Horn of Africa Leaders Champion Enhanced Digital Integration for Regional Growth

Finance ministers and development partners from the Horn of Africa have underscored the crucial role of enhanced digital integration in fostering trade, stimulating economic growth, and promoting regional stability. This emphasis came during the 25th Ministerial Meeting of the Horn of Africa Initiative (HoAI), held in Nairobi on July 14, and co-chaired by the African Development Bank’s Vice President for Regional Development, Integration and Business Delivery, Nnenna Nwabufo, and Somalia’s Minister of Finance, Bihi Iman Egeh.

Discussions at the meeting highlighted how digital integration can significantly reduce trade barriers, improve government service delivery, and create vital employment opportunities, particularly for the region’s youth.

“Digital technologies are shaping today’s economy and tomorrow’s industries. By embedding these technologies into our programs, we can not only improve inclusion but also leapfrog outdated development models.”

–Nnenna Nwabufo, Vice President for Regional Development, Integration and Business Delivery, African Development Bank.

She further stressed the importance of digital integration as a central enabler across all pillars of the Horn of Africa Initiative: trade, infrastructure, resilience, and human capital.

Drawing on global and regional successes, participants cited examples such as the Philippines, where ICT has generated millions of jobs in business process outsourcing, and Kenya’s fintech innovation, particularly the success of M-PESA, as models for scaling digital financial services throughout the region.

Governments were urged to proactively cultivate digital ecosystems by leveraging the demographic dividend, prioritizing infrastructure upgrades, implementing tighter regulatory reforms, and offering digital skills training to ensure broader participation in the digital economy.

Somalia’s Minister of Finance, Bihi Iman Egeh, reiterated the need for coordinated regional efforts to establish an enabling environment for accelerated digital integration and expansion. He referenced the HoAI Digital Policy Matrix, adopted in 2023, as a blueprint for addressing key obstacles to effective digital integration.

Barack Makokha, Kenya’s Cabinet Secretary for National Treasury, emphasized the importance of regionally-aligned public-private partnerships and advocated for blended financing to mitigate investment risks and expand digital access in underserved areas.

Ndiame Diop, World Bank Vice President for Eastern and Southern Africa, called for a comprehensive, multi-pronged approach encompassing cross-border coordination, substantial financing, robust policy support, and digital infrastructure investments. He concluded that such measures could transform digital integration into a powerful engine of economic transformation for the Horn of Africa, ensuring no one is left behind in the digital era.

The meeting concluded with a shared understanding that sustained political will and a determined, multifaceted approach are essential to unlocking the region’s full economic potential and driving long-term growth.