A new $100 million investment in digital infrastructure signals a turning point in Sub-Saharan Africa’s economic transformation. In a move that underscores the growing strategic importance of digital infrastructure to emerging markets, the International Finance Corporation (IFC), a member of the World Bank Group, has committed $100 million in debt financing to Raxio Group. The agreement is aimed at accelerating the expansion of Raxio’s regional data centre network across Sub-Saharan Africa.
This investment highlights a fundamental shift in how economic development is being powered in the region. Rather than relying solely on traditional drivers such as agriculture or commodities, African economies are increasingly positioning themselves to harness the potential of digital technology. That shift, however, depends on core infrastructure, specifically, data centers, that has so far remained limited in availability and unevenly distributed.
Raxio, founded in 2018 by investment firm Roha Group, has positioned itself as one of the few companies actively addressing this infrastructure gap. Its model focuses on building Tier III-certified, carrier-neutral colocation facilities in underserved but high-potential markets including the Democratic Republic of Congo, Ethiopia, Mozambique, Côte d’Ivoire, Tanzania and Angola.
Sarvesh Suri, IFC’s Regional Industry Director for Infrastructure and Natural Resources in Africa, said the investment reflected a growing recognition that digital infrastructure is now a critical enabler of broader development goals. “Raxio’s business model shows how digital infrastructure can empower businesses, governments and communities to thrive in the digital economy,” Suri said. “This partnership is set to strengthen Africa’s digital ecosystem and catalyse further investments and regional integration, building a more inclusive and sustainable future.”
The strategic significance of this expansion lies not only in the facilities themselves but in the services they enable. From artificial intelligence and cloud computing to digital payments and e-government platforms, these technologies are increasingly essential to Africa’s economic resilience and growth. The continent’s youth-driven population, urbanisation trends and increasing internet penetration mean that demand for such services will only accelerate in the coming years.
But while the narrative around Africa’s tech potential has long been optimistic, actual investment in physical digital infrastructure has lagged. Raxio’s move to fill this gap comes with operational challenges, complex logistics, fragile power grids and limited last-mile connectivity among them. However, the company’s approach is deliberately focused on long-term sustainability. Facilities are designed to operate around the clock with high resilience and integrate renewable energy where possible, aiming to lower environmental impact and address the growing energy intensity of data services.
Robert Skjødt, Chief Executive of Raxio Group, said the funding will allow the company to double its deployment of data centres over the next three years. “This funding from IFC is a powerful endorsement of Raxio’s vision and operational excellence,” Skjødt said. “It will allow us to bring critical infrastructure to the regions that need it most and attract further investment as we continue to grow.”
In countries such as the Democratic Republic of Congo, where Kinshasa is emerging as a digital hub, or Côte d’Ivoire, where Raxio is helping establish a data corridor for Francophone West Africa, the firm is enabling local businesses to access reliable IT infrastructure for the first time. This is not just a matter of convenience but of strategic importance, as small and medium-sized enterprises across Africa increasingly require digital tools to compete and connect with global markets.
IFC’s investment, which also includes concessional finance from the GROW Facility and the IDA Private Sector Window, reflects a broader international push to support digital inclusion through blended finance. Previous financial backing for Raxio has come from Proparco, the Emerging Africa Asia Infrastructure Fund, and equity investors including Meridiam and Roha Group.
With this latest backing, Raxio is now in a stronger position to scale up its operations in a region where digital infrastructure is quickly becoming as critical to prosperity as roads or electricity. The move also sets a precedent for how multilateral lenders, private capital and technology firms can collaborate to lay the groundwork for an inclusive digital economy, one data centre at a time.
