Commerce

Vodacom Group highlighted renewable energy pathways and policy reforms to decarbonise Africa’s ICT sector

As climate pressures intensify and energy demand continues to rise, Africa faces the dual challenge of reducing carbon emissions while expanding access to reliable and affordable power that supports development, job creation and digital inclusion

However, many sectors, including telecommunications, healthcare, mining, logistics and manufacturing, remain heavily dependent on carbon-intensive and expensive diesel generators due to weak grid infrastructure and inconsistent electricity supply.

Addressing this issue at scale will require stronger multi-sector collaboration, coordinated efforts between public and private stakeholders, and reforms within energy systems to unlock investment in renewable and decentralised solutions.

Against this backdrop, Vodacom Group has released a new white paper titled Decarbonising Africa’s ICT Sector. The report offers insights into one of the continent’s fastest-growing industries, where expanding digital and network infrastructure is driving increased energy demand while the sector works to balance decarbonisation with ongoing economic and social development.

“Decarbonisation in Africa cannot be approached in isolation or through a single-sector lens,” said Ayman Essam, chief officer: external affairs at Vodacom Group. “While we have set an ambition to work towards net-zero emissions, progress depends on systemic change across the energy ecosystem. This includes policies that enable private sector participation, new financing models, and partnerships that can scale renewable energy solutions beyond individual organisations.”

The research highlights that although Africa is highly vulnerable to climate change, it continues to face significant energy-related challenges that hinder decarbonisation. Weak grid systems, financially constrained utilities, complex regulatory frameworks and unreliable power supply all contribute to the slow uptake of renewable energy. As a result, many industries, including telecommunications, continue to rely on diesel-powered generation to sustain operations.

To overcome these barriers, the white paper outlines several practical pathways to accelerate decarbonisation across the ICT sector. These include reforms to encourage greater private sector participation in energy markets, the adoption of renewable procurement models such as power purchase agreements, and the expansion of decentralised solutions like mini-grids to support remote network infrastructure.

Vodacom’s own progress demonstrates that meaningful emissions reductions are achievable even in energy-constrained environments. In the past financial year, the company matched 100% of its purchased grid electricity with renewable sources, reducing scope 2 market-based emissions to nearly zero across most of its operations. Since FY2020, it has cut scope 1 and 2 market-based greenhouse gas emissions by 77%, largely through improved energy efficiency and renewable procurement. Continued network optimisation has also enhanced efficiency, lowering the energy required to carry increasing data volumes from 1.55 MWh per terabyte in FY2020 to 0.36 MWh per terabyte in FY2025. Currently, 61% of Vodacom’s total scope 1 and 2 energy consumption is derived from renewable sources, including onsite generation, power purchase agreements and renewable energy certificates.

While mobile network operators are significant energy consumers, the report underscores their critical role in enabling Africa’s digital and economic growth, making their participation in the low-carbon transition both complex and essential.

Developed with technical support from the Carbon Trust, the research is based on sector analysis, case studies and interviews with stakeholders across the ICT and energy value chains, including utilities, technology providers, financial institutions and regulators.

“By sharing insights and identifying pathways forward, the report aims to support more coordinated action across the industry and take up the significant opportunity for Africa to build a more resilient, inclusive and sustainable digital economy,” concluded Essam.

IFC partners with Cashi to scale interoperable digital payments in Chad. (Image source: IFC)

A new partnership has been announced between International Finance Corporation, part of the World Bank Group, and Cashi, a fintech firm focused on developing digital payment infrastructure across Africa, including in Chad

The collaboration will support interoperable payment solutions tailored for environments with limited connectivity.

Cashi’s platform enables individuals and businesses to send and receive money using mobile phones, point-of-sale devices, and SMS-based tools. By linking users with banks, telecom operators, and other financial institutions within a unified ecosystem, the solution simplifies everyday transactions in markets where cash usage remains prevalent and access to formal financial services is still constrained.

For small and medium-sized enterprises, the platform reduces reliance on physical cash, lowers transaction costs, and expands access to financial services, supporting business growth and job creation. In Chad, financial inclusion remains low, with only about 10–15% of adults holding a bank or mobile money account, compared to more than 30% across sub-Saharan Africa.

Tarneem Saeed, CEO of Cashi, said, “IFC’s upstream support allows us to adapt our proven, crisis-tested platform to the realities of central Africa. This partnership enables us to work closely with regulators and ecosystem partners, build trust with local merchants, and deliver practical financial tools that people can use in their daily lives, even in low-connectivity environments.”

“Expanding access to digital financial services through innovative, tailored solutions is critical in markets where smartphone penetration is low,” said Olivier Buyoya, IFC division director for West Africa. “This project underscores IFC's commitment to support accessible, low-tech, and resilient architecture solutions that boost access to finance for individuals and businesses in the Sahel more broadly.”

The initiative is aligned with the government’s Tchad Connexion 2030 strategy, which prioritises digitalisation and financial inclusion as key drivers of economic diversification, improved revenue mobilisation, and private sector growth in Chad. It also reflects IFC’s growing engagement in the Sahel region, with a focus on financial services, agribusiness, digital connectivity, and climate resilience.

Africa’s rising digital talent opportunity

According to Dr Jannie Zaaiman, secretary general of the Technology Information Confederation Africa (TICON Africa), the wave of global technology layoffs could present a strategic opportunity for Africa to strengthen its digital workforce

As companies in advanced economies restructure around artificial intelligence (AI), the continent faces a strategic decision. It can remain a consumer of external technology, or invest in developing a workforce capable of competing in the global digital economy.

Job reductions across the technology sector did not stop after the initial post-pandemic slowdown. Instead, layoffs have become a recurring feature as companies that expanded aggressively during the boom years pivot toward profitability and operational efficiency. Tight budgets and shifting priorities have pushed many firms to streamline operations. In early 2026, several major technology companies, including Amazon and Meta, continued to announce workforce reductions as part of this recalibration.

Executives increasingly cite AI and automation as factors enabling companies to operate with smaller teams. At Swedish fintech company Klarna, leadership has publicly stated that improvements in AI-driven efficiency are allowing the organisation to rely less on aggressive hiring, instead managing workforce changes through attrition and technological optimisation.

These developments have created a growing pool of highly skilled professionals including software engineers, data analysts, product managers and designers seeking new opportunities. Many are open to remote collaboration, contract work or advisory roles. For African technology ecosystems, this represents a potential advantage. If structured pathways exist, international experts could contribute mentorship, specialised knowledge and project support to emerging local teams.

Africa’s digital skills gap

Africa’s demographic profile provides a strong foundation for digital growth. More than 60% of the continent’s population is under the age of 25, making it the youngest region in the world. However, the education and training pipeline remains limited. A study conducted jointly by the African Union and United Nations Educational, Scientific and Cultural Organization found that only around 10% to 15% of young Africans currently have access to structured digital education. Even fewer, less than 5%, receive training in advanced disciplines such as programming, data analytics or cybersecurity.

At the same time, demand for digital capability is accelerating rapidly. According to projections from the World Bank, sub-Saharan Africa could generate approximately 230 million digital-related jobs by 2030 as digital services expand across sectors.

Research from the International Finance Corporation highlights that this demand will extend far beyond traditional technology roles. By 2030, some level of digital literacy will be required for at least half of all jobs in Kenya and between 35% and 45% of jobs in countries such as Nigeria and Côte d’Ivoire. In many cases, these will be non-technical positions where digital competence becomes a basic requirement rather than a specialised skill.

The pace at which workplace skills are evolving further underscores the urgency. The World Economic Forum, through its Future of Jobs analysis, suggests that employers expect major shifts in required skills within the next five years as technology adoption continues to accelerate globally. For Africa, the challenge is not only closing the existing skills gap but also building systems capable of continuously updating workforce capabilities.

A global talent opportunity

If layoffs in advanced economies represent a redistribution of global talent, Africa’s advantage lies in its scale and youth population. According to analysis in the Foresight Africa 2025–2030 initiative by the Brookings Institution, the continent could create as many as 650 million opportunities for digital training. This represents a potential market valued at approximately US$130 billion and could support the development of up to 230 million digital jobs.

At the same time, global workforce projections point to a major shortage of skilled labour. Consultancy Korn Ferry estimates that by 2030 the world could face a deficit of more than 85 million skilled workers. If these shortages remain unresolved, the resulting productivity gap could cost the global economy up to US$8.5 trillion annually. This imbalance creates a significant opportunity for Africa to become a key supplier of digital talent, provided investments in training and education accelerate.

Several initiatives already demonstrate what is possible. Google’s Digital Skills for Africa programme has reportedly trained more than 10 million people since its launch in 2017. In addition, continent-wide initiatives such as the Smart Africa Digital Academy aim to equip thousands of government officials and young professionals with digital competencies by 2026. The next challenge is scaling these efforts so that they produce not only certificates but also job-ready professionals with practical experience.

Moving toward a talent strategy

Rather than focusing solely on global technology layoffs, African policymakers and industry leaders should frame the conversation around talent development. Digital skills need to be treated as core infrastructure, alongside broadband connectivity, reliable electricity and efficient logistics systems. Training programmes must also align closely with labour market demand in areas such as software development, data science, artificial intelligence, cybersecurity and product management.

The economic rationale is clear. Research from the World Bank indicates that each additional year of schooling can increase hourly earnings by roughly 10%. When combined with digital capabilities, that impact can expand significantly by enabling participation in modern economic sectors including remote services, digital trade, fintech and AI-enabled productivity.

To capture this opportunity, several pathways need to be accelerated. Digital literacy and data skills should be integrated more deeply into secondary school education. Governments and industry should expand public-private bootcamps and apprenticeship programmes focused on measurable employment outcomes rather than simply enrolment figures. Greater inclusion is also essential, particularly by addressing barriers that prevent women and rural populations from accessing digital training.

In addition, structured remote-work frameworks could allow global experts to mentor African trainees while participating in local technology projects. This approach would convert international expertise into sustainable domestic capability.

Africa therefore has an opportunity to move beyond observing the global technology workforce reshuffle. By investing strategically in digital education and talent pipelines, the continent can position itself as a hub where the next generation of globally competitive digital professionals is trained, employed and connected to the wider world.

The pilot supports cross border intra African payments for individuals, merchants and traders

Onafriq Nigeria Payments Ltd, a payment service provider licensed by the Central Bank of Nigeria, has partnered with the Pan African Payment and Settlement System (PAPSS) to launch a pilot programme enabling wallet based outbound payments from Nigeria to Ghana

The service allows instant transactions fully in naira, without the need for hard currency conversion, and is delivered in collaboration with banks and mobile money operators.

Approved by the Central Bank of Nigeria, the pilot supports cross border intra African payments for individuals, merchants and traders. Small and medium sized enterprises are expected to benefit significantly, gaining access to a faster and more affordable way to transact with customers and suppliers across borders. The service is scheduled to run for a six month period starting on 1 December.

Through its collaboration with PAPSS, Onafriq is contributing to the implementation of the African Continental Free Trade Area mandate, which promotes tariff free trade across its 54 member states. Within the partnership, Onafriq provides the mobile money infrastructure, supported by an ecosystem of more than one billion mobile wallets. PAPSS contributes its network of over 160 commercial banks, representing more than 400 million bank accounts across 19 African countries. Together, the two organisations are linking mobile money platforms and banking systems to enable smoother intra African transactions.

Africa’s payments landscape has traditionally been divided between bank led and mobile led markets, with limited interoperability between the two. This partnership is designed to remove those barriers. By connecting more than one billion mobile wallets and approximately 500 million bank wallets across the continent, the initiative enables cross border collaboration at scale.

The latest pilot builds on the existing partnership between Onafriq and PAPSS for inbound payments into Ghana, which was announced earlier this year.

“Our work with PAPSS shows what collaboration at scale can unlock—seamless, secure connections between banking systems and mobile money ecosystems. This is how we open bi-directional trade corridors, reduce costs for businesses, and give African enterprises the rails they need to trade with confidence in their own currencies. The vision is continental, but it starts with practical steps like this one,” said Mxolisi Msutwana, Managing Director Anglophone West Africa.

“Too often, African businesses and individuals see borders as roadblocks instead of opportunities. With this step, we’re challenging that mindset, giving Nigerians the ability to send value next door with the same ease as sending

a text message. Our vision is simple: make Africa’s borders invisible to payments. This pilot makes that a reality, moving us closer to a continent where payments don’t pause at the border,” added Ositadimma Ugwu, Chief Information Officer, PAPSS.

The new Nigeria to Ghana outbound payments capability follows the successful launch of the Ghana to Nigeria instant payments corridor earlier this year, reinforcing the shift towards local currency, instant and inclusive payment systems across Africa.