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The report analyzes Djibouti's development path to 2043, comparing a 'Current Path' baseline with sectoral and combined scenarios. While the Current Path shows steady growth, it falls short of Vision 2035 targets. A 'Combined scenario' of coordinated reforms in governance, finance, and trade could accelerate GDP growth to 8.9% and triple per capita income. The analysis emphasizes that Djibouti's primary constraints are not infrastructure gaps, but rather the efficiency and inclusiveness of its growth model, which remains heavily dependent on port logistics and external debt.

Djibouti is a lower-middle-income country at the Horn of Africa's maritime choke point, leveraging its strategic location to aim for a regional hub status under 'Vision Djibouti 2035'. The country faces extreme climate and water stress, with nearly 90% of its land classified as desert. Its governance is structured as a sovereign democratic republic with a decentralised architecture comprising five regional collectivities and the special status of Djibouti City. Historically, the 1994 Peace and National Reconciliation Accord served as a turning point for stability, which is now viewed as a prerequisite for economic transformation and investment.

The analysis concludes that Djibouti's current economic model, characterized by capital-intensive infrastructure, is insufficient to meet the goals of Vision Djibouti 2035. While the 'Current Path' predicts steady GDP growth of 6.1% annually, a 'Combined scenario' involving multi-sectoral reforms could accelerate growth to nearly 9% annually and triple GDP per capita. The document argues that the quality of growth—driven by governance, human capital, and private-sector development—is more critical than the scale of infrastructure accumulation for reducing inequality and poverty.

The report projects that Eritrea's economy will grow from US$2.4 billion in 2019 to US$10.1 billion by 2043 under a Current Path scenario, with extreme poverty falling to 13%. It evaluates 11 sectoral interventions—including stability, agriculture, and leapfrogging—finding that trade liberalization and digital/energy infrastructure have the highest potential to increase GDP per capita. A combined Agenda 2063 scenario suggests GDP could reach US$20.4 billion by 2043, though this would increase carbon emissions to 1.5 million tons.

The document describes Ethiopia as a landlocked, low-income country in the Horn of Africa characterized by diverse topography and a complex ethnic federal system. It details the country's climatic patterns, including three annual rainfall seasons and projected temperature increases by 2030. The text also outlines Ethiopia's historical role in Pan-Africanism and its current political instability, marked by conflicts with the Tigray People’s Liberation Front and the Oromo Liberation Army.

The report analyzes Africa's progress toward a demographic dividend, noting that most of the continent is in the early stages of this transition. While 11 countries have already entered a demographic window of opportunity, most others will do so much later, with some regions not reaching the critical 1.7:1 worker-to-dependant ratio until the mid-21st century. The author argues that realizing this dividend requires simultaneous improvements in fertility rates, health, education, and employment systems.

The Combined Agenda 2063 scenario, integrating 11 sectoral reforms, is projected to significantly increase COMESA's GDP per capita to US$10,235 by 2043 and nearly eradicate extreme poverty. While driving substantial economic growth, particularly in Malawi and Ethiopia, the scenario is also expected to increase carbon emissions to 380 million metric tons by 2043.

The research paper argues that Africa's infrastructure deficit is a cumulative result of colonial-era designs focused on extraction, post-independence mismanagement, and the impact of 1980s debt crises and Structural Adjustment Programs. It notes that colonial railways shaped current urban locations and that recent investments have often focused on prestige projects or specific corridors funded by external partners like China.

The report highlights a significant gap between the skills of African graduates and the requirements of the modern job market, particularly in science, technology, engineering, and mathematics (STEM). It notes that sub-Saharan Africa has low enrollment in vocational programmes compared to global averages, though some countries like Angola perform better. The text argues for a balance between academic and vocational training to support agribusiness and manufacturing, while warning that poor foundational education in sub-Saharan Africa creates a lack of 'readily trainable workers' for the Fourth Industrial Revolution.

The AfCFTA faces significant implementation hurdles due to the extreme economic disparity between member states, which may lead to 'winners and losers' where advanced economies benefit while least developed countries (LDCs) face initial welfare losses. Key challenges include the loss of critical tariff revenues for some governments, weak institutional capacities in LDCs, and limited commitment to the free movement of labour. To mitigate these risks, the agreement employs special and differential treatment, granting LDCs and a specific 'Group of 6' (G6) longer phase-out periods for tariff liberalisation, though the authors argue that additional support from the AU Secretariat and private finance is necessary to bridge the development gap.

The Manufacturing scenario projects a structural economic transformation for Africa by 2043, increasing the manufacturing sector's GDP share to 18.1% and adding US$282.8 billion to the continent's total GDP. This shift is expected to generate 34.6 million additional jobs, primarily unskilled roles in agro-processing and services, while increasing government revenue by US$81.6 billion. The scenario forecasts a reduction in extreme poverty, lifting 19.11 million more people out of poverty by 2043 than the Current Path, and predicts a long-term decrease in income inequality through the expansion of the middle class.

In 2025, African nations faced a fragmented global order characterized by US strategic retrenchment and intensifying competition over critical minerals. The year was marked by the first G20 summit on African soil in South Africa, which pushed for reforms in sovereign credit rating practices and international financial support. While some states like Nigeria and Kenya increased domestic resource mobilization to counter US aid cuts, others in the Horn of Africa became focal points for geopolitical rivalry involving Israel and Gulf Arab states. Additionally, the Lobito Corridor emerged as a key site for US and EU efforts to counter Chinese dominance in critical mineral supply chains, though this development is accompanied by governance risks in the DRC and Zambia.

In 2025, African states navigated a multipolar landscape marked by a transactional US approach under the second Trump administration, which led to aid cuts and a push for domestic resource mobilisation in countries like Nigeria and Kenya. The AU-EU partnership faced skepticism over the Carbon Border Adjustment Mechanism (CBAM), while South Africa's hosting of the G20 Summit resulted in the G20 Africa Engagement Framework and proposals to reform sovereign credit rating practices. Geopolitical competition intensified in the Horn of Africa, exacerbated by Israel's recognition of Somaliland, and along the Lobito Corridor, where the US and EU compete with China to secure critical mineral supply chains and midstream processing capacity.

This report analyzes the role of risk mitigation and transfer instruments in utility-scale renewable energy investments across East Africa, utilizing six case studies from Burundi, Djibouti, Uganda, and Kenya to identify how these tools facilitate the transition from project development to financial close.

The study finds a substantial disconnect between African climate commitments (NDCs) and national development blueprints (NDPs), with NDCs focusing on climate-centric sectors like energy and forestry while NDPs prioritize economic growth, finance, and the private sector. This 'parallel policy framework' is driven by institutional fragmentation, where NDCs are often externally funded and led by environment ministries, whereas NDPs are domestically anchored and led by economic planning ministries. The authors recommend a 'whole-of-government' approach to embed climate goals into national budgets and development strategies to maximize socio-economic co-benefits.

The report argues that the African Union Commission's reform, which reduced commissioners from eight to six, has led to institutional imbalances where crisis response overshadows conflict prevention. It highlights a significant funding gap for the new structure, costing an additional US$53 million. The document also analyzes the rise of military coups, attributing them to 'democratic subversions' such as the removal of term limits, and discusses the strain on Africa's humanitarian system due to conflict and climate shocks.

The report examines the role of risk mitigation and transfer (RMT) instruments in supporting utility-scale wind and solar projects in East Africa. Through six case studies, it finds that while RMT tools—such as political risk insurance, guarantees, and blended finance—are essential for reaching financial close, risks remain high due to macroeconomic instability, currency volatility, and utility financial strain. The analysis highlights a 'start-stop cycle' in countries like Kenya, where rapid deployment led to overcapacity and subsequent government moratoriums on new contracts. Conversely, the GET FiT program in Uganda is presented as a successful model of systematic de-risking through transparent procurement and institutional support.

The report analyzes climate adaptation projects in Afghanistan, the DRC, Haiti, the Horn of Africa, Mexico, Myanmar, and Papua New Guinea. It finds that while insecurity often leads to risk-averse site selection and implementation delays, projects that integrate conflict-climate nexus analysis and prioritize bottom-up, community-led approaches can mitigate conflict and foster peace. The authors recommend flexible implementation, holistic monitoring and evaluation, and the explicit inclusion of conflict mitigation in project objectives to avoid maladaptation and 'backdraft'.

The report examines climate adaptation in Afghanistan, the Democratic Republic of the Congo, Haiti, the Horn of Africa, Mexico, Myanmar, and Papua New Guinea. It finds that while instability often leads to risk-averse site selection and implementation delays, projects that integrate conflict-sensitivity and community-led approaches can mitigate these challenges and potentially contribute to peacebuilding. The analysis highlights the necessity of flexible implementation, the use of fragility assessments, and the importance of addressing root causes of vulnerability to avoid maladaptation and 'backdraft'—unforeseen negative spillover effects.

The Green Climate Fund (GCF) reports a portfolio of USD 19.3 billion and USD 59.3 billion in co-financing over its first ten years, reaching 249 million people through adaptation projects. The Fund is pursuing a '50by30' vision to manage a USD 50 billion portfolio by 2030, with a programming target of USD 8-9 billion in 2030. Key achievements include reducing 95.9 million tonnes of CO2 equivalent and restoring 33.2 million hectares of ecosystems. The report highlights ten case studies across various sectors, including wind energy in Djibouti, coastal protection in Tuvalu, and climate-smart agriculture in the Aral Sea Basin, emphasizing a shift toward systemic, locally-led transformation.