Africa’s digital economy is gaining momentum and countries like Egypt, Kenya and Djibouti are leading the way. According to the Africa Finance Corporation’s State of Africa’s Infrastructure Report, these three nations are emerging as strategic gateways in a wave of infrastructure development that is redefining the continent’s digital future. At the center of this transformation is the expansion of subsea cable networks, which are laying the groundwork for faster, more reliable internet and creating a foundation for broader economic growth.
The report highlights how recent cable outages across 2023 and 2024 exposed serious vulnerabilities in Africa’s digital backbone. Many countries still depend on a single subsea cable for internet connectivity, which leaves entire economies at risk when disruptions occur. For instance, nations such as Liberia, Guinea and The Gambia continue to rely on only one cable landing each, while Eritrea has none. These limitations severely restrict bandwidth availability, raise costs and hold back the expansion of digital services.
The arrival of a new generation of high-capacity cables between 2022 and 2026 is helping to change that picture. Systems like Google’s Equiano are designed to meet the demands of modern technologies including artificial intelligence, 5G, the Internet of Things and cloud computing. These new cables offer speeds up to 400 times faster than legacy systems and their impact is already being felt. Countries along Africa’s coastlines are seeing a surge in bandwidth capacity, opening up space for investment in fibre-optic networks, regional data centres and Internet Exchange Points (IXPs).
Egypt, Kenya and Djibouti have positioned themselves as regional digital hubs by developing landing points for multiple subsea cables. Their strategic locations, supported by domestic investment and forward-looking policies, are helping to attract global tech players and increase digital infrastructure resilience. However, the report warns that closing the digital divide across Africa will require significant financial commitment, about $7 billion in annual investment to extend and maintain the continent’s infrastructure backbone.
The growing availability of bandwidth is a major step forward but it is only part of the solution. Affordability remains a key challenge, especially in rural and underserved areas where internet access is still far below urban averages. Expanding connectivity to these regions will be crucial in unlocking economic opportunities for millions. Community-led financing models like crowdfunding are emerging as innovative ways to bridge this gap, particularly for middle- and last-mile infrastructure development.
Africa’s digital future depends not only on building cables and towers but also on creating ecosystems that enable meaningful participation in the digital economy. This includes improving digital literacy, promoting inclusive markets and fostering entrepreneurial ecosystems. The report outlines several strategic priorities to support this transformation. These include targeted investment in rural connectivity, greater public–private collaboration on infrastructure projects, phased liberalisation of telecom sectors and harmonised digital policies across borders.
Countries that have opened their telecom markets to competition, such as Ethiopia, have seen a surge in network expansion and service quality. Replicating this approach across the continent could unlock private capital, speed up deployment and drive innovation. Shared infrastructure models are also gaining traction. Using existing public assets like power lines or railway corridors to lay fibre can significantly reduce the cost of expanding coverage.
The development of digital public infrastructure, such as national ID systems and interoperable payment platforms, offers another opportunity for inclusive growth. These systems not only support government service delivery but also create entry points for private-sector innovation. When combined with investment in digital skills training, they can create a pipeline of talent for Africa’s growing tech sector and unlock new opportunities for digital entrepreneurship.
For entrepreneurs across the continent, particularly those in less connected areas, this shift in digital infrastructure holds tremendous promise. As connectivity improves and markets open up, new ventures can reach wider audiences, tap into global supply chains and build scalable business models rooted in technology. From e-commerce and fintech to agri-tech and online education, the opportunities are expanding.
In rural areas, the benefits could be even more transformative. Reliable internet access enables small businesses to market their products online, access training and use digital payment systems. Entrepreneurs in agriculture can access weather data, market prices and supply chain networks in real-time. For women and youth, who are often excluded from traditional economic systems, digital tools can offer a more level playing field.
Africa’s digital transformation is no longer a distant vision. With the right investments and policies, it can be a powerful driver of inclusive growth. Egypt, Kenya and Djibouti may be leading the charge today but with collaboration and commitment, every country on the continent can share in the digital future. For entrepreneurs, this is a signal to get ready: the infrastructure is coming and with it, the opportunity to build, scale and thrive.
