AI Dividends Arrive: Big Tech’s Earnings Surge Shows Power of Scale and Strategy

Meta, Microsoft, Apple, and Amazon deliver robust earnings, reinforcing their central role in markets—and highlighting their intensifying commitment to AI infrastructure.

The Magnificent Seven are proving their name still fits. This week, a series of blockbuster earnings reports from four of Big Tech’s biggest players—Meta, Microsoft, Amazon, and Apple—demonstrated that their aggressive bets on artificial intelligence are beginning to pay real dividends.

Across the board, these firms exceeded Wall Street expectations on both revenue and profit, validating the scale and capital intensity of their strategies. The results confirm a broader theme unfolding in global markets: Big Tech is not only weathering the AI transition, it is leading and defining it.

Profits Surge, Capital Commitments Follow

Each company posted a strong financial performance for the most recent quarter. Amazon led the revenue table with $167 billion, followed by Apple at $94 billion, Microsoft at $76 billion, and Meta at $47.5 billion. But profits were equally impressive. Meta’s net income surged 36% year-on-year, while Microsoft delivered a staggering $27 billion in net income—testament to its increasingly dominant position in AI-driven cloud computing.

These earnings reinforce the positioning of these tech giants as foundational components of global equity markets. Together, Microsoft, Apple, Amazon, and Meta now account for roughly 20% of the S&P 500, with Microsoft’s market capitalisation alone climbing above $4 trillion this week. Add Nvidia and Alphabet, and the weighting of a handful of firms becomes even more pronounced—raising questions about concentration risk even as investors remain bullish.

Research Affiliates chairman Rob Arnott described the current valuations to the Financial Times as pricing in “a future without competition.” Whether or not that proves accurate, it is clear that no other companies can currently match the spending power or network effects these firms enjoy.

AI at the Core: From Infrastructure to Monetisation

What’s driving this momentum? In a word: AI. Having laid the groundwork over several years, these firms are now investing at unprecedented levels in data centres, chips, and software infrastructure to support AI deployment across both consumer and enterprise markets.

Microsoft is set to spend a record $30 billion in the current quarter alone—its largest ever capex allocation—to expand AI-focused data centre capacity, especially for its Azure cloud platform. Azure generated $75 billion in revenue for Microsoft in its fiscal 2025 year and is now a primary delivery channel for AI compute. Even amid shifting dynamics in its relationship with OpenAI, Microsoft remains firmly embedded in the AI stack.

Meta, which relies on Microsoft’s Azure infrastructure, has also raised its 2025 capital expenditure guidance to as much as $72 billion, citing ongoing investment in its AI capabilities. While its Reality Labs division continues to burn cash, the core advertising business—still nearly 98% of total revenue—is being buoyed by AI-enhanced targeting and personalisation tools.

Amazon saw its capital expenditures exceed $30 billion last quarter, as the company continues to scale its AWS offering and AI development. AWS remains a powerful profit engine, and Amazon is clearly preparing for a future where AI workloads dominate cloud demand.

Apple, meanwhile, may have delivered the most surprising result—not for its size, but for its resilience. Despite concerns over its lag in the AI race and vulnerability to supply chain tensions with China, the company’s quarterly sales outperformed expectations. Pre-emptive consumer purchases, spurred by fears of incoming US tariffs, boosted demand. Meanwhile, Apple’s shift to Indian manufacturing has helped diversify its supply base. India is now the largest source of iPhones shipped to the US, and while the White House has imposed a 25% tariff on many Indian goods, smartphones have so far avoided the penalty.

Apple has lost several senior AI team members in recent months, with some joining Meta’s AI Superintelligence unit. Yet the company’s device ecosystem and global brand power continue to shield it from more severe market punishment. Investors are betting that Apple, as it has done before, will arrive late to the AI race—but on its own terms.

Concentration, Competition, and Conviction

Beyond the impressive headline numbers, these earnings reports reinforce a strategic divergence between Big Tech and the rest of the market. These firms are not waiting for AI to become mainstream—they are building the mainstream. Their combined capital expenditures, which may exceed $150 billion this year, are reshaping global data infrastructure.

Their scale gives them more than operational efficiency—it grants them the ability to make long-term investments few others can match. While smaller firms may innovate at the margins, Big Tech is laying the rails for AI's mass adoption, creating formidable moats around their businesses in the process.

Critics may point to valuation risks, antitrust exposure, and geopolitical tensions as potential headwinds. But for now, investors appear to be leaning into the growth story. With structurally embedded platforms, access to elite talent, and first-mover advantage in AI infrastructure, the Magnificent Seven—at least the four in focus this week—remain dominant.

The Earnings Echo

The latest earnings season offers a clear signal: the AI future is no longer theoretical. It is monetising, maturing, and materialising across multiple business lines.

For investors, the implications are significant. Big Tech is no longer simply a tech sector play; it is the engine of broader market performance, a structural pillar of global portfolios, and an increasingly central force in the AI economy.

Whether or not competition eventually catches up, for now the race is not close. The world’s biggest technology firms are accelerating into the AI era—with deep pockets, bullish forecasts, and quarter after quarter of outperformance to show for it.


The Vanishing Vault: Has Digital Banking Closed More Than Just Branches?

As physical bank branches vanish from high streets across Europe and North America, the shift to digital banking offers speed and efficiency—but at what cost? CFI.co explores what’s been lost in the transition and whether a hybrid model can restore the human touch.

The grand marble halls, the hushed atmosphere, and the familiar clatter of the teller’s drawer—these once defined the physical presence of a bank branch. For generations, they were pillars of the community: places to open a first account, apply for a mortgage, or seek trusted financial advice. Today, these scenes are fading into history. With the rise of mobile banking and digital platforms, physical branches are closing at an accelerating pace.

In many respects, the shift is understandable. Online banking offers convenience, cost savings, and 24/7 access. But it also raises questions about accessibility, trust, and the long-term role of human interaction in financial services. Is something vital being lost in the rush to digitise? And in this new landscape, is there still room for a reimagined version of the traditional bank branch?

A Decade of Decline

Across Europe and North America, physical bank branches have been disappearing for over a decade. In Spain, the post-2008 financial crisis prompted a wave of banking consolidation, resulting in thousands of branch closures. In the UK, the decline has been equally stark, intensified by the COVID-19 pandemic, which drove more customers online. According to some British banks, over 70% of their customers now engage primarily through digital channels.

For financial institutions, this shift delivers clear benefits. Digital banking slashes operational costs and increases efficiency, enabling banks to reinvest in technology, data infrastructure, and service innovation. From their perspective, physical branches are a legacy burden.

But Not Without Consequences

Yet this digital evolution is not universally beneficial. Branch closures disproportionately affect rural communities, where broadband access is patchy and mobile signals unreliable. For the elderly, the digitally excluded, or people living with disabilities, online banking is often not a viable alternative. Many older adults still rely on face-to-face services for managing their money, and branch closures risk leaving them behind.

Accessibility challenges also extend to small businesses, particularly those reliant on cash transactions. Without nearby branches, depositing funds or accessing change becomes time-consuming and costly. Community organisations—often dependent on local banking for daily operations—suffer too, losing not just a financial service, but a trusted point of contact.

The Human Factor

There is also a deeper, more intangible loss: the erosion of human relationships. Digital platforms are efficient, but often impersonal. For routine transactions, they suffice. But when customers face complex issues—such as resolving disputes, applying for mortgages, or planning for retirement—the reassurance and insight of a knowledgeable advisor cannot be easily replaced by a chatbot or FAQ page.

The emotional connection forged in face-to-face interactions builds loyalty, trust, and confidence—qualities that underpin long-term customer relationships. While banks continue to invest in digital customer service tools such as video calls and AI-powered assistants, these cannot always replicate the empathy, immediacy, and nuance of in-person support.

Not Obsolete—But Evolving

To suggest that physical branches are obsolete, however, would be premature. A significant number of accounts, particularly those involving complex financial products, are still opened in person. Many customers, across demographics, value the ability to walk into a branch, speak to an expert, and receive tailored guidance.

This suggests that the future of the bank branch lies not in mass closure, but in reinvention. Rather than serving as transaction hubs, tomorrow’s branches may evolve into compact, tech-enabled advisory centres—spaces focused on financial planning, problem-solving, and education rather than routine operations.

Tellers, too, are transforming. No longer just cash handlers, they are becoming relationship managers—trained to help customers navigate both physical and digital services effectively.

Embracing the Hybrid Model

Modern technology will play a pivotal role in this transformation. Many banks are already integrating smart kiosks, advanced ATMs, and AI-enabled customer service tools into branch operations. These systems handle routine tasks, freeing staff to concentrate on delivering personalised, high-value services.

This omnichannel approach—seamlessly blending physical and digital banking—can offer the best of both worlds. It enables banks to serve tech-savvy customers efficiently while ensuring vulnerable or high-need clients continue to receive the support they require.

For banks willing to invest, the opportunity is clear: position themselves as relationship-driven institutions that combine digital agility with a human-centric ethos. This means not just preserving a few branches, but reimagining them as strategic assets—well-staffed, digitally enhanced, and designed to meet complex client needs.

A New Kind of Banking Experience

Such a hybrid model could serve as a competitive differentiator. Banks that invest in both technology and people could attract customers who value digital ease but also crave personal service. This includes older generations, small business owners, and those concerned about cybersecurity—a growing worry in an increasingly digital world.

The physical branch, reimagined, can also serve broader community purposes. It might host financial literacy workshops, provide workspaces for local entrepreneurs, or partner with community initiatives. In this way, branches can reassert their role as social and economic hubs.

Conclusion: The Vault Still Matters

The rapid digitisation of banking has undoubtedly streamlined many aspects of financial life. But it has also underscored what technology alone cannot provide: trust, empathy, and human connection.

As banks recalibrate their strategies for the future, the most successful may be those who refuse to see the physical branch as an outdated relic. Instead, they will view it as a vital part of a new financial ecosystem—smaller, smarter, more purposeful, but no less essential.

The vanishing vault may indeed be evolving—but its story isn’t over yet.


The Evolution of Elite: A History of Hedge Funds

From Alfred Winslow Jones’s 1949 experiment to today’s trillion-dollar hedge fund industry, the story of hedge funds is one of innovation, risk, regulation, and influence over global financial markets.

What is a Hedge Fund?

A pooled investment vehicle using flexible mandates, including short selling and leverage, to pursue absolute returns independent of market direction. Fee models typically include a management fee and a performance fee, commonly “two and twenty”.

Origins (1949–1969): Alfred Winslow Jones

A.W. Jones & Co. (1949): Pioneers long/short equity to hedge market beta.

Introduces leverage and performance fees to align incentives.

In 1966, a Fortune profile popularised the model; copycats emerged.

Expansion, Volatility, and Tools (1970s–1980s)

Inflation and turbulence winnowed early funds.

Deregulation, global market liberalisation, and computing power enabled strategy innovation and scale.

Titans and Playbooks (1980s–1990s)

Global macro: George Soros and the Quantum Fund, famously shorting the pound in 1992 for more than $1bn profit.

Fundamental equity: Julian Robertson and Tiger Management, with over 30 percent annualised returns and a legacy of “Tiger Cubs” who now run major funds.

Institutional allocators, including pensions and endowments, sought diversification and absolute return streams.

Complexity Shock (1998): LTCM

Long-Term Capital Management’s leveraged relative-value arbitrage collapsed during the Russian debt crisis.

The New York Fed brokered a private rescue, highlighting model risk and systemic leverage.

Post-2000: Mainstreaming, Crisis, and Oversight

Strategies broadened to include event-driven, relative value, credit, CTA/systematic, statistical arbitrage, and multi-strategy.

The 2008 crisis triggered losses and redemptions. The Dodd-Frank Act introduced registration and reporting requirements, improving transparency and risk oversight.

Surviving managers professionalised risk, operations, and investor relations.

Today’s Hedge Fund Strategies

Long/short equity: Stock selection long and short, with factor or sector tilts.

Global macro: Discretionary or systematic views on rates, foreign exchange, equities, and commodities.

Event-driven: Mergers, spin-offs, restructurings, and bankruptcies.

Relative value: Pricing dislocations across related instruments.

Credit and distressed: Bonds, loans, structured credit, and special situations.

Quantitative and AI-driven: Statistical edges, machine learning, alternative data, and high-throughput execution.

Multi-strategy platforms: Central risk with pod-level mandates and tight risk budgets.

Investors and Vehicles

From high-net-worth individuals to pensions, insurers, sovereign wealth funds, and endowments.

Funds of funds offer diversified access, while UCITS and ’40 Act products bring hedge-like strategies to regulated wrappers.

Role, Critique, and Risk

Pros: Liquidity provision, price discovery, risk transfer, and potential low correlation.

Cons: Opacity, fee drag, model and operational risk, leverage-amplified drawdowns, and potential systemic impact.

What’s Next

Artificial intelligence-based research, tighter risk cultures, fee pressure, ESG integration, and data governance. Competitive edge will come from a repeatable process, clean data, execution quality, and aligned incentives.


When Trust Erodes: Unpacking the Anatomy of Corporate Scandals

Corporate scandals, from Wells Fargo’s fake accounts to Enron’s fraudulent accounting, shatter public trust and leave lasting damage. This article examines the root causes, consequences, and the difficult path to redemption for companies caught in the crosshairs.

Wells Fargo: A Breach of Trust

In 2015, a revelation shook the American banking industry. Wells Fargo, long regarded as a pillar of financial stability, was exposed for a massive and sustained deception. Under relentless pressure to meet aggressive sales quotas, employees had opened millions of accounts without customer consent, forging signatures and misusing personal information in a widespread breach of trust.

For years, staff created accounts, issued credit cards, and enrolled customers in services purely to hit internal targets. Customers faced unauthorised fees, damaged credit scores, and little recourse. Investigations mounted, fines were issued, lawsuits followed, and CEO John Stumpf resigned. The bank’s once-strong reputation was left in tatters.

A Catalogue of Infamy

The Wells Fargo scandal is far from unique.

Enron (2001): Concealed vast debts through off-balance-sheet entities, collapsing in bankruptcy and wiping out shareholder value.

WorldCom (2002): Inflated profits by improperly capitalising expenses, triggering the largest US bankruptcy at the time.

Tyco International (early 2000s): Executives misappropriated hundreds of millions for personal luxury.

Volkswagen (2015): Installed defeat devices in diesel cars to cheat emissions tests.

Theranos: Misrepresented blood-testing technology; founder Elizabeth Holmes convicted of fraud.

Wirecard (2020): €1.9 billion missing from accounts, exposing years of falsified financials.

Historical Parallels

Corporate misconduct is not new. The South Sea Company collapse (1720) and the Kreuger & Toll scandal (1930s) demonstrate that ambition, greed, and weak oversight have long driven unethical behaviour.

Why Scandals Happen

Common drivers include:

Performance pressure: Unrealistic targets leading to misconduct.

Greed and hubris: Executives seeing themselves as beyond accountability.

Weak governance: Ineffective boards, conflicted auditors, poor internal controls.

Silence and opacity: Whistleblowers ignored and complex structures masking truth.

Variable external checks: Depending on regulatory and media environments.

Sector-Specific Patterns

Finance: Exploits regulatory gaps; complex instruments conceal risk.

Technology: Overpromising capabilities to secure funding.

Automotive: Regulatory pressures meeting competitive demands.

Energy: Environmental and safety shortcuts with far-reaching consequences.

The Damage Done

Consequences extend beyond legal penalties:

Financial losses, collapsing share prices, costly litigation.

Long-term reputational damage and loss of trust.

Systemic implications for market and institutional confidence.

Rebuilding After Ruin

Effective recovery requires:

Clear accountability and leadership change.

Transparency about wrongdoing.

Cultural reform and stronger governance.

Enhanced compliance systems and monitoring.

Stakeholder engagement and sustained trust-building.

Johnson & Johnson’s decisive action during the 1982 Tylenol crisis contrasts with companies like Arthur Andersen, which failed to recover.

Lessons That Endure

Ethical conduct is non-negotiable. Trust is hard to regain once lost, and no organisation is immune. A culture of transparency, accountability, and stakeholder engagement is the best defence against scandal — and the foundation for long-term resilience.


Jefferies Trades Lone-Wolf Culture for Team-First Strategy in Bid for Wall Street’s Top Tier

For decades, Jefferies built its reputation as Wall Street’s maverick outpost — the last independent, full-service broker-dealer willing to break ranks with convention. The firm thrived by poaching senior talent from rivals, empowering them to pursue their own mandates, and rewarding rainmakers with hefty payouts. Success was measured deal by deal: secure a marquee transaction and reap the rewards, miss the mark and the consequences were yours alone.

That model helped Jefferies carve out a niche in mid-market private equity transactions while paying an eye-catching $385m in cash bonuses in 2024. But the formula that once set it apart is now being reshaped. At a recent offsite, President Brian Friedman made clear to senior bankers that collaboration is no longer optional. Bonuses, long defined by individual performance, will increasingly depend on teamwork. The message was blunt: share or lose.

The strategic pivot comes as Jefferies sets its sights on larger corporate M&A, seeking to encroach on territory historically dominated by Goldman Sachs, JPMorgan, and elite boutiques. Momentum is evident. The firm has expanded its managing director ranks by 70 percent since 2019 and, in the first half of 2025, ranked sixth in global M&A league tables — ahead of Bank of America and Barclays.

Jefferies has always relied on cash-heavy compensation, coupled with sharp clawbacks, to motivate its bankers. Management now believes that a team-based approach could help secure billion-dollar mandates and cement its place among Wall Street’s leaders. Yet transforming a culture that has long prized individual dealmaking is no small task.

Sceptics warn that collective bonus structures risk alienating top producers if they feel they are subsidising weaker colleagues. Cultural shifts in investment banking rarely happen overnight, and rivals stand ready to capitalise on any signs of discontent.

For Jefferies, the gamble is clear: fostering team spirit may open doors to the upper echelons of global dealmaking. But turning a shark tank into a school of fish will test not only management’s resolve but also the patience — and loyalty — of its bankers.


Is the MBA Still Worth It? Weighing Value, ROI, and Leadership Impact

In an era of rapid disruption, does the traditional MBA still hold its weight? We explore the enduring value of business graduate degrees, examining their impact on career trajectories, earning potential, and leadership development.

The Master of Business Administration has long been regarded as a passport to the upper echelons of corporate life. For decades, it symbolised ambition and intellectual rigour, producing graduates armed with strategic frameworks, financial expertise, and networks capable of opening boardroom doors. Yet in a business landscape shaped by relentless technological change, shifting economic conditions, and the rise of alternative learning routes, the question persists: is an MBA still worth it?

The degree was once designed to mould leaders for a relatively stable corporate order. Today, volatility and disruption dominate, prompting a reassessment of whether the traditional model retains its power. Despite this, the MBA’s core value proposition remains compelling. Business schools still provide a structured environment where students develop strategic thinking, financial literacy, leadership capability, and the ability to operate under pressure. The academic setting allows them to analyse complex business problems, formulate effective plans, and gain mastery over disciplines from accounting to investment analysis. Leadership potential is tested and refined through case studies, collaborative projects, and immersive experiences, while the connections forged—with fellow students, faculty, and visiting industry leaders—often prove invaluable over an entire career.

The career advantages remain well documented. Studies consistently show that MBA graduates tend to command higher salaries than their peers without the degree, with the gap often widening over time. The qualification also enhances career mobility, enabling individuals to pivot into new industries, move into senior management roles, or work across borders. Many of the world’s leading employers still target MBA graduates for recruitment, recognising the combination of technical competence, strategic vision, and resilience that such programmes are designed to cultivate.

Yet the context in which the MBA operates has changed dramatically. The rise of artificial intelligence, automation, and digital platforms has transformed business models and introduced entirely new skill requirements. At the same time, the growth of the gig economy is reshaping career paths, making them more fluid and less linear. Prospective students now have access to an expanding range of alternatives, from online executive courses to intensive boot camps and micro-credential programmes that offer faster, cheaper routes to market-ready skills. Added to this is the mounting cost of traditional MBAs, especially those from top-tier institutions, where tuition and associated expenses can easily reach six figures—making return-on-investment analysis more important than ever.

In response, business schools have begun reshaping their offerings. Many now embed technology-focused modules into their curricula, covering areas such as data analytics, cybersecurity, and digital strategy. Entrepreneurship has moved closer to the centre of the MBA experience, with incubators, venture funding, and mentorship programmes available to students aiming to launch their own businesses. Flexible delivery models, including online, hybrid, and part-time programmes, are making it easier for working professionals to participate without stepping off the career ladder. There is also a growing emphasis on soft skills, such as emotional intelligence and cross-cultural communication, recognising that leadership in a globalised, unpredictable business environment requires more than technical mastery.

The modern MBA still provides a competitive edge, but it is no longer a guaranteed career escalator. It remains a respected credential that signals ambition, discipline, and capability, but the ultimate value depends on how effectively students use the resources available to them. The most successful graduates treat the programme not as an end in itself, but as a platform from which to build, adapt, and expand their influence.

For prospective students, the decision to pursue an MBA should be grounded in a clear understanding of personal career goals and the specific strengths of different programmes. Financial considerations are critical—not just the headline tuition fee, but also the opportunity cost of stepping away from full-time work. Maximising the MBA experience requires full engagement in networking, internships, and extracurricular activities, as well as a willingness to keep learning long after graduation.

While the business environment will continue to evolve at pace, the MBA retains its relevance for those who approach it with purpose and commitment. By combining academic rigour with practical application, and by adapting their curricula to match the demands of the digital age, business schools are ensuring that their graduates remain well positioned to lead in a volatile, opportunity-rich world. For the right candidate, the MBA is still more than a qualification—it is a catalyst for transformation.


Filippo Surace: The Visionary Behind Italy’s Healthcare Venture Revolution

From surgeon to life sciences entrepreneur, Filippo Surace is charting a new course for healthcare innovation—one that connects academic brilliance with real-world impact.

Filippo Surace is not your typical healthcare executive. A trained physiatrist, surgeon, and inventor, his path into entrepreneurship was paved by a deep awareness of the systemic gaps between research and real-world application. Today, as Co-Founder and CEO of Cube Labs S.p.A., Surace is leading one of Europe’s most innovative responses to this challenge—a venture builder that bridges the “lab-to-market” divide in healthcare.

[caption id="attachment_27819" align="aligncenter" width="549"] Filippo Surace[/caption]

Surace’s vision for Cube Labs was sparked during his time as an Adjunct Associate Professor at Temple University’s College of Bioscience and Technology in Philadelphia. Immersed in a dynamic ecosystem where academic discoveries regularly translated into market-ready solutions, he recognised the limitations back home in Italy: world-class research hampered by fragmented infrastructure, limited funding, and regulatory red tape.

Where others saw a structural deadlock, Surace saw opportunity. He returned to Italy with a mission: to design a new kind of platform—one capable of turning Italian ingenuity into global health solutions. Alongside partners Renato Del Grosso and Massimo Fiocchi, he founded Cube Labs as Italy’s first dedicated healthcare venture builder, with a fully integrated innovation model.

Surace’s leadership is rooted in executional excellence. He introduced a platformised model that goes beyond early-stage funding to offer IP strategy, regulatory planning, clinical navigation, and business development—all under one coordinated structure. The company originates ventures in-house and remains actively involved in their evolution, allowing researchers to focus on discovery while Cube Labs handles commercialisation.

Under Surace’s tenure, Cube Labs has achieved standout milestones. It launched 18 companies and secured its IPO on the Milan Stock Exchange—where its stock has risen over 17% and attracted optimistic projections from analysts. The company’s equity assets are now valued at €53.7mn, reflecting a disciplined but ambitious growth trajectory

But Surace is not driven by financial metrics alone. His ethos is centred on accessibility, democratization, and impact. “Innovation,” he says, “only has value when it reaches the people who need it most.” That principle guides Cube Labs’ focus on rare diseases, neglected conditions, and circular economy principles. It also underpins its expansion into emerging markets like India, through a landmark partnership with Modi Global Enterprises, prominent Indian industrial conglomerate—part of a broader mission to democratize healthcare by dismantling systemic barriers and making cutting-edge medical innovation truly accessible to all.

His commitment to ethical innovation is matched by global recognition. Surace has led Cube Labs to numerous awards, including CEO Awards 2023 by Forbes Italy, CFI.co’s 2025 accolade and the Innovation Award from Milano Finanza. A respected thought leader, he continues to advocate for a venture-building approach that not only accelerates science but also ensures equity in healthcare access.

Surace’s own journey is a lesson in transformation—from academic and clinician to entrepreneur and system-builder. In a country known more for tradition than disruption, he has created an engine for health innovation with the potential to scale globally. Through Cube Labs, Filippo Surace is proving that with the right model, the next generation of life-changing therapies doesn’t have to stay in the lab—they can start there, but they end in the hands of patients, where they belong.


Cube Labs: Transforming Scientific Discovery into Scalable Healthcare Innovation

Italy-based Cube Labs is redefining healthcare venture building by bridging the gap between academic research and global markets—delivering measurable social impact through an integrated, repeatable innovation model.

Cube Labs S.p.A. is not just another player in the healthcare innovation space—it is Italy’s first dedicated venture builder for life sciences, with a bold mission to transform high-potential academic research into globally scalable health solutions. Co-founded by Filippo Surace, Renato Del Grosso, and Massimo Fiocchi, Cube Labs operates at the intersection of scientific discovery, entrepreneurial execution, and social impact.

[caption id="attachment_27821" align="aligncenter" width="900"] Cube Labs Founders[/caption]

Rather than functioning as a traditional incubator or venture capital fund, Cube Labs pioneered a purpose-built venture builder platform. This unique model consolidates all the critical phases of biomedical innovation—technology scouting, IP strategy, regulatory planning, clinical development, and market access—into a streamlined, end-to-end structure. The goal is clear: ensure promising research doesn’t stagnate in laboratories but reaches patients and populations worldwide.

Cube Labs’ institutional partnership with INBB (Istituto Nazionale Biostrutture e Biosistemi), a research consortium under Italy’s Ministry of University and Research, gives it access to over 24 universities and scientific centres across Italy. This privileged pipeline of translational research has enabled Cube Labs to identify breakthrough technologies in biotech, medtech, diagnostics, and nutraceuticals, which are then co-developed into ventures with long-term commercial viability.

Cube Labs has launched 18 healthcare startups, secured over 60 patents, and brought two products to market. In March 2023, it successfully listed on the Milan Stock Exchange (Euro Growth Milan – Professional Segment)—a milestone not only for the company but also for Italy’s broader life sciences ecosystem.

[caption id="attachment_27822" align="aligncenter" width="570"] Cube Labs IPO[/caption]

Cube Labs’ international ambitions are also well underway. A strategic partnership with Modi Global Enterprises, a prominent Indian industrial conglomerate, is helping export its venture-building model to one of the world’s fastest-growing healthcare markets. The aim: to replicate Cube Labs’ success in delivering ethical, scalable innovation to populations in greatest need.

What sets Cube Labs apart is its unwavering commitment to accessibility and equity. It aligns its operations with ESG principles and the UN Sustainable Development Goals, pursuing inclusive, high-impact technologies while embedding sustainability into each venture. Its modular model offers researchers a scientific infrastructure, business support, and patient capital—freeing them to focus on R&D while Cube Labs steers the commercial trajectory.

Cube Labs is not simply building companies—it is building capacity across systems. It measures success by more than financial metrics, prioritising improvements in patient outcomes, health access, and systemic innovation. Recent accolades, including the “Champion of Scalable Market-Ready Healthcare Ventures – Italy 2025” award from CFI.co and the Motore Italia 2025 “Innovation” Award from Milano Finanza, affirm its leadership status in European venture building.

As private markets grow more impact-driven, Cube Labs offers a blueprint for integrating scientific excellence with scalable infrastructure and long-term value creation. In its venture builder model, the lab truly meets the market—and the result is healthier lives, stronger ecosystems, and innovation that serves the world.


From Dubai Chocolate to AI: The Middle East in Transition

A sweet retail success in Dubai reflects a deeper transformation across the Middle East — from exporting goods to exporting knowledge, from tradition to advanced technology.

[caption id="attachment_27206" align="aligncenter" width="935"] Author: Bashar Kilani[/caption]

In July 2025, Dubai Duty Free (DDF) reported record half-year sales of AED 4.1bn (USD 1.12bn), up 6.4 per cent on the previous year. Confectionery was a standout, generating AED 412.5m (USD 112.3m), a 62.7 per cent increase year-on-year.

The star product was Dubai Chocolate. In six months, 2.5 million bars were sold, worth AED 165m (USD 45m) — accounting for 40 per cent of confectionery sales and around 4 per cent of total DDF revenue.

Its success is more than a retail achievement. Dubai Chocolate is emblematic of a wider regional shift: from cultural exports to innovation-led economies, and from consumer goods to the export of data, knowledge, and technology.

A Generational Shift

Across co-working spaces in Amman, AI bootcamps in Riyadh, coding academies in Cairo, and design studios in Beirut, a new generation is shaping the future. Raised on mobile-first platforms and global digital networks, they are not following the world’s lead — they are building with originality.

Their work is increasingly global in scope. Students in Alexandria and Ramallah are co-authoring AI research; regional artists are selling generative works on international Web3 platforms; engineers are developing Arabic-first large language models; and founders are creating tools that cross linguistic, currency, and infrastructure barriers.

Where the Middle East once exported goods and talent, it is now exporting intellectual property, platforms, and leadership.

The Human Advantage in AI

The region’s growing role in AI reflects more than technical adoption. Boston Consulting Group estimates that the value composition of AI is 10 per cent technology, 20 per cent data and process, and 70 per cent people and culture. In the Arab world, cultural heritage is an asset — shaping ethical frameworks, linguistic models, and trust systems embedded into innovation.

The shift is not only in coding, but in infusing identity into the architecture of digital systems.

New Leadership Models

The Chief AI Officer (CAIO) role is expanding rapidly worldwide, with McKinsey predicting adoption by 38 per cent of global enterprises within a few years. In the Middle East, governments are appointing CAIOs to guide smart city strategies; enterprises are embedding AI across customer engagement, supply chains, and decision-making; and startups are hiring AI leads to manage models and proprietary data.

Universities, incubators, and sovereign tech hubs are training leaders who combine strategy with ethics and governance — a new leadership style designed for the complexity of the AI era.

An Emerging Intelligence Economy

The Arab world’s intelligence economy is distributed, interoperable, and borderless. Models trained in Amman can support chatbots in Riyadh; agricultural AI built in Cairo can be deployed in Basra; and sovereign compute tokens issued in Abu Dhabi can give developers in Beirut and Tunis verified infrastructure access.

What binds this ecosystem is a shared narrative: youth creating for the world, collaboration across cities, and a cultural legacy translated into digital design. The result is not just a cluster of “tech hubs” but a connected network of intelligence with its own values and export potential.

Beyond Goods to Knowledge

Dubai Chocolate’s success illustrates the underlying principle: value built on local identity, competitive in global markets. The same approach applies to technology — regional innovation grounded in heritage yet designed for global relevance.

The next phase will not be defined solely by physical exports, but by the scale and trust of the systems the region creates — platforms, protocols, and frameworks that serve both local and global needs.

A Generation Writing the Future

From Cairo to Dubai, from Amman to Beirut, a generation is emerging that will not simply consume AI but shape it. They will write the prompts, design the protocols, and govern the platforms of tomorrow’s digital society. Their measure of success will not only be revenue or exports, but their ability to scale ideas, earn trust, and set standards for how technology serves society.

About the Author

Bashar held senior leadership positions at global technology and consulting firms, Accenture and IBM, in addition to several board memberships at corporates, universities and future foresight institutions before founding AI360 Innovations Ltd, an advisory firm focusing on the digital economy at the Dubai AI Campus at DIFC and becoming Managing Partner at Boyden, a leading Leadership Consulting and Executive Search firm.


Digital Health’s Q1 2025 Unicorn Baby Boom: Investors Bet Big on Innovation

The first quarter of 2025 saw an unprecedented rise in the valuation of digital health startups, with a surge of companies achieving “unicorn” status. Powered by advances in AI, personalised medicine, and remote patient monitoring — and reinforced by strong investor confidence — this ‘unicorn baby boom’ signals a pivotal stage in the sector’s evolution.

The opening months of 2025 have brought a sharp inflection point in digital health, marked by an extraordinary wave of newly minted unicorns — privately held startups valued at $1bn or more. This boom reflects not just surging capital inflows but also growing conviction that digital health technologies are ready to deliver on their transformative potential. Unlike previous hype cycles, the current wave is underpinned by more mature platforms, measurable patient outcomes, and clearer paths to profitability — pointing to a structural trend rather than fleeting enthusiasm.

The Engines of Growth

Several converging forces have driven this acceleration. The steady maturation of core technologies — particularly artificial intelligence (AI), machine learning (ML), and the Internet of Medical Things (IoMT) — has enabled more sophisticated solutions across the care spectrum. AI algorithms are now embedded in workflows ranging from early disease detection and personalised treatment recommendations to optimising administrative processes and accelerating drug discovery. Wearable sensors and connected devices are generating continuous data streams, delivering unprecedented insights to both patients and clinicians.

The rising emphasis on personalised and preventative medicine has further fuelled innovation. Investors are targeting companies harnessing genomics and advanced analytics to tailor treatments and identify health risks before they escalate — a proactive model that promises better outcomes and lower long-term costs.

The adoption of telehealth and remote patient monitoring (RPM), accelerated during the pandemic, has normalised virtual consultations, remote diagnostics, and at-home monitoring. This shift has unlocked new markets for providers able to deliver high-quality care outside hospital settings, including underserved populations and those with chronic conditions.

Finally, significant inflows from venture capital, private equity, and strategic corporate investors — including established healthcare groups — have underpinned the sector’s expansion. Demographic shifts, rising healthcare costs, and demand for more patient-centric models are reinforcing investor confidence, as are the scaling successes of earlier digital health pioneers.

Where the Unicorns Are Emerging

AI and ML in Diagnostics and Therapeutics
ClarityDx, which achieved unicorn status in February, has built an AI-powered imaging platform that supports radiologists in early cancer and critical disease detection. Its algorithms, trained on vast datasets, are improving diagnostic accuracy and speed, enabling earlier interventions. PharmAI, another Q1 entrant, uses ML to accelerate drug discovery by analysing complex biological data to identify promising candidates, predict efficacy and safety, and optimise trial design — cutting development time and cost while addressing unmet medical needs.

Personalised Medicine and Genomics
GeneSight Analytics reached the $1bn threshold in March with genomic testing that predicts patient responses to medication, enabling clinicians to optimise prescriptions, reduce adverse reactions, and improve treatment efficacy. NutriPrecision, also joining the unicorn ranks, applies genetic, lifestyle, and microbiome analysis to design tailored nutrition plans aimed at preventing chronic disease and optimising wellness.

Remote Patient Monitoring and Advanced Telehealth
HealthBridge, which became a unicorn in January, offers a full suite of wearable sensors and analytics for continuous chronic care monitoring, enabling earlier intervention and reducing hospital admissions. VirtualCare Pro has developed an integrated telehealth platform combining AI diagnostics, remote vital sign monitoring, and secure data sharing. Designed for seamless integration with electronic health records (EHRs), it offers a virtual care experience comparable to in-person consultations.

Mental and Behavioural Health Technologies
MindStrong AI, valued at over $1bn in February, applies AI and natural language processing to analyse “digital biomarkers” — subtle patterns in smartphone usage and communication — to detect early signs of depression, anxiety, and other conditions. Its proactive approach aims to enable earlier intervention and improve access to mental health services.

Implications for the Health Ecosystem
The Q1 2025 unicorn surge underscores the sector’s potential to address structural challenges in healthcare — from rising costs and limited access to the need for more personalised, preventative care.

For patients, this wave heralds more accessible, tailored, and convenient services. Virtual consultations, continuous monitoring, AI-assisted diagnostics, and customised care plans empower individuals to take greater control of their health.

For providers, these technologies promise gains in efficiency and clinical accuracy. AI tools can ease administrative burdens, allowing more time for patient care, while RPM can reduce emergency interventions by enabling proactive management of chronic illness.

At a system level, innovation and capital infusion can drive efficiency, reduce costs, and improve population health. The integration of digital health into mainstream care delivery is no longer speculative; it is a reality gaining momentum.

Challenges Ahead
The sector’s rapid expansion will test regulatory agility, as frameworks must adapt to keep pace with innovation while safeguarding safety and efficacy. Data privacy and security are paramount as more sensitive patient information is digitised. Ensuring interoperability across platforms and integration with existing systems is essential to maximise value.

Equitable access also remains a priority. Without targeted efforts to bridge the digital divide, there is a risk that advances will deepen rather than narrow disparities in healthcare.

A Defining Quarter
The Q1 2025 unicorn baby boom marks a defining moment in digital health’s maturation. Fuelled by technological advances, a global pivot towards personalised, preventative models, and strong investor conviction, these companies are well placed to disrupt entrenched models and redefine care delivery.

The coming years will determine whether they can translate promise into sustainable impact. If they succeed, the first quarter of 2025 may be remembered as the point at which digital health truly came of age — setting the stage for a more accessible, personalised, and efficient healthcare future.


Lord Waverley: Africa Enters an Age of Optimism

The upcoming UN General Assembly (UNGA) in New York presents an opportunity for world leaders to assess the drivers of global uncertainty. In doing so, Africa must not be sidelined. Genuine engagement with the continent is essential as a matter of shared global interest. A recalibrated international framework must prioritise the promotion and protection of African nations’ interests, enabling them to thrive within a more equitable and sustainable global order. This requires strategic commitments.

The global community must redouble efforts to implement the Sustainable Development Goals (SDGs), especially those targeting poverty alleviation, education, healthcare and gender equality. Strengthening healthcare infrastructure and pandemic preparedness (ensuring equitable access to vaccines and medical resources) should be a key focus. Likewise, Africa requires robust financial and technical assistance to meet the dual challenges of climate adaptation and environmental sustainability.

Genuine partnerships must replace paternalism. Africa’s role in a multipolar world must be defined not by dependency but by sovereignty. Economic engagement should be based on mutual respect and aligned interests. That includes fostering inclusive growth, advancing technology transfer, and building regional value chains, not extracting raw materials for external gain.

Conflict remains a challenge in parts of the continent. Continued diplomatic mediation and peacekeeping support are necessary in fragile states. Yet the longer-term imperative is to invest in African-led capacity-building: strengthening governance, reinforcing civic institutions, and supporting the rule of law. An Africa truly governed by Africans, for Africans, must foster ownership, agency and accountability. Development must be holistic embracing the political, social, economic and cultural dimensions of growth.

Education plays a transformative role in this vision. While a privileged few have accessed foreign education, far too many still lack basic learning infrastructure. Investment in quality education (especially in rural areas) must be matched by the rollout of vocational and digital skills programmes aligned to local industry needs. New technologies, including AI and digital connectivity, can help bridge infrastructure gaps and unlock new opportunities for youth employment.

The African Continental Free Trade Area (AfCFTA) has created the world’s largest free trade zone by number of member states, covering 1.3 billion people with a combined GDP of \$3.4 trillion. This platform offers Africa the chance to boost intra-regional trade, industrialise on its own terms, and raise living standards continent-wide. If harnessed effectively, AfCFTA will be the bedrock of Africa’s transformation: driving investment, facilitating regional supply chains, and anchoring long-term economic resilience.

Africa is not homogenous. Its history is marked by linguistic, political and cultural diversity, ranging from anglophone, francophone and lusophone spheres to the Arabic-speaking North African bloc. These distinctions carry real implications for development, integration and diplomacy. Yet rather than sources of division, they can be bridges to wider global partnerships, if approached with strategic foresight.

Portuguese-speaking Africa is increasingly attractive to investors. Angola, Cabo Verde, Guinea-Bissau, Mozambique to name a few, that share historical and linguistic ties to Portugal and Brazil. They are offering incentives to attract investment across sectors, from agriculture to energy. Mining is growing in prominence in Burkina Faso and Niger, while hubs like Casablanca, Abidjan and Dakar are positioning themselves as gateways to francophone markets and beyond.

North Africa (from the Maghreb to Egypt) is a region of strategic weight. As an energy provider, a trade nexus, and a proximity partner for Europe and the Middle East, it holds immense geopolitical and commercial significance. Its role in building value chains and sustainable trade corridors should not be underestimated.

Looking forward, Africa has the potential not just to join the digital revolution, but to lead aspects of it. Two initiatives exemplify this shift. First, the UN’s Model Law on Electronic Transferable Records (MLETR) is laying the groundwork for paperless trade. By enabling electronic and physical documents to operate in parallel, it accelerates supply chains, reduces transaction costs and improves liquidity, especially for SMEs. Removing the reliance on physical paperwork enhances speed and transparency and will boost Africa’s participation in global trade flows.

Second, a dedicated foreign trade data analytics platform, AdamFTD, is under development. It will leverage big data to map supply chains, forecast market trends, and identify trade and investment opportunities. For African exporters and policymakers, this tool can support decision-making, improve competitiveness, and foster smarter integration into global markets.

Intra-African trade is vital for sustainable development. By creating regional markets for African goods and services, nations can reduce dependency on commodity exports and diversify into higher-value sectors. Infrastructure development (particularly transport, logistics and communication systems) is central to this agenda. Connectivity will not only enhance trade flows but catalyse job creation, attract foreign direct investment, and deepen economic ties across borders.

The optimism surrounding Africa’s potential must be accompanied by practical steps. The continent is move beyond its colonial-era fragmentation. Francophone, anglophone, lusophone and Arabic-speaking states are increasingly aligning their efforts. While anglophone giants such as Nigeria, South Africa, Kenya and Botswana often dominate the headlines, there is growing momentum in the francophone world.

Francophone Africa is expected to record some of the highest growth rates on the continent. Côte d’Ivoire, for example, is projected to be the fastest-growing economy in sub-Saharan Africa. With a total market of more than 350 million people and a predominantly young demographic, the francophone bloc presents a compelling case for investment across sectors, from agribusiness to fintech.

There is a palpable desire within these countries to build more diverse partnerships. Moving beyond former colonial relationships, there is increasing interest in engaging with Asian, Middle Eastern and Latin American partners. This multi-vector diplomacy creates new opportunities for investors and expands Africa’s strategic autonomy on the world stage.

[caption id="attachment_27905" align="aligncenter" width="300"] President Faustin-Archange Touadéra[/caption]

One country exemplifying the risks of non-engagement and the promise of renewal is the Central African Republic (CAR). Though long associated with conflict and instability, CAR is now charting a course toward reconciliation and reform. During a recent visit to Bangui, I had the honour of inviting President Faustin-Archange Touadéra to visit the United Kingdom. His upcoming trip, timed ahead of the UN General Assembly, will mark the first such visit by a CAR head of state and open new avenues for bilateral cooperation.

CAR’s future holds promise. The recent peace agreement signed on April 19, 2025, between the government and tribal-affiliated armed groups, fostered stability and creating opportunities for reintegration and development. This deal, marked by the dissolution of major rebel groups on July 11, 2025, signals a potential for improved security and economic growth. Strategically located in the heart of the continent, the country has the potential to become a transit hub for African trade, linking regional markets through improved infrastructure and transport corridors. Its mineral wealth (including diamonds, gold, uranium and timber) can be responsibly leveraged for development. And its vast arable land presents opportunities for agricultural self-sufficiency and job creation.

President Touadéra has committed to disarmament and inclusive governance. If implemented successfully, CAR could serve as a model for post-conflict recovery elsewhere on the continent. Its natural endowments, combined with political will and international support, could turn it into a beacon of sustainable development.

More broadly, the current retreat in Western development assistance risks creating vacuums that others are quick to fill. Countries such as China have stepped in where the United States and United Kingdom have scaled back. This is not a call to return to aid dependency, but to advocate for a more strategic use of aid, anchored in economic transformation and private sector engagement.

Too often, aid donors and business investors operate in parallel rather than in partnership. This must change. Triangular dialogue between African governments, donors and commercial actors is essential. Aid should not be a substitute for trade and investment, but rather a tool to create enabling environments, supporting infrastructure, regulatory clarity and capacity-building that allows private capital to flourish.

The old mantra of “trade, not aid” must evolve. The new imperative is to align aid with investment, to ensure development financing is catalytic, not paternalistic. By creating shared value and sustainable returns, Africa can attract the capital it needs while advancing its own priorities.

As Ghana’s Foreign Minister astutely remarked: “Africa’s future cannot be built abroad; it must begin at home.” That future must rest on the principles of rule of law, democratic governance, and zero tolerance for corruption. Free and fair elections, strong institutions, and accountability must underpin Africa’s rise.

Africa stands at the threshold of a new era. The continent has the human capital, natural resources, and entrepreneurial spirit to shape its own destiny. But to realise that potential, the global community must engage not as benefactors but as partners, supporting Africa’s ambition while respecting its agency.

The age of African optimism is not a mirage. It is a call to action for Africa’s leaders, for its people, and for the world.

[caption id="attachment_13312" align="aligncenter" width="307"] Author: Lord Waverley[/caption]

By Lord JD Waverley

Contact: jd@waverley.global


Africa’s $777bn Opportunity: Why Local Capital Must Power the Energy Transition

Africa stands at a critical energy crossroads. Countries must collectively come to terms with a historical lack of access to electricity for a significant portion of the continent’s population, impacting every facet of society and stunting progress and economic activity. Africa is the fastest-urbanising region in the world. Its population is projected to reach 2.5 billion by 2050, driving energy demand ever higher (CSIS). Factor in additional mounting pressures such as growing global energy demand for artificial intelligence (AI), impacts of ongoing reliance on fossil fuels and resulting climate change, and growing global geopolitical risks, the continent risks compounding the current deficits.

Standing in the way are a variety of barriers, including:

• Industry research has shown that 80 percent of energy infrastructure projects in Africa never advance beyond feasibility, despite investor interest. Those that advance are often marred by years of delays, be they wind, solar, or hydro power projects.

• Africa’s pension and insurance sectors alone manage roughly $777 billion (AFC, 2025) in assets, yet remain largely absent in funding energy projects.

• Political uncertainty, regulatory gaps, and corruption and mismanagement also combine to create an uncertain, high-risk environment.

Without decisive action, the continent will remain trapped in a cycle of unmet needs and lost opportunities. Reliable, affordable, and scalable power is not optional—it is the prerequisite for Africa’s participation in the global digital revolution. Failure to deliver it risks consigning yet another generation to the margins of economic progress.

Investment Trends Heading the Wrong Way

Africa’s renewable resources are extraordinary. From solar potential in the Sahel to wind corridors in South Africa and the Rift Valley’s geothermal fields, the continent could meet its entire energy demand many times over. For example, 60 percent of the world’s best solar resources lie in Africa, yet just 3 percent of the continent’s power in 2023 came from solar (Global Solar Council). Despite its extraordinary renewable potential, investment flows continue to falter. Between 2000 and 2020, just 2 percent of the USD 2.8 trillion global renewable investment reached Africa (IRENA).

The scale of the challenge is daunting: the International Energy Agency estimates that annual renewable energy investments in Africa must at least triple, and ideally quadruple, over the next decade to meet demand and achieve universal access (IEA). Yet the opposite trend is emerging. Public and development finance for clean energy has declined, while private capital—though rising—remains insufficient and often concentrated in only a handful of markets.

[caption id="attachment_27920" align="aligncenter" width="710"] Brett Levick, Chief Investment Officer, Ariya Capital Group[/caption]

This mismatch risks locking Africa into ongoing dependence on expensive fossil imports, worsening climate vulnerability, and prolonging energy poverty. The clock is ticking.

Africa combines unmatched resource potential with exploding demand, yet remains under-capitalised. Historical challenges, regulatory uncertainty, project bottlenecks, and fragmented expertise, continue to cause fear and apprehension among investors, but these are surmountable with the right local partnerships.

 - Brett Levick, Chief Investment Officer, Ariya Capital Group

Why 80 Percent of Projects Fail

The challenge is not only one of money but of execution, with project viability difficult to prove. The reasons 80 percent of proposed energy projects in Africa never reach financial close are systemic:

• High upfront costs of planning, feasibility studies, and regulatory approvals, often without guaranteed financing.

• Fragmented expertise, with too few developers and advisors able to work seamlessly across engineering, policy, financial structuring, and community engagement.

• Complex regulatory environments that discourage international partners and delay project pipelines.

The result is a bottleneck: Africa is rich in resources and ambition but poor in “bankable” projects that can attract global capital. Unlocking this pipeline is perhaps the single most critical step to scaling renewable deployment at pace.

Africa’s Investors Must Step Off the Sidelines

Paradoxically, the continent is not short of capital. Africa’s pension and insurance sectors collectively manage about $777 billion in assets, yet only a fraction is directed toward infrastructure, with many funds restricted by caps of around 5 percent (African Business; ARM-Harith).

Investment restrictions, focus on short-term, low-risk instruments, and a general lack of technical expertise in energy projects perpetuate this contradiction—vast pools of local capital sitting idle while critical projects languish unfunded. Continuing this business-as-usual approach represents a missed opportunity not only for economic development across the continent but also for portfolio diversification and long-term returns. It underscores the need for bold, local leadership to mobilise even a modest portion of this capital, which could catalyse billions more in international co-investment.

[caption id="attachment_27924" align="aligncenter" width="574"] Dr Herta von Stiegel, Founder and CEO, Ariya Capital Group[/caption]

But the spark must come from within. African institutional investors have to step off the sidelines, claim ownership of the continent’s energy future, and work with experienced partners to de-risk and showcase a pipeline of viable projects.

In order to achieve lasting results, all stakeholders, including African asset managers, must decide to focus on new approaches to create instruments that institutional investors can invest in with confidence. Not doing so will continue the current cycle of outsourcing the energy sector to foreign investors.

- Dr Herta von Stiegel, Founder and CEO, Ariya Capital Group

Over the Tipping Point

With institutional investors working with seasoned partners, we can overcome this tipping point.  This is exactly what Ariya ReEnergy (ARI) was built to help achieve. Launched by Ariya Capital Group, ARI is an innovative approach unlike traditional funds as it is structured as a full-capacity investment platform, focused on three core, interrelated sectors: generate, own, and decarbonise. This is a model that reduces costs, lowers regulatory burdens, and allows greater flexibility for investors. More importantly, it is all about speed and scale purpose-built specifically for Africa.

ARI’s mission is to turn Africa’s immense renewable potential into a bankable pipeline of projects. Its approach is deliberately integrative, bringing financiers, governments, developers, and communities together rather than operating in silos. With a team steeped in African markets, policy circles, and regulatory requirements, ARI applies rigorous due diligence and cross-disciplinary expertise, by working with the best developers in a specific sector, to invest in both operating assets and greenfield projects off its own balance sheet.

The result is not just isolated assets, but sustainable ecosystems of an alternative asset class offering very attractive risk-adjusted returns. By doing so, Ariya makes it easier for institutional investors to deploy capital at scale —and for global investors to follow their lead.

Why the Catalyst Must Be Local

There is no shortage of international interest in Africa’s energy transition. But foreign capital alone cannot solve the underlying bottlenecks. Without local investors offering the initial layer of confidence, along with critical expertise, contextual understanding, and political alignment, projects will continue to stall at the planning stage.

Africa’s institutional investors are at the starting line of a once-in-a-generation opportunity – to transform the continent’s energy future from within. By committing even a small share of their assets, they can tip the scales—unlocking the flow of billions in additional financing while securing long-term returns for their members. This is a win-win: once operational, infrastructure projects can provide stable, predictable cash flows over time and are a natural fit for the long-term liabilities of these types of investors while also kickstarting overall economic development in the region which will open more opportunities. With expert partners like ARI, they can do so without taking on disproportionate risk.

The outcome of doing nothing is grim: a continent left in the dark while the rest of the world accelerates toward a digital, low-carbon economy.

Old Ways Are Not Working

Africa’s energy story is no longer just about need—it is about urgency. Demand is rising fast, driven by population and industry growth, and a compounding climate crisis. Historical approaches have proven ineffective, as investment flows are insufficient, projects are stalling, and infrastructure remains fragile. The next 5–10 years will determine whether the continent can build the reliable, affordable, scalable power base it requires to thrive in the 21st century.

The pathway is clear. Africa must triple or quadruple renewable investment, overcome project development bottlenecks, and—critically—mobilise its own institutional capital. By stepping off the sidelines and partnering with integrators like ARI, African investors can unlock the continent’s vast renewable potential, catalyse billions in additional financing from around the world, and steer the continent’s future toward one of prosperity and resilience.

The opportunity is immense. The need is undeniable. And the catalyst must come from within.

For more information visit Ariya Capital


Bridging the Gap: How AI Can Enhance Transparency, Governance and Unlock Africa’s Economic Potential Through FDI

A new era of transformation is dawning across Africa, though its light will not touch all corners at once. With its youthful population, abundant natural resources and rapidly growing digital economy, the continent is poised for remarkable growth. Yet persistent governance challenges—corruption, bureaucratic inefficiencies and a lack of transparency—continue to constrain this potential, costing Africa an estimated 25 percent of its GDP each year.

Against this backdrop, Artificial Intelligence (AI) emerges as a powerful catalyst for change. The path to adoption will not be uniform across the continent, but a cohort of pioneering nations is poised to demonstrate how AI can automate processes, detect irregularities and foster accountability. By improving governance, these early adopters will not only combat corruption but also unlock substantial economic opportunity—particularly in attracting Foreign Direct Investment (FDI). While estimates suggest AI could contribute up to $1.2 trillion to Africa’s economy by 2030, realisation of that promise depends on the success of these front-runners, whose achievements could form a replicable blueprint for others to follow.

AI’s Role in Enhancing Transparency and Governance

At the heart of Africa’s governance challenges lies a deficit of transparency—an issue that fuels corruption and erodes public trust. Although the implementation of advanced technologies remains uneven across the continent, several countries are already demonstrating what is possible by leveraging AI’s capacity for data analytics, machine learning and automation to create more open and efficient systems.

AI-powered platforms are being used to digitise public procurement, reduce human discretion, and minimise opportunities for graft. In countries where manipulation of public tenders is widespread, these tools enable real-time monitoring of contracts, flagging anomalies such as inflated bids or conflicts of interest.

Several practical examples stand out:

South Africa is employing machine learning models to audit public budgets and detect patterns of state capture, thereby enhancing integrity in public resource allocation.

Nigeria is fostering a fintech revolution through startups like Nomba, which apply AI-powered fraud detection in financial services, expanding secure access for underserved populations.

Kenya’s e-Citizen platform integrates AI for transparent service delivery, streamlining the issuance of permits and processing of taxes while reducing bureaucratic delays.

These initiatives serve as compelling case studies, aligning with continental efforts such as the African Union’s emerging AI frameworks, which emphasise ethical deployment, regulation and inclusivity. Together, they suggest a viable path forward for replicating success across diverse national contexts.

Unlocking Africa’s Economic Potential: A Tale of Two Speeds

Improved governance through AI translates directly into economic gains by creating a more stable and predictable environment for innovation, enterprise and investment. For nations that successfully integrate AI into public and private systems, the rewards could be transformative—with some models projecting a doubling of GDP growth rates by 2035.

The potential is particularly pronounced in sectors such as agriculture, where AI-driven tools can optimise irrigation, predict crop yields and mitigate risks related to climate variability. Given that agriculture employs more than 60 percent of Africa’s workforce, such innovation could significantly enhance food security and productivity.

Nonetheless, many countries will initially lag behind due to weak digital infrastructure, insufficient regulatory capacity, and a lack of reliable data ecosystems. This divergence underscores the importance of successful early adopters. Their progress can serve as proof of concept, demonstrating how AI-powered efficiency in areas such as customs processing and tax collection can free up billions in public funds for reinvestment into development priorities.

Public-private partnerships in these leading nations will offer scalable models. As transparent governance reduces economic leakages and enhances service delivery, it sets a powerful example for others to emulate. The result is a virtuous cycle: the success of the few inspires and informs the many.

FDI and the Emergence of Lighthouse Nations

Foreign Direct Investment remains a linchpin of Africa’s economic aspirations. Yet persistent concerns around poor governance and regulatory unpredictability often deter global investors. AI has the potential to recalibrate these perceptions—but initial inflows are likely to favour those nations that demonstrate credible reform.

These “lighthouse nations” will use AI to establish clear, transparent and accountable institutions, providing a level of predictability that investors crave. Several are already gaining traction:

Mauritius, an early mover in AI policy, has harnessed digital governance to streamline bureaucracy and assure investors of compliance and consistency.

Egypt and Kenya have launched national AI strategies with explicit objectives to build investor confidence, foster innovation and reduce administrative burdens.

By integrating AI tools such as predictive analytics for project approvals and risk-scoring systems for FDI transparency, these countries are not just improving local conditions—they are de-risking the African investment landscape as a whole. As they attract capital into high-growth sectors such as agribusiness, logistics and renewable energy, they will provide a compelling and bankable model for their peers.

The Path Forward: Learning, Sharing, Scaling

AI holds immense promise for bridging Africa’s governance gaps and unleashing sustainable economic growth. The trajectory, however, will be uneven. A vanguard of nations will lead the way, demonstrating that reform and technology, when deployed strategically and ethically, can drive transformative outcomes.

The key challenge—and opportunity—is to ensure that the lessons learned by these pioneers are not confined within borders. They must be shared, adapted and scaled. Cross-border collaboration, knowledge exchange and regional capacity-building will be vital. So too will be addressing emerging risks: from algorithmic bias to the digital divide, and from data privacy to regulatory fragmentation.

The focus must remain on inclusive, ethical and locally relevant AI strategies. The momentum of early adopters should not only draw capital, but also spark policy reforms and infrastructure investment in their wake. By aligning governance innovation with broader development goals, Africa can position itself not as a latecomer to the AI revolution, but as an active shaper of its own digital destiny.

As Africa charts its course into the AI era, the journey will be defined by the ambition of the few and the readiness of the many to follow. The light cast by those leading today has the potential to guide the entire continent towards a more transparent, prosperous and sovereign future.


Strengthening the Custody Chain: Bank One Supports Africa’s Private Capital Evolution

Adecade ago, fewer than one in ten African pension funds reported exposure to private capital. In 2024, Preqin’s Institutional Allocation Study shows that more than one-third expect to increase allocations to private debt and infrastructure over the next three years. Appetite is growing, but the means of entry remain uneven. Complex fund structures span jurisdictions, and settlement windows rarely align with the tight capital-call schedules imposed by alternative asset managers.

[caption id="attachment_27937" align="aligncenter" width="900"] Mauritius: Port Louis[/caption]

In April this year, a Mauritian pension fund faced that reality. A modest investment into a pan-African renewable energy fund required subscription before a Friday deadline. The fund’s depositary was in Luxembourg, the general partner in Nairobi, and investors were spread across three time zones. The difference between participation and exclusion came down to a custodian capable of moving cash, verifying documentation, and reconciling records across multiple regulatory domains in a matter of hours—not days.

That is the service gap Bank One set out to close. From our base in Mauritius, we provide asset safekeeping, trade settlement, income collection, corporate-action processing, and regulatory reporting for a diversified client base. Real-time integration with Bloomberg ensures full trade-cycle visibility, while secure file-transfer protocols maintain data integrity. Yet our greatest strength is not technology—it is continuity. With low staff turnover, our clients deal with the same specialists year after year, an increasingly rare consistency in a consolidating industry.

A Platform Without Conflicts

Independence is the second pillar of our offering. Bank One does not manufacture investment products or channel clients toward proprietary platforms. We operate on an open-architecture basis, working with third-party managers selected on merit. Whether the portfolio includes listed equities, sovereign bonds, ETFs, or illiquid private equity funds, clients benefit from reporting designed for decision-making—concise, timely, and stripped of promotional gloss.

To broaden choice without compromising rigour, we partnered with Euroclear, one of the world’s most trusted post-trade market infrastructure providers. Euroclear’s global settlement and fund-servicing network extends our custody reach well beyond domestic markets while keeping client assets off our balance sheet—a structure that materially reduces counterparty risk.

Returning to the April example: the Mauritian pension fund submitted its subscription through Euroclear’s platform. By mid-afternoon, confirmation of receipt had been issued, and the allocation secured. No manual reconciliations. No cross-border lag. Just clear visibility and on-time execution.

Momentum Behind Private Markets

The appeal of private capital is structural. Sovereign bonds no longer offer the income they once did, equity valuations remain elevated in many markets, and long-dated investments linked to energy transition and digital infrastructure demand capital that public markets cannot adequately supply.

Preqin forecasts global private capital assets under management will reach $18.3tn by 2027, with private debt and infrastructure absorbing much of that growth. Africa is increasingly a part of this narrative. According to the African Private Equity and Venture Capital Association (AVCA), the continent recorded $6.5bn in private capital deal value in 2023—its second-highest total ever. Early data from 2024 point to an even greater focus on climate-linked strategies and digital connectivity.

Yet these headline numbers conceal structural barriers. Investors across Sub-Saharan Africa and the Indian Ocean face fragmented regulatory frameworks, foreign-exchange restrictions, and a shortage of custodians that can accommodate both listed and unlisted assets under one roof. That is why we have embedded private-market services—capital call processing, distribution reconciliation, bespoke reporting—directly within our custody platform. Clients can now monitor all holdings holistically, avoiding the operational sprawl that typically accompanies alternative assets.

Mauritius: A Strategic Jurisdiction

Mauritius strengthens this proposition. Its hybrid legal framework—rooted in English common law but adapted for international finance—is backed by robust regulatory oversight. Its time zone enables smooth trading across Africa, Europe, and Asia. Our affiliation with East Africa’s I&M Group provides deeper insights into multi-currency flows, tax structures, and cross-border transaction logistics.

Our clients include sovereign entities, pension funds, family offices, and investment intermediaries. Some are African institutions diversifying outward; others are global allocators seeking exposure to African growth. All benefit from a custodian that understands local nuance while maintaining global standards.

Execution Over Innovation

The success of that April transaction rested not on groundbreaking technology but on operational clarity. Roles had been rehearsed, processes agreed, and escalation routes defined. This procedural discipline is fundamental. Internally, we track service-level performance and share metrics with clients. Any deviation from standards prompts root-cause analysis—not a cosmetic fix.

In the custody business, predictability trumps novelty. Clients rely on us to deliver consistent execution, not constant reinvention. Our roadmap is therefore guided by practical needs:

First, automating onboarding and KYC procedures so new limited partners in private funds can clear compliance in hours, not weeks.

Second, expanding our analytics dashboard to include ESG metrics requested by global allocators.

Third, deepening ties with regional securities depositories to accelerate cross-listed settlements.

Success will not be measured by product launches, but by how reliably we protect assets, deliver clarity, and enable capital to flow where it is needed most.

Looking Ahead

The future of custody lies in convergence. As digital asset classes gain regulatory recognition, we intend to offer secure custody solutions that bridge traditional and tokenised securities. When that day comes, whether a pension fund facing a subscription deadline or an investor allocating to Africa’s climate future, they should find a custody path that is not only open—but fully operational and well lit.

[caption id="attachment_26406" align="aligncenter" width="188"] Khalid Mahamodally: Head of Securities Services and Deputy Head Private Banking[/caption]

By Khalid Mahamodally Head of Securities Services and Deputy Head, Private Banking, Bank One


Strategic FDI: How Developing Economies Can Attract Investment That Transforms

Foreign Direct Investment (FDI) remains a cornerstone of development strategies across emerging markets—but quality, not just quantity, determines its impact.

A Strategic Approach to FDI

Foreign Direct Investment is the largest source of external finance for many developing countries, positioning it as a central pillar of economic strategy. However, a singular focus on boosting inflows is insufficient. The impact of FDI varies profoundly depending on its form and the policy environment into which it arrives.

This strategic briefing addresses two core questions for policymakers and business leaders: what type of FDI most effectively drives sustainable development, and what steps must countries take to attract such high‑quality investment?

Evidence points decisively toward Greenfield Vertical FDI as the most powerful catalyst for inclusive, long‑term economic transformation. Achieving this form of investment requires more than short‑term incentives—it demands a holistic, patient, and disciplined approach that prioritises stability, good governance, and institutional strength.

Understanding FDI: Modes and Motives

To craft effective policy, governments must understand FDI not as a monolith but as a spectrum of forms with varying implications for development. Two primary axes define this spectrum: mode of entry and strategic intent.

On one axis lies the method of entry: Greenfield or Brownfield. Greenfield investment involves establishing new operations from the ground up—factories, logistics hubs, or service centres—which directly add to national productive capacity. Greenfield FDI signifies fresh capital formation and often stronger spillovers. Brownfield investment typically entails acquiring or leasing existing assets through cross‑border mergers and acquisitions. While Brownfield FDI may inject capital and know‑how, it often represents a change of ownership rather than a net addition to the economy.

The second axis concerns strategic motivation. Horizontal FDI occurs when a company replicates its domestic production in a foreign country to access local markets. The intent is primarily market‑seeking. Vertical FDI, on the other hand, segments the production chain internationally—often locating resource extraction, intermediate manufacturing, or services in countries where costs or capabilities provide an advantage. These investments are typically efficiency‑seeking and link host countries to global value chains. Global value chain integration is especially powerful when local firms serve as suppliers in these chains.

Why Greenfield Vertical FDI Delivers More

Among these forms, Greenfield Vertical FDI stands out as the most developmentally potent. It brings with it three key advantages: capital formation, job creation, and meaningful integration into the global economy.

By definition, Greenfield investment creates new productive infrastructure. In labour‑intensive sectors, this can produce large‑scale employment, directly within new facilities and indirectly through supply chain multiplier effects. In contrast, Brownfield investment often leaves job numbers unchanged, and at worst, can displace domestic firms and entrepreneurs. For example, evidence from cross‑border acquisitions demonstrates that Brownfield vs Greenfield outcomes differ markedly in job creation and economic spillover.

Vertical FDI also unlocks superior technology transfer. In Horizontal FDI, multinational corporations (MNCs) and local firms are often in direct competition. This can result in the MNC guarding proprietary processes, limiting spillover. In Vertical FDI, however, local firms frequently become suppliers to the MNC. The success of the global enterprise depends on the efficiency and quality of its partners—creating a commercial incentive to invest in training, technology sharing, and productivity enhancements. These “backward linkages” are the beating heart of global value chains. Technology spillover studies consistently highlight this benefit.

The Caveats: Sector‑Specific Risks

While Greenfield Vertical FDI is broadly beneficial, sectors such as extractives and agriculture present notable challenges.

Resource‑based investment, especially in mining, can deliver substantial revenues but carries high governance risk. In countries without robust institutions, such projects can exacerbate corruption, create enclave economies with minimal domestic linkages, and inflict lasting environmental harm. For instance, the phenomenon often termed the “resource curse” becomes acute without strong regulation and oversight. FDI in extractives requires a high degree of policy maturity. Similarly, large‑scale agricultural investment must be managed with care. Without clear land rights and community safeguards, FDI in agriculture can displace local populations and inflame social tensions. Yet, with proper frameworks, this investment can modernise food systems, improve food security, and create rural employment.

A Hierarchy of Policy Needs

To attract high‑quality FDI, policymakers must think in layers. Incentives alone cannot compensate for weak fundamentals. A four‑level framework offers a practical roadmap:

Level 1: Macroeconomic and Political Stability
Stability is the bedrock. FDI is capital‑intensive and long‑term, making investors highly sensitive to risks such as political upheaval, regulatory unpredictability, or macroeconomic volatility. Without a stable environment, even the most generous incentives will fail to persuade cautious capital.

Level 2: Institutional Quality and Governance
Once stability is secured, the next priority is institutional credibility. Rule of law, contract enforcement, protection of property rights, and anti‑corruption mechanisms are indispensable. Transparent institutions not only reduce transaction costs but are especially critical in resource‑rich countries seeking to avoid exploitative deals. Macroeconomic stability and governance are consistently ranked among top investor concerns.

Level 3: Infrastructure and Human Capital
With solid foundations in place, countries must build the enablers of competitiveness. This includes physical infrastructure—ports, roads, energy grids—and digital infrastructure such as broadband connectivity and data systems. The real value of these assets can be multiplied by policy. For instance, a railway developed for a mining project can also serve farmers and passengers if governments mandate shared access, turning private assets into public goods. A skilled, educated workforce is equally important. Trade openness and smart regulatory frameworks further enhance competitiveness.

Level 4: Proactive Investment Promotion
Only when these foundational layers are established can a country effectively deploy proactive policies. Effective Investment Promotion Agencies (IPAs) can market the country’s advantages and help investors navigate bureaucracy. Well‑designed Special Economic Zones (SEZs) can create pockets of excellence with superior infrastructure and regulatory efficiency, acting as a magnet for export‑oriented FDI. SEZs in Vietnam are often cited as exemplary models. Finally, targeted incentives and international investment agreements can help secure marquee investments.

From Passive Recipient to Strategic Partner

Attracting FDI is not just about opening doors; it’s about building the kind of economy that global investors want to enter—and stay in.

The evidence is clear: Greenfield Vertical FDI offers the strongest returns in terms of job creation, industrial upgrading, and long‑term productivity. To attract this form of investment, countries must move beyond ad hoc approaches and embrace a strategic model rooted in good governance, institutional strength, and long‑term planning.

FDI is not a lottery—it is a courtship. Countries that take control of the narrative, improve the investment climate, and align incentives with national goals can transform themselves from passive recipients into active partners in global value creation. By doing so, they lay the groundwork not just for growth, but for shared prosperity, resilience, and global relevance.