African Financial Institutions Demand Coordinated Financing Solutions to Accelerate Digital Transformation
African multilateral financial institutions, alongside policymakers and private sector leaders, are advocating for enhanced coordination and innovative financing strategies to facilitate the continent’s digital and technological transformation. This message emerged from a high-level session held on April 1, during the 58th Session of the Economic Commission for Africa Conference of African Ministers of Finance, Planning and Economic Development. The session was themed “Financing for Innovation: The Role of African Multilateral Financial Institutions in Accelerating Africa’s Technological and Economic Transformation.”
Key Developments in Financing Africa’s Digital Economy
The session convened senior representatives from various governments, multilateral financial institutions, and development partners. They discussed strategies to mobilize long-term, affordable capital for critical sectors such as digital infrastructure and artificial intelligence. These sectors are essential for driving productivity, job creation, and structural transformation across Africa.
Despite the rapid growth of Africa’s digital economy, participants highlighted that access to affordable, long-term financing remains a significant barrier. High capital costs, limited risk-sharing mechanisms, and insufficient early-stage financing are among the challenges that hinder investment in digital infrastructure and innovation ecosystems. These issues are exacerbated by gaps in project preparation and a scarcity of bankable investment opportunities.
Insights from Key Stakeholders
Hanan Morsy, Deputy Executive Secretary (Programme) and Chief Economist at the United Nations Economic Commission for Africa, stated that Africa’s innovation challenge is not a lack of ideas but rather a deficiency in long-term, affordable, and well-structured financing. She emphasized that addressing this issue is crucial for unlocking productivity and job creation across the continent.
Haytham Elmaayergi, Executive Vice President-Global Trade Bank at African Export-Import Bank, pointed out that the continent’s primary challenge is not a shortage of capital but rather a lack of bankable projects and the need for stronger institutional collaboration to scale investments.
Participants identified the need for improved project preparation and pipeline development as key priorities for unlocking large-scale financing. They also stressed the importance of adapting financing approaches through blended and risk-sharing structures, which combine guarantees, advisory services, and capital mobilization to align better with the risk-return profiles of technology and innovation-driven sectors.
The Call for Innovative Financing Models
Adeniran Aderogba, President and CEO of the Regional Maritime Development Bank, remarked on the complexities of structuring risk in the technology sector. He called for more creative financing models and dedicated funds to support early-stage innovation.
The discussions underscored the necessity for tailored financial instruments, including blended finance and co-financing mechanisms, to support the entire lifecycle of innovation—from early-stage development to scaling. Participants also noted that financing innovation must coincide with investments in enabling infrastructure and systems.
Robert Lisinge, Director of Technology, Innovation, Connectivity and Infrastructure at ECA, highlighted that technology and innovation extend beyond the digital realm. He emphasized the need for significant investments in a broader ecosystem that includes infrastructure, energy, and emerging technologies.
Strengthening Regulatory Frameworks and Collaboration
The session concluded with a strong call for moving beyond traditional financing approaches. Participants outlined several actionable solutions aimed at enhancing the financing landscape for digital and innovation sectors. These include:
- Reducing financing costs for digital and innovation sectors
- Expanding risk-sharing and co-financing mechanisms
- Strengthening project preparation and pipeline development
- Mobilizing long-term capital at scale
- Enhancing collaboration among African institutions and partners
Organized by the Alliance of African Multilateral Financial Institutions and its partners, the session is part of ongoing efforts to fortify Africa’s financial architecture and position multilateral financial institutions at the forefront of the continent’s digital and economic transformation.
The Alliance of African Multilateral Financial Institutions (AAMFI), also known as the Africa Club, was established to advance the interests of its member states in global finance and promote coordinated African solutions to development financing challenges. Launched on February 17, 2024, in Addis Ababa, Ethiopia, AAMFI aims to strengthen collaboration among its members to support Africa’s sustainable development and integration objectives.
AAMFI comprises leading African financial institutions, including the Africa Finance Corporation, African Export-Import Bank, Trade and Development Bank Group, and several others. Collectively, these institutions command a balance sheet exceeding US$70 billion, providing essential financing for trade, infrastructure, and development across the continent.
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Media Contact:
Ms. Senait Afework
Communication and Programme Manager
Email: safework@aamfi.org
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Published on 2026-04-09 21:15:00 • By the Editorial Desk
