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$100M Invested to Powering Africa’s Tech Boom

In the heart of Kinshasa, where the Congo River hums and motorbikes weave between traffic, a quiet hum from a grey building barely draws attention. But inside, this facility is not just humming; it’s processing, protecting, and powering the digital lives of thousands. It’s one of Africa’s new frontiers: a data centre, the invisible backbone behind every WhatsApp message, online bank transfer, and e-health record.

This year, in April, that backbone got a major boost.

The World Bank, through its IFC arm, announced a $100 million investment in Raxio Group, a company on a mission to build next-generation, carrier-neutral data centres across underserved African cities. With new projects underway in Ethiopia, Angola, the Democratic Republic of Congo, and Tanzania, this funding is more than just infrastructure finance; it's a vote of confidence in Africa’s digital leap.

photo of gray building

From Fiber Dreams to Digital Realities

While Africa’s tech ecosystem gets its buzz from mobile apps and fintech unicorns, there’s a less visible revolution taking shape: local data processing. For years, African internet traffic had to be routed to Europe or the U.S. before returning to the continent, creating frustrating delays and exposing user data to foreign servers.

Companies like Raxio are flipping that script.

Their goal? Keep African data in Africa, closer to the user, faster for businesses, and safer for governments. In Kigali, Kampala, and Addis Ababa, Raxio has already laid the foundation. Now, with this new investment, it’s going deeper: into Kinshasa’s rising tech corridors, Dar’s fintech ecosystem, and Luanda’s evolving startup scene.

According to Raxio, Local data centres are critical to digital transformation. They reduce latency, lower costs, and ensure data sovereignty. And as more African companies adopt cloud services, AI, and digital platforms, the need for reliable, local infrastructure has never been greater.

What This Means for Startups and SMEs

For African entrepreneurs, this development doesn’t just live in wires and air-conditioning ducts; it translates into speed, savings, and scalability.

Imagine a Tanzanian agritech startup deploying real-time data to help farmers track weather patterns. Or a Congolese e-learning platform delivering videos to students in remote areas. With data hosted locally in a Raxio facility, their users won’t have to wait, and the startup won’t have to break the bank to host on global servers.

It’s also a game-changer for local fintechs, who need data compliance and low-latency performance to serve millions of mobile users seamlessly. More so, as African nations roll out digital ID systems, health databases, and e-governance platforms, public institutions too will benefit from local, secure hosting.

A Digital Economy Needs Digital Homes

The World Bank’s investment signals something more: Africa’s digital infrastructure is bankable. It’s no longer an experiment; it’s an engine. By supporting players like Raxio, the IFC is helping ensure that Africa’s data doesn’t just travel; it lives here and grows roots.

In the coming years, as AI becomes more embedded in local industries, as schools turn to hybrid learning, and as the informal sector digitizes, these data centres will quietly hum in the background, powering it all.

So while the world watches the rise of Africa’s digital giants, let’s also remember the silent workhorses behind the scenes, like the Raxio data centres springing up from Luanda to Lubumbashi.

Because every digital leap needs a solid landing pad. And Africa is finally building its own.

$100M Invested to Powering Africa’s Tech Boom
Native Media July 5, 2025
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