To Investors,
One of the main global topics for 2026 will be national defence. We’re seeing the United States of America flex its military might and savvy in a number of subtle, and not-so-subtle ways, and the rest of the world can only watch in awe or envy. Eventually every country will grow tired of being dominated and will want to have some semblance of authority of their own.
The U.S. is able to assert their will globally, firstly because the U.S. has a $30 trillion economy that acts as a buyer for all nations across the world. (Did you know that the U.S. has the largest trade deficit in the world at -$1trillion?).
The second reason the U.S. is throwing their weight around is because of their military dominance.
Countries around the world are waking up to how inferior their own national defence capabilities are compared to the U.S., but also Israel, Russia, and China.
Against this backdrop, Africa’s first high-technology potential defence prime came out of stealth earlier this year, and I think this should be getting more attention locally.
Terra Industries, a Nigerian-born defence technology startup, was founded in 2024 by Nathan Nwachuku and Maxwell Maduka. Earlier this month Terra received a major investment of $11.75 million in seed funding led by 8VC, alongside Valor Equity Partners, Lux Capital, and SV Angel – building on an earlier $800,000 pre-seed round.
In case you didn’t know, 8VC’s captain is Joe Lonsdale, co-founder of Palantir, the AI company helping governments make decisions through data analysis, largely used for defence intelligence.
8VC was also an early investor in Anduril, the U.S. based defence technology company taking on incumbent defence primes like Boeing and Lockheed Martin.
This support from 8VC sets up Terra Industries with the potential to be one of the most seminal defence suppliers in Africa. You can learn more about Terra Industries here.
Why should African countries care?
Well, the main reason is what I mentioned at the start of this letter. I’ll say it another way: no one will take you seriously as a country if you don’t have 1) an influential economy or trade product that the world depends on, and/or 2) some sort of globally recognised military capability. Downstream of that military capability, your military supply chain needs to be localised to drive technological competence in your country. The U.S., China, and Russia don’t rely on foreign imports for their military equipment and manufacturing, it’s time African countries follow suit, and Terra Industries is the perfect opportunity.
Terra specialises in autonomous security systems designed to safeguard critical infrastructure from threats like terrorism, sabotage, and armed incursions. They are doing this through a product suite that includes Archer VTOL (a drone for border security, long-range agriculture surveillance, and search and rescue), the modular Iroko UAV quadcopter, the Duma uncrewed ground vehicle (UGV), and the solar-powered Kallon sentry tower, all integrated via their proprietary ArtemisOS AI platform for real-time data intelligence and command.
This vertically integrated approach to hardware and software mirrors successful models from the likes of Anduril in the U.S., enabling end-to-end control over design, manufacturing, and deployment. By owning the full stack, Terra reduces dependency on foreign suppliers, mitigates supply chain risks, and accelerates iteration.
The startup also operates from a 15,000-square-foot facility in Abuja – Africa’s largest drone factory. Terra employs local engineers and keeps production on the continent, which will create more jobs and skill development. Terra’s model counters the historical outflow of raw materials by building high-tech value chains locally.
Historically, African countries have largely relied on foreign imported military equipment, while at times integrating local suppliers for maintenance and repair.
Prior to the 1960s, South Africa for example heavily sourced arms from Britain and other European powers to meet its defence needs, establishing a pattern of import dependency that persisted despite early efforts to develop local workshops. The imposition of UN arms embargoes in 1963 and 1977 compelled South Africa to build a robust domestic arms industry through entities like Armscor, reducing immediate import needs but still necessitating covert technological transfers and partnerships with nations such as Israel to circumvent restrictions and advance complex systems. Post-apartheid, from the 1990s onward, South Africa reintegrated into global markets, pursuing major import deals – like the Strategic Defence Package involving European submarines, aircraft, and frigates – to modernise its forces, while embedding local firms into international supply chains for sustained capability enhancement.
South Africa should consider sourcing military equipment from Terra Industries to gain a cutting-edge advantage in autonomous defence technology, as their AI-powered systems like ArtemisOS-integrated drones and ground vehicles offer superior real-time threat detection and neutralisation capabilities compared to existing local and foreign suppliers. This partnership would enhance national security for critical infrastructure and counterterrorism while supporting African innovation and reducing reliance on outdated legacy platforms.
But again, Terra should be the continental high-tech defence supplier.
I love the founders’ ambition. On Terra’s front page they state: “While Anduril and Helsing are protecting Western interests, no one is protecting Africa. To bridge this gap, Terra gives Africa the technological edge needed for counterterrorism and resource protection.”
Apart from South Africa, African countries already have an appetite for and regard defence spending as a matter of national importance. Here’s an estimate showing the top 20 African countries with the highest spending on national defence.
Private capital allocators seem to value Terra Industries. African countries need to do the same and invest heavily by being a buyer from this new startup.
Do you think Terra Industries will get the support it needs from African countries?
On my journey to becoming a master capital allocator, one lesson down, a billion more to go.
I hope you all have a great start to your week!
-Mansa Wandile Sithole
Founder and Chief, Self-Taught MBA
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