Financing clean and digital technology firms alongside sustainable infrastructure in Africa: policy brief

Abstract

This policy brief presents a proposal for the establishment of specialized firms by African States to raise the supply of green technologies and information and communications technologies (ICTs) and related innovations to accelerate countries’ progress in achieving the Sustainable Development Goals. It includes examples of successful cases in that regard from developed and developing countries, including some African countries. To link potential developers of technologies with the markets, a greater number of firms specialized in technological innovations are needed to participate in African national and regional innovation systems to stimulate the production and flows of such technologies among the interdependent users. States will mitigate a sizable part of the technical and financial risks that generally hamper innovation in the green and digital technology markets, and create an environment that will attract private investors. The political landscapes, governance structure and technological learning patterns built across Africa over the past decades and the Agreement Establishing the African Continental Free Trade Area are key factors that will potentially help to boost the participation of private investors in this endeavor.