The World Bank’s International Finance Corporation (IFC) has announced a significant $100 million investment in Africa’s digital infrastructure, backing data centre developer Raxio Group. This move highlights growing global interest in enhancing digital connectivity across the continent.
Currently, Africa holds less than 1% of the global data centre capacity, despite mobile data usage surging nearly 40% each year—almost twice the worldwide rate. This gap presents enormous potential for infrastructure expansion to support the rapid growth of mobile banking, AI-driven services, and cloud computing.
Raxio Group, a leading regional data centre operator, aims to bridge this infrastructure gap. The IFC funding is its largest digital infrastructure investment to date on the continent, demonstrating the institution’s commitment to boosting Africa’s digital economy. Initially launched in Uganda in 2021, Raxio has expanded its operations to Angola, Ivory Coast, Mozambique, Ethiopia, and the Democratic Republic of Congo, with plans to establish a presence in ten African countries.
“Data centres and enhanced digital connectivity are vital areas of focus for IFC,” explained Sarvesh Suri, IFC Regional Industry Director for Infrastructure and Natural Resources in Africa. He emphasized that robust digital infrastructure is essential to stimulate economic growth and innovation throughout the continent.
Having data centres locally improves speed, cuts costs, and enables governments to better manage cybersecurity risks and regulations. This is particularly important as Africa becomes a new frontier in cloud computing, with tech giants like Amazon Web Services, Microsoft Azure, and Huawei significantly scaling up their operations and partnerships within the region.
Geopolitical factors have further accelerated Africa’s appeal. Increased tariffs and trade tensions between global tech manufacturing hubs, notably between the U.S. and China, are compelling companies to diversify their locations. This positions Africa as an attractive alternative, though the region presents challenges including unstable power supplies, complex regulatory landscapes, and occasional political instability.
Robert Skjodt, CEO of Raxio Group, expressed optimism about the supportive collaboration from local governments. “We are seeing immense engagement and interest from governments eager for digital transformation,” Skjodt remarked.
Development finance institutions like IFC play a crucial role by mitigating early investment risks. By doing so, they open pathways for sustainable, long-term private sector capital to further develop Africa’s burgeoning digital infrastructure landscape.
