AFC CEO: AI and digital tools cannot formalise Africa’s informal economy without infrastructure

Infrastructure as the missing link

At the Africa Financial Industry Summit (AFIS) 2026 in Luanda, Angola, Africa Finance Corporation (AFC) CEO Samaila Zubairu argued that artificial intelligence and digital applications cannot formalise Africa’s informal economy without significant investment in physical infrastructure. Zubairu emphasised that software tools are ineffective when basic utilities—electricity, storage, and transport networks—are absent, citing the continent’s informal sector, which employs 83% of the workforce.

According to TechCabal, Zubairu pointed to China’s experience, where formalisation was driven by lowering the cost of doing business through infrastructure, not just digital or administrative mandates. He warned that digitising small enterprises without addressing infrastructure gaps—such as reliable electricity or cold chains—would fail to lift productivity.

Industrial planning beyond raw materials

Zubairu called for comprehensive industrial master planning to avoid isolated interventions that neglect broader economic needs. He highlighted the Lobito Corridor—a multi-country infrastructure project spanning Angola, the Democratic Republic of Congo, and Zambia—as an example of how infrastructure can drive regional growth beyond raw material extraction. The project, he noted, must be accompanied by urban planning to prevent the unintended consequence of creating unplanned slums.

The discussion also touched on the mismatch in development speeds between tech entrepreneurs, financiers, and bureaucratic state machinery. Zubairu’s remarks suggest that African economies may need to prioritise coordinated industrial policies to align these actors.

What this means

Lazyfounder analysis — our interpretation, not reported fact.

Zubairu’s remarks underscore a critical challenge for African founders and operators: digital transformation alone is insufficient without parallel investment in physical infrastructure. For startups in fintech, agritech, or logistics, this signals a need to either advocate for or adapt to infrastructure constraints—whether by building hybrid models (e.g., offline-online supply chains) or partnering with infrastructure-focused investors like AFC. His emphasis on industrial master planning also suggests that isolated digital solutions may struggle to scale without broader economic coordination, particularly in sectors like mining and agriculture where the Lobito Corridor could reshape trade dynamics.

Key takeaways

• Founders in Africa’s informal economy must address infrastructure gaps—such as unreliable electricity or transport—as part of their go-to-market strategies, not just as external dependencies.
• The 83% informal employment statistic highlights the scale of the market but also the complexity of formalising it; startups targeting this segment may need to combine digital tools with physical logistics.
• The Lobito Corridor project could unlock new opportunities for startups in mining, agriculture, and trade by improving regional connectivity—monitor its progress as a potential catalyst for supply chain innovation.
• Investors may prioritise startups that integrate infrastructure solutions, reflecting AFC’s focus on physical assets as a prerequisite for economic formalisation.

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