By Martin Ekpeke
The International Finance Corporation (IFC) has invested over $6 billion in Africa’s digital infrastructure over the past decade, with a focus on helping the continent quantum leapfrog into a globally competitive digital economy.
Dahlia Khalifa, IFC’s Regional Director for Central Africa and Anglophone West Africa, shared this commitment today at the GiTEX Nigeria conference.
Khalifa highlighted significant obstacles to digital adoption in Africa, noting that businesses face technology costs up to 35% higher than in other regions. Despite a high rate of mobile and internet access (86% of firms), a small fraction fully utilizes these tools due to inadequate infrastructure, digital literacy gaps and limited financing.
According to a recent IFC report, the “Digital Opportunities in African Businesses,” addressing these challenges could transform over 600,000 formal businesses and 40 million microenterprises. This transformation is projected to boost productivity, raise wages, and create higher-quality jobs across the continent.
Khalifa emphasized the critical role of private sector and public-private partnerships in building the necessary foundation. The IFC’s investment strategy focuses on three key areas:
- Infrastructure: Over the past decade, the IFC has invested more than $6 billion in digital infrastructure, including data centers, fiber networks, and affordable broadband. Last year alone, over $1 billion was invested in connectivity, including a $100 million commitment to Raxio Group’s data centers and support for WIOCC’s fiber expansion in Nigeria, the Democratic Republic of Congo (DRC), and South Africa. The IFC also backs Rack Centre in Lagos, which is setting new standards for green data facilities.
- Skills and Training: The IFC is committed to preparing Africa’s youth for future jobs by investing in skills and training programs.
- Entrepreneurship and Innovation: Through its Venture Capital Platform and Startup Catalyst Program, the IFC supports over 100 startups in various sectors like fintech, healthtech, edtech, and e-commerce. Khalifa cited companies such as TradeDepot, Andela, and Wave Mobile Money as examples of IFC-backed ventures that are creating jobs and expanding access to digital services across the continent.
Khalifa concluded by framing Africa’s digital journey as a story of “quantum leapfrogging,” not just catching up. She stressed that by responsibly harnessing AI and other digital technologies and fostering the right partnerships, Africa can create an inclusive, innovative, and globally competitive digital economy.
The goal is to enable local economies to reach global markets and for global opportunities to become accessible locally, a future that AI can help realize in Africa.