The Policy Dispatch #8 [16th March 2025]

This week, it is all about the promise of industrialisation of Sub-Saharan African countries and mega projects announced across the continent in the past year. Before that though, some interest policy news starting with Ethiopia. e

⏱️ In Today’s Dispatch:

 📰 Policy News recap

 🏭️ Industrial Africa

News Roundup

• Ethiopia announced in September 2024 that it will build Africa’s largest airport at a cost of $7.8 Billion. The financing has now been sorted out with the African Development Bank with contracts sighed this week. The airport will replace the current one which has been saturated. Ethiopian airlines is aiming to further develop its destinations on the African continent.

• Afreximbank (African Export-Import Bank) and Kenyan government ink milestone agreements to promote industrialisation.

• Nigerian Pharmaceutical companies are beginning to fill the gaps left by the exit of GlaxoSmithKline (GSK) and Sanofi from the market. However prices remain too high and more government interventions are required to lower the prices. The two companies cited economic conditions and low profits as reasons for their exits.

• Rhetoric is one thing; policy making is something else. Senator. Ted Cruz, Chairman of the Subcommittee on Africa and Global Health Policy, met with African Ambassadors to “enhance US national security across the continent”. Clearly, cuts to USAID made the headlines but behind the scenes, the US interests in Africa remain critical.

• India is launching its first-ever tailings policy - Tailings are a waste product made up of rock, water and other minerals. The aim here is to recover as much critical minerals as possible

• Egypt rejects attempt to form parallel Sudanese government.

• ​Vietnam is implementing significant educational reforms, including abolishing additional teaching sessions and providing free public education from preschool to high school, aiming to enhance learning quality and alleviate financial burdens on families.

• Bahrain's Shura Council rejected a proposed 2% tax on expatriate remittances, citing concerns it would drive funds to unregulated channels, encourage money laundering, and harm Bahrain's financial reputation.

Industrialization

Industrilization is arguably the fastest route to lifting millions out of poverty. Such is the importance of Industrialization for Africa that the United Nations 🇺🇳 has proclaimed the 20th November to be Africa Industrialization Day.

However, the contribution of manufacturing as a percentage of GDP remains very low in Sub Saharan Africa (SSA). In current USD dollars, the manufacturing value added of SSA has increased by $100 Billion over the last 15 years while China has more than doubled its output.

Nevertheless, the policy debate on industrialization has moved long and there is greater political will to implement strategies to accelerate the trend. Below are 8 such policy strategies

Mega Industrial Projects

There are also mega industrial projects that have been announced over the past year. Here is a selection of the top 5:

🟢 Hyphen Green Hydrogen Project – Namibia
💰 Investment: $10B
🌬️ Focus: Green Hydrogen/Ammonia
🤝 Key Partners: Namibia’s Government (24% stake), Hyphen Hydrogen Energy (German-backed), Port of Rotterdam.
📈 Impact:

• Producing 2M tonnes of green ammonia annually by 2030.

• 🌞 Capitalizing on Namibia’s solar & wind resources.

• 🔋 Expected to transform Namibia’s economy, create thousands of jobs, and improve energy security.

🔥 Tanzania LNG Export Terminal – Tanzania
💰 Investment: $30B
⛽ Focus: Natural Gas Export
🤝 Key Partners: Equinor, Shell, ExxonMobil, and Tanzanian Government.
📈 Impact:

• Will export 10M tonnes of LNG annually by 2030.

• 💼 Creates thousands of jobs in construction & operations.

• ⚡ Boosts energy security with plans to power local industries and agriculture.

💉 Institut Pasteur de Dakar Vaccine Facility – Senegal
💰 Investment: $45M+
💊 Focus: Vaccine Production
🤝 Key Partners: IFC, DFC, AfDB, and Senegal’s Government.
📈 Impact:

• Producing 300M vaccine doses yearly.

• 🧬 Boosts Africa’s self-reliance in vaccines.

• 👩‍🔬 Creates high-value jobs in biotech and R&D.

🚂 Lobito Atlantic Railway Corridor – Angola, DRC & Zambia
💰 Investment: $550M
🚛 Focus: Trade Infrastructure
🤝 Key Partners: Angola’s Government, U.S., EU, AfDB, Trafigura.
📈 Impact:

• 📈 Opens a new export route for copper and minerals.

• 🚜 Helps Angola’s inland farming industry reach global markets.

• 🏗️ Creates thousands of construction jobs.

⛰️ Simandou Iron Ore Mine – Guinea
💰 Investment: $15-20B
🛤️ Focus: Mining, Railway & Port
🤝 Key Partners: Guinea’s Government, Rio Tinto, SMB-Winning, and Chinese investors.
📈 Impact:

• Exports 100-120M tonnes of high-grade iron ore yearly.

• 💰 Expected to double Guinea’s GDP in a decade.

• 🔗 Enhances trade routes and attracts investment.