Middle East

Egyptian officials at Alexandria Shipyard (ASY) are engaging in advanced discussions to enhance maritime capabilities and innovation. Discover the latest updates and insights from Africazine on this significant development in Egypt's shipbuilding industry.

The Central Bank of Egypt (CBE) and African Export – Import Bank (Afreximbank) (www.Afreximbank.com) yesterday signed a Memorandum of Understanding (MoU) for the establishment of a pan African Gold Bank. This strategic initiative aims to formalise gold value chains, strengthen Central Bank reserves and reduce Africa's reliance on foreign refining and trading hubs.

This landmark MoU was signed by the Governor of the Central Bank of Egypt (CBE), H.E. Mr. Hassan Abdalla, and the President and Chairman of the Board of Directors of Afreximbank, Dr. George Elombi during a ceremony held at the Central Bank of Egypt.

The establishment of the Gold Bank programme is in line with Egypt's vision to expand strategic partnerships and strengthen mutual collaboration with African states across diverse fields, as well as Afreximbank's focus on promoting and accelerating value addition, and strategic mineral processing.

The partnership also builds on a shared vision between the CBE and Afreximbank to support domestic manufacturing, enhance sustainable development, and deepen regional financial and trade integration, fostering a robust and advanced African economic ecosystem.

Under this MoU, the two institutions will collaborate on commissioning a feasibility study to assess the technical, commercial, and regulatory requirements for developing an integrated Gold Bank ecosystem in a designated free zone in Egypt, with the participation of African countries. This includes the establishment of an internationally accredited refinery, secure vaulting facilities, and associated financial and trading services.

The initiative also targets the expansion of its scope across the continent, the engagement of governments, central banks, mining companies, and industry stakeholders to strengthen institutional collaboration, harmonize best practices, and facilitate the sustainable trade of gold and related services across Africa.

Commenting on the agreement, Mr. Hassan Abdalla emphasized that the initiative serves as a foundation that could progressively expand into a pan-African framework that would engage African governments, central banks, and market participants. He underscored Egypt's steadfast commitment to driving initiatives that promote economic integration across Africa, noting that the selection of Egypt as a potential hub - subject to the outcome of the study and subsequent approvals - reflects the African institutions' confidence in its readiness to foster continental mega projects. With its strategic geographic location at the crossroads of Africa, the Middle East, and Europe, Egypt is well positioned to serve as a natural hub for regional gold trade and financial innovation.

Speaking at the signing ceremony, Dr. George Elombi affirmed the joint commitment of both institutions to collaborating closely, aligning efforts and resources to promote financial stability, and contributing to sustainable economic prosperity across Africa.

Dr Elombi said: “Today's ceremony may appear simple, yet it has tremendous economic consequences for our continent. We make a bold declaration that Africa's gold must serve African people. This MoU, which is part of Afreximbank's vision to make Africa's resources benefit Africans, creates an African Gold Bank that will help us to begin to fundamentally alter the way we extract, refine, manage, value, store, and trade our gold resources, with the primary aim of retaining value on the continent. By effectively building up the gold stock, as other major economies have done, we enhance the continent's resilience, minimise vulnerability to external shocks, improve currency stability and convertibility, and create wealth within the continent.”

Afreximbank and the Central Bank of Egypt have enjoyed a long cordial relationship, with Egypt being the Bank's largest shareholder and its host.

Distributed by APO Group on behalf of Afreximbank.

Media Contact:
Vincent Musumba
Communications and Events Manager (Media Relations)
Email: press@afreximbank.com

Follow us on:
X: https://apo-opa.co/4sgymQE
Facebook: https://apo-opa.co/48YDpxB#
LinkedIn: https://apo-opa.co/4pksBia
Instagram: https://apo-opa.co/4qimcFL

About Afreximbank:
African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance and promote intra- and extra-African trade. For over 30 years, the Bank has been deploying innovative structures to deliver financing solutions that support the transformation of the structure of Africa's trade, accelerating industrialisation and intra-regional trade, thereby boosting economic expansion in Africa. A stalwart supporter of the African Continental Free Trade Agreement (AfCFTA), Afreximbank has launched a Pan-African Payment and Settlement System (PAPSS) that was adopted by the African Union (AU) as the payment and settlement platform to underpin the implementation of the AfCFTA. Working with the AfCFTA Secretariat and the AU, the Bank has set up a US$10 billion Adjustment Fund to support countries effectively participating in the AfCFTA. At the end of December 2024, Afreximbank's total assets and contingencies stood at over US$40.1 billion, and its shareholder funds amounted to US$7.2 billion. Afreximbank has investment grade ratings assigned by GCR (international scale) (A), Moody's (Baa2), China Chengxin International Credit Rating Co., Ltd (CCXI) (AAA), Japan Credit Rating Agency (JCR) (A-) and Fitch (BBB-). Afreximbank has evolved into a group entity comprising the Bank, its equity impact fund subsidiary called the Fund for Export Development Africa (FEDA), and its insurance management subsidiary, AfrexInsure (together, "the Group"). The Bank is headquartered in Cairo, Egypt.

For more information, visit: www.Afreximbank.com

Download logo

By NJ Ayuk, Executive Chairman, African Energy Chamber (https://EnergyChamber.org/).

A quarter of the way into the 21^st century, digital technology has infiltrated the daily lives of billions of people to an incredible degree across the globe — but not everywhere… yet. As digital penetration rapidly nears 100% in many parts of the world, the fastest-growing markets are in developing countries where even simple electricity is hardly an assured thing. Perhaps the greatest potential is in the African market, where penetration remains shallow and demand is skyrocketing. Simply put, there's nowhere to go but up.

Although electrification has been stubbornly slow to spread across the continent thus far, internet usage is expanding at extraordinary rates. The Global System Operators and Manufacturers Association's (GSMA) Mobile Economy Report 2023 estimated that smartphone adoption in sub-Saharan Africa would rise from 51% in 2022 to 87% in 2030, driven by rising youth populations and more competitive mobile pricing. The same report predicted a near-quadrupling of data usage per mobile by 2028, from 4.6 GB per user per month to 18 GB. Every one of those phones that loads a search engine, a shopping site, or a business app these days is adding to that computing load, and that's just the mobile sector. Advances in financial technology are creating new opportunities for African businesses to thrive, and artificial intelligence is fast invading every facet of the internet. Generative AI and machine learning applications consume up to 10 times more energy than traditional searches, making all that growth orders of magnitude more expensive.

So far, data centers in Europe have mostly been able to handle Africa's needs. As African businesses and consumers increasingly demand faster speeds and lower latency, however, the need is quickly growing for more localized computing infrastructure. As of mid-2025, Africa has 223 data centers spread across 38 countries — less than 0.02% of the world's total of more than 11,800. South Africa has the most with 56, followed by Kenya with 19 and Nigeria with 17, meaning 41% of Africa's data center infrastructure is currently concentrated in these three countries.

In “The State of African Energy: 2026 Outlook Report,” the African Energy Chamber (AEC) posits that development of cloud infrastructure in these key markets could serve as nuclei to accelerate growth across the continent. Growing concerns over data sovereignty are also spurring some nations to require that certain sensitive data stays in-country, further driving demand for local data centers. The African data center market was valued at USD3.49 billion in 2024 and is projected to reach USD6.81 billion by 2030, rising at a Compounded Annual Growth Rate (CAGR) of 11.79%.

As a rule, data centers require a substantial and reliable supply of electricity — something Africa is not currently known for, with many countries facing frequent outages. Nigeria is a prime example. The country's 17 data centers — the third most in Africa — collectively require around 137 MW of power capacity in 2025. Nigeria's power grid is notorious for providing only around four hours of power per day, forcing data center operators to make up the difference with diesel generators that raise costs and pollution levels. Even around the capital city of Lagos, where internet connectivity is highest and 14 of the data centers are concentrated, the grid is a constant source of uncertainty.

Overall, the AEC report states, Africa's data center power demand capacity is forecast to achieve a CAGR of 9% between 2024 and 2030 and hit 2 GW by 2030. The total data center capacity globally, by comparison, is forecast to log a CAGR of 11% between 2024 and 2030, reaching 249 GW by year-end 2030. Adding in the power needed for cooling and other ancillary loads, the global total installed capacity is estimated at 374 GW by 2030.

The relentless demand of data centers, however, functions as a great stabilizer for attracting socially responsible capital investment in the power infrastructure. Predictably growing demand assures investors that money spent on expanding grids and developing new power generation centers will both improve lives and pay off economically. The growth of data centers also often brings with it a push for innovative power solutions, including the integration of renewable energy sources and advanced grid management technologies. Upgraded grids improve sustainability, bolster resilience, and expand the residential and commercial customer base, spreading out fixed costs and thereby reducing end users' electricity prices over time.

In northern Africa, growing hubs such as Egypt and Morocco benefit from strategic positioning that connects Europe, Africa, and the Middle East to major internet backbone lines. Egypt offers affordable land and electricity prices, while Morocco is rapidly modernizing its infrastructure and fostering a favorable legal environment for data center growth.

Sub-Saharan Africa faces more challenges, but even here, many nations are stepping up efforts to meet the insatiable demand. In South Africa, the largest market, there is particularly strong demand for facilities around Johannesburg and Cape Town. Johannesburg benefits from a diversified mix of wholesale and retail demand and both international and local providers. South Africa is leading the continent in solar integration, with public-private projects like the 12 MW solar farm being developed by Africa Data Centres and Distributed Power Africa.

Kenya's grid is already over 60% renewable, including geothermal, solar, wind, and hydroelectric sources. The Naivasha geothermal zone, which supplies nearly half of the country's power, will host a planned 100 MW green data center, backed by a USD1 billion investment by Microsoft and G42. Such clean, non-intermittent power solutions give Kenya the ability to support data centers with both lower emissions and greater stability. The Kenyan government also offers tax incentives for investments in special economic zones, including a 10% corporate tax exemption for the first 10 years, and over 15% after 10 years.

Smaller countries are getting in on the game as well. Côte d'Ivoire (currently home to six data centers) launched its largest solar power plant in Boundiali in June 2023, delivering 37.5 MWp of capacity toward its national goal of sourcing 45% of its electricity from renewable energy by 2030. West Africa's largest wind project is the Taiba N'Diaye Wind Farm in Senegal (seven data centers), while Gabon (one data center) is actively developing hydropower and attracting investment in solar hybrid systems.

Not every country will be able to confront the growing digital demand equally. Data centers are notoriously water-hungry due to the need to cool off huge banks of closely packed computers. Nations with vast areas of desert and savannah can ill afford to have data centers compete for water with agriculture and may have to rely on their neighbors through the use of regional power pools as suggested in the AEC report. Others with fewer renewable energy prospects will likely focus on developing more conventional energy sources such as oil and gas, which many have in great abundance. Even those with strong renewable sectors would be wise to develop conventional energy to achieve the reliability that other parts of the world take for granted. The AEC has long advocated the flexibility of natural gas to serve as a bridge fuel, alleviating shortages with quick ramp-up and ramp-down when renewable supplies fluctuate.

Electrification in Africa is a multi-pronged issue with many obstacles on the path to modernization, but there is no doubt  that there is a demand to be met. Building and provisioning local data centers is a powerful step toward solving some of government's most pressing problems in any nation: improving infrastructure, growing the economy, and strengthening national security.

"The State of African Energy: 2026 Outlook Report" is available for download. Visit https://apo-opa.co/48Y4qkH to request your copy.

Distributed by APO Group on behalf of African Energy Chamber.