Introduction

The achievement of a robust digital infrastructure in Africa will require significant financing for the development of physical assets including data centres, macro towers, small cells, fibre optic networks and marine cables. Studies estimate that Africa’s infrastructure finance needs a total of US$130-US$170 billion a year, with a mammoth financing gap between US$68 billion and US$108 billion[1]. However, to ensure long-term stability and development, African countries will need to factor in resilience in their bid to finance digital infrastructure, by exploring investments that can address the infrastructure deficit while mitigating climate change, addressing social issues and contributing to a more sustainable future. One might wonder why this content promotes sustainable financing as a viable solution in relation to digital infrastructure development in Africa.

The integration of sustainable measures into digital infrastructure projects (in accordance with the relevant sustainable financing instruments) helps to effectively minimize the carbon footprint of digital infrastructure businesses, thereby mitigating environmental impairment across Africa, preserving the African ecosystem and allowing digital infrastructure businesses in Africa to contribute to global efforts to alleviate the effects of climate change. Sustainability is increasingly becoming a priority in the strategies of top cloud service providers with hyperscalers like Amazon Web Services, Microsoft and Google investing in sustainability initiatives to achieve net zero emissions within the decade[2].

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[1]. Africa Development Bank (2023) Public-private partnerships needed to bridge Africa’s infrastructure development gap. Available at: https://www.afdb.org/en/news-and-events/public-private-partnerships-needed-bridge-africas-infrastructure-development-gap-65936

[2] Marcus Law (2024) Sustainability is Central to Hyperscalers’ Strategies. Data Centre Magazine, April 03.