African multilateral financial institutions, alongside policymakers, development partners, and private sector leaders, have called for more coordinated, innovative, and well-structured financing strategies to advance Africa’s digital and technological transformation.
The call emerged during a high-level session held on April 1 on the sidelines of the 58th Session of the Economic Commission for Africa Conference of African Ministers of Finance, Planning and Economic Development. The session was held under the theme, “Financing for Innovation: The Role of African Multilateral Financial Institutions in Accelerating Africa’s Technological and Economic Transformation.”
The session brought together senior officials from governments, African multilateral financial institutions, and development partners to discuss how to unlock long-term, affordable financing for digital infrastructure, artificial intelligence, and innovation-led sectors critical to driving productivity, job creation, and structural transformation.
However, despite the rapid expansion of Africa’s digital economy, participants noted that access to affordable long-term capital remains a major hurdle.
High financing costs, limited risk-sharing frameworks, currency risks, and insufficient early-stage funding continue to constrain investment, compounded by weak project preparation and a shortage of bankable opportunities.
Opening the session, Hanan Morsy, Deputy Executive Secretary (Programme) and Chief Economist at the United Nations Economic Commission for Africa, reiterated, “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.”
Participants underscored the need to close the disconnect between capital availability and actual investment in innovation-led sectors.
Haytham Elmaayergi, Executive Vice President-Global Trade Bank at African Export-Import Bank, added , “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.”
Participants identified stronger project preparation, improved pipeline development, and closer institutional coordination as key to unlocking large-scale financing.
They also emphasized the importance of adopting blended and risk-sharing financing models that combine guarantees, advisory services, and capital mobilization to better match the risk-return dynamics of technology and innovation-led sectors.
“In the technology space, risk is harder to structure. We need more creative financing models and dedicated funds to support early-stage innovation,” noted Adeniran Aderogba, President and CEO of the Regional Maritime Development Bank.
The discussion also highlighted the need to expand the use of tailored financial instruments, including blended finance and co-financing mechanisms, as well as dedicated innovation funding to support the full lifecycle of innovation from early-stage development to scale. It also underscored that financing innovation must be complemented by sustained investment in enabling infrastructure and systems.
Robert Lisinge, Director of Technology, Innovation, Connectivity and Infrastructure at ECA, said, “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.”
However , participants emphasized the importance of strengthening regulatory frameworks, digital infrastructure, and innovation ecosystems to support scalable and sustainable investment. The session concluded with a strong call to move beyond traditional financing models toward more coordinated and practical solutions that can reduce financing costs for digital and innovation sectors, expand risk-sharing and co-financing mechanisms, strengthen project preparation and pipeline development, mobilize long-term capital at scale, and enhance collaboration among African institutions and partners.
Organized by the Alliance of African Multilateral Financial Institutions and partner institutions, the session contributes to wider initiatives aimed at strengthening Africa’s financial system and elevating African multilateral financial institutions in driving the continent’s digital and economic transformation.
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