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Africa will need $3.4 trillion in funding for infrastructure projects in order to support the continent’s digital transformation, according to the CEO of Africa’s largest bank by assets.
Sim Tshabalala of Standard Bank, speaking at Semafor’s “The Next 3 Billion” event in New York on Tuesday, said “there’s no question” Africa has an infrastructure deficit that has to be dealt with before a digital transformation can take place.
“It’s going to cost us a lot,” said Tshabalala. “Our corporate and investment bankers calculate that we will need roughly $3.4 trillion in the next while to put in place the energy, the logistics, the roads, the bridges, the fiber, the towers, and so forth.”
The figure is based on Standard Bank’s internal research.
Highlighting the significant solar and wind energy potential of African countries, Tshabalala said investments in renewable energy would also help accelerate the continent’s digital transformation. This, he said, could include the use of renewable energy to mine cryptocurrencies.
Countries including Kenya and Ethiopia have been increasingly offering crypto mining firms access to their renewable energy resources including hydroelectric and geothermal power.
