Africa is mobilising both domestic savings and international partnerships to fund critical infrastructure and digital projects, with new deals highlighting the continent’s shift toward sustainable and self-reliant development.
AFC and Italy back Lobito Corridor
The Africa Finance Corporation (AFC) is preparing to sign a $320 million financing deal with Italy to support the Lobito Corridor. The strategic transport link connects mineral-rich regions in Zambia and the Democratic Republic of Congo with Angolan ports, offering an alternative to existing routes dominated by China. The agreement will not only boost mineral exports but also strengthen AFC’s broader lending capacity across the continent.
World Bank invests in digital capacity
The World Bank’s International Finance Corporation (IFC) has announced a $100 million investment in Raxio Group, its largest digital infrastructure commitment in Africa. The funding will expand data centres in six countries, supporting the surge in mobile data use and addressing the continent’s shortage of reliable digital infrastructure. Enhanced connectivity is expected to lower costs and improve cybersecurity while positioning Africa as a more competitive digital market.
Hydropower ambition in Mozambique
Mozambique has launched the $6 billion Mphanda Nkuwa hydropower project, the largest in southern Africa in more than 50 years. Backed by the World Bank, the project is expected to generate thousands of megawatts of electricity and help close the region’s significant power deficit. Scheduled for completion in 2031, the initiative aims to provide nationwide electrification while contributing to regional energy trade.
Mobilising Africa’s own assets
Alongside international financing, the AFC continues to push for greater use of Africa’s domestic capital. The corporation estimates the continent holds around $4 trillion in assets, much of it in pension funds and reserves currently invested abroad. Redirecting even a portion of these resources into infrastructure could provide the long-term capital needed to drive transformation while reducing dependence on external debt.
Outlook for growth
These developments signal a more balanced financing model for Africa’s future, combining domestic mobilisation with targeted external partnerships. Success will depend on political will, transparent governance, and the ability to structure projects that attract both local and international investors. If achieved, Africa’s infrastructure, digital capacity, and renewable energy base could expand rapidly, creating jobs and fostering sustainable growth.
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