What's Africa50?
 

Established by the African Development Bank (AfDB), Africa50 aims to provide solutions to accelerate infrastructure delivery across the continent as part of the African Union's Agenda 2063 by facilitating project development, mobilizing public and private sector financing, and investing in infrastructure across the continent.

The organization focuses on medium- to large-scale projects that drive development impact and deliver suitable risk-adjusted returns for investors.

“In analyzing market fundamentals, Egypt stands out as an attractive destination for infrastructure investment, driven by a growing middle class, increasing urbanization, and a youthful population eager for enhanced living conditions. The demand for internet access, data, and improved transportation is particularly strong among the young demographic, making Egypt a compelling market for investment,” Hasnani said.

He added that, with a well-educated and globally connected population, Egyptians have been exposed to successful models in the Gulf Cooperation Council (GCC) countries, where many of them have lived there and witnessed the benefits firsthand.

This familiarity contributes to Egypt's appeal as a strategic investment opportunity, Hasnani affirmed.

“Furthermore, Egypt's robust relationships across the region, particularly with GCC nations, enhance its attractiveness to investors. As one of the largest economies in Africa, Egypt is a focal point for investment initiatives, aimed at fostering growth across the continent,” he further noted.

He also said that, in a recent discussion, representatives from Africa 50 highlighted Egypt's position as one of the most attractive markets in Africa, noting that while there are many promising markets on the continent, Egypt remains a standout choice for investment.

Critical role of data centres in Egypt
 

“A key development in this landscape is the anticipated establishment of data centres in Egypt, which will significantly support the country’s Vision 2030 goals. The introduction of these data centres will facilitate data localization, ensuring that Egyptian data is stored domestically rather than in foreign locations, like Marseille or Amsterdam. This localization is crucial for enhancing data sovereignty and reducing latency, resulting in faster internet speeds for users,” Hasnani explained.

Africa50, in collaboration with the Egyptian Raya Holding, announced on Tuesday a new investment of $25 million to build Egypt’s first tier-3 data centre in 2025. As a part of its efforts to accelerate its digital transformation, Egypt is expanding in establishing data centres, with 15 data centres have been established so far.

One of Egypt’s milestones is the inauguration of its government’s data and cloud computing centre in April. The centre aims to enable undefined artificial intelligence (AI) technology to be deployed across governmental operations, including data analysis applications to help with decision-making. It will also act as a centralized national data and disaster recovery centre.

Hasnani said that data centres will create downstream employment opportunities and stimulate the growth of surrounding businesses, adding that they will improve internet connectivity by providing a central hub for internet service providers and mobile companies to connect, thus enhancing the overall digital infrastructure.

He also noted that data centres are crucial in improving the ability to securely process and share data locally, particularly as countries pursue data sovereignty.

Furthermore, Hasnani pointed out that only 10-30 percent of Africa's adequate demand for data centres’ capacity is currently being met.

He added that, over the past three to four years, Africa50 has robustly entered the market, recognizing Egypt as the third-largest data centre market in the continent. The country's strategic location, bolstered by 14 subsea cables, positions it as an attractive regional hub for data centres.

“As one of the initial supporters of the Africa50 vision — a platform designed by Africans to attract global investors — Egypt has played a crucial role in bridging the investment gap across the continent. Africa50's shareholder base has expanded to include more than 30 African countries, indicating a growing commitment to infrastructure development,” Hasnani said.

Africa needs more
 

“The rise of smartphones, enhanced digitization of services by the private and public sectors, and the growing adoption of cloud computing and artificial intelligence present significant opportunities. However, despite these advancements, only 43 percent of Africans currently have internet access, significantly lower than the global averages of 67 percent in the Middle East and 72 percent in Latin America. In Egypt, internet access stands at 72 percent, although it still lags behind countries like Morocco, where access exceeds 90 percent,” Hasnani highlighted.

Why Egypt?
 

Hasnani explained why Africa50 is willing to invest in establishing the tier-3 data centre in Egypt. Egypt's commitment to renewable energy, aiming to produce 42 percent of its energy from renewable sources by 2030, aligns seamlessly with Africa 50's vision for sustainable and resilient infrastructure, he said.

The demand for cloud services and digital solutions has surged, particularly in the wake of the COVID-19 pandemic, according to Hasnani.

“This data centre will enhance digital infrastructure in Egypt and beyond, with a comprehensive offering that emphasizes technical expertise and a customer-centric approach, catering to local and international clients,” he highlighted.