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African multilateral financial institutions, policymakers and private sector leaders have called for more coordinated and innovative financing approaches to accelerate the continent’s digital and technological transformation, officials said.
The call came during a high-level session held on April 1 on the sidelines of the 58th session of the United Nations Economic Commission for Africa conference of African ministers of finance, planning and economic development.
Participants said that while Africa’s digital economy was expanding rapidly, access to affordable long-term capital remained a major constraint, limiting investment in digital infrastructure, artificial intelligence and innovation-led sectors.
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“Africa’s innovation challenge is not a shortage of ideas, but a shortage of long-term, affordable, and well-structured financing,” said Hanan Morsy, deputy executive secretary and chief economist at the Economic Commission for Africa (ECA).
Officials highlighted persistent barriers including high costs of capital, currency risks, limited risk-sharing mechanisms and a shortage of early-stage financing. Weak project preparation and a lack of bankable investment opportunities were also cited as key challenges.
Haytham Elmaayergi of the African Export-Import Bank said the issue was less about capital availability and more about viable projects and coordination.
“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,” he said.
Participants called for stronger project preparation, improved investment pipelines and deeper collaboration among financial institutions to unlock large-scale funding.
They also urged wider use of blended finance and risk-sharing tools, combining guarantees, advisory services and capital mobilisation to better align with the risk profiles of technology-driven sectors.
Adeniran Aderogba, head of the Regional Maritime Development Bank, said innovation financing required new approaches.
“In the technology space, risk is harder to structure. We need more creative financing models and dedicated funds to support early-stage innovation,” he said.
The meeting stressed that financing must extend beyond digital technologies to include broader enabling systems such as energy and infrastructure.
Robert Lisinge, a director at ECA, said innovation ecosystems require significant investment across multiple sectors.
The session concluded with a call to reduce financing costs, expand co-financing mechanisms, strengthen project pipelines and mobilise long-term capital, while improving coordination among African institutions.
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