These countries, which are home to over 850 million people, are struggling with multiple global crises, the climate emergency, growing debt burdens, dependence on commodities, and declining foreign investments

The report emphasizes the need for international financial reforms to specifically target the financing requirements of these countries

According to the report, the upcoming Loss and Damage Fund, set to debut at the 28th UN climate change conference (COP28), could be a game-changer for Least Developed Countries (LDCs) if they are among the main beneficiaries, enough resources are available, and disbursements are swift

The fund aims to address the climate-related financial needs of LDCs, which have been severely affected by the economic disruptions since 2020

However, the success of the fund hinges on several factors:

1. International cooperation: The international community must improve cooperation to strengthen tax norms, combat illicit financial flows, and facilitate revenue collection in LDCs
2. Tailored financial mechanisms: The global financial system lacks appropriate, targeted financial mechanisms for LDCs, and post-COVID-19 reforms have fallen short of expectation.
3. Alignment with national targets: The report emphasizes the importance of aligning financial tools with national targets of industrial and fiscal policy
4. The Least Developed Countries Report 2023 is intended for a broad readership of governments, policymakers, researchers, and all those involved with LDCs’ development policies

By addressing the critical financial challenges faced by these countries, the Loss and Damage Fund at COP28 has the potential to be a game-changer for LDCs, helping them implement crucial development policies and progress towards the Sustainable Development Goals (SDGs) and a low-carbon transition

Africa is poised to overtake Europe in geothermal capacity by 2030, driven by significant investments and rapid development in the geothermal energy sector. According to a report by Rystad Energy, Africa’s geothermal power capacity is expected to reach 13 GW by 2050, more than double the current 1 GW capacity. This growth is attributed to the favorable conditions for geothermal energy generation in the Rift Valley region of East Africa, particularly in countries like Kenya and Ethiopia.

Kenya, in particular, has made substantial progress in harnessing its geothermal potential, becoming the world’s seventh-largest geothermal producer. The country’s geothermal industry has benefited from early drilling campaigns by state-owned entities, which helped “de-risk” investment for geothermal developers. As a result, Kenya is well-positioned to attract green industries due to its abundant supply of power and heat from geothermal sources.

The surge in geothermal output has also led to a leap in profits for Kenyan utility KenGen. Rystad Energy’s analysis indicates that Africa’s geothermal industry is on track to surpass Europe’s capacity by 2030, with an estimated $35 billion in investment expected to pour into geothermal projects in Kenya and Ethiopia through 2050. By mid-century, Kenya and Ethiopia are projected to account for nearly 90% of the 13 GW in geothermal energy generation capacity in Africa.

Despite Africa’s current capacity being half of Europe’s, the continent’s geothermal capacity is set to more than double within seven years and potentially triple by 2030. This growth underscores the significant potential for geothermal energy development in Africa and its increasing importance in the global energy landscape.

The expected expansion of Africa’s geothermal capacity reflects the continent’s commitment to sustainable and renewable energy sources, positioning it as a key player in the global transition to cleaner energy alternatives. In summary, Africa’s geothermal industry is poised for substantial growth, with the continent set to overtake Europe in geothermal capacity by 2030. The favorable conditions for geothermal energy generation in East Africa, coupled with significant investments and rapid development, are driving this expansion, positioning Africa as a significant player in the global geothermal energy landscape.

Event Highlights:

• GITEX is the largest technology fair of 2023, attracting approximately 35,700 visitors from Africa, representing 21% of its total audience

• African startups are engaging with international investors, demonstrating their technological vision and need for capital

• The event provides a valuable platform for startups to connect with potential clients and investors, such as Blink, an Egypt-based mobility road assistance startup seeking to raise $1 million after already securing $270,000 in funding

Investment Opportunities:

The UAE represented the third-largest source of foreign capital for African startups in 2022, contributing 4%

Over 80 Middle Eastern investors have participated in African transactions since monitoring began.

The presence of Middle Eastern investors in African startups rose from 16 in 2019 to 50 last yearChallenges and Opportunities.

African startups face challenges in securing funding, with a significant majority (77%) of venture capital funds directed towards African startups originating from investors outside Africa.

The event highlights the growing connection between African startups, venture capitalists, and investors from or based in the Middle EastIn conclusion, the GITEX tech show in Dubai serves as a valuable platform for African startups to pursue investment opportunities and showcase their technological vision. As global investors pull back their investments, the event provides a crucial opportunity for African startups to explore new funding sources and strengthen their ties with international investors.

In the midst of a funding slowdown, African startups arrived at the GITEX technology fair in Dubai with a range of funding needs, spanning from ambitious multi-million dollar aspirations to more modest requirements for early-stage investments.

Sachin Hanwate, CEO of Agrosahas, an agro-processing company in Uganda, shared his experience, noting that the company is seeking approximately $3.5 million in Dubai to address its primary challenge of insufficient working capital. Agrosahas, founded in 2020, focuses on organic farming, specializing in corn, soybean, and sunflower products. With a goal to integrate technology, including artificial intelligence, to empower collaborating farmers, Hanwate aims to expand operations from the current 10,000 farmers in Uganda to half a million farmers across East Africa.

GITEX, recognized as the largest technology fair of 2023, provided a platform for African startups to engage with international investors, showcasing their technological advancements and capital needs. Last year, the fair saw approximately 35,700 visitors from Africa, constituting around 21% of the total audience, as per figures from the Dubai World Trade Centre.

While some startups, like Agrosahas, aim for substantial funding for expansion, others, like Blue Health Ethiopia, represented by Elias Tadesse, COO, seek more modest investments at the pre-seed stage. Blue Health Ethiopia, a health technology company offering a digital platform for ambulance connectivity in accidents, aims to raise around $270,000 in the pre-seed stage.

Entrepreneurs, armed with a mobile application provided by the Dubai World Trade Centre, have been actively engaging with registered potential investors through the GITEX platform. The entrepreneurs, predominantly from Asia, the Middle East, and Europe, attend numerous meetings and pitch their ideas, with the success of these endeavors expected to materialize in the coming months.

AI Applications in Africa: Google’s AI research center in Accra, Ghana, collaborates with local researchers and global teams to work on AI-based tools that create change for communities worldwide

Some ways Google is working with AI in Africa include:

1. Mapping buildings in remote locations to provide better electricity access
2. Forecasting floods to improve disaster preparedness
3. Predicting locusts to help control crop pests
4. Improving maternal health by predicting pregnancy outcomes

AI Readiness in Africa:

The Paradigm Initiative’s AI Readiness Index assesses a government’s AI readiness based on three key pillars: government, technology sector, and data and infrastructure

Economic development is a crucial aspect of AI readiness, as AI has the potential to transform various African sectors

Challenges and Policy Dimensions:

Despite the opportunities presented by AI, there are challenges and policy dimensions to consider in Africa. To ensure a successful AI deployment, African governments must focus on:

• Building a skilled workforce to develop and implement AI solutions
• Ensuring data privacy and security measures
• Collaborating with international partners to share knowledge and resources

Conclusion: AI has the potential to bring significant benefits to Africa, as it can address pressing problems and drive economic growth. By fostering innovation and addressing challenges, Africa can become a major player in the global digital economy. As Lacina Koné, CEO of Smart Africa, believes, Africa can harness AI to unlock its full potential and create a positive impact on the continent

During the forum, developers and investors explored opportunities in diverse sectors such as food and agriculture, renewable energy, mining, transport corridors, aviation, deep-water seaports and railways, ICT, digital infrastructure, artificial intelligence, creative industries, and health.

AIF operates as a multi-stakeholder, multi-disciplinary platform with the goal of advancing projects to bankable stages, raising capital, and accelerating deals toward financial closure. Its overarching vision is to direct capital into critical sectors to achieve the Sustainable Development Goals, the African Development Bank’s High 5s, and the African Union’s Agenda 2063.

A significant development at the forum was the establishment of the Alliance for Special Agro-Industrial Processing Zones, backed by an initial commitment of $3 billion. Partners in this initiative include the AfDB, Afreximbank, the United Nations Industrial Development Organisation, and Arise Integrated Industrial Platforms.

The Alliance aims to convert Africa’s underdeveloped rural areas into agro-industrial corridors of prosperity by facilitating the development and delivery of SAPZ projects. These Special Agro-Industrial Processing Zones stimulate structural transformation in agriculture by connecting rural and urban development, integrating smallholder farmers into value chains through logistics and infrastructure.

New commitments include $1.1 billion from the African Development Bank Group, $1 billion from Afreximbank, $300 million from the Islamic Development Bank Group (IsDB), and $600 million from Arise Integrated Industrial Platforms (Arise IIP) and its partners.

President Akinwumi Adesina of the African Development Bank highlighted the transformative impact of these investments during the closing ceremony, emphasizing the forum’s success in securing $34.82 billion in just 72 hours, in alignment with AIF’s vision to close the investment gap and transform the continent.

Revised Growth Projections:

The IMF revised India’s projected GDP growth rate for 2023-24 to 6.3%, up from the earlier estimate of 6.1%. This positive outlook positions India as the world’s third-largest economy by 2027, marking a remarkable ascent.

GDP Milestones and Challenges:

India’s historical journey is evident in the data, with six decades needed to surpass the one trillion-dollar GDP mark in 2007. Notably, it only took seven years to reach the two trillion-dollar milestone in 2014 and added an additional 1.2 trillion by 2021. If India achieves the IMF’s projected figure of $5.2 trillion by 2027, it will have added $2 trillion in just six years.

GDP and Per Capita GDP in PPP:

India currently boasts the third-highest GDP in purchasing power parity (PPP) terms at $13 trillion, following China ($33 trillion) and the U.S. ($26.9 trillion). Despite this, India’s per capita income is the lowest among G20 countries, both in dollar ($2,601) and PPP terms ($9,073).

IMF Projections and Economic Realities:

The IMF’s report also includes a downward revision of the world GDP growth projection to 4.2%. India faced a severe contraction during the second quarter of 2020, with a 25.6% decline, and an 8.5% contraction in 2020-21.

Concerns and Challenges:

India’s economic vulnerabilities include a soaring deficit with China, structural dependence on Chinese imports, and a steady decline in industrial growth rates. The industrial growth rate plummeted from 13.1% per year in 2015-16 to negative 3.5% in 2019-20, pre-COVID-19.

Public Investment and Geopolitical Considerations:

Public investment, comprising the central government, states, and central public sector undertakings (PSUs), faces challenges. Policymakers are urged to adopt a longer view, considering geopolitical shifts in economic policymaking.

Looking Ahead:

While India has made strides in reducing multidimensional poverty, achieving high-income status and enhancing citizens’ quality of life remains a prolonged endeavor. The report emphasizes the need for policymakers to balance optimism with strategic insights, acknowledging the evolving geopolitical landscape.

Positive Developments:

Amid challenges, positive indicators include a decline in multidimensional poverty, rural improvements in quality of life, and notable growth in agriculture-related sectors. In conclusion, India’s economic journey, as outlined in the IMF report and additional insights, reflects both accomplishments and challenges. Policymakers must navigate these complexities with a nuanced approach, considering not only economic indicators but also geopolitical dynamics for sustainable and inclusive growth.

Key Candidates:

President Felix Tshisekedi: President Tshisekedi, aged 60 and the son of the late opposition leader Etienne Tshisekedi, assumed power in a contested 2018 election through a power-sharing alliance with former president Joseph Kabila. Despite initial promises to combat corruption, authoritarianism, address economic challenges, inequalities, and conflicts in the east, critics argue that he has not delivered on these commitments. Following the unraveling of the alliance, he aligned with other prominent Congolese figures, including economy minister Vital Kamerhe and former vice president Jean-Pierre Bemba.

Businessman Moise Katumbi: A 58-year-old businessman with a background in mining, transport, and food processing, Katumbi served as the governor of the copper-rich Katanga region from 2007 to 2015. Initially allied with Kabila, he fell out with the former president, accusing him of attempting to extend his stay in power. Katumbi, who fled Congo in 2016 amid accusations of plotting against Kabila, was sentenced in absentia for real estate fraud. His current candidacy benefits from the support of three withdrawn candidates.

Old Rival Martin Fayulu: Fayulu, aged 66 and a former Exxon Mobil executive, claims to have won the 2018 election in which he finished second. Initially chosen as the joint opposition candidate in a pact with Tshisekedi, Fayulu faced challenges as Tshisekedi withdrew and formed a power-sharing arrangement with Kabila. Despite attempts to unite the opposition, Fayulu’s representatives were allegedly ousted from a South African meeting.

First Timer Denis Mukwege: Renowned gynaecologist Mukwege, aged 68, earned the Nobel Peace Prize for his extensive efforts in combating sexual violence, particularly treating victims of wartime abuse at the Panzi hospital. Based in eastern Congo, Mukwege criticizes the government’s inability to curb conflict. His candidacy, announced on Oct. 3, is motivated by a desire to save and develop the country.

Second Attempt for Marie José Ifoku: Ifoku, one of three women approved by Congo’s national election commission for the presidential race, makes her second attempt after being the sole female candidate in the 2018 election, where she secured the ninth position out of 21 candidates with 0.15% of the vote.

The United Nations Conference on Trade and Development (UNCTAD) advocates for urgent reforms in the international financial architecture (IFA) tailored to address the unique financing needs of the 46 least developed countries (LDCs).

The report points out that the existing IFA is inadequate for handling systemic shocks and mobilizing resources at the necessary scale for LDCs. Fiscal constraints in these countries pose a serious threat to implementing essential development policies, potentially hindering progress toward the UN Sustainable Development Goals (SDGs) and a low-carbon transition.

Highlighting the substantial financing requirements for structural transformation in LDCs, such as shifting towards high-productivity activities and sectors, the report emphasizes the need for over $1 trillion in annual investments for LDCs to double their manufacturing share in GDP, as per pre-pandemic estimates.

The report criticizes the shortcomings of current external financing for LDCs, citing economic and political conditionality, inefficiency, and high costs. UNCTAD calls for a significant increase in development and climate finance, including grants and low-cost loans under highly concessional conditions.

The escalating debt service burden, impeding public expenditure crucial for SDG achievement, is a key concern. UNCTAD urges bilateral donors to fulfill their commitments by increasing official development assistance to the targeted levels in international agreements. Additionally, the report identifies the forthcoming launch of the Loss and Damage Fund at COP28 as a potential game-changer for LDCs.

The report sheds light on an “entrenched bias” within credit ratings agencies, asserting that sovereign ratings often rely more on subjective assessments than on ‘fundamental’ variables related to debt sustainability. It argues that this bias leads to significant misestimating of risk for African countries, ultimately causing LDCs to bear the brunt of the costs of the global low-carbon transition. UNCTAD emphasizes the necessity for a lasting solution to the debt crisis, including improved debt management, transparent debt contracts, and the establishment of an efficient debt workout mechanism. Furthermore, the report calls on the international community to assist LDCs in enhancing their state capacity for tax generation, fiscal resource management, and long-term spending on development projects and climate adaptation. In 2021, debt service in LDCs reached $27 billion, marking a staggering 37% increase from the previous year’s $20 billion.