Raxio backed by World Bank in $100mln Africa digital push

The International Finance Corporation (IFC), the private investment arm of the World Bank, is investing $100 million in Raxio Group to boost data centre capacity across Africa. The continent's digital demand is rising sharply, with mobile data usage increasing by about 40% annually, outpacing global averages. Despite this demand, Africa holds less than 1% of global data center capacity. The funding represents the IFC's largest investment in Africa's digital economy to date, underscoring a growing interest from global institutions in the continent's burgeoning digital sector. Raxio, which launched its first data center in Uganda in 2021, already operates facilities in several African countries including Angola, Ivory Coast, Mozambique, Ethiopia, and the Democratic Republic of Congo. The infusion of funds aims to further expand Raxio's presence and support the continent's economic growth by enhancing digital connectivity and infrastructure. These developments come amidst global geopolitical tensions affecting tech diversification. While Africa offers opportunities, challenges such as unreliable power, regulatory complexities, and political instability remain, highlighting the importance of development finance to mitigate risks for long-term private capital investments.