Certainty before capital: why bankability will define Africa’s next growth phase, by Aaron Chehab, head of strategy at Arabian Construction Company Group

Africa’s long-term infrastructure outlook remains exceptionally strong with the continent seeing population growth, urbanisation, and industrial expansion. Additionally, the energy transition requirements continue to create significant demand across sectors. It is fair to say that the opportunity ahead is substantial.

The projects that will succeed over the next decade will likely share disciplined planning, credible governance, integrated delivery models and partners capable of bridging the gap between vision, financing, and execution.

However, funding is often seen as the primary challenge. More often, the real issue is creating enough certainty for capital to move with confidence.

At ACC, we recognised early that successful projects often form long before construction begins. That reality has pushed the business further upstream by supporting clients, governments and financing stakeholders during the initial structuring phases of projects.

Across the continent, ambitious projects continue to emerge. We see that urbanisation and long-term economic growth are driving forces behind the positioning of smart cities, logistics corridors, industrial hubs, transport infrastructure, and mixed-use developments. Many of these projects are rooted in genuine vision and national ambition.

Increasingly, this involves supporting stakeholders across areas such as technical feasibility studies, procurement planning, programme sequencing, construction methodology development, cost validation, environmental and social compliance alignment, and operational efficiency reviews.

Moreover, environmental and social governance has become another defining factor in this evolution. Alignment with International Finance Corporation Performance Standards and the Equator Principles is no longer considered optional for major projects seeking international financing. It is now a key part of lender confidence and the long-term viability of developments.

Projects that prioritise early-stage alignment across financing, procurement, environmental compliance, and execution readiness are in a much stronger position to attract institutional capital and move toward delivery with greater certainty.

The Ministerial City development in Benin is one example of this evolving approach.

Rather than relying solely on announcement-driven momentum, the project focused early on delivery fundamentals, including government alignment, financing pathways, procurement structures and execution readiness.

That level of preparation demonstrates a growing understanding across the market that successful infrastructure delivery is no longer just about building assets. It is about building confidence which ultimately unlocks capital.

We are witnessing investors and lenders operating in a far more disciplined environment. That is why capital deployment increasingly depends on delivery credibility, governance frameworks, environmental compliance, procurement clarity and long-term operational sustainability.

This shift reflects the continued development of Africa’s infrastructure landscape.

The continent is entering a phase where projects are being evaluated not only for their potential economic impact but also for their ability to withstand scrutiny from financiers, insurers, export credit agencies, and delivery partners.

In the long term, this shift is positive because it encourages stronger planning, better governance and more sustainable outcomes.

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Exxaro Resources has officially inaugurated the New Mine 1 operation at its Matla Coal Mine, reinforcing the company’s long-term strategy to maintain coal production, improve operational performance and contribute to South Africa’s energy supply stability

The development follows a 2016 decision to halt operations at the original Mine 1 because of declining safety conditions around the shaft pillars. The New Mine 1 project was subsequently introduced to provide safe access to remaining reserves while extending the operational life of the mine.

The project forms a central component of the broader Matla Life of Mine Project (MLOMP), a R5.236bn (approx. US$319mn) investment programme aimed at ensuring ongoing access to coal reserves, boosting efficiency and supporting coal deliveries under the extended Coal Supply Agreement (CSA) with Eskom. Operating under a cost-plus arrangement, Eskom funds the mine’s operational costs to help secure the lowest overall fuel expenses.

The newly opened mine is expected to supply nearly 4.2 million tonnes of coal annually to the Matla Power Station, supporting energy generation reliability. The Matla Coal Mine workforce currently consists of 6,174 employees, including contractors.

Exxaro CEO Ben Magara stated, “The New Mine 1 is far more than an operational milestone, for us it reflects Exxaro’s disciplined execution, long-term vision, and commitment to South Africa’s future. Our Matla Mine continues to play a vital role in supporting the country’s energy needs while creating meaningful impact through local investment, job creation, and the development of entrepreneurship. Most importantly, this milestone reflects the commitment and resilience of our employees, whose dedication to the company continues to enable us to deliver complex projects on time, to scope and on budget while making a meaningful contribution to the country and its communities.”

The project introduced several infrastructure and operational upgrades, including a box cut providing access to the Mine 1 working area, a tunnel development silo feed conveyor system and an overland conveyor linked to a newly established crushing and handling facility connected directly to Eskom’s conveyor network. Additional infrastructure includes new employee change house facilities, engineering workshops, material warehouses and administration buildings. The project also incorporated a shortwall replacement initiative featuring next-generation mining equipment.

South Africa’s minister of minerals and petroleum resources, Gwede Mantashe, attended the official opening and visited workers underground during the event.

"This is a journey back home for me. I spent six years at this mine, working here and organising here, and during that same period we achieved production records. I was here as a worker, and today I return as a Minister. People have often said that coal is a dying industry because of concerns around pollution. However, the industry continues to evolve, particularly through improvements in mining safety and ongoing investment in innovation and research. Coal miners should never be ashamed of the work they do."

Eskom group CEO Dan Marokane highlighted the significance of the collaboration between the two companies, saying, “the expansion of Matla New Mine 1 demonstrates how strategic collaboration secures South Africa’s energy future. The reliable supply from Matla ensures that, as the grid is decongested to enable rapid renewables penetration, Eskom maintains operational consistency and security of energy supply needed to support South Africa’s developmental and industrial needs. We also negotiated the new contract structure as part of Eskom’s Cost Optimisation and Revenue Enhancement (CORE) programme, which aims to drive efficiencies in primary energy procurement. This milestone comes as Eskom marks 365 consecutive days without load shedding — a testament to the impact of sustained investment, operational discipline, and partnership with Exxaro”.

Earlier in 2025, Eskom and Exxaro signed a memorandum of understanding focused on emissions reduction initiatives, carbon capture technologies and other projects supporting a responsible and balanced energy transition.

In addition to its operational objectives, the MLOMP has generated notable socio-economic benefits within Mpumalanga. The initiative has created around 1,132 local employment opportunities and directed R532mn towards black-owned businesses as part of efforts to support economic transformation. The project has also prioritised support for Small Medium Micro Enterprises and skills development programmes within surrounding communities.

The commissioning of the relocated Mine 1 operation marks a significant phase in Matla Mine’s development, strengthening its contribution to South Africa’s energy sector while reflecting Exxaro’s broader strategy for long-term growth, community development and national economic participation.

In an era defined by profound geopolitical volatility and persistent macroeconomic disruptions, the traditional ambit of Supply Chain Management (SCM) has been irrevocably altered – requiring it to become an inherent part of the business strategy, writes Ronald Mlalazi, president of the African Supply Chain Confederation (ASCON)

In fact, the global economic landscape of the 2020s exposed the fragility of hyper-optimised 'just-in-time' global value chains. Rising trade protectionism, localised conflicts disrupting vital maritime routes, and post-pandemic realignments forced boards of directors and national governments alike to confront the stark reality that supply chain resilience is synonymous with corporate survival and national security.

As a result, organisations have to abandon the outdated notion of SCM as a mere cost centre, instead needing to reposition it as the nucleus of corporate strategy, empowering SCM professionals to navigate these geopolitical complexities through strategic pivoting, risk mitigation, and localised capacity building.

Supply chains compete

In a stable environment, organisations may have been able to compete through product differentiation or marketing. That is no longer enough as an organisation’s market share and profitability are entirely dependent on the agility and resilience of its supply chain network.

The strategic response to geopolitical uncertainty requires moving away from sole reliance on distant, low-cost manufacturing hubs. With government and corporate backing, the modern supply chain strategy must now aggressively explore and implement sourcing strategies such as:

• Nearshoring and friendshoring: Relocating critical supply chain nodes to geographically closer or geopolitically aligned regions to mitigate risk.

• Local sourcing: Building domestic supplier capacity to buffer against international transit shocks.

When supply chain strategy is rightfully placed at the apex of the organisation and adequately resourced, it provides the agility required to manage these transitions without compromising the end consumer’s experience and brand promise.

The supply chain executive

Because supply chain leaders manage the most complex, financially consequential, and globally integrated facets of modern enterprises, they possess the holistic operational purview required to lead the entire business.

Take, for example, the Dangote Group strategy in which Aliko Dangote boldly restructured his industrial empire by repositioning the supply chain at the heart of corporate succession and strategy. Recognising that logistics and commercial operations are the lifeblood of his US$33bn conglomerate, Dangote entrusted these critical nodes to executives that understand the supply chain dynamics.

A similar move occurred in Malawi, when Feston Kaupa, former CEO at the Malawi Institute of Procurement and Supply, was appointed as the Minister of Defence, proving that this is not just a private sector priority.

In South Africa, the tax authority is leveraging supply chain compliance to combat the shadow economy through integrating supply chain mapping with inter-agency collaboration including the Border Management Authority and the National Consumer Commission.

These are but a few of many examples of how SCM skills extend far beyond their conventional logistics-focused role and can be applied to areas of the business that would previously have been seen as distinct from the job of moving products from point A to point B.

Growth driver

For the African continent, competent SCM is the fundamental engine for macroeconomic development. The successful implementation of the African Continental Free Trade Area (AfCFTA) relies entirely on seamless cross-border logistics, harmonised procurement, and integrated regional value chains.

AfCFTA’s core objectives, creating a single liberalised market, boosting intra-African trade, and enhancing competitiveness, cannot be achieved without resilient supply networks. Supply chain professionals with broader strategic competencies are uniquely positioned to drive Africa’s beneficiation strategies to benefit from adding value to raw materials before they are exported.

By developing resilient, localised sourcing networks, SCM leaders can catalyse domestic manufacturing and foster job creation, an area in which ASCON is actively working to help establish standardised logistical frameworks. These are required to eliminate non-tariff barriers, ensuring that the theoretical free trade area becomes a functional reality.

Africa is at a pivotal moment. Even though the continent is young, resource-rich and filled with entrepreneurial energy, its growth depends on more than potential. Economies are built on the ability to move goods efficiently, connect markets and deliver reliably and at scale.

At its heart, that is a supply chain challenge.

Today’s supply chain leaders are doing far more than keeping shelves stocked or improving delivery times. They are helping build the foundations for African growth by developing the cross-border trade routes that could turn AfCTA into a practical reality, supporting local suppliers that strengthen domestic industry, and creating resilient networks that allow African businesses to compete globally.

The era of the supply chain CEO has arrived, and it is poised to be the catalyst for Africa’s industrial renaissance.

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Africa’s first privately-financed sustainable aviation fuel (SAF) plant has secured funding from the Emerging Africa & Asia Infrastructure Fund (EAAIF) and various Middle Eastern investors

The deal expands EAAIF’s footprint into the Middle East North Africa (MENA) region, following its ongoing expansion into Asia.

The US$212mn clean fuels project, located in Egypt’s Sokhna Special Economic Zone, will be owned and operated by Green Sky Capital Limited together with its local subsidiary, SAF Fly Egypt.

EAAIF, a Private Infrastructure Development Group (PIDG) company managed by Ninety One, supported a senior secured loan of US$40mn for the development of the plant.

The transaction marks the first project-financed SAF plant in the MENA region.

The facility is designed to produce 200,000 tonnes per annum of biofuels, including SAF, Hydrotreated Vegetable Oil (HVO), bio-propane and bio-naphtha and will utilise commercially proven Hydroprocessed Esters and Fatty Acids (HEFA) technology to convert waste-based feedstock into high-grade sustainable fuel.

To ensure long-term bankability, the transaction will be anchored by Shell who will purchase the facility’s products on a take-or-pay basis and act as its primary feedstock provider.

Martijn Proos, co-head of emerging market alternative credit, Ninety One, the fund manager of EAAIF, said the transaction arrives at a critical juncture for the global energy market.

“Amid heightened geopolitical volatility and energy market uncertainty, this first-of-its-kind facility provides a practical solution to advancing both decarbonisation and energy security,”he said.

“By acting as the global mandated leadarranger, Ninety One and EAAIF are demonstrating how institutional capital can be mobilised to support the decarbonisation of hard-to-abate sectors like aviation, which is projected to account for 5% of global emissions by 2050 without intervention.”

The project is being developed with the support of regional sponsors, including Al Mana Holding, a Qatari diversified conglomerate, and Vision Invest, a Saudi Arabian infrastructure investor and developer.

Ninety One acted as the global mandated lead arranger and coordinating lender, facilitating the mobilisation of a total debt package of US$142.9mn with a US$40 million commitment from EAAIF and Ninety One’s Emerging Markets Transition Debt (EMTD) Fund.

Ninety One has also mobilised the participation of Qatar National Bank (QNB) via its Egyptian subsidiary, QNB S.A.E, with a commitment of up to US$31.4mn.

The debt financing was completed by The Arab Energy Fund, which acted as co-MLA and global structuring lender committed US$71.4mn to the project.

SAF is estimated to offer up to an 80% reduction in CO₂ emissions, compared to conventional jet fuel, supporting the aviation industry’s target of reaching net-zero by 2050.

The project's strategic location near the Suez Canal offers a direct export route to key demand centres in the EU and UK, which are currently implementing strict SAF mandates.

The transaction also demonstrates strong appetite among regional and international lenders for renewable fuels infrastructure, supporting both energy security and price stability amid heightened global volatility.

“Emerging markets have been transitioning toward renewables and cleaner energy sources for some time, driven by rising energy costs and the need to strengthen energy security,” said Alper Kilic, head of alternative credit, Ninety One.

“This investment highlights the critical role long-term capital plays in scaling next-generation energy infrastructure in emerging markets.”

He added that sustainable aviation fuel is “one of the most compelling – and challenging – decarbonisation pathways” requiring proven technology and strong commercial structures to deliver at scale.

“This project demonstrates how institutional investors can pursue attractive risk-adjusted returns while supporting the real-economy transition, and underscores the growing opportunity for transition debt strategies to finance high-impact assets in hard-to-abate sectors.”

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At the heart of IVECO’s industrial operations is its Madrid facility, the only manufacturing site in Spain dedicated to heavy-duty industrial vehicles

The plant produces the company’s complete heavy truck range for international markets including Italy, Germany, Spain and Turkey.

Covering 374,000 m², the facility is built around a 1 km main assembly line and is capable of delivering close to 40,000 different vehicle configurations. With 267 core models and more than 2,800 customisation options available, production is designed around highly specific customer demands. On average, the same truck configuration is assembled just three times annually.

“Every truck we build is essentially a one-off, custom-made to meet specific requirements,” commented José Manuel Jaquotot, director of IVECO’s Madrid and Valladolid plants.

“Each vehicle has a unique identifier that allows us to track it from cab production in Valladolid to final assembly in Madrid, ensuring full traceability and quality.”

Manufacturing operations at the Madrid site rely on a flexible and tightly coordinated production system supported by automation and intelligent logistics. Automated Guided Vehicles (AGVs) transport units across the line, enabling takt times to shift according to the complexity of each build while maintaining uninterrupted workflow across the plant.

Truck cabs arrive from the IVECO Valladolid Plant already painted and welded before being fully equipped in Madrid with dashboards, seats, bunks and airbags. The dashboard assembly process alone includes more than 100 electrical checks and is managed on a separate production line because of its technical complexity.

A major milestone in the process is the integration of the chassis and cab, commonly referred to as the “marriage” stage. Once combined, the vehicle progresses through the fitting of exterior parts, wheel installation and a series of final inspections. These include leak detection, geometry calibration and full functional testing before completion.

The site’s workforce remains central to its operational success. More than 2,700 employees support production activities, bringing the expertise and adaptability required to manage constant product evolution. During 2025, the plant successfully introduced ten new launches.

Sustainability also plays a defining role across operations. The Madrid facility operates entirely on renewable electricity and, in 2025, recycled almost 90% of the water used throughout production processes. Alongside the Valladolid plant, the site forms part of Iveco Group’s broader sustainability strategy and participates in a solar self-consumption initiative with Edison Next Spain, a project expected to help prevent around 500 tons of CO₂ emissions every year.

IVECO’s focus on decarbonisation extends beyond the vehicles themselves to the manufacturing ecosystem behind them. The Madrid plant reflects this broader ambition by combining advanced production technologies, large-scale customisation and sustainable industrial practices in one integrated operation.