Building digital infrastructure through impact capital partnerships
By prioritising digital transformation in the G20 agenda, South Africa has the opportunity to redefine global partnerships by emphasising co-creation over charity. Africa offers a young, dynamic, and digitally-ready future.
South Africa’s G20 moment: Championing a digital future for Africa
Africa’s youth majority is ambitious, connected and eager for opportunity, but many are still excluded from the digital economy that’s shaping work, education, innovation and impact. The G20 offers a platform to reposition digital infrastructure as not just a technical asset but also a social and economic necessity. It is essential for unlocking talent, fostering inclusion and building resilience across Africa.
From Johannesburg to Lagos, Lusaka to Garissa, access to affordable and reliable digital services is no longer a luxury; it is a prerequisite for meaningful participation in society.
A new kind of infrastructure gap
South Africa’s experience highlights the stakes. While innovation hubs thrive, many communities, especially rural ones, face unreliable internet access (partly due to power cuts), low digital literacy and rising cost of living. These challenges are echoed across Africa. Digital infrastructure promotes the development of e-health, mobile money and e-learning services, yet investment often bypasses those who need it most. The challenge is not a lack of capital, but investment flows. That’s where the African Venture Philanthropy Alliance (AVPA) and others step in, mobilising catalytic capital to direct resources where they can have the most impact.
Why impact capital matters
Catalytic capital allows public and private investors to share risk and prioritise long-term impact over short-term returns. It can de-risk early-stage projects, fund community platforms and scale local innovations. For example, it can support township-based digital training platforms or help women-led businesses digitise and grow. AVPA’s pooled fund, launched via the Africa Social Impact Exchange, aims to do just that.
The gender digital divide is holding Africa back
Women across Africa face a triple hurdle: limited access to smartphones, the internet and digital literacy. This gap affects not just women but entire economies. Data shows that women from low and middle-income countries are 15% less likely than men to use mobile internet and 13% less likely to own a smartphone. In sub-Saharan Africa, the gender gap in mobile internet use is 32%, which is one of the highest globally. Women face barriers such as limited access due to poor infrastructure, affordability and online harassment, which was reported by 57%. Closing the digital divide could unlock up to $1.3 trillion in GDP by 2030. Gender-smart investing must become standard in all digital transformation strategies. That means using sex-disaggregated data to guide funding, designing realistic tools that reflect women’s realities and scaling and supporting women-owned/led funds and enterprises to grow with technology.
Recommendations for the South African G20
South Africa’s G20 leadership is an opportunity to push bold, practical solutions. Through the Digital Economy Working Group, South Africa should champion:
A digital infrastructure impact facility: A blended finance virtual platform focused on digital public goods and scaling local innovation, especially in rural and semi-urban areas.
Investment in ecosystem builders: Fund regional networks and intermediaries that connect capital, along its continuum, to communities and investable projects.
The mainstreaming of gender-smart investing: Ensure all G20-backed digital projects track gender outcomes and fund women-led solutions.
From presidency to partnership
This is South Africa’s chance to redefine global partnerships, based not on charity but on co-creation. Africa isn’t just seeking investment, it’s offering a young, dynamic, digitally ready future. By centring Africa’s digital transformation in the G20 agenda, South Africa can showcase what inclusive, sustainable development looks like in a connected world. This isn’t about catching up; it’s about building the future.
Join AVPA in Nairobi from 3 to 5 November for the Annual AVPA Conference with the theme ‘Future-Proofing Africa’ and be part of the conversation driving sustainable change in Africa.
* The views expressed in T20 blog posts are those of the author/s.
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23 Sep 2025
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Commentary
Building digital infrastructure through impact capital partnerships
By prioritising digital transformation in the G20 agenda, South Africa has the opportunity to redefine global partnerships by emphasising co-creation over charity. Africa offers a young, dynamic, and digitally-ready future.
South Africa’s G20 moment: Championing a digital future for Africa
Africa’s youth majority is ambitious, connected and eager for opportunity, but many are still excluded from the digital economy that’s shaping work, education, innovation and impact. The G20 offers a platform to reposition digital infrastructure as not just a technical asset but also a social and economic necessity. It is essential for unlocking talent, fostering inclusion and building resilience across Africa.
From Johannesburg to Lagos, Lusaka to Garissa, access to affordable and reliable digital services is no longer a luxury; it is a prerequisite for meaningful participation in society.
A new kind of infrastructure gap
South Africa’s experience highlights the stakes. While innovation hubs thrive, many communities, especially rural ones, face unreliable internet access (partly due to power cuts), low digital literacy and rising cost of living. These challenges are echoed across Africa. Digital infrastructure promotes the development of e-health, mobile money and e-learning services, yet investment often bypasses those who need it most. The challenge is not a lack of capital, but investment flows. That’s where the African Venture Philanthropy Alliance (AVPA) and others step in, mobilising catalytic capital to direct resources where they can have the most impact.
Why impact capital matters
Catalytic capital allows public and private investors to share risk and prioritise long-term impact over short-term returns. It can de-risk early-stage projects, fund community platforms and scale local innovations. For example, it can support township-based digital training platforms or help women-led businesses digitise and grow. AVPA’s pooled fund, launched via the Africa Social Impact Exchange, aims to do just that.
The gender digital divide is holding Africa back
Women across Africa face a triple hurdle: limited access to smartphones, the internet and digital literacy. This gap affects not just women but entire economies. Data shows that women from low and middle-income countries are 15% less likely than men to use mobile internet and 13% less likely to own a smartphone. In sub-Saharan Africa, the gender gap in mobile internet use is 32%, which is one of the highest globally. Women face barriers such as limited access due to poor infrastructure, affordability and online harassment, which was reported by 57%. Closing the digital divide could unlock up to $1.3 trillion in GDP by 2030. Gender-smart investing must become standard in all digital transformation strategies. That means using sex-disaggregated data to guide funding, designing realistic tools that reflect women’s realities and scaling and supporting women-owned/led funds and enterprises to grow with technology.
Recommendations for the South African G20
South Africa’s G20 leadership is an opportunity to push bold, practical solutions. Through the Digital Economy Working Group, South Africa should champion:
From presidency to partnership
This is South Africa’s chance to redefine global partnerships, based not on charity but on co-creation. Africa isn’t just seeking investment, it’s offering a young, dynamic, digitally ready future. By centring Africa’s digital transformation in the G20 agenda, South Africa can showcase what inclusive, sustainable development looks like in a connected world. This isn’t about catching up; it’s about building the future.
Join AVPA in Nairobi from 3 to 5 November for the Annual AVPA Conference with the theme ‘Future-Proofing Africa’ and be part of the conversation driving sustainable change in Africa.
* The views expressed in T20 blog posts are those of the author/s.
9 Sep 2025
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