As I prepare to write this, staring out over the busy Nairobi streets from a café that is part co-working space and part café, it is impossible not to get swept up in the currents of change sweeping across Africa. The continent is not only not lagging behind in terms of digital development – it is essentially pioneering into uncharted waters that could completely change global standards of innovation. The question for investors looking at this largely uncapitalized and undeveloped market isn’t whether to invest in Africa – it is how to invest smartly in Africa. Digital infrastructure in Africa is exploding, largely because of a young tech-savvy population and governments eager to make it happen. In this article, I will discuss the opportunities, approaches and pitfalls, highlighting current trends and data to inform what could be one of the best investment opportunities of our generation.
Africa’s digital evolution story is a complex one that is developing rapidly and effectively. The continent, with over 1.4 billion people, contains the fastest-growing youth population in the world, with many of them skipping straight to mobile and cloud-based solutions. Because of infrastructural inadequacies that have historically never been much of a potential hundred percent of value has never been experienced by the continent, but this landscape is changing quite significantly at the moment, and shrewd investors are becoming more cognizant of this fact. The digital economy here will grow to $712 billion by 2050, led by mobile money, data centers, and so forth. If you’re looking for a place to invest your capital where growth rates are exponential, you’ve found it.
The Booming Digital Environment in Africa
Let’s start with the numbers, because the numbers describe a picture. Africa is projected to have over 1 billion broadband users by 2030. This is an incredible jump given today’s numbers. Mobile money accounts exceeded 1.1 billion people, making it on par with the rest of the world in fintech adoption. In 2024, Africa alone added over 6.5 gigawatts of utility scale power, largely feeding digital networks. But here’s the crazy part – despite holding 18% of the world’s population, Africa has 1% of the world’s data center capacity – an incredible untapped market.
Front and center with live data in mid-2025, this velocity is only getting faster. Foreign direct investment in Africa grew 75% last year, primarily from mega infrastructure projects, such as projects made in Egypt. Excluding the stark reserves, foreign direct investment still grew at 12%, led by digital sectors.
The African Continental Free Trade Area (AfCFTA) is enhancing all of this, adding a unified market of 1.3 billion people where digital commerce can flourish. Governments are forging ahead with considerable public sector ambition; for example South Africa’s Smart Broadband 2025 plan accelerates and aims for 51% broadband penetration by the middle of decade and just days ago Nigeria launched yet another digital initiative called Investopedia (it aims to solve the $100 billion infrastructure gap in all of its states).
This is not hype – this is all real. I had a conversation with a telecom executive in Lagos recently and they said “We are not building for today. We are building for the AI economy of tomorrow.” Data centres are growing rapidly and global consumption is predicted to reach 1,000 terawatt-hours by 2026, and Africa is expected to occupy a larger proportion of that through shared infrastructure.
- Mobile Penetration Stats: Over 50% of Africans now have internet access via mobile phone, up from 40% five years ago.
- Economic Impact: Digital infrastructure could deliver $180 billion uplift to Africa’s GDP by 2025 (according to a recent analysis).
- Youth factor: 60% of the population is under 25 years of age, with digital adoption rates outpacing global averages by 20%.
These are all very strong indicators of a continent that is on the verge of a digital renaissance through significant private sector investment but being an investor here will require some degree of relying on local partners who understand how to work differently.
Now is the Time to Invest
Investing is all about timing and now is definitely the time for Africa’s digital infrastructure. In a world, post-COVID-19, we have all seen accelerated digital transformation, however, in Africa, this is taking place at warp speed, out of sheer necessity. Just look at the numbers; when additional payment and money transfer services were made available during COVID-19 lockdowns, transactions in mobile money skyrocketed to over $1.1 trillion on an annualized basis, introducing millions of economic participants into the formal economy overnight.
Current assessments identify an overall infrastructure funding gap of over $170 billion per annum, with the digital part of the infrastructure cycle including fiber optics and 5G networks at the forefront. The G20 is calling for domestic resource mobilization, yet the catalyst has to be private capital. Private equity is pouring into this space, and there is increasing data identifying record investment activity in telecoms and data projects. By way of example, the Africa Private Capital Association reports how shared digital infrastructure – pooled datacenters, APIs, etc. – is creating new pathways for investors.
On a geopolitical scale, Africa can take a neutral position in the context of tech rivalries occurring in the West and in China (that are mostly aligned with those regimes). China’s surge of investments into manufacturing and its digital networks is changing the region’s economic landscape i.e. moving from an aid donor economy to one based on the economic tracts of trade. Western firms are no longer just competing on commodities and raw materials, but rather with equity investments into start-ups, fibre towers, and everything in between.
A recent UN report sounds an alarm that if we don’t act swiftly, the digital divide becomes irrevocable. But the urgency is exactly what is attracting investors; the potential returns of closing that gap is potentially huge.
Live tweets and social media discussions show urgency. Just this week Ghana is in the spotlight for its reforms to digital finance and infrastructure in line with green jobs and labour policies attracting FDI. Ethiopia, Niger, Rwanda and Senegal are all highlights for growth of over 7% in 2025, off the backs of their tech infused economies.
You’re investing now to catch the early wave of what may develop into the next Silicon Valley experience, but with a distinctly African conversation and focus on inclusion and sustainability.
Key sectors for Investment
Digging deeper to find broad opportunities, not all digital infrastructure are the same. Here is a show of the sectors here your money can have maximum impact on the economy and people’s daily lives:
Broadband and connectivity
At the core are fibre-optic networks and tower infrastructure. It needs massive scaling, particularly as much of Africa has only patchy coverage. Investments in the rollout of 5 G will offer high returns as giant telecom providers like MTN make headway.
A government-initiated rural connectivity project has the prospect of yielding stable revenue through public-private partnership (PPP) arrangements.
- Statistics: Target of 51% broadband penetration in key markets is to be achieved by 2025.
Data Centers and Cloud Services - Forecast of Growth: There will be projection of 2 times possible capacity increase from now till year 2030 as a result of generative AI and e-commerce.
- Real Time Insight: Investments in sustainable data centers powered from renewables are trending as consumption is expected to fall within the two times level in 2026 much earlier than 2022.
Fintech and Mobile Money
This is the crown jewel of Africa, with platforms like M-Pesa revolutionizing finance.
- Market Size: The digital economy is projected to be $712 billion by 2050, much of it in fintech.
- Investment Angle: Look to back startups bidding to combine AI for credit scoring or blockchain for remittances.
Digital Public Infrastructure (DPI)
Countries are investing in digital IDs, payments, and data exchange systems. The AU-GSMA initiative commenced in 2023 to collaboratively address gaps across the continent.
- Benefit: In the model, scalability is a virtue, as it opens low barriers to entry for the investors through the formats of bonds or funds. Example: For e-governance, Nigeria is creating DPI opportunities to attract equity deals of $50 million.
These sectors are interrelated and will provide building blocks for the ecosystems through which investors can put together more diversified portfolios.
Investment Strategies
So where does one begin? This is a practical blueprint based on what the successful players do.
First, let’s see direct investments. Companies like Cassava Technologies raised $50 million from Development Finance Institutions to develop secure networks to enhance competition against global players.
Let’s summarize the steps for you:
- First, you might want to know the local laws and regulations—Ghana, for example, offers unique tax opportunities for tech infrastructure.
- Second, look for partnerships with established players, for example, MTN, Airtel, etc., and look for joint ventures.
- Finally, this is the final decade for sustainability, so green bonds for data centres powered by renewable sources are big for several investors.
Next we have ETFs and mutual funds. There will be funds focused on tech infrastructure in Africa. As an example, the Emerging Africa & Asia Infrastructure Fund, will provide long-term debt, going into the term of your working career.
Pros:
- Offers either a lower risk—due to diversification, or
- More likely, a safer avenue for the returns (more likely to be lower compared to the returns of direct investments).
Next we have venture capital to startups, and we do know that there were resilient amounts of funding raised in the African tech ecosystem in 2025, compared to the worldwide dips. Fintech and agritech companies raised all-time highs.
- In summary for future funding, look for accelerators and funds who specialize in investments in African startups—consider for example–focus on startup models that allow for scale and serve the local area.
- Real-time data indicate that there is a recovery in startup funding, with money moving towards AI/cybersecurity companies.
Last but not least, public and private partnerships (aka: PPPs). Events such as Africa PPP 2025 indicate $4 trillion worth of opportunities, with domestic capital being unlocked.
Reduce any currency risk with hedging; but always due diligence and country political viability first.
Examples and Case Studies
That which is real tends to breed inspiration more than anything else. Similarly back to Cassava Technologies; a $50 million direct equity investment allowed them to expand their fiber and data center operations across Africa, and ultimately roll out a secure telecommunication connection in the face of significant strategic competition.
By contrast the bullish expansions of MTN have consolidated investments worth billions and ushered in a new world of telecom and tech startups. In East Africa several recent private sector studies, including the work of PPIAF in financing digital infrastructure, have pointed to some models of use that improve sustainability.
Our reformed Ghana/2025 context are themselves alive case studies. The bold leadership moves towards digital finance has seen an influx of investments where reports of mobile users’ integrated platform saw $1.1 trillion in transactions.
The African Union’s recent developments related to the digital public good (DPI) rollout for digital IDs and digital payment solutions has seen substantial investments inflow, in particular countries like Rwanda with their innovation hubs and startups.
All these stories demonstrate that patient and targeted capital investment does pay off and in many cases generates returns upwards of 20–30% in fast-growing areas.
Managing Risks and Challenges
For any investment there are hurdles to navigate, Africa’s technology sector is not without its share. As highlighted previously, political issues in some regions create a heightened risk assessment, as does our so-called ‘regulatory flip-flop’. Often countries face external infrastructure which includes intermittent power supply issues that disable scaling possibilities. Government departments or uniformity in labour markets have also created a talent and skills shortage as competition for the same skills is accepted as the new normal or plugged in through a gig economy incentive.
Venture capitalists and some sector players emphasize that although Silicon Valley’s playbook is useful, the local contexts and nature of external investors suggest a shift or at least counterbalancing view. Also, there are human rights issues; the nature of big tech operations and the data privacy challenges are often only vague definitions or flawed discussions.
Debt pressures and climate risks are emerging; global trade tensions are influencing the availability of funding.
To navigate:
Going well beyond the present dominant market relations will help diversify sources of supply to secure the flow of products for the purpose of Kenya, South Africa, the Republic of Ghana, and others.
- Make contacts with the local ones: Unbond your governance risk by partnering with the local African firms.
- Go with impact: Investing in equitable technology lowers your reputational risks.
- Mitigate in real time: Monitoring platforms from South Africa for developments in the changed policy regime; just had a long conversation around X, and provides flexible ownership models for Starlink.
Future Outlook
Looking forward, Africa’s digital infrastructure is on the verge of explosive growth. Projections for 2025 show 3.9% continental GDP growth, as technology sectors grow even faster. Investing in AI infrastructure will be robust, and there are calls for local capacity growth to avoid becoming totally dependent on large tech players.
Most recently, in August 2025, there was a lot of real-time analysis appearing , some of the hotspots included: Nigeria, the Investopedia platform there is attracting infrastructure bids and Ghana has provided policy reform for an FDI avalanche. The UK-Africa Business Summit, provided quotes about the upcoming energy and digital investments , and the UN’s disclaimers about the global divides in AI hence the urgency.
By 2030 digital trade may add $3 trillion, and with AfCFTA full blast it will be $828 billion per annum. For investors zeroing in on technology integrated with renewable energy sources will clearly lead, as technology and operating models become shared models that enjoin the technology gap.
In summary, the future remains bright—but it will be bold and key information.
Conclusion
Investing in Africa’s digital infrastructure is more a revolutionizing and changing the future of a continent than just guaranteeing returns. From the digital towers that sprout in rural villages to the data centers along which A.I. developments will flow, this opportunity is greater than the African savannas. Every time I traveled around and conversed with entrepreneurs and policy leaders, the same thing came up; this continent is not waiting for the world; Africa is creating an avenue all for itself.
If you have a desire to join, you start small, understand that environment and think long. The financial returns as well as the social could turn out to be transformational. After all, in a world that is rapidly advancing toward going digital, placing your bet in Africa’s future could just be the best investment you will ever make.
