World Bank backs Africa digital data push with $100mln Raxio deal
Summary
Africa accounts for less than 1% of the worlds data centre capacity even as mobile data usage grows by around 40% annually - nearly double the global average, according to U.S. advocacy group Internet Society.The debt funding by the World Banks International Finance Corporation (IFC) - its largest such investment to date in Africa - reflects rising interest from global institutions in the continents digital economy, where mobile money, AI-driven services and cloud-based platforms are rapidly expanding.Hosting data locally reduces costs, improves speeds and gives governments more control over cybersecurity and regulation. "Data centres as such and overall digital connectivity is an important area of focus for the IFC," said Sarvesh Suri, IFC regional industry director for infrastructure and natural resources in Africa.Improving digital connectivity and building the backbones of digital infrastructure are of key importance to support economic growth in Africa, Suri added.After launching its first facility in Uganda in 2021, Raxio already has data centres operating in Angola, Ivory Coast, Mozambique, Ethiopia and Democratic Republic of Congo. Cloud computing and tech giants such as Amazon Web Services, Microsoft Azure and Huawei are ramping up partnerships and presence on the continent, but many still rely on Europe or South Africa for hosting. "We see the interest, the support, the engagement, the collaboration we are getting from the governments where we operate, who really want this to happen," said Raxio Group CEO Robert Skjodt.Building data centres in frontier markets isnt without risk. Unreliable power supply, complex regulation and political instability can deter commercial players.Development finance institutions play a crucial role by de-risking early investments that can unlock long-term private capital, said Suri.