(Ecofin Agency) - As digital transformation keeps accelerating on the continent, African governments are increasing infrastructure investments to capitalize on the opportunities offered by the sector.

On Thursday, July 21, Malawi inaugurated its first national data center, built by Chinese tech giant Huawei. According to Lazarus Chakwera, Malawi's president, the new infrastructure will enable the country to take advantage of the fourth industrial revolution, artificial intelligence, digital financial services, and the Internet of Things (IoT), among others.

“ This data center is a critical building block in the digital future Malawi is building, and will enable the government to cut down costs by enhancing coordination between different projects, and better manage and secure data that is critical for decision making and the implementation of many programs,” explained President Chakwera.

The construction of the data center is part of Malawi's efforts to leverage technology as a development tool. According to the Minister of Digital Transformation Gospel Kazako, the infrastructure will help the country meet new market and customer demands by expanding access to ICT in line with the national ICT master plan.

“Through this National Data Center, we can guarantee security information to those we invite to invest in our manufacturing, financial, retail, and service sectors, thus making Malawi a location of choice for investors,” Malawi’s President added. 

The government's initiative comes against a backdrop of increased growth in the African data center market. This growth has been driven by accelerating digital transformation and the resulting high demand for broadband connectivity and cloud services in Africa. To capitalize on the opportunities offered by the digital industry, governments are increasing their infrastructure investments. According to Arizton Advisory and Intelligence, investment in the African data center market is expected to reach US$5.4 billion by 2027.

Isaac K. Kassouwi