India and Africa Newsletter In this edition, some of things we look at are a nation adopting cryptocurrency, Africa’s first AI factory, Trump’s impact on the continent and the devastating civil war in Sudan.
- Nigeria Recognises Cryptocurrencies as Securities
Nigeria has officially recognised cryptocurrencies as securities, with the Nigerian Securities and Exchange Commission (SEC) approving digital asset exchanges and custodians. Nigeria’s now aligned with a gradual shift in several countries toward legitimising crypto assets and marks a significant turning point in the country’s financial landscape with potential to pave the way for broader adoption across the continent.Cross-border trade in Africa is hampered by unstable currencies, limited access to formal banking, and high transaction costs. Against this background, blockchain technology’s decentralised nature can ensure secure, transparent, and real-time transactions, a stable framework for a continent that deals with over 41 different currencies and complex trade relationships. According to NTU , blockchain could revolutionise intra-African trade through innovations like smart contracts, which can automate settlements and reduce the need for intermediaries. Moreover, stablecoins and CBDCs (Central Bank Digital Currencies) could provide price stability and regulatory oversight.However, Nigeria’s embrace of cryptocurrencies is not without concerns. While blockchain’s decentralised structure empowers, it also removes central control, posing regulatory challenges. There is a growing apprehension about the potential use of cryptocurrencies for illicit activities, such as money laundering and financing of criminal enterprises. Additionally, the ease of transferring digital assets across borders could complicate tax enforcement and lead to significant revenue losses for governments.At this stage, whether Nigeria’s SEC has outlined specific criteria for recognising particular cryptocurrencies remains unclear. No detailed list of approved tokens has been released, indicating that broader regulatory frameworks are still under development.The African Continental Free Trade Area (AfCFTA), which aims to create a single market across 54 nations, stands to benefit from a blockchain-based layer of transaction. Such a system would simplify currency exchanges and enhance trust among trading partners. Yet, without robust regulatory measures to address the risks, the benefits of crypto adoption could be undermined.That said, Nigeria’s recognition of cryptocurrencies as securities could in the long run serve as a blueprint for other African nations navigating the digital economy. If accompanying risks are effectively managed, this legal shift could position Nigeria, and Africa at large, at the forefront of a digital trade revolution, reshaping how value is exchanged across borders.2. Africa’s first AI factory, Cassava Technologies, partners with Nvidia
Source: furtherafrica.comCassava Technologies has partnered with global GPU leader NVIDIA to launch the continent’s first AI factory, Project Mufungwe. The factory will be in South Africa, with expansion plans in Egypt, Kenya, Morocco, and Nigeria. The AI factory aims to catalyse indigenous innovation, supporting real-time diagnostics in rural healthcare, smart agriculture tailored to African climates, inclusive fintech solutions, and smart city development.Backed by an investment of up to $720 million, the initiative will deploy 3,000 NVIDIA GPUS by June 2025, scaling to 12,000 units continent-wide in the next few years. These high-performance computing units, each costing between $45,000 and $60,000, are expected to be integrated with Cassava’s vast fibre-optic network to deliver ultra-low latency, high-impact AI solutions across Africa. Cassava Technologies also plans to train over 1,000 AI engineers and data scientists across its operating countries by 2026, crucial for long-term sustainability and local ownership of AI capabilities. Furthermore, the AI factory will be linked to Cassava’s data centres and subsea cable systems, such as Equianoand2Africa, to reduce latency across the continent.The project will bolster Africa’s digital sovereignty at a time when global debates on data localisation, algorithmic equity, and AI governance are intensifying. By building local AI capacity rather than importing systems, Cassava and NVIDIA hope to lay the groundwork for a homegrown AI-powered ecosystem.3. India Launches MAHASAGAR Initiative to Deepen Maritime Ties with AfricaIndia launched the MAHASAGAR initiative (Mutual and Holistic Advancement for Security and Growth Across Regions) to enhance maritime security and strategic cooperation in the Western Indian Ocean. Unveiled by the PM during his March 2025 visit to Mauritius, this initiative is seen as a significant expansion of India’s SAGAR (Security and Growth for All in the Region) doctrine.A key pillar of MAHASAGAR is the new Africa-India Key Maritime Engagement, a six-day maritime exercise, April 13 to 18, co-hosted by Indian Navy and the Tanzania People’s Defence Force. Ten African nations participated: Comoros, Djibouti, Eritrea, Kenya, Madagascar, Mauritius, Mozambique, Seychelles, South Africa and Tanzania. Harbour-based simulations and sea-based drills were held, focusing on key operational areas such as anti-piracy coordination, information exchange, search and rescue, small arms training, and helicopter operations.Meanwhile, INS Sunayna is on a month-long voyage as part of initiative IOS Sagar with a multinational crew representing nine countries on a mission seeks to promote interoperability and strengthen collective maritime capabilities in the region. The goal is to promote the idea of India as a preferred maritime security partner for Africa at a time of growing concerns over piracy, illegal trafficking, and maritime resource security. 4. Sudan Army Reclaims Khartoum Amid Cultural Destruction amid a Lingering ConflictThe Sudanese Armed Forces (SAF) have declared full control over Khartoum, marking a strategic and symbolic victory against the Rapid Support Forces (RSF) in the country’s two-year old civil war. Army Chief General Abdel Fattah al-Burhan announced the capital was “free” from RSF occupation following an intensive offensive, during which critical sites such as the presidential palace and Khartoum International Airport were retaken.The cultural and humanitarian toll of the conflict that began in April 2023 is staggering — 100,000 dead and 13 million people displaced. Ethnic cleansing in RSF-held regions has drawn international condemnation. The UN has declared Sudan’s conflict as the world’s worst humanitarian crisis. During RSF’s occupation, Khartoum’s Sudan National Museum, custodian of ancient Nubian, Meroitic, and Islamic artefacts, was looted and vandalised. Priceless artefacts were stolen, ancient statues and structures damaged or destroyed. Gyude Moore, a senior fellow at the Centre for Global Development, underscored this cultural devastation on X, calling attention to the irreparable harm to Sudan’s historical identity.It may have lost Khartoum, but RSF maintains control in other parts of Sudan, especially the Darfur region. RSF leader Mohamed Hamdan Dagalo (Hemedti) said the retreat was tactical, vowing a return. Meanwhile, SAF has promised no reconciliation, signalling the war is far from over.5. South Africa Eyes Eastward: Trade Shift Toward India and China Gains MomentumIn the face the US tariffs, South Africa is pivoting its trade focus toward India and China in particular. Deputy President Paul Mashatile emphasised the need to diversify trade relations and reduce over-reliance on Western economies, aligning with Pretoria’s broader strategy of economic resilience and sovereignty. This shift also comes amid geopolitical friction, with US-South Africa relations strained over allegations of arms support to Russia in its war with Ukraine.In 2022, exports to the US accounted for 8.8% of South Africa’s total exports, compared to 9.7% to China. With the African Growth and Opportunity Act under threat due to political tensions, the need for alternative partnerships has become more pressing. South Africa is using platforms such as its G20 presidency and African Continental Free Trade Agreement (AfCFTA) to deepen ties within the Global South and enhance intra-African trade connectivity.Public sentiment is also shifting in tandem with state policy. A recent Afrobarometer survey found 43% of South Africans believe China has significant economic influence in the country, and 37% see the impact as a positive. In contrast, favourable views of the US have dropped by 16 percentage points since 2021, with only 32% now perceiving US influence positively.As China engages South Africa and Saudi Arabia in coordinated responses to US protectionism, Pretoria’s eastward pivot reflects a strategic realignment in global trade. The growing importance of South-South cooperation signals a more multipolar global economic order in which African nations assert greater autonomy and diversified partnerships.Africa’s Green Strategic Evolution | Germany, Kenya, and the continent’s new agency, in a shifting global balance of power, African nations are increasingly asserting greater control over their development pathways. From Namibia’s green hydrogen collaboration with Germany to Kenya’s recalibrated power sector projects after distancing itself from India’s Adani Group, Africa is engaging with global powers on its terms, shaping partnerships that prioritise national interests and sustainable growth.Germany’s deepening engagement with Namibia, particularly its support for the country’s ambitious $10 billion green hydrogen initiative, exemplifies this approach. Beyond signaling a commitment to Africa’s green evolution, Berlin’s investment carries historical weight. Germany’s colonial legacy in Namibia, marked by brutal repression during the early 20th century, continues to influence bilateral ties. In this context, Berlin’s support for Namibia’s renewable energy ambitions may also serve as a form of economic redress, fostering reconciliation while investing in sustainable development.W Gyude Moore, senior policy fellow at the Center for Global Development and former Liberian Minister of Public Works, recently noted that Africa is no longer a passive participant in global affairs. Projects like Namibia’s green hydrogen drive highlight how African countries are positioning themselves at the center of the global energy transition, while preserving sovereignty and ensuring that external engagements align with their national priorities.Meanwhile, Kenya offers another example of Africa’s evolving engagement with external partners. After terminating its agreement with India’s Adani Group following US indictments alleging bribery and fraud, Kenya has reopened bidding for a crucial $245 million power transmission project. The cancelled deals, which included a $736 million power line investment and a $1.85 billion airport expansion. Kenya’s handling of its deal with India’s Adani Group shows how Africa is refining the art of balancing global partnerships, with a little more chess than checkers. President William Ruto framed the move as safeguarding transparency and trust, even as Kenya’s Energy Minister Opiyo Wandayi clarified there was no direct wrongdoing on Kenyan soil. But behind the scenes, another power play was unfolding: China’s deepening infrastructure footprint in Kenya. With Beijing already bankrolling key projects from railways to highways, trade data further illustrates Africa’s diversified engagements: China-Africa trade reached a record $282 billion in 2022, while India’s trade with Nigeria alone amounted to $14.9 billion, making Nigeria India’s largest African trading partner. Nairobi’s quiet pivot away from controversy-laden partners like Adani hints at a strategic recalibration, keeping investment doors open but with more caution, and perhaps, a subtle nod to the East.
Further reads:
- How can Africa rise as an AI global leader?-Read
- Trump plans state department overhaul, to eliminate Africa operations, shut down embassies- Read
- Can blockchain and cryptocurrencies facilitate African trade?-Read
- Niger Demands Better Terms from Chinese Oil Giant Amid Economic Sovereignty Push- Read
- Trump administration food aid cuts put millions at risk, aid sources say- Read
- Supermarket guards, truck drivers and ‘very big mistakes’: the failed role of western mercenaries in the fall of Goma-Read
- Kenya’s surprise rate cut signals African response to tariff worries-Read
