An expert panel segment during the Fifty-eighth session of the Economic Commission for Africa Conference of African Ministers of Finance, Planning and Economic Development, held from 28 March to 3 April 2026 in Tangier, Morocco. Credit: UNECA

By United Nations Economic Commission for Africa
ADDIS ABABA, Ethiopia, Jul 30 2026 (IPS)

Africa’s digital revolution is gathering pace, but the financing needed to sustain it remains uneven, fragmented, and often out of reach.

To bridge this gap, African multilateral financial institutions, policymakers, development partners, and private sector leaders are calling for a more coordinated, innovative, and better-structured financing approach to support Africa’s digital and technological transformation.

That was the central message from policymakers, financiers and development partners who convened on the sidelines of the 58th session of the United Nations Economic Commission for Africa Conference of African Ministers of Finance, Planning and Economic Development, held in Morocco in April 2026.

Their conclusion was clear: Africa does not lack capital—it lacks the right kind of capital, deployed in the right way.

From artificial intelligence to digital infrastructure, the continent’s innovation sectors are expanding rapidly. Yet, access to affordable, long-term financing remains a major bottleneck, constraining growth and limiting impact.

Hanan Morsy, UN ECA’s Deputy Executive Secretary and Chief Economist

That gap, experts say, is holding back productivity gains, job creation and broader economic transformation.

Capital vs opportunity

Africa’s financial landscape is not devoid of resources. In fact, speakers at the event repeatedly emphasized a paradox: capital exists, but it is not flowing into innovation-driven sectors at the required scale.

According to Haytham Elmaayergi of the African Export-Import Bank, one of the continent’s leading multilateral lenders, the issue lies in the pipeline of viable investments.

“One of Africa’s key challenges is not a lack of capital, but a shortage of bankable projects and stronger institutional collaboration to scale investment,” he said, pointing to weak project preparation and limited institutional coordination as key constraints.

This disconnect is further compounded by high borrowing costs, currency volatility, and insufficient mechanisms to share risk—factors that deter both public and private investment.

For early-stage innovators, the challenge is even more acute. Venture financing remains thin, and traditional lenders are often reluctant to support projects perceived as high-risk.

“In the technology space, risk is harder to structure,” said Adeniran Aderogba, head of the Regional Maritime Development Bank, “we need more creative financing models and dedicated funds to support early-stage innovation.”

Africa’s innovation challenge is not a shortage of ideas. It is a shortage of long-term, affordable, and well-structured financing.

Rethinking how Africa finances innovation

Participants agreed that solving these challenges will require a shift away from traditional financing approaches toward more flexible, blended models.

Blended finance—combining public and private capital, guarantees and technical support—was highlighted as a critical tool to reduce risk and attract investment into emerging sectors. Co-financing arrangements and tailored instruments that reflect the unique risk-return profile of digital investments are also gaining traction.

But financing alone is not enough.

“Technology and innovation go beyond digital,” noted Robert Lisinge of UNECA. “We are talking about a broader ecosystem—including infrastructure, energy, and emerging technologies.”

This broader lens underscores the need for complementary investments in enabling systems: reliable electricity, robust connectivity, and supportive regulatory frameworks. Without these, even well-financed projects struggle to scale.

The role of African institutions

At the center of the conversation was the growing importance of African-led financial institutions in shaping the continent’s development trajectory.

The Alliance of African Multilateral Financial Institutions—also known as the Africa Club—has emerged as a key platform for coordination. Established in 2024, the alliance brings together major African financial institutions with a combined balance sheet exceeding $70 billion.

Its members—including Afreximbank, the Africa Finance Corporation, and the Trade and Development Bank—are increasingly seen as critical players in mobilizing capital for large-scale development projects.

By strengthening collaboration among these institutions, participants said, Africa can better align financing with its strategic priorities and reduce reliance on external funding models that may not fully reflect local realities.

From dialogue to delivery

The Tangier discussions ended with a strong call for action: move beyond diagnosis and toward implementation.

Key priorities include reducing the cost of capital, expanding risk-sharing mechanisms, improving project preparation, and mobilizing long-term funding at scale. Equally important is strengthening collaboration among governments, financial institutions and development partners.

For Africa’s digital transformation to deliver on its promise, participants agreed, financing must become more coordinated, more innovative—and more responsive to the continent’s realities.

The stakes are high. With one of the world’s youngest populations and a rapidly expanding digital economy, Africa has a unique opportunity to leapfrog traditional development pathways.

But as the Tangier meeting made clear, realizing that potential will depend not just on how much money is available—but on how effectively it is used.

IPS UN Bureau

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Data cables connected on network switches in a computer server room. Scott Rodgerson on Unsplash Credit: Africa Renewal

By United Nations Economic Commission for Africa
UNITED NATIONS, Jun 12 2026 (IPS)

African leaders are sharpening their focus on digital sovereignty, warning that the continent’s economic future will depend not just on connectivity, but on who controls its data—and where it is stored.

At a high-level roundtable during the 58th session of the United Nations Economic Commission for Africa Conference of Ministers, held in Tangiers, Morocco, in April 2026, policymakers and technology leaders signaled a decisive shift in Africa’s digital ambitions: from being consumers of technology to becoming architects of their own digital infrastructure and data ecosystems.

Central to this shift is the idea of “sovereign data”—ensuring that African data is stored, processed and governed within the continent.

Participants emphasized that digital independence is no longer optional; it is a prerequisite for economic security and national resilience.

“Digital public infrastructure is as vital today as electricity,” said Américo Muchanga, Mozambique’s Minister of Communications and Digital Transformation. But, he added, infrastructure alone is not enough. Governments must now decide how to classify and manage their data—what remains within national borders, and what can be shared—so that its value benefits African economies.

Beyond infrastructure: entering the “age of intelligence”

For years, Africa’s digital agenda has focused on expanding connectivity—laying fiber, increasing mobile access, and building platforms for public services. While that remains essential, leaders say the conversation must evolve.

Digital public infrastructure (DPI), often described as the “rails” of the digital economy, must now carry something more valuable: intelligence.

As artificial intelligence reshapes economies globally, Africa faces a critical question—will it simply adopt external systems, or build its own?

“Africa must prioritize local data processing and systems that reflect its realities,” said Ambassador Philip Thigo, Kenya’s Special Envoy on Technology. He warned that relying on imported models risks entrenching systems that do not capture African languages, contexts or economic needs.

The solution, participants argued, lies in investing in local talent and capabilities—from data science to AI model training—so that innovation is grounded in African realities.

Building the backbone: data centres and “AI factories”

A recurring theme was the urgent need for infrastructure that can support this transition. Data centres—described as the backbone of the digital economy—remain in short supply.

“Africa needs to increase its data centre capacity tenfold,” said Adil El Youssefi, CEO of Africa Data Centres at Cassava Technologies.

Currently, the continent generates less than 1% of global data despite accounting for nearly 20% of the world’s population.

To bridge this gap, participants called for the development of “AI factories”—facilities capable of storing and processing large volumes of data locally. These would not only support AI development but also ensure that the economic value derived from data remains within Africa.

However, such investments require reliable and affordable energy, as well as long-term financing—two persistent challenges across the continent.

A new model: data embassies and regional cooperation

Among the more innovative ideas discussed was the concept of “data embassies”—shared infrastructure that allows countries to store data securely across borders while maintaining sovereignty.

This model, participants said, could help smaller economies overcome the high costs of building standalone data infrastructure, while strengthening regional integration.

It also reflects a broader push toward collaboration.

Pius Chaya, Tanzania’s Deputy Minister for Planning and Investment, stressed the need for strong public-private partnerships, underpinned by robust cybersecurity and data protection frameworks.

Without trust, he noted, digital systems cannot scale.

From policy to execution

While Africa has made strides in developing digital strategies, leaders acknowledged a familiar challenge: implementation.

Ndaba Gaolathe, Vice President and Finance Minister of Botswana, pointed to a gap between policy ambition and real-world impact. Botswana, he said, is addressing this by using a universal service fund—financed through a levy on mobile operators—to expand connectivity to underserved communities.

“The time for planning alone is over,” he said. “We must now focus on execution.”

This call for “mega execution” reflects a growing urgency to translate strategies into tangible benefits—jobs, services, and economic growth.

Inclusion and measurement

Despite progress, nearly one billion Africans remain offline, even in areas with mobile coverage. Industry representatives, including the GSMA, urged governments to remove taxes on mobile devices to make digital access more affordable.

At the same time, measuring the economic impact of digital transformation remains a challenge.

“If we cannot measure the contribution of technology to GDP, we cannot monetize it,” said Claver Gatete, UNECA’s Executive Secretary. Strengthening national statistical systems, he added, is essential for evidence-based policymaking and accountability.

A defining moment

As Africa accelerates its digital transformation, the stakes are becoming clearer. Data is no longer just a byproduct of the digital economy—it is its most valuable asset.

The discussions in Tangier point to a continent at a crossroads: one that must decide whether to remain a consumer in the global digital order, or to assert control over its data, technologies and economic destiny.

The message from leaders was unmistakable—Africa’s digital future must be built in Africa, and for Africa.

Source: Africa Renewal, United Nations

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