South Africans are buying more cars

Nigerian billionaire Tony Elumelu’s recent 20% stake in oil firm Seplat is a reminder that old African wealth rarely backs tech. Tech didn’t create that money, and capital tends to stay loyal to the systems that did. When billionaires show up in the digital economy, it’s usually through familiar, proven businesses rather than riskier tech plays. Ethiopian-born Saudi billionaire Mohammed Hussein Al Amoudi is partnering with Kenyan retailer Carrefour to bring its e-commerce business to Ethiopia. 

On Wednesday, Carrefour entered a franchise agreement with Ethiopia's Queens Supermarket, the retail brand owned by Al Amoudi’s MIDROC Investment Group, giving the retailer indirect access to Ethiopia’s mass market. 

Between the lines: A deal of this scale, by proxy, partnership, or direct entry, would have been unthinkable a few years ago. Ethiopia’s aggressive economic liberalisation has changed that, opening the door first to banks and telecoms, and now to global retailers.

Zoom out: Carrefour is already a retail heavyweight in Kenya, with sales revenue ofKES 42.9 billion ($332 million) in 2024, but that market is crowded with asset-light competitors, like Glovo and Jumia. A direct expansion to Ethiopia would have meant heavier operational risk, including unpredictable supply chain gaps, and limited insights into consumer behaviour. Partnering with Queens Supermarket lets Carrefour test the waters. If its Ethiopian rollout hits the right notes, the franchise model could open the door to further investments and deeper market penetration.

The next time your neighbour tells you ‘disposable income doesn't matter,’ we need you to take that very personally. Yes, we know it's stereotypical and doesn't tell the full story in any market, but look at South Africa; it just made history in car sales. Why? Income. Oh, and intentional policies to provide tax reliefs, lowering costs for consumers, and ushering mobility players into the space.

Total new vehicle sales in South Africa crossed 590,000 units in 2025, a historic high in the last decade; the country sold more annual total units for the first time since 2020, according to its automotive business council, the National Association of Automobile Manufacturers of South Africa (NAAMSA).

Did rich South Africans suddenly remember to buy more cars? The data says a combination of other factors also made this watershed moment possible. While South Africa's inflation accelerated for most parts of 2025, the figures trended between 2.7% (lowest rate in March) and 3.6% (highest rate in November), slightly easing in December (3.5%). Yet the central bank relaxed its hawkish stance, stimulating more economic activity. Vehicle inflation, which signals the rate at which new and used car prices increase (or decrease) over time, eased to a record low of 1.5%. Competitive Chinese and Indian auto imports find their way to South Africa, giving consumers a choice.

Why does this matter? The surge in new vehicle purchases shows that consumers and businesses are regaining confidence in long-term vehicle investment, which is setting the stage for sustained growth in the industry. Strong demand for new vehicles also strengthens South Africa’s position in regional supply chains, making it a more attractive market for global automakers and suppliers.

I know we keep complaining about the disappearing network service that Nigerian telecom operators feed us (so much that it's not even a joke anymore—I say this with a straight face), yet there might be light network bars at the end of the tunnel.

Catch up: Telecom regulator Nigerian Communications Commission (NCC) said that operators rolled out over 2,800 towers in 2025. While NCC has not published a comparable figure for the number of towers added in 2024, its boss, Aminu Maida, described 2025 as a return of investment momentum and network expansion. These towers—those tall, red and white steel structures you see on your streets—host base stations that transmit and receive mobile signals between your phone and the telecom network. Without them, mobile calls, texts, and data won’t go through.

State of play: Telecom infrastructure is a key investment area for Nigeria as it aims to deepen broadband penetration to 70%. While the country missed that target, broadband connectivity reached 50% by the end of 2025. In December, the government announced plans to build 3,700 cell towers in rural areas, helping to improve network access in these regions. 

Between the lines: Telecom investment by oil-heavy African countries seeking to move away from crude is not altruistic. In the oil industry, prices implode, tanking revenues with it, and there's the expectation that reserves are finite. 

Economies have been trying to diversify, and telecoms have been a mainstay for many countries’ alternative portfolios. Senegal’s non‑oil revenue draws significantly from heavily taxed telecoms and digital services, even though telecoms are not the majority of total tax receipts, and the country is trying to enable large‑scale tech production and empower its startup economy. 

In Nigeria, telecoms' contribution to gross domestic product (GDP) surged, standing at 21.49% by the end of 2025. Telecoms is a critical infrastructure because it is the technology underpinning most other ICT and service‑based sectors, forming the backbone of modern digital and economic activity.

Deeper investment will enable wide-scale digital economy growth, yet follow-through, as usual, will remain the yardstick.

Written by: Emmanuel Nwosu and Opeyemi Kareem

Edited by: Emmanuel Nwosu & Ganiu Oloruntade