The International Finance Corporation (IFC) says Africa possesses a demographic competitive advantage for digital economy expansion, with Nigeria positioned as the ground zero base for activity.
Dr Dahlia Khalifa, Regional Director, Central Africa and Anglophone West Africa, IFC Nigeria, said this on Wednesday in Lagos at the Gulf Information Technology Exhibition (GITEX) Nigeria 2025 conference.
Khalifa noted that across Africa, the digital economy was expanding at remarkable speed, powered by internet adoption, mobile penetration, and a generation of young innovators rewriting its future.
She added that Africa’s demographic realities meant its population would grow from 1.5 billion to 2.5 billion over the next 25 years.
According to her, this increase would bring 600 million youths into the job market, driving the fastest growth rate in the world.
*”With more than 60 per cent of Africans under the age of 25, and smartphone adoption rising steadily, Africa is home to one of the largest pools of digital natives in the world.
Over the past decade, Africa’s digital economy has been one of the fastest growing in the world and is quickly becoming a centre of attraction.
By 2030, it is projected to contribute to about 180 billion dollars to Africa’s Gross Domestic Product (GDP),”* she said.
The IFC regional director said Artificial Intelligence (AI) in Africa was not just about efficiency but transformation, with potential to accelerate progress across health, education, agriculture, finance and business.
She, however, warned that unless Africa invested in infrastructure such as energy, broadband, digital connectivity and skills, the benefits of AI could bypass the continent.
Quoting IFC’s recent report titled “Digital Opportunities in African Businesses,” Khalifa said digital transformation could benefit more than 600,000 formal businesses and 40 million micro-enterprises, boosting productivity, raising wages, and creating better quality jobs and livelihoods.
*”This is why the role of the private sector and public-private dialogue is decisive.
Infrastructure is the foundation, but entrepreneurship is the engine and to seize this opportunity, we need reliable broadband, robust data centres, modern digital infrastructure, and more energy, particularly clean energy that is sustainable.
We need investment in skills and training programmes that prepare Africa’s youth for the jobs of today and tomorrow.
We need partnerships between governments, the private sector, and international institutions to create the right policies, foster trust, and mobilise capital at scale,”* she said.
She revealed that IFC was committed to unlocking the future of Africa’s digitalisation, having financed over six billion dollars in digital infrastructure across the continent over the last decade, including data centres, fibre networks and affordable broadband.
“By harnessing AI and digital technology responsibly and building the right partnerships, Africa can shape a digital economy that is inclusive, innovative, and globally competitive,” she added.
Trixie Lohmirmand, Executive Vice President, Dubai World Trade Centre, lauded the zeal and resilience of Lagos startup innovators, saying they thrived despite power challenges and developing infrastructure.
She described Nigerian start-ups as the fastest rising and growing emerging stars in the world, outpacing counterparts in Mumbai, Sao Paulo and Turkey.
*”Nigeria scales with resilience and there is mega high-speed space for technology to thrive in Lagos and Nigeria.
In Lagos where the unicorns are coming out from, they build new infrastructure and industry altogether, nothing ever before, and we would not deny Nigeria access to thrive,”* she said.
Also speaking, Mrs Olu Olufemi-White, Chief Executive Officer (CEO) of Alami Capital, said great things happened when visionary leaders created space.
She described GITEX as a launchpad for innovation and new ideas, enabling a new generation to forge digital frontiers.
According to her, Nigeria is embracing the challenge and boldly moving forward, with future innovation likely to build on local demands.
“The future of technology would be shaped by the drive of Nigerian people to solve problems with the support of institutions,” she said.
(NAN)