As governments across West and Central Africa accelerate efforts to modernize their economies through digital transformation, one issue has become increasingly urgent: how to finance the massive infrastructure required to support that transition. From regional data centers and interlinked fiber-optic systems to digital ID platforms and e-government services, the continent needs billions of dollars in annual investment. According to Nathalie Kouassi Akon, the International Finance Corporation’s (IFC) Regional Director for the Gulf of Guinea, private investors are more open than ever to participating—provided that projects are carefully structured and digital regulations are more harmonized across countries.
Speaking with Ecofin Agency at the Regional Summit on Digital Transformation held in Cotonou on November 17–18, 2025, she outlined what sustainable investment entails, the structural constraints limiting Africa’s digital ecosystem, and why greater regional cooperation is essential for building a unified digital market.
Private Sector Appetite in a Growing Digital Market
Kouassi Akon emphasized that IFC’s assessments show West and Central Africa require around $6 billion each year to strengthen digital infrastructure. Despite this enormous need, the region continues to attract strong investor interest due to its expanding connectivity demand, increasingly mature telecom operators, rising internet penetration, and viable business models that have proven themselves over time.
However, she stressed that investors are now prioritizing well-designed projects that promote shared infrastructure. This includes asset-sharing among telecom operators and blended financing structures that combine public funds, private capital, and international development support. According to her, this cooperative approach lowers financial risk and enhances long-term project sustainability.
Challenges in Mobilizing Investment and Donor Participation
Although investor enthusiasm is strong, several structural obstacles still hinder progress. Kouassi Akon highlighted three major challenges:
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Regulatory clarity and consistency:
Private investors require rules that are stable and predictable. In West and Central Africa, regulatory fragmentation remains a major barrier. Operators that work across several countries often face inconsistent frameworks, complex licensing requirements, and fiscal policies that differ significantly from one market to another. Greater regulatory harmonization is crucial for scaling services across borders. -
Infrastructure quality and availability:
Digital infrastructure is not limited to data centers alone. Effective systems also require robust fiber networks, reliable connectivity, and affordable access for businesses and households. Without these, profit margins and investment returns are undermined. -
Shared infrastructure models:
Co-investment and shared infrastructure reduce duplication of assets, lower deployment costs, and speed up digital rollout. IFC strongly encourages this model because it benefits both operators and end-users.
Expanding Regional Data Centers and Energy-Reliable Infrastructure
Kouassi Akon noted that regional data centers, cloud technology, and advanced connectivity networks remain at the heart of IFC’s digital strategy. These priorities also align with the ambitions of West and Central African governments. IFC’s portfolio has grown significantly in recent years, supporting facilities that serve enterprise clients, consumer markets, and even large-scale hyperscale needs.
She cited IFC’s $100 million investment in Raxio Group in 2024, which enabled the expansion of data centers in Tanzania, Ethiopia, Mozambique, Angola, Côte d’Ivoire, and the Democratic Republic of Congo. She emphasized that reliable energy access is a critical—yet often overlooked—component of digital infrastructure. Without stable electricity, data centers cannot operate efficiently. This is why IFC pairs digital investments with programs focused on expanding energy access.
Regional Cooperation: The “Shock” Needed for Unified Digital Infrastructure
When asked what might encourage governments to cooperate more fully, Kouassi Akon pointed to the summit itself as a meaningful step forward. Digital ministers from across the region collaborated intensely to produce a joint declaration—a sign of growing commitment toward shared digital goals.
She argued that the real “shock” begins with open dialogue between states and structured engagement with the private sector. Private operators already function on a regional basis, and they are urging governments to adopt similar approaches for efficiency and cost savings. Market forces, she noted, are naturally steering countries toward integration.
Barriers Limiting Venture Funding for African Start-ups
Despite growing interest in Africa’s tech ecosystem, private investment remains unevenly distributed. The majority of venture capital flows to Nigeria, Kenya, Egypt, and South Africa, leaving francophone African markets underfunded.
Kouassi Akon outlined several barriers:
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Weak business structures: Many entrepreneurs need more support to strengthen governance, improve financial reporting, and present investment-ready business plans.
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Limited visibility: Language constraints restrict francophone innovators from accessing global networks where international investors circulate.
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Unsupportive regulations: Few countries have start-up-friendly policies or tax incentives. In addition, small domestic markets make scaling difficult without regional regulatory alignment.
These challenges affect not only fintech or deep-tech firms but also broader segments of young African enterprises seeking growth capital.
IFC’s Support for Start-ups and Innovators
IFC has created targeted tools to strengthen digital entrepreneurship. One is the Startup Catalyst Program, which invests in venture capital funds supporting early-stage tech companies across Africa. IFC also prioritizes women-led enterprises to help close the gender gap in venture funding—globally, women receive only 4% of VC investment.
Toward a Single African Digital Market
Achieving a harmonized digital regulatory environment is challenging but achievable, Kouassi Akon explained. IFC works through the World Bank Group to engage governments on data protection rules, fintech regulations, telecom competition, cross-border payment systems, and shared infrastructure guidelines. The IFC’s role is to ensure that the private sector’s perspective is represented in these discussions.
She added that digital markets are inherently borderless; therefore, a regional approach is not only beneficial but necessary.
Digital Talent and Skills Development
Developing skilled youth is central to Africa’s digital future. IFC supports EdTech solutions, coding boot camps, and technology-training institutions. A notable example is Andela, which trains software developers for global job markets. She warned that if African countries do not expand digital and AI-focused education quickly, young people—especially young women—risk being left behind.
Risk-Mitigation Tools to Encourage Investment
To reassure investors, IFC offers multiple risk-sharing mechanisms:
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MIGA guarantees to protect against political and regulatory risks.
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IFC-backed guarantees that de-risk digital projects perceived as too risky.
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Syndicated financing, pooling resources from multiple financial institutions to support large-scale digital infrastructure.
Examples of IFC’s Digital Investments
Kouassi Akon pointed to investments in Wave, major telco players like Sonatel, Airtel, and Maroc Telecom, and infrastructure developers across the region. IFC’s digital portfolio covers connectivity, fintech, data centers, and innovative platforms—providing funding, guarantees, and advisory support across the entire digital ecosystem.
