Artificial IntelligenceJune 9, 2025

How the World Bank’s $100M Deal with Raxio Will Power Africa’s Data Centres

“This isn’t just about servers or storage. It’s about sovereignty, scale, and survival in a connected economy.” In April 2025, the IFC’s $100 million investment in Raxio Group sent a clear message: Africa is no longer content to be digitally dependent. With less than 1% of global data centre capacity but a rapidly growing mobile-first economy, the continent is poised for a breakthrough—and local infrastructure is the keystone. At iWorld Afric, we’ve felt the pain of building in an underpowered digital landscape—latency delays, compliance hurdles, security blind spots. But we’ve also seen what’s possible. With local data centres finally becoming a reality, we’re entering a new era where African innovation can be hosted at home, served at speed, and scaled without constraint. This investment isn’t just timely—it’s transformational. And for those of us building the future, it’s the foundation we’ve been waiting for.

E

Eliud Njoroge

Staff Writer

5 min read
How the World Bank’s $100M Deal with Raxio Will Power Africa’s Data Centres

How the World Bank’s $100M Deal with Raxio Will Power Africa’s Data Centres

Introduction: The Silent Infrastructure Revolution

In April 2025, the International Finance Corporation (IFC), the private-sector arm of the World Bank, announced a $100 million equity and debt investment in Raxio Group. The goal? Accelerate the rollout of carrier-neutral, Tier III data centres across Africa. While this might not make flashy headlines, make no mistake, this is one of the most pivotal developments in Africa’s digital history. As someone who has spent over a decade designing, deploying, and advising on digital infrastructure projects across the continent, I can tell you: this isn’t just about servers or storage. It’s about sovereignty, scale, and survival in a connected economy.

The Digital Disparity: Demand Outpacing Capacity

Africa represents roughly 18% of the global population but accounts for less than 1% of the world’s data centre capacity. Meanwhile, mobile data consumption is skyrocketing, growing at nearly double the global rate. Businesses are digitizing, governments are going paperless, and citizens are demanding faster, safer online services. Yet, a huge portion of African digital traffic is still routed through servers in Europe or the United States. This isn’t just inefficient, it’s expensive, risky, and unsustainable.

Why Raxio, Why Now?

Founded in 2018, Raxio has become a frontrunner in the race to build data infrastructure in underserved markets. Their strategy? Go where others won’t. Countries like Uganda, Ethiopia, Mozambique, Ivory Coast, and DRC, markets often ignored due to perceived instability, are now Raxio’s primary focus. With IFC’s backing, Raxio aims to deploy at least 10 data centres in high-potential locations, providing local enterprises with affordable, reliable, and low-latency hosting environments.

This move is not just timely; it’s transformational. Local data centres mean faster digital services, reduced costs for cloud access, and improved data sovereignty. Governments can enforce local data laws more effectively. Banks, hospitals, and schools can deliver real-time services with confidence. And companies like ours, iWorld Afric, can deploy cloud-native solutions for clients without the latency and compliance issues of offshore hosting.

iWorld Afric: Enabling the New Digital Backbone

At iWorld Afric, we’ve seen firsthand how the lack of local infrastructure stifles innovation. Over the years, we’ve helped dozens of clients scale their digital operations, from healthcare apps to fintech platforms. But we’ve always had to work around the limitations of offshore hosting. Latency spikes, security risks, and integration hurdles were constant challenges.

This new wave of investment changes the game. With data centres closer to home, we can now deploy real-time dashboards for a logistics company in Nairobi, or roll out a secure AI-based diagnostic tool for a hospital in Addis Ababa. All with the confidence that data is safe, fast, and sovereign. And this isn’t theoretical, it’s the kind of work we’re already doing.

What’s at Stake: More Than Just Infrastructure

This is not just a technology story. It’s a story about economic transformation. Reliable digital infrastructure is foundational to e-commerce, telemedicine, smart agriculture, and digital education. Without it, all the world-class apps and cloud tools in the world won’t matter.

Consider this: a local content creator uploads high-resolution videos to a streaming service. If the platform is hosted locally, users enjoy smooth playback and creators get real-time feedback. If it’s hosted abroad? Buffering, delays, and user drop-off. Multiply that by millions of users, and you see how infrastructure either fuels or frustrates digital growth.

Risks and Realities: The Road Isn’t Easy

Of course, building data centres in Africa isn’t without risks. Electricity reliability, political stability, and regulatory complexity remain real concerns. But this is exactly why the IFC’s investment is so strategic. By taking on some of that risk, they attract private sector players who might otherwise steer clear. And with experienced partners like Raxio leading the implementation, the execution risk is significantly mitigated.

Moreover, regional governments are stepping up. Kenya’s recent energy reforms, Ethiopia’s liberalization of its telecom sector, and Senegal’s Digital Senegal 2025 plan are all signs that the continent is waking up to the value of digital infrastructure.

The Future is Local, Secure, and Scalable

Imagine a future where an e-commerce business in Kisumu doesn’t have to ping a Frankfurt server to process a payment. Or a government health portal in Kigali loads in milliseconds, not seconds. Or an AI chatbot in Lagos speaks to millions in real time, hosted right in Nigeria. That’s not a pipe dream, it’s the near future if we get infrastructure right.

At iWorld Afric, we’re aligning our services to meet this moment. From cloud migration and security architecture to low-latency app development, our solutions are built to thrive in this new ecosystem. And we’re excited to partner with forward-thinking enterprises ready to embrace the local digital edge.

Conclusion: Africa’s Data Decade Begins Now

The Raxio-IFC deal is more than just a financing milestone, it’s a statement. Africa is ready. Ready for digital sovereignty, for AI-powered innovation, and for homegrown tech solutions that don’t depend on servers thousands of miles away.

For companies like iWorld Afric, it’s both a vindication and a challenge. We’ve spent years preparing for this moment, building platforms, nurturing talent, and designing systems that are resilient, scalable, and user-focused. Now, as Africa’s data backbone begins to form, we’re ready to lead, to serve, and to build.

Because this isn’t just a tech story. It’s Africa’s next growth chapter, and we’re all a part of it.

 

Related Topics

africa cloud ecosystemafrica tech growthraxio data centresworld bank africa investmentiWorld Africlocal data hosting

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