Despite facing challenges in 2022, Africa’s digital economy is still expected to grow. The continent has seen efforts from both private and public sectors to develop consumer-facing products, but the necessary infrastructure to support them has been neglected.
A report by Endeavor Nigeria estimates that the market size of Africa’s digital economy is currently $115 billion and is projected to reach $712 billion by 2050. However, the report also states that this growth is still in its early stages, with mobile penetration at only 30-40%.
The lack of data centres on the continent is a significant issue, with only 86 in 15 countries, mostly located in South Africa, Egypt, Nigeria, and Kenya.
To address this shortage, the United States International Development Finance Corporation has loaned $30 million to Africa Data Centers (ADC) to build a new facility, which will increase the company’s capacity from 4.5 megawatts to 15 megawatts.
This loan is part of a larger $300 million loan that will be disbursed over the next few years. This project demonstrates the potential for growth in Africa’s digital infrastructure through increased public-private partnerships.
Source: TechCabal
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