This figure accounts for roughly 23% of Africa’s total annual infrastructure needs, estimated at $155 billion, though it remains lower than investments required for roads ($50 billion) and railways ($38 billion).
The report attributes this progress to significant investments over the past decade, with fiber optic networks expanding from approximately 466,000 km in 2010 to 1.3 million km in 2024 — quadrupling internet access across the continent.
Despite advances, challenges like affordability persist. In 2024, the average monthly broadband cost in 18 African countries was $56, compared to $46 in Latin America and the Caribbean, and just $17 in parts of Asia. The report emphasizes that strengthening digital infrastructure—such as enhancing public digital services, simplifying customs, and expanding cross-border digital trade — can further boost economic integration and support renewable energy and SME access to finance.
Given limited public finances and rising sovereign debt — where between 2019 and 2023, African governments allocated seven times more resources to debt servicing than infrastructure — the report stresses the crucial role of private sector investment. In fact, during 2016-2020, private investments dominated digital infrastructure commitments, accounting for 55%, compared to just 1% in water and 7% in transport.
The report notes that investments in railways and fiber optic cables are profitable, with railways offering the highest returns despite higher costs, and fiber optics providing a low-cost, essential backbone for digital transformation. A supportive regulatory environment could further accelerate private sector involvement, unlocking Africa’s infrastructural potential for sustainable growth.
