World Bank Commits $100 Million to Expand Africa’s Digital Infrastructure

The World Bank, through its International Finance Corporation (IFC), has announced a significant investment of $100 million to support the expansion of digital infrastructure across Africa.

This funding will be directed towards Raxio Group, a leading data centre operator in the region, to bolster the continent’s growing demand for data hosting and improve cybersecurity.

Raxio Group plans to use this capital to develop state-of-the-art data centres in several key African countries, including Ethiopia, Angola, Ivory Coast, Mozambique, Democratic Republic of Congo, and Uganda. These new facilities will cater to the increasing need for secure, scalable digital infrastructure that can support the rapidly growing digital economy across Africa.

In a statement, the World Bank noted that this investment aligns with its efforts to promote sustainable and inclusive economic growth across the continent.

“Digital infrastructure is a critical enabler of economic transformation,” said Makhtar Diop, Vice President for Africa at the World Bank.

“By expanding access to reliable, affordable, and secure data centres, we are laying the groundwork for increased innovation and business opportunities across Africa.”

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The investment also marks a step forward in improving Africa’s overall digital connectivity, which has been a challenge for many countries. According to a report by the International Telecommunication Union, the region remains underdeveloped in terms of data centre infrastructure compared to other parts of the world. This infrastructure gap has made it difficult for businesses to fully leverage digital technologies such as cloud computing, big data, and e-commerce, which are essential for economic growth in the modern world.

Raxio Group, which is part of the broader Marubeni Corporation conglomerate, has already made significant strides in addressing this challenge. The company’s data centres, designed with cutting-edge technology, are set to enhance local capacity for data processing, provide improved disaster recovery options, and foster data sovereignty for businesses operating in Africa.

Ethiopia, Angola, Ivory Coast, Mozambique, DRC, and Uganda are among the first to benefit from the new data centres, with further expansion plans on the horizon. These centres will not only enhance digital security but also generate employment opportunities and create a strong foundation for digital innovation in various sectors, including finance, healthcare, and education.

The World Bank’s backing of this initiative comes at a time when digital transformation is high on the agenda of many African governments. As part of its broader strategy to accelerate Africa’s digital economy, the World Bank has previously invested in digital infrastructure projects aimed at improving connectivity, building digital skills, and fostering innovation across the continent.

As the African continent continues to embrace the digital age,  this investments is expected to play a key role in accelerating economic development, bridging the digital divide, and empowering local communities.