Digital Transformation Reshapes Investment Landscape in COMESA Despite Tech Funding Slowdown: UNCTAD Report
A recent investment report by the United Nations Conference on Trade and Development (UNCTAD) for 2025 has revealed that digital transformation and technological infrastructure are playing a pivotal role in reshaping the investment landscape across the Common Market for Eastern and Southern Africa (COMESA), despite a notable decline in ICT sector financing during 2024.
According to the report, technology investments in COMESA countries dropped from $4.3 billion in 2023 to approximately $2 billion in 2024, reflecting broader global pressures on the technology sector. Nevertheless, the sector continues to hold strategic importance, accounting for nearly 28% of total announced investments in Africa, underscoring the resilience of the digital economy as a key driver of growth.
The report highlighted that digital investments are primarily concentrated in data centers and IT hardware manufacturing. Meanwhile, investments in digital solutions and technology services remain below their full potential, exposing a significant funding gap estimated at over $8 billion—presenting a promising opportunity for future investors.
In parallel, COMESA countries recorded exceptional performance in foreign direct investment (FDI) inflows during 2024, which surged to $65 billion, marking a 154% increase despite the global decline in investment activity.