TANGIER, Morocco, April 9/APO Group: African multilateral financial institutions, policymakers, development partners, and private sector leaders have urged for more coordinated, innovative, and better-structured financing approaches to help support Africa’s digital and technological transformation.
This was the outcome arising from a high-level session held on April 1 on the sidelines of the 58th Session of the Economic Commission for Africa Conference of African Ministers of Finance, Planning and Economic Development. The event, hosted by the Alliance of African Multilateral Financial Institutions and partners held under the theme “Financing for Innovation: The Role of African Multilateral Financial Institutions in Accelerating Africa’s Technological and Economic Transformation.”
The session brought together senior representatives from governments, African multilateral financial institutions, and development partners to assess the mobilization of long-term, affordable capital for digital infrastructure, artificial intelligence, and innovation-led sectors—critical drivers of productivity, job creation, and structural transformation.
Despite the rapid expansion of Africa’s digital economy, participants underscored that access to affordable, long-term financing remains a binding constraint.
High costs of capital, limited risk-sharing mechanisms, currency risks, and insufficient early-stage financing continue to impede investment across the digital infrastructure and innovation ecosystems. These challenges are further compounded by gaps in project preparation and the limited availability of bankable investment opportunities.
During the opening remarks, the Deputy Executive Secretary (Programme) and Chief Economist at the United Nations Economic Commission for Africa, Hanan Morsy, commented: “Africa’s innovation challenge is not a shortage of ideas, but a shortage of long-term, affordable, and well-structured financing. Addressing this will be critical to unlocking productivity, job creation, and structural transformation across the continent.”
While the Executive Vice President-Global Trade Bank at African Export-Import Bank Haytham Elmaayergi, noted: “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.”
Strengthening project preparation, improving pipeline development, and deepening coordination across institutions were identified as key priorities to unlock large-scale financing.
The participants also emphasised the need to adapt financing approaches through blended and risk-sharing structures, combining guarantees, advisory services, and capital mobilisation to better align with the risk-return profiles of technology- and innovation-driven sectors.
The participants also emphasised the importance of buttressing regulatory frameworks, digital infrastructure, and innovation ecosystems to enable scalable and sustainable investment.
The session concluded with a strong call to move beyond traditional financing approaches toward more coordinated and practical solutions that can:
- Reduce financing costs for digital and innovation sectors
- Expand risk-sharing and co-financing mechanisms
- Strengthen project preparation and pipeline development
- Mobilize long-term capital at scale
- Enhance collaboration among African institutions and partners
