Building Africa’s Digital Infrastructure to Spur the Next Decade of Innovation

In the past decade, the African continent has experienced a remarkable surge in startup activity, as many enterprising individuals have set their sights on solving local challenges through innovative solutions. However, this momentum has been met with a challenging year, where several startups have been forced to either shut down or significantly downsize to weather the current storm. This panel will focus on how African startups can scale from 0 to 1 and from 1 to 100 and how they can access capital, talent, and mentorship to fuel sustainable growth.

High interest rate, climate change, debt crisis and geopolitics - African economies are subjected to many complexities in raising capital. We will delve into the strategies for harnessing the power of local capital while attracting foreign investment in a world marked by shifting dynamics. Participants will gain insights into investor engagement, collaboration, regulatory support, and risk management. This session will provide a forward-looking perspective on how African economies can thrive amidst the ever-evolving challenges and opportunities of the complex global landscape. 

In 2022, public debt in Africa reached USD 1.8 trillion. While this is a fraction of the overall outstanding debt of developing countries, Africa’s sovereign debt has increased by 183% since 2010, a rate roughly four times higher than its growth rate of GDP in dollar terms. Today, 60% of African countries spend more on repaying their debts than on healthcare, a trend that has been exacerbated by the COVID-19 pandemic, the war on Ukraine and the overall economic slowdown in the past few years. While international organizations have stepped in to support (for example, the G20 assisted 31 out of 36 eligible African countries with its Debt Service Suspension Initiative (DSSI)), the question remains: Why has Africa not been able to break out of this debt trap? And what role does the public and private sector play in moving past this dynamic?

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