Tech won’t fix Africa’s informal economy without power and rails, says AFC CEO

Digitising Africa's informal economy can only achieve limited success without foundational physical infrastructure like reliable electricity, cold storage, and rail networks. Speaking at the Africa Financial Industry Summit in Luanda, Africa Finance Corporation chief executive officer Samaila Zubairu emphasized that software platforms cannot compensate for structural industrial deficits.

Editorial portrait of AFC CEO Samaila Zubairu and an engineer examining rail corridor maps and power grid metrics in front of an AfroTech Horizon logo and 'INFRASTRUCTURE' badge.
Samaila Zubairu, chief executive officer of the Africa Finance Corporation (AFC), speaking on physical infrastructure, power, and logistics at the Africa Financial Industry Summit (AFIS) in Luanda, Angola. Photo: TechCabal.

Bringing informal businesses online and building mobile applications will deliver limited economic impact across Africa without massive investments in physical infrastructure. Speaking at the Africa Financial Industry Summit (AFIS) in Luanda, Angola, Africa Finance Corporation (AFC) chief executive officer Samaila Zubairu argued that digital software platforms alone cannot fix the structural challenges facing the informal sector if basic utilities and transport networks remain missing.

Overcoming Physical Bottlenecks in the Informal Sector While fintech software and mobile platforms have expanded digital access, physical supply chain deficiencies continue to constrain small business productivity and intra-regional trade.

Power and Storage Shortages: Informal merchants and agricultural producers struggle to scale because of unreliable electricity grids and a lack of cold storage facilities to preserve inventory.

Transport Deficits: The absence of efficient rail networks and freight corridors inflates logstical expenses, preventing local producers from moving goods across borders efficiently.

Limits of Software Innovations: Digital payment applications and online storefronts cannot replace essential physical assets required for industrial manufacturing and regional distribution.

Capitalising on Infrastructure Corridors for Value Addition Zubairu highlighted strategic infrastructure projects, such as the Lobito Corridor connecting Angola, the Democratic Republic of Congo, and Zambia, as transformative models for continental growth.

Developing Economic Corridors: Expanding railway and energy infrastructure to facilitate raw mineral processing and agricultural distribution within the continent.

Local Processing and Industrialisation: Moving away from raw material export models by establishing processing hubs powered by stable energy grids.

Targeted Capital Allocation: Directing institutional financing into core transport, power, and logistical infrastructure rather than focusing solely on digital interface layers.

To explore further technical analysis on industrial infrastructure, energy development, and economic policy across Africa, visit AfroTech Horizon.

Building Hard Infrastructure for Long-Term Growth Samaila Zubairu’s remarks at AFIS serve as a critical reminder for technology builders and policy makers across Africa. While digital innovation streamlines commercial touchpoints, lasting economic transformation relies on constructing reliable power systems, storage infrastructure, and freight transport networks across the continent.

Get the next one by email

Policy & Regulation

Digital fraud surges to 88%: The hidden security crisis chilling cross-border finance

A sharp rise in digital fraud across cross-border payment platforms is threatening user trust and constraining continental financial integration. As cybercriminals deploy increasingly sophisticated attack vectors, financial technology institutions are doubling down on security infrastructure and real-time fraud monitoring to safeguard international monetary transactions.

AfroTech Horizon Newsroom 2 min read

Startups & Funding

How IFC plans to use fintech and cash flow to finance African MSMEs 

The International Finance Corporation is deploying fintech partnerships and cash-flow-based underwriting models to close the credit gap for African micro, small, and medium enterprises. By moving beyond traditional collateral requirements, the institution aims to expand working capital access for small businesses across regional markets.

AfroTech Horizon Newsroom 2 min read

Infrastructure

Safaricom’s cleaner energy push struggles to keep pace with growth 

Kenyan telecommunications company Safaricom is accelerating its adoption of renewable power across its regional cell tower network. However, rapid commercial expansion and heightened power demands continue to drive up overall operational emissions, challenging the firm's long-term environmental targets.

AfroTech Horizon Newsroom 2 min read