Finance ministers and development partners from across the Horn of Africa have reaffirmed their commitment to accelerating digital integration as a central strategy for driving economic growth, fostering regional stability, and building climate and development resilience. This renewed push came during the 25th Ministerial Meeting of the Horn of Africa Initiative (HoAI), held in Nairobi on July 14th 2025.
Convened under the theme, ‘Economic cooperation and inclusive development’, the meeting was co-chaired by Nnenna Nwabufo, Vice President for Regional Development, Integration and Business Delivery at the African Development Bank, and Bihi Iman Egeh, Minister of Finance of Somalia. High-level representatives from Djibouti, Eritrea, Ethiopia, Kenya, Somalia, South Sudan, and Sudan were present, alongside key development partners including the World Bank, Agence française de développement, and Shelter Afrique.
In her opening remarks, Nwabufo emphasized that digital technologies are no longer peripheral tools but “central enablers” of modern economies. She argued that integrating these technologies across sectors could not only improve efficiency and service delivery but also allow African countries to leapfrog development models that are increasingly unsustainable. “Digital technologies are shaping today’s economy and tomorrow’s industries. By embedding these technologies into our programs, we can improve inclusion and leapfrog outdated development models,” she said.
Discussions at the meeting focused on how digital integration could unlock new opportunities in trade, agriculture, public service delivery, and climate adaptation. The ministers highlighted how enhanced digital systems could reduce trade friction, improve cross-border connectivity, and create employment, particularly for youth who represent the majority demographic in the region. The experiences of countries like the Philippines, where ICT services have created millions of jobs through business process outsourcing, and Kenya, where mobile money platforms like Safaricom’s M-PESA have revolutionized financial inclusion, were cited as key reference points.
Bihi Iman Egeh, Somalia’s Finance Minister, stressed the importance of translating political will into coordinated regional action. He referenced the HoAI Digital Policy Matrix, adopted in 2023, as a foundational tool for guiding implementation. The matrix lays out a shared policy blueprint aimed at dismantling barriers to digital transformation, including regulatory misalignment, infrastructure gaps, and limited digital skills.
Barack Makokha, Kenya’s Cabinet Secretary for the National Treasury, called for regionally aligned public-private partnerships and stressed the importance of blended finance in reducing risk for private investors. He noted that meaningful digital expansion in underserved and rural areas will require both capital and coordination across borders.
The broader implications of the ministerial meeting stretch well beyond the Horn. With Africa’s digital economy projected to grow rapidly in the coming decade, the region’s success—or failure—in building inclusive, integrated digital systems could serve as a bellwether for the continent. Experts argue that digital connectivity is not just a technological issue but one intricately linked to sustainability, equity, and resilience.
In a continent grappling with climate shocks, food insecurity, and economic fragmentation, digital tools can offer scalable solutions. From early-warning systems for floods and droughts to digital agricultural marketplaces and smart energy systems, technology can accelerate both adaptation and opportunity. However, this transformation requires more than infrastructure; it calls for investment in human capital, local innovation ecosystems, and policy coherence.
Launched in 2019, the Horn of Africa Initiative has become a key platform for advancing regional cooperation. Built around four pillars—infrastructure, trade and economic integration, climate resilience, and human capital—the initiative has mobilized more than $12 billion from development partners since its inception. Its continued focus on digital integration reflects an evolving understanding that sustainable development in Africa must be data-driven, tech-enabled, and people-centered.
As the Nairobi meeting concluded, ministers and partners agreed that sustained political leadership, policy follow-through, and inclusive financing mechanisms will be essential in realizing the vision of a digitally integrated and resilient Horn of Africa. The consensus was clear: the region must move from aspiration to implementation, with urgency and coordination.
For Africa as a whole, the HoAI meeting offers a timely reminder that regional collaboration and digital innovation must go hand in hand. The stakes are high, but so are the opportunities. As digital ecosystems take root, they must be designed not just for efficiency or profit—but for sustainability, inclusion, and long-term resilience.
