World Bank Backs Africa’s Digital Growth with $100M Raxio Investment

The World Bank’s private investment arm, the International Finance Corporation (IFC), is making a significant push into Africa’s digital economy with a $100 million investment in regional data centre developer and operator Raxio Group.

This marks the IFC’s largest debt funding investment in African data infrastructure to date, supporting the expansion of data centres in Ethiopia, Angola, Mozambique, Ivory Coast, and the Democratic Republic of Congo (DRC).

With Africa’s mobile data usage growing by 40% annually, nearly double the global average, the demand for robust digital infrastructure is skyrocketing. However, Africa still accounts for less than 1% of global data centre capacity, making investments like this crucial for economic and technological advancement.

Why Is the World Bank Investing in African Data Centres?

According to Sarvesh Suri, IFC’s regional industry director for infrastructure and natural resources in Africa, improving digital connectivity and strengthening infrastructure are vital for sustaining economic growth across the continent.

“Data centres and overall digital connectivity are an important area of focus for the IFC,” said Suri.

By investing in Raxio’s tier-3 data centres, the IFC aims to:

• Reduce digital costs by enabling local data hosting.

• Improve internet speeds and reliability for businesses and consumers.

• Enhance cybersecurity and regulatory control by allowing governments to store data locally.

Africa’s Growing Appeal for Tech and Cloud Investors

Africa is fast becoming a battleground for global cloud computing giants like Amazon Web Services (AWS), Microsoft Azure, and Huawei, all of which are expanding their presence through partnerships and infrastructure projects.

Despite this surge, most data hosting still relies on Europe and South Africa, creating inefficiencies for businesses in emerging markets. Raxio’s expansion aims to change that by bringing world-class data centres closer to growing digital hubs.

“We see strong interest and support from governments that want this digital transformation to happen,” said Raxio Group CEO Robert Skjodt.

Challenges in Building Data Centres in Africa

While Africa presents tremendous opportunities, expanding data infrastructure in frontier markets comes with risks:

• Unreliable power supply in many regions.

• Complex regulatory environments that slow down investment.

• Political instability that can deter commercial players.

To address these challenges, development finance institutions like the IFC play a crucial role in de-risking early investments, making them attractive for long-term private capital.

“We provide the right financial instruments to reduce risks and ensure that these investments are sustainable, profitable, and beneficial to the countries,” added Suri.

The Future of Africa’s Digital Economy

With this latest investment, Raxio aims to establish operations in 10 African countries, creating a foundation for faster, more reliable, and locally hosted digital services.

As governments, businesses, and global tech giants recognize the potential of Africa’s digital economy, investments in data infrastructure are expected to accelerate, unlocking new opportunities for innovation, job creation, and economic growth.

{Source Times Live}

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