African multilateral financial institutions and policymakers are calling for a shift toward more coordinated and innovative financing structures to unlock investment in the continent’s fast-growing digital economy.
The push emerged from a high-level session held on the sidelines of the 58th Conference of African Ministers of Finance, Planning and Economic Development organized by the United Nations Economic Commission for Africa, where officials warned that current financing models are failing to support technology-driven growth.
Participants said limited access to affordable, long-term capital continues to constrain investment in digital infrastructure, artificial intelligence and innovation ecosystems, despite rising demand and expanding market opportunities.
“Africa’s innovation challenge is not a shortage of ideas, but a shortage of long-term, affordable, and well-structured financing. Addressing this will be critical to unlocking productivity, job creation, and structural transformation across the continent,” said Hanan Morsy, Deputy Executive Secretary (Programme) and Chief Economist at the Economic Commission for Africa.
The discussions highlighted structural barriers including high borrowing costs, currency volatility and limited risk-sharing frameworks, which have discouraged private sector participation and slowed the development of bankable projects. Executives from African financial institutions said the issue extends beyond capital availability to the quality of investment pipelines.
“One of Africa’s key challenges is not a lack of capital, but a shortage of bankable projects and stronger institutional collaboration to scale investment,” said Haytham Elmaayergi of the African Export-Import Bank.
Participants pointed to gaps in project preparation and weak coordination among institutions as key factors limiting the flow of funds into innovation-led sectors. Calls were made for wider use of blended finance and risk-sharing instruments, including guarantees and co-financing mechanisms, to better align with the risk-return profiles of early-stage technology investments.
“In the technology space, risk is harder to structure. We need more creative financing models and dedicated funds to support early-stage innovation,” said Adeniran Aderogba. The session also stressed that financing innovation requires parallel investment in infrastructure, including energy and connectivity, to support digital ecosystems at scale.
“Technology and innovation go beyond digital. We are talking about a broader ecosystem, including infrastructure, energy, and emerging technologies, all of which require significant investment,” said Robert Lisinge.
Participants called for reforms to strengthen regulatory frameworks, expand digital infrastructure and improve collaboration among African institutions and development partners.
The meeting, organized by the Alliance of African Multilateral Financial Institutions and its partners, forms part of broader efforts to position African lenders at the center of financing the continent’s technological and economic transformation.
