Africa’s multilateral financial institutions, policymakers, development partners, and leaders from the private sector are advocating for more coordinated and innovative financing strategies to facilitate the continent’s digital transformation.
This message emerged from a high-level session held on April 1, during the 58th meeting of African Ministers of Finance, Planning, and Economic Development, themed ‘Financing for Innovation: The Role of Africa’s Multilateral Financial Institutions in Accelerating Technological and Economic Transformation.’
The session convened senior government officials, representatives from African multilateral financial institutions, and development partners to explore methods for mobilizing long-term, affordable capital focused on sectors like digital infrastructure, artificial intelligence, and innovation—critical components for driving productivity, job creation, and structural transformation.
Despite the rapid growth of Africa’s digital economy, attendees noted that access to affordable long-term financing remains a significant barrier. High capital costs, limited risk-sharing mechanisms, currency volatility, and inadequate early-stage funding hinder investments in vital digital infrastructure and innovation ecosystems. These issues are further complicated by gaps in project readiness and a shortage of viable investment opportunities.
Participants highlighted the critical need to bridge the gap between available capital and actual investments in innovation-driven sectors. Haytham Elmeryagi, Executive Vice President of the World Trade Bank and African Export-Import Bank, remarked that Africa faces a challenge not in capital scarcity but in creating stronger institutional linkages to enhance the scalability of financeable projects.
Enhancing project readiness, improving pipeline development, and fostering interagency collaboration were identified as pivotal priorities for facilitating large-scale financing. Participants urged the adoption of mixed risk-sharing structures that would combine guarantees, advisory services, and capital mobilization tailored to fit the risk-return profiles of technology and innovation sectors.
Adeniran Aderogba, President and CEO of the Regional Maritime Development Bank, emphasized that the technology sector presents unique risks, necessitating innovative funding models to support early-stage initiatives effectively.
The discussions also pointed toward the need for customized financial products, such as blended finance and co-financing mechanisms, to support the entire innovation lifecycle, from early-stage development to scaling operations. Moreover, the session emphasized that financing for innovation should be accompanied by investments in foundational infrastructure and systems.
Robert Lisinge, ECA’s Director of Technology, Innovation, Connectivity, and Infrastructure, stated that the conversation should extend beyond digital innovation to encompass a broader ecosystem that includes infrastructure, energy, and emerging technologies—all requiring substantial investment.
In closing, the session called for a shift from traditional funding methods to tailored approaches that focus on reducing financing costs in the digital and innovation sector and expanding risk-sharing and co-financing frameworks, thereby enabling greater collaboration among African institutions and partners.
This session, hosted by the African Alliance of Multilateral Financial Institutions (AAMFI) and its partners, is part of ongoing efforts to enhance Africa’s financial architecture and position African multilateral financial institutions as central players in the continent’s digital and economic transformation journey.
Distributed by APO Group on behalf of the African Alliance of Multilateral Financial Institutions (AAMFI).
Media contact:
Senite Afework
Communications and Program Manager
Email: safework@aamfi.org
The African Alliance of Multilateral Financial Institutions (AAMFI), also referred to as the African Club, is a coalition of African-owned and managed multilateral financial institutions focused on championing its members’ interests in global finance and promoting collaborative solutions to development financing challenges in Africa.
Established on February 17, 2024, during the African Union Summit in Addis Ababa, Ethiopia, AAMFI aims to bolster cooperation and coordination among its member countries in support of Africa’s sustainable development and integration objectives.
AAMFI unites Africa’s leading financial entities, including the African Finance Corporation (AFC), African Export-Import Bank (Afreximbank), Trade and Development Bank Group (TDB Group), and various others, collectively managing balance sheets exceeding US$70 billion to provide essential financing for trade, infrastructure, and development across the continent.
