How Africa is harnessing technology to leapfrog towards green growth

​​In 2024, Africa’s digital payment networks surpassed 1.1 billion mobile users, facilitating over $1.1 trillion in transactions, a milestone that integrated millions into the global economy. As the world races into the intelligent age, Africa’s digital transformation is not just keeping pace; it is leapfrogging global standards.

Across the globe, regions are transforming rapidly: Latin America’s fintech sector saw funding surge 73% in 2024, cementing its role as a financial innovation hub, while Southeast Asia’s expanding AI talent pool accelerates cross-border collaboration. This tech-driven globalization, with a sharp focus on sustainability, is fostering unprecedented inclusivity, dynamism and interconnectedness.

The African region stands at the heart of this transformation, serving as a testing ground for innovative green growth guided by the African Union’s Digital Transformation Strategy (2020–2030). Projections show Sub-Saharan Africa's economic growth at 3.5% in 2025 and 4.3% from 2026 to 2027. Integration into global value chains, however, remains below 15% of GDP, a critical bottleneck highlighting the vast untapped potential and the urgent structural challenges the region must overcome to fully realize its digital and green transformation.

With 18% of the world’s population and a median age of 19, Africa has a young, fast-growing workforce. Nigeria alone holds 2.8% of the world’s population, representing untapped demographic potential. Its abundant reserves of cobalt, lithium, graphite and rare earths are foundational for digital and green industries. As AI and digital demand soar, investment in cloud and resilient, sustainable energy systems becomes essential for Africa’s ambitions.

Digital transformation and green investment are converging to reshape Africa’s economic future.

Only 37% of Africa’s population was online in 2023, far below the global average of 67%, highlighting the need for accelerated digital inclusion, but there are signs that this is already happening. By 2030, projections show Sub-Saharan Africa will have 751 million unique mobile subscribers. Kenya’s M-Pesa serves over 40 million users and is expanding regionally. Ghana and Nigeria are leveraging digital IDs and AI platforms to boost agricultural productivity and food security.

On the green front, Morocco’s Noor Solar Complex and Rwanda’s renewable energy initiatives lead, while Ethiopia’s eco-industrial parks model low-carbon, sustainable supply chains. Rwanda’s Zipline drones deliver medical supplies to remote clinics, slashing delivery times and reducing blood wastage by two-thirds. And, in Nigeria, payments infrastructure provider Flutterwave processes over 500,000 daily transactions for more than one million businesses and is valued at $3 billion.

Despite the gains, major challenges remain.

• The digital divide: Internet penetration in Sub-Saharan Africa averages just 27%. While Kenya and South Africa lead digitally, many countries—such as Chad and Niger—remain far behind.

• Trade and logistics: Africa’s logistics performance is well below OECD levels. Border delays and inefficiencies drive up export costs, undermining competitiveness.

• Energy and sustainability: The continent invests heavily in fossil fuels, while clean energy is underfunded. Africa needs over $200 billion yearly to meet climate goals, but faces grid inefficiencies, limited electricity access and scarce investment-grade credit.

• Institutional variation: Countries like Mauritius, Rwanda and Kenya exemplify stability and business readiness, but many economies continue to face governance and institutional barriers that hinder investment and regional integration.

AI, cloud, 5G and renewables are set to triple Africa’s data centre market to over $3 billion by 2030. Fintechs, like Moniepoint, are transforming payments for millions, while Nigeria’s eNaira CBDC is expanding financial inclusion.

The African Continental Free Trade Area (AfCFTA) and its Digital Trade Protocol are foundational for Africa’s digital era. Full implementation could lift 30 million people out of extreme poverty and boost continental income by $450 billion by 2035.

Massive investments in broadband, cloud and digital infrastructure, alongside regulatory harmonization and cross-border interoperability, fuel this progress. Public-private partnerships are expanding subsea cables, fibre and data centres across major markets.

Tech initiatives, like 2Africa and Equiano, are boosting broadband and enabling 5G. Pan-African efforts, such as Smart Africa Alliance and the African Union’s Data Policy Framework, are aligning digital regulations and enabling cross-border data flows, accelerating integration into global digital value chains. While connectivity and energy constraints persist, Africa’s coordinated digital policies, inspired by successful Asian and Latin American strategies, are driving inclusive growth, including in rural areas.

Africa’s strategy for inclusive and resilient growth should focus on four priorities

Invest in broadband and cloud infrastructure and launch programmes to train 500,000 ICT professionals by 2030, with a strong commitment to gender parity.

Scale renewable energy by mobilizing blended finance and public-private partnerships, especially in lagging regions.

Harmonize digital trade frameworks, implement interoperable digital IDs and deploy trade facilitation tools to lower costs and empower SMEs.

Use trade and logistics data to strengthen local content, boost SME integration and expand interoperable payment systems, drawing lessons from ASEAN and Latin America.

A young population and vast economic potential offer a beacon of rapid growth, standing in stark contrast to many regions grappling with slower expansion and ageing demographics. Yet, unlocking this promise demands unified progress across technology readiness, trade and investment, sustainability and institutional strength.

This digital and green leap transcends a regional milestone, it serves as a global blueprint for transformative growth. Countries like Mauritius, Rwanda and Kenya exemplify how visionary leadership and targeted investment can convert potential into lasting prosperity. The dynamic workforce and innovators here are rewriting the narrative for emerging economies worldwide.

The future of global supply chains is being reshaped by advances in digital trade, innovation and sustainable logistics. The moment has come for governments, business leaders and investors to step up to invest boldly, partner deeply and collaborate closely with digital and green pioneers from the region. Only through ambitious innovation, world-class infrastructure and inclusive policies can this promise be fulfilled, driving shared progress within resilient global supply networks.

The time is now for global leaders to invest, partner and innovate alongside these pioneers. Together, we can build resilient, sustainable supply chains powering the future global economy.