The World Bank’s private investment arm is making a major push into Africa’s digital economy with a $100 million investment in regional data centre developer and operator Raxio Group. This funding will support the development of data centres across Africa, from Ethiopia to Angola, helping to address the continent’s digital infrastructure gap.
Despite a surge in digital demand, Africa still accounts for less than 1% of global data centre capacity. Mobile data usage on the continent is growing at about 40% annually, nearly twice the global average, according to the U.S.-based Internet Society. The International Finance Corporation (IFC), the World Bank’s investment wing, sees this as a key opportunity to expand Africa’s digital backbone.
Sarvesh Suri, IFC’s regional industry director for infrastructure and natural resources in Africa, emphasized the importance of investing in data centres. “Data centres and overall digital connectivity are critical areas of focus for the IFC,” he said. He added that strengthening digital infrastructure is vital to supporting economic growth across Africa.
Raxio Group launched its first data centre in Uganda in 2021 and is now expanding its presence. The company is constructing facilities in Ivory Coast, Mozambique, Ethiopia, and the Democratic Republic of Congo, with plans for further growth. The expansion comes as global technology giants and investors increasingly see Africa as a strategic location for cloud services. Companies like Amazon Web Services, Microsoft Azure, and Huawei are increasing their presence on the continent, though many still rely on South Africa or Europe for hosting services.
Robert Skjodt, CEO of Raxio Group, expressed optimism about the expansion. “We see the interest, the support, the engagement, and the collaboration we are getting from the governments where we operate, who really want this to happen,” he said.
Building data centres in Africa comes with challenges. Power supply issues, complex regulations, and political instability can deter private sector investment. Development finance institutions like the IFC play a crucial role in reducing these risks by providing financial support and structuring deals to attract long-term private capital.
“We bring in the right kind of instruments to help support investors, reduce risks, and ensure these investments remain sustainable and profitable, while also being beneficial for the economies involved,” Suri explained.
As Africa’s digital economy continues to grow, investments in data infrastructure will be crucial in reducing costs, improving internet speeds, and giving governments greater control over cybersecurity and data regulation. The IFC’s investment in Raxio Group is part of a broader effort to boost Africa’s digital transformation and strengthen its position in the global digital economy.
