Africa’s digital revolution is gathering pace, but the financing needed to sustain it remains uneven, fragmented, and often out of reach.
To bridge this gap, African multilateral financial institutions, policymakers, development partners, and private sector leaders are calling for a more coordinated, innovative, and better-structured financing approach to support Africa’s digital and technological transformation.
That was the central message from policymakers, financiers and development partners who convened on the sidelines of the 58th session of the United Nations Economic Commission for Africa Conference of African Ministers of Finance, Planning and Economic Development, held in Morocco in April 2026.
Their conclusion was clear: Africa does not lack capital—it lacks the right kind of capital, deployed in the right way.
From artificial intelligence to digital infrastructure, the continent’s innovation sectors are expanding rapidly. Yet, access to affordable, long-term financing remains a major bottleneck, constraining growth and limiting impact.
“Africa’s innovation challenge is not a shortage of ideas,” said Hanan Morsy, UN ECA’s Deputy Executive Secretary and Chief Economist, “It is a shortage of long-term, affordable, and well-structured financing.”
That gap, experts say, is holding back productivity gains, job creation and broader economic transformation.
Capital vs opportunity
Africa’s financial landscape is not devoid of resources. In fact, speakers at the event repeatedly emphasized a paradox: capital exists, but it is not flowing into innovation-driven sectors at the required scale.
According to Haytham Elmaayergi of the African Export-Import Bank, one of the continent’s leading multilateral lenders, the issue lies in the pipeline of viable investments.
“One of Africa’s key challenges is not a lack of capital, but a shortage of bankable projects and stronger institutional collaboration to scale investment,” he said, pointing to weak project preparation and limited institutional coordination as key constraints.
This disconnect is further compounded by high borrowing costs, currency volatility, and insufficient mechanisms to share risk—factors that deter both public and private investment.
For early-stage innovators, the challenge is even more acute. Venture financing remains thin, and traditional lenders are often reluctant to support projects perceived as high-risk.
“In the technology space, risk is harder to structure,” said Adeniran Aderogba, head of the Regional Maritime Development Bank, “we need more creative financing models and dedicated funds to support early-stage innovation.”
Rethinking how Africa finances innovation
Participants agreed that solving these challenges will require a shift away from traditional financing approaches toward more flexible, blended models.
Blended finance—combining public and private capital, guarantees and technical support—was highlighted as a critical tool to reduce risk and attract investment into emerging sectors. Co-financing arrangements and tailored instruments that reflect the unique risk-return profile of digital investments are also gaining traction.
But financing alone is not enough.
“Technology and innovation go beyond digital,” noted Robert Lisinge of UNECA. “We are talking about a broader ecosystem—including infrastructure, energy, and emerging technologies.”
This broader lens underscores the need for complementary investments in enabling systems: reliable electricity, robust connectivity, and supportive regulatory frameworks. Without these, even well-financed projects struggle to scale.
The role of African institutions
At the center of the conversation was the growing importance of African-led financial institutions in shaping the continent’s development trajectory.
The Alliance of African Multilateral Financial Institutions—also known as the Africa Club—has emerged as a key platform for coordination. Established in 2024, the alliance brings together major African financial institutions with a combined balance sheet exceeding $70 billion.
Its members—including Afreximbank, the Africa Finance Corporation, and the Trade and Development Bank—are increasingly seen as critical players in mobilizing capital for large-scale development projects.
By strengthening collaboration among these institutions, participants said, Africa can better align financing with its strategic priorities and reduce reliance on external funding models that may not fully reflect local realities.
From dialogue to delivery
The Tangier discussions ended with a strong call for action: move beyond diagnosis and toward implementation.
Key priorities include reducing the cost of capital, expanding risk-sharing mechanisms, improving project preparation, and mobilizing long-term funding at scale. Equally important is strengthening collaboration among governments, financial institutions and development partners.
For Africa’s digital transformation to deliver on its promise, participants agreed, financing must become more coordinated, more innovative—and more responsive to the continent’s realities.
The stakes are high. With one of the world’s youngest populations and a rapidly expanding digital economy, Africa has a unique opportunity to leapfrog traditional development pathways.
But as the Tangier meeting made clear, realizing that potential will depend not just on how much money is available—but on how effectively it is used.
