Financing ICT and digitalisation in Africa: Current trends and key sustainability issues

Increasingly recognised as a pivotal infrastructure for inclusive economic development and social justice in Africa, information and communication technology is a fundamental component of the continent’s infrastructure budget. DFIs, such as the World Bank and the African Development Bank, have long included digital infrastructure and connectivity projects as one of the portfolios that receive financial support. Nevertheless, the investment landscape for sustainable information and communication technologies in Africa remains poorly understood. The availability of data is inconsistent, mirroring a broader knowledge problem across the entire infrastructure finance sector (see Cirolia, Pieterse & Pollio, 2022). Moreover, issues of sustainable investment are by nature of digital infrastructure much less visible and debated than in related sectors of mobility or energy. This paper is, therefore, aimed at i) highlighting the different components of infrastructure investment in information and communication technologies, ii) showing that the value chain is complex and that different investment patterns and bottlenecks need to be recognised across the sector, and iii) identifying key sustainability issues that deserve attention for digital infrastructure as much as for other types of technical systems. To do so, in this paper, four sections and a tentative list of policy implications linking sustainability concerns to the financial design of information and communication technology infrastructure are featured.