The World Bank’s private investment arm has committed $100 million to Raxio Group, a regional data center developer, in a bid to bolster Africa’s digital infrastructure.
Africa holds less than 1% of the world’s data center capacity, despite mobile data usage growing at nearly double the global average. The investment, provided by the International Finance Corporation (IFC), marks its largest digital infrastructure funding in Africa to date.
Digital connectivity is essential for economic growth, offering faster speeds, reduced costs, and stronger cybersecurity. “Data centers and overall digital connectivity are key focus areas for the IFC,” said Sarvesh Suri, IFC’s regional industry director for infrastructure and natural resources in Africa.
Raxio, which launched its first facility in Uganda in 2021, now operates in Angola, Ivory Coast, Mozambique, Ethiopia, and the Democratic Republic of Congo. The IFC’s financing will support further expansion across the continent.
Geopolitical shifts have intensified the focus on Africa’s digital landscape. Recent U.S. tariff hikes on Chinese goods have increased tech industry costs, driving companies to diversify operations. Tech giants such as Amazon Web Services, Microsoft Azure, and Huawei are expanding partnerships in Africa, though many still rely on European or South African data centers.
While Africa’s data boom presents opportunities, challenges persist. Unstable power supplies, regulatory hurdles, and political risks deter commercial investment. Development finance institutions like the IFC play a crucial role in de-risking these early investments, paving the way for long-term private capital.
“We see strong government support for this expansion,” said Raxio Group CEO Robert Skjodt, emphasizing the continent’s growing digital ambitions.
