Horn of Africa Leaders Push for Digital Integration to Spur Regional Growth

Finance ministers and development leaders from the Horn of Africa convened in Nairobi on July 14 for the 25th Ministerial Meeting of the Horn of Africa Initiative (HoAI), jointly chaired by Nnenna Nwabufo, Vice President of the African Development Bank, and Bihi Iman Egeh, Somalia’s Minister of Finance. The high-level gathering centered on the urgent need to accelerate digital integration across the region to unlock trade, drive economic growth, and promote long-term stability.

Digital Technology as a Pillar of Transformation

“Digital technologies are shaping today’s economy and tomorrow’s industries,” declared Nnenna Nwabufo in her keynote remarks. She emphasized that digital integration is no longer a luxury but a "central enabler" of all four HoAI development pillars: trade and economic integration, infrastructure, resilience, and human capital development.

According to Nwabufo, embedding digital tools into these sectors can help countries leapfrog outdated development models, creating inclusive growth and connecting underserved communities. This includes enabling efficient public service delivery, expanding access to financial systems, and increasing regional trade through reduced logistical and regulatory barriers.

Drawing Lessons from Global Success Stories

Throughout the meeting, delegates reflected on successful digital transitions around the world. The Philippines, for example, was cited for its thriving Business Process Outsourcing (BPO) industry, which has created millions of jobs thanks to robust ICT infrastructure and government support. In Africa, Kenya’s M-PESA continues to be a standout model of mobile financial innovation, illustrating how strategic digital investments can transform financial inclusion even in low-income settings.

These examples, ministers said, should inspire a tailored approach to digital integration in the Horn of Africa — one that considers local challenges but draws on proven global practices.

Unlocking the Youth Dividend and Job Creation

With one of the world’s youngest populations, the Horn of Africa has a unique opportunity to convert its demographic dividend into economic gains. However, participants agreed that this requires scaling up digital literacy and vocational training to meet future job market demands.

Several speakers underscored the importance of integrating digital skills education into national development strategies to ensure young people can fully participate in the evolving digital economy. Equally vital is improving access to reliable internet, especially in remote or conflict-prone areas where connectivity remains a barrier.

Regional Cooperation and Digital Policy Matrix

Minister Bihi Iman Egeh of Somalia reiterated the importance of coordinated regional policy frameworks. He referenced the HoAI Digital Policy Matrix, adopted in 2023, which provides a roadmap for harmonizing digital standards, investing in cross-border infrastructure, and enhancing cyber-governance across member states.

The policy matrix, he said, must guide future action and be reinforced with political commitment, regional coordination, and sufficient resources to drive implementation.

Public-Private Collaboration and Blended Finance

Barack Makokha, Kenya’s Cabinet Secretary for the National Treasury, called for regionally aligned public-private partnerships. He advocated for blended finance models, combining public funds with private capital to reduce investor risk and extend digital infrastructure to marginalized areas.

“Blended financing is not just an option, it is a necessity if we are to achieve last-mile connectivity and equitable access,” Makokha noted, highlighting the potential role of telecom companies, tech startups, and investors in delivering scalable digital services.

Global Support and the Role of Development Institutions

Ndiame Diop, World Bank Vice President for Eastern and Southern Africa, emphasized a multi-pronged strategy to catalyze digital integration. This includes large-scale financing, synchronized policy reform, cross-border digital infrastructure, and inclusive platforms for digital entrepreneurship.

He stressed that digital integration should not be viewed in isolation but as a strategic lever for macroeconomic transformation, especially in a region grappling with high youth unemployment, climate vulnerabilities, and post-conflict recovery.

The presence of observers from East African Community (EAC), Agence française de développement (AFD), and Shelter Afrique reflected the broad international support for the HoAI agenda. Their participation underscored the growing recognition of digital development as a top priority for both regional growth and global partnerships.

Commitment to Action

The meeting concluded with a unanimous call for sustained political will, cross-border coordination, and unwavering commitment to the digital transformation agenda. Ministers agreed that the coming months must focus on operationalizing the Digital Policy Matrix, scaling successful pilots, and aligning national budgets and donor strategies with digital integration goals.

As the Horn of Africa grapples with economic, political, and climate-related challenges, digital integration is emerging as a powerful, unifying vision for the region’s future — one that promises inclusion, prosperity, and resilience for generations to come.