jobs, and building a capable developmental state. These are ideals that resonate with us at MTN South Africa, where we are committed to sustainable development and transformational growth to achieve a prosperous South Africa.



MTN’s story mirrors that of our country. From the dawn of our democracy in 1994, we have been driven to bridge divides, connect people and enable progress. When MTN began, only 1% of black South Africans had access to phones. Today, the MTN Group connects 288 million people across 17 countries. We are eager to maintain that momentum.



<h2 class="wp-block-heading" id="h-building-strong-partnerships">Building strong partnerships</h2>



A key component of MTN’s success has been our commitment to work with the government to the benefit the public sector and the people of South Africa. Through the RT15 transversal contract, we have developed cost-effective communication solutions across essential sectors, reducing the state’s costs and simplifying vital functions, ensuring greater efficiency.



By supporting educational initiatives with the Department of Basic Education, we are helping build a better future for South Africa’s youth. Recently, MTN was privileged to be part of the announcement of the exceptional 2024 matric results alongside Minister Siviwe Gwarube.



MTN has also invested billions of rands to enhance the resilience of our network, particularly in the face of loadshedding. Our ultra-rural network expansion efforts have brought 4G to remote communities from Lusikisiki to Msinga and Mhlabuyalingana.



<h2 class="wp-block-heading" id="h-connecting-communities-empowering-lives">Connecting communities, empowering lives</h2>



Our commitment to developing communities began in 1995, increasing teledensity in disadvantaged areas. This&nbsp; evolved into a broader focus on digital inclusion and community empowerment. The MTN South Africa Foundation, established in 2001, is now one of the largest corporate investors in social responsibility in Africa, creating lasting change.



In 2024, for example, our ‘Digital Skills for Digital Jobs’ programme invested R14 million providing IT skills training to 900 unemployed youth. Through our ‘Connecting Every Child’ initiative, we are donating 30&nbsp;000 devices to underprivileged learners, giving them the tools to access digital learning and opening up a world of opportunity. Through our digital education programmes, we have reached hundreds of thousands of learners, trained countless teachers, and established over 500 multimedia facilities.



These initiatives are designed to create sustainable pathways for development, ensuring that technology works as a catalyst for social progress.



<h2 class="wp-block-heading" id="h-looking-ahead-a-digital-future-for-south-africa">Looking ahead, a digital future for South Africa</h2>



As President Ramaphosa emphasised in his address, South Africa’s future depends on innovation, growth and development. The telecoms industry is central to this, and MTN is&nbsp; committed to supporting the government by providing state-of-the-art technology, connectivity and digital skills. We are here to enable, empower and enhance the capacity of both government and citizens, ensuring that everyone has the capacity to make the moves needed to reach their full potential.



As not only South Africa’s best network, but also the official mobile and connectivity partner to the SA government, MTN is poised to contribute to the realisation of several critical initiatives aimed at modernising public services. MTN will play a key role in enhancing the digital public infrastructure, and we are willing to support the government&#8217;s implementation of a digital identity system, which will streamline interactions with public services and help create an accessible, efficient government system.



From the judicial services, where we are poised to assist in digitising and streamlining critical paperwork for swift and fair justice, to healthcare, MTN is committed to providing the connectivity and support for the establishment of electronic national health records, helping to improve service delivery.



As the country’s data centre industry continues to grow, MTN is actively involved in expanding network capacity to ensure that South Africa remains a key hub for data storage, generating new job opportunities. MTN is also willing to support the government&#8217;s visa digitisation programme by providing robust telecoms infrastructure to ease the application process to attract talent and investment.



The story of MTN is inseparable from the story of South Africa; a story that is still being written. As we celebrate the past 30 years of innovation and impact, we look ahead with optimism towards a South Africa where technology is a force for good, where opportunities are accessible to all, and where no one is left behind. United in purpose, let us continue to transform South Africa into a nation where possibilities become reality.&nbsp;

1S6A0960

MTN: Partnering with Government for growth and opportunities for all South Africans

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/pexels-artempodrez-5716001-820x461.jpg" alt="" class="wp-image-584663" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/pexels-artempodrez-5716001-820x461.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/pexels-artempodrez-5716001-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/pexels-artempodrez-5716001-160x90.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/pexels-artempodrez-5716001-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/pexels-artempodrez-5716001-1536x864.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/pexels-artempodrez-5716001-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



By Jeremy Bossenger of <a href="https://www.bossjansen.com/">BossJansen Executive Search</a>



Declining interest rates and higher pay packages for South African employees, is resulting in more disposable income for consumers which, in turn, is boosting the economy. But against this landscape, how are our highest earners coping with the choppy seas of leading a JSE-listed company; and what advice from PwC can help them draw the long straw? 



It’s been hard to miss the current good trajectory in the news related to salaries in South Africa. The average take-home pay of an estimated four million employees, as tracked by BankservAfrica’s latest Take-home Pay Index (BTPI), made a happy 11.9 percent leap from R15 367 in December 2023 to R17 202 in December 2024.



This upwards graph has clearly had a number of positive drivers, such as the suspension of load shedding, the ongoing recovery of business, inflation seeing moderation, and two interest rate cuts – making 2024 the most robust salary year in the country since 2020.



As a result of this occurrence, South Africa’s retail sales sector has also reflected decent growth, including in the purchasing rate of passenger vehicles. In effect, salary earners have stronger purchasing power now, because more take-home pay and lower consumer inflation (down from 5.3 percent in January 2024, to three percent in December 2024) means more disposable income, or “fun money”.



The result is that 2025 looks set to experience a significant gross domestic product (GDP) increase, of approximately 1.7 percent, due to improved household expenditure, more investment from consumers, and any policies that are applied to further boost the economy – such as more reliable power-generation capacity, better supply-chain systems on the rails and at the ports, and upgraded water infrastructure (particularly in the Gauteng province).



Consumers are also enjoying the benefits of an additional interest-rate cut, of 25 basis points, as of end January 2025. While <a href="https://businesstech.co.za/news/wealth/809242/awesome-news-for-take-home-pay-and-salaries-in-south-africa/">predictions</a> are that the average salary increase could reach 5.7 percent by the end of 2025 (up from 4.5 percent in 2023, according to the latest Quarterly Bulletin of the South African Reserve Bank), it all depends on a particular employer’s “financial health”, “employee performance”, and “talent-retention goals”.



<h2 class="wp-block-heading" id="h-how-the-other-side-lives">How the other side lives</h2>



Peeping over the fence into the pay packages of JSE-listed company CEOs, reveals average earnings of approximately R250 940 per day and total monthly earnings of between R22.5 and R300 million across the nine sectors of technology, mining, banking, retail, insurance, hospitality, diversified (i.e. operates across multiple distinct business lines or industries), property, and education.



These pay packages exceed those listed in the PwC 2024 Directors’ Remuneration and Trends <a href="https://www.pwc.co.za/en/publications/executive-directors-report.html">Report</a> – i.e. a median total guaranteed pay packet for CEOs of the top 200 JSE-listed companies at R8 million per annum; and a median total remuneration package of R19.71 million annually, when short- and long-term incentives are applied to the mix.



However, it is important to note that these extremely high salary earners face equally high-level <a href="https://businesstech.co.za/news/business/803609/the-best-paid-south-african-bosses-of-2024-earning-r251000-per-day/">challenges</a>: “economic constraints”, “political instability”, “high levels of inequality” (within their workforces), “fluctuating exchange rates”, “skill shortages” (particularly in STEM-related jobs ), and “unreliable infrastructure” (particularly freight and port-related, as mentioned above).



Although the financial rewards are vast, these <a href="https://www.bossjansen.com/press/executive-placements-in-south-africa-the-key-to-leadership-success/">corporate leaders</a> must keep the work of their institutions competitive in comparison to their peers, while also operating in a regulated and compliant manner in the face of ongoing digital transformation.



The PwC report advises that “organisations will face more of the same scrutiny, as well as new demands” in the year ahead. This scrutiny extends to: • an increased focus on fair pay and the reason for wage gaps within tight budgets; and • enhanced pay disclosure by companies to satisfy both regulatory and shareholder requirements.



Remuneration policy will be subjected to an ordinary shareholder vote every three years, and each company’s interim report will be subject to an annual ordinary shareholder vote. The reason for any wage gaps (i.e. gender-related, or between the highest- and lowest-paid employees) will also require disclosure.



Advice then, for CEOs running JSE-listed firms, is to meet up with your CFO and discuss:



• whether there is a need to review your current remuneration framework and policy;



• whether the current structure is suitable as far as attracting and retaining key talent is concerned;



• the importance of engaging with shareholders early, to disclose the rationale for changes to the remuneration policy (if any);



• the value of gaining shareholder input on ways to adopt ESG measures in incentive plans, without succumbing to diminished returns;



• the need to potentially include an emergency discretion clause in your remuneration policy, to allow for genuinely unforeseen and/or exceptional circumstances;



and



• the need to focus on areas that investors and shareholders identify as important, as far as these relate to performance, together with fair and responsible pay.



 The reality is that negative stakeholder perceptions of excessive executive pay packages, and/or non-traditional incentive plans, will persist – especially in the case of a lack of adequate underlying company performance.



<h2 class="wp-block-heading" id="h-chart-topper">Chart topper</h2>



Top South African earner for 2024 was former Naspers CEO, Bob van Dijk. His pay packet of R330 million, which equated to R904 109 per day, consisted of a basic salary of $1.4 million, a bonus of $1.4 million, and additional share options. A severance payment of $747 000 (R13.5 million) was also part of his compensation – deemed an appropriate payout for loss of office, following replacement by Fabricio Bloisi.



<a href="https://businesstech.co.za/news/wealth/809242/awesome-news-for-take-home-pay-and-salaries-in-south-africa">https://businesstech.co.za/news/wealth/809242/awesome-news-for-take-home-pay-and-salaries-in-south-africa</a>



<a href="https://www.pwc.co.za/en/publications/executive-directors-report.html">https://www.pwc.co.za/en/publications/executive-directors-report.html</a>



<a href="https://businesstech.co.za/news/business/803609/the-best-paid-south-african-bosses-of-2024-earning-r251000-per-day">https://businesstech.co.za/news/business/803609/the-best-paid-south-african-bosses-of-2024-earning-r251000-per-day</a>

pexels-artempodrez-5716001

The scoop on salary trends in South Africa

Together, the mining industry and the banking and finance sector can power Africa’s economic growth



If there is one industry that can catalyse a fulsome transformation of African nations’ economies, it is mining.



This has been said before, and applied too, in the context of envisaging economic growth in countries on other continents. But our present time is different. The world is at the watershed of an energy switchover the impacts of which may be as dramatic as was the birth of the oil industry 150 years ago. Almost all forecasts linked to, or spinning from, the green energy transition, include escalating global demand for the metals and minerals embedded within Africa’s crust.



Mining already comprises a significant proportion of the Gross Domestic Product (GDP) of many sub-Saharan African nations. In Zambia, for instance, the industry’s contribution to total GDP has ranged between 13% to 19% over the past five years. Major global mining conglomerates including Anglo American, First Quantum Minerals (FQM), Glencore and Vedanta Resources not only have prominent existing operations in Zambia but are embarking upon major expansion projects or have announced significant new exploration ventures.



Political and business leaders throughout the world understand the motivation for this. Renewable energy technologies require copper – much more of it. Worldwide copper demand will surge to over 30 million tonnes by the end of the decade, with an overall market value projected at USD 260 billion. Tied to the ongoing momentum of renewables and related industries, rapid growth is forecast through to 2050, by which time the global copper market will have grown 70% since 2020. Zambia’s Copperbelt and North- Western provinces are one of the world’s richest source of known reserves and estimated future discoveries.



Albeit clearcut, and vital, copper is just one illustration. Similar forecasting and financial and market size modelling applies to other metals and minerals also important for net zero emissions targets and a future for humankind that does not rely on fossil fuels. In particular, cobalt, lithium and nickel are crucial for electric batteries and vehicles, for solar panels, turbines, and energy storage. Figuratively speaking, southern Africa is almost certainly sitting on a new-wave, 21st -century goldmine.



Looking wider, the Lobito Trans-Africa Corridor project is a joint U.S., Angola, DRC, Tanzania and Zambia scheme to link logistics infrastructure from east to west, connecting the Indian and Atlantic oceans.



Even grander is the Vision 2030 idea, backed by rulers and business leaders in the Arabian Peninsula, of a mining super-region spanning Africa and the Gulf. This could be a pan-African, pan-Arabian version of China’s modern-day Silk Road. As such, on top of commodity market optimism, in place already are big-picture ideas and visions upon which Africa’s miners can capitalise.



However, a note of cautionary realism is relevant. Mining industry players in Africa should not expect this global projected growth trajectory to materialise easily or to apply by default to their operations on the continent. Chile remains the world’s largest single copper producing nation, while rare earth metals market share and known reserves are dominated by China. This means that strategies are required to shift the balance – effectively, to improve African mining’s productivity by gearing competitiveness. Successfully operationalising these strategies will be the key to seizing market share as opposed to inching upwards as the market grows. A sea-change in the fortunes of African countries’ economies depends on the former. But this will involve overcoming multiple challenges. 



First and foremost, shall we address the elephant in the room? C-Suite and senior leadership must engage honestly with the issue of purposefully and meaningfully contributing to the economic prosperity of countries hosting their operations. ESG is mandatory, and is elegantly written about in multiple pages of all mining companies’ annual reports. But – remembering that an uplifted local community, a higher-performing region, and a stronger national economy grows the economic pie, benefitting the mining industry – can more be done?



Here, it is opportune to cross-refer to the role of the financial sector. Its ambit includes assisting with compliance issues. Mining companies understandably face rigorous scrutiny by governments and regulatory authorities. Banks, in collaboration with auditors and legal, can help to ensure full and proper compliance, thereby smoothing processes. Governments do understand the importance of industry growth. Zambia is a case in point: President Hichilema has laid out his government’s target of three million tonnes of annual copper production by the early-2030s.&nbsp; A partnership approach will best enable the industry to achieve this; if mining houses demand policies that raise investor confidence, they must hold up their end of the compliance deal.&nbsp;



From that foundation, finance has a further, fundamental role: capital. “The capitalist revolution Africa needs,” blared the headline of a recent feature in The Economist. Some of the article’s statistics and projections are worrying, painting the picture of a continent-wide lag in education levels, digitisation and infrastructure, and corporate scale. Governments are at fault for much poor policy that has contributed to this. But two things can be simultaneously true: the global financial architecture has largely been prejudicial, and the UN’s 4th International Conference on Financing for Development, scheduled for June this year, is overdue. In the spirit of optimism, systemic change is hopefully around the corner. After all, for capitalism to thrive, capital is needed!



In the interim, the green shoots of mining industry expansion in Africa are clearly visible. The banking and financial sector is positioned to encourage and facilitate investment. We see ourselves as partners to one of the continent’s key engines, and feel certain that decisionmakers in both industries are asking the same primary question: “Where can we add value to the country’s economy, and contribute to greater prosperity, by catalysing growth?”


<div class="wp-block-image">
<figure class="aligncenter size-large"><img loading="lazy" decoding="async" width="800" height="800" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/Mukwandi-chibesakunda-ZANACO-800x800.jpg" alt="" class="wp-image-582831" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/Mukwandi-chibesakunda-ZANACO-800x800.jpg 800w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/Mukwandi-chibesakunda-ZANACO-300x300.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/Mukwandi-chibesakunda-ZANACO-90x90.jpg 90w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/Mukwandi-chibesakunda-ZANACO-768x768.jpg 768w" sizes="auto, (max-width: 800px) 100vw, 800px" /><figcaption class="wp-element-caption">Chibesakunda has served in multiple senior roles in the banking industry for over 20 years. She is the CEO of Zambia’s largest bank, Zambia National Commercial Bank (Zanaco).</figcaption></figure></div>

Mukwandi-chibesakunda-ZANACO

Mining in Africa: On the cusp of a new boom?

On American aid cuts/disruptions

<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="640" height="800" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/Dr.-Obiageli-Ezekwesili-640x800.jpg" alt="" class="wp-image-578278" style="width:640px;height:auto" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/Dr.-Obiageli-Ezekwesili-640x800.jpg 640w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/Dr.-Obiageli-Ezekwesili-240x300.jpg 240w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/Dr.-Obiageli-Ezekwesili-72x90.jpg 72w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/Dr.-Obiageli-Ezekwesili-768x960.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/Dr.-Obiageli-Ezekwesili.jpg 819w" sizes="auto, (max-width: 640px) 100vw, 640px" /><figcaption class="wp-element-caption">Dr. Obiageli “Oby” Ezekwesili, Founder and CEO of Human Capital Africa</figcaption></figure>



As we commemorate the 2025 International Day of Education, Artificial Intelligence (AI) leads global headlines, social media chatter, boardroom discussions, and policy debates. This year&#8217;s theme, &#8220;AI and Education: Preserving Human Agency in a World of Automation,&#8221; reflects this focus. Artificial Intelligence promises to reshape every aspect of our lives, including the global labor markets. While this technological revolution promises increased productivity and innovation, it raises eyebrows about job displacement and the future of human work. Amidst these changes, one truth remains constant: the foundation for developing the most automation-resistant skills is built through strong foundational learning in the early years of life: basic literacy, numeracy, and transferable skills, such as socio-emotional skills, cognitive reasoning, analytical thinking, and more.



The recently released World Economic Forum&#8217;s 2025 Future of Jobs Report paints a clear picture: as automation accelerates, unique human capabilities—analytical thinking, creative problem-solving, resilience and flexibility, and leadership—become increasingly valuable. These skills are the backbone of human agency in an increasingly automated world. As Africa continues to drive global workforce growth in the coming years, there is an urgent need to match this demand with quality supply. This process begins at the foundational level.



These higher-order cognitive and socio-emotional skills are not inherently innate; the evidence indicates that they are cultivated through early and consistent exposure to quality foundational learning. A Stanford University study observed that just after one year of early math lessons—similar to lessons delivered under Zambiaʼs Catch Up program—children&#8217;s brains showed significant changes in regions responsible for working memory and numerical processing. This neuroplasticity in early childhood forms the basis for more complex problem-solving and analytical thinking later in life. Moreover, structured investment in socio-emotional learning skills through SEL programs has been found to improve not only academic performance but also deepen long-term resilience and a host of other pro-social behaviours.



It is clear that the AI revolution strengthens the argument for investing in foundational education. Human agency in the age of AI is not fostered through coding bootcamps; it is primarily developed in pre-primary and primary school classrooms. This is where children first learn to decode text, understand numbers, and think critically. When a child learns to read with comprehension, they are not just acquiring a skill—they are building the cognitive foundation necessary to question, analyze, and influence the world around them. Similarly, when they master basic mathematics, they are establishing the mental frameworks required to understand and control technological tools—including AI—rather than merely being controlled by them.



The stakes could not be higher for Africa. With the continent poised to make the largest contribution to the global labor market due to its young and growing population (sub-Saharan Africa is expected to account for over 70% of the growth in the worldʼs working-age population by 2050), ensuring strong foundational skills becomes an economic necessity. We have observed leadership across the continent, with countries such as Rwanda and Mauritius publishing comprehensive national AI strategies and Nigeria, Kenya, and South Africa showing an ever-increasing number of AI innovations with strong applications in the education sector. The African Union&#8217;s Artificial Intelligence Strategy also envisions us as leaders in technological innovation. But of course, leadership itself requires human agency: the ability to understand, question, and direct technological change rather than merely adapt to it. Understanding and mitigating AI risks, tackling the digital divide, leading the design, training, and operation of ethical AI systems which are African-centred—all ambitions laid out within our continental strategy for AI—require the highest levels of human agency, which is predicated on structured investments in foundational learning.



Consider this stark reality: In an age where AI can generate text, create images, and solve complex problems, what happens to those—9 in 10 African children—who cannot read, write, or perform basic calculations by age 10? They become dependent on AI systems that they cannot critically evaluate or meaningfully engage with. This is not just a digital divide; it&#8217;s an agency divide that threatens to reinforce neo-colonial patterns of technological dependence.



The path forward is clear. African leaders must prioritize education at large—particularly foundational learning—as the bedrock of technological agency. By focusing on foundational learning, we are not choosing between basic and advanced skills; rather, we are building the essential base upon which all future learning, including in emerging technologies, can be constructed. The evidence is clear: interventions such as Teaching-at-the-Right Level (TaRL) and structured pedagogy programs can boost learning outcomes in early grades, deliver cost-savings, and in turn build uniquely human skills—such as analytical thinking, creative problem-solving, resilience and flexibility, and leadership—which will hold value in future labor markets and laying the cognitive foundation for technological empowerment.



While foundational learning is crucial, a holistic approach to education in the AI era will require broader interventions. By combining these interventions with a strong focus on foundational learning, African education systems can nurture students prepared to participate meaningfully in future labor markets and foster skills for Africaʼs technological leadership.



I join the Foundational Learning Hub and partners to call upon African governments, donors, the private sector, and the broader education community to leverage the advancements in AI and edtech and apply them to strengthen our educational systems further. To ensure the best results:



<ol class="wp-block-list">
<li>Edtech innovations must be carefully developed and implemented with instructional rigor, evidence, equity, privacy, and safeguarding at their core.</li>



<li>EdTech solutions that are developed must improve on the quality of teaching and be integrated into existing government-led, foundational learning programs to ensure they can equitably impact and improve learning outcomes at scale.</li>



<li>African governments must prioritise the implementation of cost-eﬃcient and proven pedagogical approaches like Structured Pedagogy and TARL; and provide an enabling environment for innovation and technology to support delivering them at scale.</li>



<li>African governments must recognise connectivity, cost, and infrastructure constraints in Africa and work towards developing digital public infrastructure and products that can be scaled within that context.</li>



<li>African governments must integrate digital literacy to curricula, and donors must ensure it is represented in programme design. Teachers must be empowered to teach with AI, as well as teach about AI, driving utility and ensuring that the broader application of AI to development priorities can be accelerated.</li>



<li>Donors and funders must enhance their focus and funding on foundational learning skills in Africa, increasing support for contextually relevant technology innovation that can be delivered at scale and have an impact on learning. While also investing in further developing the evidence base to inform AI product development.</li>
</ol>



As AI systems become more powerful, the question of human agency becomes more urgent. Will our children be able to understand, question, and direct these systems, or will they be directed by them? Again, the answer depends on what happens today in our primary school classrooms.

Dr. Obiageli Ezekwesili

Foundational Learning: Empowering Africaʼs Agency and Development in the Age of AI

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="800" height="601" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/G20-1.jpeg" alt="" class="wp-image-577126" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/G20-1.jpeg 800w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/G20-1-300x225.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/G20-1-120x90.jpeg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/G20-1-768x577.jpeg 768w" sizes="auto, (max-width: 800px) 100vw, 800px" /></figure>



The global financial architecture is once again under scrutiny as calls for reform grow louder. For Africa, this conversation has never been more urgent. The continent faces a host of economic challenges—debt sustainability, limited access to credit, high borrowing costs, and inadequate financial infrastructure—issues that global economic disruptions have exacerbated.



As Africa pushes for greater inclusion in global financial reforms, most notably with the African Union&#8217;s recent membership in the G20 (now G21), it is clear that building a resilient financial system within the continent must be a parallel priority.



Africa’s relationship with the global financial system is characterized by significant imbalances. African economies often grapple with high borrowing costs, restricted access to international capital markets, and stringent conditions imposed by international financial institutions. For instance, Zambia and Ghana have faced severe debt crises resulting from unsustainable borrowing practices, compounded by volatile global markets and interest rate hikes by major central banks.



Similarly, Ghana suspended payments on most of its $30 billion external debt in December 2022, citing the economic fallout from the COVID-19 pandemic. In May 2024, Ghana reached a memorandum of understanding with bilateral creditors, including China and France, to restructure $5.4 billion of its debt. This agreement enabled the International Monetary Fund&#8217;s (IMF)’s approval to disburse $360 million under a $3 billion three-year bailout program. (<a href="https://fr.africanews.com/2024/05/25/le-ghana-trouve-un-accord-de-restructuration-de-sa-dette/?utm_source=chatgpt.com">Source</a>)



These cases highlight the pressing challenges African nations face in debt management and underscore the urgent need for structural reforms to ensure long-term economic viability.



Additionally, Africa’s share of global credit flows remains disproportionately low. Despite the continent’s immense growth potential, international investors remain risk-averse, driving up borrowing costs and limiting access to vital funding for infrastructure, healthcare, and development projects. This has left many African economies over-reliant on external aid and debt.



While global reforms to create a fairer, more inclusive financial system are essential, Africa must also look inward to strengthen its financial architecture. Building a resilient African financial system should be the foundation upon which any global reforms can stand. This entails several key actions: African countries need robust frameworks to manage and restructure existing debt.



The African Union (AU), the African Development Bank (AfDB), and other regional bodies must play a more active role in debt negotiations, pushing for multilateral mechanisms that prioritize African interests. Transparent debt management strategies can prevent future crises and build investor confidence.



To simultaneously address the debt crisis and climate challenges, debt-for-climate swaps offer an innovative opportunity for Africa. These mechanisms allow countries to restructure their debt in exchange for specific commitments to climate action, such as ecosystem restoration or investments in renewable energy. Several African leaders, including Kenya’s President William Ruto, have championed these approaches which appear to be gaining traction in international forums.



High borrowing costs often stem from perceptions of risk. By developing a more resilient and integrated financial system, African countries can work towards more favourable credit ratings, thereby reducing the cost of capital.



Establishing a pan-African financial infrastructure, leveraging digital finance, and promoting regulatory harmonization could create an enabling environment for intra-African trade and investment, boosting growth from within.



The African Union&#8217;s (AU) recent inclusion in the G20, marks a significant milestone. As Africa&#8217;s official representative in one of the world&#8217;s most influential economic forums, the AU now has an unprecedented opportunity to influence global financial reforms.



The G20 represents around 85% of global GDP and 75% of global trade. This is particularly crucial as Africa faces some of the world&#8217;s most pressing challenges, such as the climate crisis, which disproportionately affects the continent despite its minimal contribution to global emissions. In 2022, over 110 million people in Africa were directly impacted by weather, climate, and water-related hazards, resulting in economic damages exceeding US$ 8.5 billion.



Despite contributing less than 10% of global greenhouse gas emissions, Africa is the continent least equipped to handle the adverse effects of climate change.



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1837" height="1196" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/WMO.png" alt="" class="wp-image-577125" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/WMO.png 1837w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/WMO-300x195.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/WMO-820x534.png 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/WMO-138x90.png 138w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/WMO-768x500.png 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/01/WMO-1536x1000.png 1536w" sizes="auto, (max-width: 1837px) 100vw, 1837px" /></figure>



The African Union&#8217;s key priorities in the G20 should include advocating for global frameworks that provide equitable debt relief and restructuring mechanisms, particularly for African nations disproportionately affected by global economic shocks. According to the UN Economic Commission for Africa, Africa requires approximately $1.3 trillion in annual investments to achieve the Sustainable Development Goals (SDGs) by 2030.



Additionally, the AU should aim to secure increased access to climate financing, leveraging its G20 membership to ensure Africa receives its fair share of the $100 billion per year pledged by developed nations for climate adaptation and mitigation.



Africa stands at a critical crossroads. While the continent engages in global financial reform discussions, it must also prioritize strengthening its economic foundations. Debt-for-climate swaps, equitable access to climate finance, and innovations such as digital financial services are not just tools but pillars of a broader strategy to build a resilient financial system. As Africa seeks a stronger voice in the global financial system, it must remember that true reform starts from within.

Opinion

Building a Safer Africa Through Global Police Cooperation

The Kimberley Process: The only demonstrable vehicle of collaborative efficacy in the diamond industry’s global fight against conflict diamonds

How the 2025 Budget Will Impact Consumers: What You Need to Know

The Kimberley Process: An Illusion of Ethics?

Boosting Growth and Prosperity in South Africa

Reparatory Justice and Africa’s Emancipation

Biden’s Africa trip spotlights colonial legacies and dangers of commodity dependence

Africa’s renewed focus on nutrition will help build resilient and productive societies

Turning Crisis into Opportunity

Nigeria: Leading Africa’s Digital Trade Revolution

Green Jobs – the energy transition must be framed as an economic opportunity, not a moral obligation

MTN: Partnering with Government for growth and opportunities for all South Africans

The scoop on salary trends in South Africa

Mining in Africa: On the cusp of a new boom?

On American aid cuts/disruptions

Foundational Learning: Empowering Africaʼs Agency and Development in the Age of AI

As Africa Assumes G20 Leadership, strengthening African Financial Systems key to Global Financial Reforms

News Tips

Advertise With Us

Opinion

Building a Safer Africa Through Global Police Cooperation

The Kimberley Process: The only demonstrable vehicle of collaborative efficacy in the diamond industry’s global fight against conflict diamonds

How the 2025 Budget Will Impact Consumers: What You Need to Know

The Kimberley Process: An Illusion of Ethics?

Boosting Growth and Prosperity in South Africa

Reparatory Justice and Africa’s Emancipation

Biden’s Africa trip spotlights colonial legacies and dangers of commodity dependence

Africa’s renewed focus on nutrition will help build resilient and productive societies

Turning Crisis into Opportunity

Nigeria: Leading Africa’s Digital Trade Revolution

Green Jobs – the energy transition must be framed as an economic opportunity, not a moral obligation

MTN: Partnering with Government for growth and opportunities for all South Africans

The scoop on salary trends in South Africa

Mining in Africa: On the cusp of a new boom?

On American aid cuts/disruptions

Foundational Learning: Empowering Africaʼs Agency and Development in the Age of AI

As Africa Assumes G20 Leadership, strengthening African Financial Systems key to Global Financial Reforms

News Tips

Advertise With Us

Newsletters