The Africa Finance Corporation (AFC) has identified digital public infrastructure (DPI) as a critical enabler for unlocking the continent’s vast but underutilised capital, particularly among the 80% of the workforce operating in the informal economy.
In its 2025 State of Africa’s Infrastructure Report, the AFC argues that while Africa holds over $4 trillion in domestic capital, including pensions, insurance, and remittances, its full potential remains blocked by weak financial inclusion and a lack of digital infrastructure.
According to the report, digital platforms are proving to be the most effective on-ramps for integrating informal workers into the formal economy.
Mobile money, digital identity systems, interoperable payment platforms, and e-KYC tools are now seen as essential infrastructure, not just for convenience, but for enabling long-term savings, credit access, and insurance coverage at scale.
In Kenya, more than 45% of mobile money users now report using their accounts for savings, demonstrating the ability of simple, accessible platforms to turn everyday transactions into capital formation. Platforms like M-Pesa, combined with micro-pension schemes, are helping integrate informal workers into formal financial systems, many for the first time.
“The critical bottleneck is not just capital, it’s inclusion”. “Digital public infrastructure can bridge this gap and unlock billions in investable domestic resources.”
From Informality to Investability
With over 80% of Africa’s labour force working informally, most of their income and savings are invisible to the financial system. The AFC argues that formalising even the lower bound of Africa’s informal savings base could generate over $200 billion in new long-term capital, enough to significantly close infrastructure and housing finance gaps.
But reaching this group requires more than traditional banking. It requires public investment in foundational digital infrastructure that enables:
- Secure digital identity to verify and register users
- Mobile payments and savings apps with low transaction costs
- Interoperable systems for portability across providers
- Government-backed platforms to manage micro-pensions and insurance
- Data registries to link individuals to services and entitlements
Countries that have invested in these systems, such as Kenya, Ghana, and Rwanda, are already seeing higher financial inclusion rates and growth in formal savings channels.
Policy Recommendations
To fully realise this potential, the report calls on African governments to:
- Treat digital infrastructure as essential national infrastructure
- Expand mobile and broadband access in rural and underserved areas
- Invest in secure national digital ID systems
- Encourage private-public partnerships in fintech and digital finance
- Design policy frameworks that promote interoperability and inclusion
The AFC warns that unless digital inclusion is scaled across all income groups and regions, much of Africa’s capital will remain locked outside the formal system, undermining efforts to mobilise long-term resources for development.
