WEEKLY ROUNDUP · DECEMBER 28, 2025
As 2025 draws to a close, Sub-Saharan Africa is navigating a complex recovery. While global trade policy uncertainty persists, internal reforms and stabilizing commodity prices are providing a much-needed lift to the continent's largest economies. This week, we examine the World Bank’s optimistic growth upgrades and the shifting tides in the African tech ecosystem.
MARKET MOVING
World Bank Upgrades Growth Forecasts for African Heavyweights
The World Bank has revised its 2025 growth projections upward for several major African economies, including Nigeria, Ethiopia, and Côte d’Ivoire. Ethiopia saw the most significant upgrade of 0.7 percentage points, fueled by liberalized exchange rates and stabilized inflation. Read more →
→ Improving terms of trade and easing monetary policy are creating a window for increased private consumption and investment across the region.
UNDER THE RADAR
The Blue Economy: Africa’s Overlooked $405bn Opportunity
The African Union and UNDP are scaling an initiative to unlock hundreds of billions from fisheries and marine carbon credits. Coastal states are increasingly adopting "blue bonds" to swap high-interest debt for conservation investments. Read more →
→ Investment in marine resource management offers a dual path for climate resilience and large-scale job creation in 2026.
CONTRARIAN VIEW
Is the Tech 'Funding Winter' Actually a Maturation?
While headlines lament a decline in venture capital, 2025 has seen record-high Merger and Acquisition (M&A) activity in African tech. Total funding reached $3.24 billion, but the shift from early-stage bets to late-stage consolidation suggests a healthier ecosystem. Read more →
→ The drop in total deals masks a surge in strategic integration, signaling that African tech is moving toward scalable, sustainable business models.
DATA POINT
49% |
|---|
The share of Sub-Saharan African countries now at high risk of debt distress, nearly tripling since 2014. Source |
LOOKING AHEAD
As we enter 2026, the focus will shift to South Africa’s G20 presidency. Expect a forceful push for a new continental Credit Rating Agency to combat the punishing "African Risk Premium," which currently costs the region an estimated $75 billion in excess interest annually. If successful, this could be the single most transformative shift for African capital access in recent history.