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Africa’s Development Bank Welcomes New Leadership Amid Major Challenges
The African Development Bank (AfDB) enters a pivotal phase as Sidi Ould Tah of Mauritania is elected president, taking office in September. Leadership transitions at the AfDB reflect a careful balancing act between regional consensus and the interests of non-regional members like the US, Japan, France and Germany. The emergence of Sidi Ould Tah, a Mauritanian economist and former president of the Arab Bank for Economic Development in Africa (BADEA), reflects a carefully brokered compromise.
The AfDB plays a crucial role in Africa’s development, supporting economic growth, and poverty reduction. It has grown steadily, with capital rising from $22bn in 2000 to $208bn in 2023. However, Africa still faces huge challenges: a massive $100bn infrastructure funding gap, and rising public debt, limiting governments’ ability to invest. Also, a recent proposed $555mn cut in US funding poses additional challenges for the AfDB’s efforts.
The AfDB’s lending capacity remains too small for Africa’s needs, and private investment is limited. Under President Tah—who brings three decades of development-finance experience—the Bank must focus on raising more funds, empowering country offices, and attracting private investors to speed up development and make a real impact across the continent.
Nigeria’s New Lithium Processing Plants Set for 2025 Launch
Nigeria is set to commission two major lithium processing plants in 2025, backed by Chinese investors. A $600mn facility near the Kaduna-Niger border is launching this quarter, while a $200mn refinery near Abuja is nearing completion. Two more plants in Nasarawa State are expected by Q3 2025. This move aligns with Nigeria’s strategy to shift from exporting raw minerals to domestic processing, aiming to industrialize the economy.
By processing lithium locally, Nigeria seeks to add value, boost export earnings, and create jobs amid rising global demand driven by electric vehicles and battery technologies. With rich lithium reserves, Nigeria is emerging as a key player in the global lithium supply chain, aiming to take advantage of the electric vehicle market estimated at $393.39bn in 2025, growing at a CAGR of approximately 25.55% between 2025 and 2034.
The effective implementation of clear regulations, strong investor protection, and the resolution of infrastructure and security challenges will be critical. If managed well, this could attract international manufacturers and drive broader industrial growth, supporting Nigeria’s role in the global energy transition.
In this latest edition of Whispers, the FDC Think Tank takes a deep dive into recent economic developments and their impact on your business and corporate strategy.
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