Driving Digital Growth Through Connectivity Investment

Why It Matters

Closing the digital divide unlocks economic growth for billions while creating a trillion‑dollar market for investors, making coordinated policy and financing action a strategic priority.

Key Takeaways

• Half of global population lacks affordable, reliable internet access.
• Connecting the unconnected requires $428B‑$2.2T investment in high‑speed infrastructure.
• Governments must pair systemic policy reforms with community‑level technical assistance.
• Small local ISPs need flexible, low‑ticket financing and simplified licensing.
• Intermediaries can aggregate micro‑funds, reducing transaction costs for DFIs.

Summary

The Atlantic Council convened a round‑table during the World Bank‑IMF spring meetings to examine how to close the global digital divide. Speakers highlighted that between one‑third and one‑half of the world still lacks affordable, reliable internet, a gap that hampers education, commerce and civic participation.

Estimates of the capital required to deliver high‑speed connectivity range from $428 billion to over $2.2 trillion, representing a potential $2.5 trillion deal‑making market. Participants argued that such scale cannot be financed by governments alone; instead, a coordinated mix of public policy, development finance institutions (DFIs), and private capital is essential.

The UK’s Foreign, Commonwealth & Development Office (FCDO) described its two‑track approach: systemic reforms of policy, regulation and standards, combined with on‑the‑ground technical assistance for last‑mile projects. Its Digital Access Programme has already lifted 18.6 million people into sustainable digital inclusion. Carlos Moreno stressed the need for fit‑for‑purpose regulation, low‑cost spectrum and flexible micro‑financing for community‑run ISPs, while Paul Garnett warned of a “missing middle” where traditional DFIs’ ticket sizes are too large.

The discussion underscores that bridging the digital gap will require blended finance vehicles, specialized intermediaries to parcel large checks into micro‑loans, and regulatory environments that lower entry barriers for local operators. For investors, the sector offers both a massive development imperative and a long‑term revenue opportunity as connectivity becomes the backbone of AI, fintech and other emerging services.

Original Description

Digital connectivity now underpins participation in the global economy, yet nearly half the world remains underserved, with market incentives alone failing to close gaps in infrastructure. This panel featuring Paul Garnett (Vernonburg Group), Carlos Rey-Moreno (Association for Progressive Communications), and Alessandra Lustrati (UK Foreign, Commonwealth & Development Office), with moderation by Jochai Ben-Avie (Wisteria Strategies), discusses how democratic countries can better leverage their strengths to expand connectivity, drawing upon a project from the Democracy + Technology Initiative that makes the case for the United States and its partners to prioritize connectivity as a strategic and economic imperative.

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