The United States International Development Finance Corporation (DFC) is committing to mobilise up to $400 million in private capital to expand Africa’s digital infrastructure, following its largest equity investment to date in the West Indian Ocean Cable Company (WIOCC).
The investment will support the expansion of fibre networks, subsea cables and data centre capacity across more than 30 African countries, with the objective of improving internet connectivity for businesses, households and entrepreneurs.
Speaking at a media briefing, Jim Kelly, Vice President for the Office of Global Business Development at the DFC, said the investment reflects the agency’s strategy of using public capital to attract additional private financing into infrastructure projects with significant economic potential.
“Our investment will mobilize up to 400 million in private capital during its investment period,” he said.
Kelly explained that improved digital infrastructure could create opportunities beyond the telecommunications industry by helping businesses operate more efficiently, supporting entrepreneurship and expanding employment opportunities.
Africa’s digital infrastructure remains underdeveloped relative to its population, with Kelly noting that the continent accounts for nearly 20% of the world’s population but holds less than 1% of global data centre capacity.
He also estimated that fewer than 40% of Africans were using the internet based on available statistics from the preceding years, highlighting the scale of the connectivity challenge facing the continent.
The infrastructure deficit limits businesses’ access to reliable internet services, digital financial platforms, cloud computing and other technologies that are increasingly essential for competitiveness in modern markets.
Kelly said the WIOCC investment would help connect international networks, fibre infrastructure and last-mile broadband services to improve the quality and reliability of connectivity across the region.
The DFC also expects its investment to attract additional financing from commercial lenders, extending the funding available for digital infrastructure development.
Kelly cited the agency’s ability to offer different financing instruments, including direct loans, equity investments, guarantees and political risk insurance, as important tools for addressing financing gaps that might otherwise prevent infrastructure projects from attracting commercial investors.
He stressed that the corporation does not intend to replace private capital but rather complement it by taking on financing gaps that commercial institutions may be reluctant to address.
“We are not here to compete with private capital. Our role is to really complement what private capital can do and not to crowd out commercial investors,” he said.
The corporation’s approach also allows it to provide longer-term financing, including loans extending up to 25 years, giving infrastructure projects more time to generate returns.
As digital services become more central to business operations, the investment presents an opportunity to strengthen the infrastructure supporting Africa’s growing digital economy while attracting additional international capital into the sector.
