Why US tech multinationals are looking to Africa for AI and other emerging technologies: Expanding tropical-proof R&D innovation

geotech cue

April 27, 2023

Why US tech multinationals are looking to Africa for AI and other emerging technologies: Expanding tropical-proof R&D innovation

by
Arai Simmons

As technology continues to transform every industry, the African continent is emerging as a key player in driving innovation. U.S. technology companies are increasingly turning to Africa because of its potential as a hub for breakthrough research and development (R&D) in artificial intelligence (AI) and other emerging technologies. But beyond the tech talent, what will attract these tech giants to Africa? Will there be 2.5 billion consumers by 2050? Or will there be 2.5 billion consumers by 2050? Is it because Africa will have the youngest population by 2020? Below, we examine and discuss opportunities and challenges in AI and emerging technologies, focusing on how Africa’s exceptionally diverse tropical ecosystems offer unparalleled potential to scale up research and development breakthroughs that can withstand extreme weather events.

The intersection of tropical tolerance research and population growth

U.S. technology multinationals are increasingly looking to Africa for AI and other emerging technologies for a variety of reasons. First, technology companies such as IBM and Google have established research and development laboratories in Africa (often run by experts from the African diaspora). Second, establishing a presence in Africa gives technology companies access to innovative ideas, cutting-edge startups, AI researchers, and more. Additionally, as a region with a rapidly growing youth population, opportunities to scale up R&D innovations to meet local needs are particularly important. In 30 years, one in five people on the planet will be African, so a local African presence is essential if companies want to be first to market.

One of the main reasons is the opportunity to scale up R&D innovation to meet local needs. Google has opened Africa’s first AI lab in Ghana. Why did Google do this? Several technology companies such as IBM, Google, etc. have started understanding the research and innovation landscape in Africa and have set up research and development labs in Africa. Some have hired experts from the African diaspora to run these laboratories, with knowledge and experience on both a regional and global scale. IBM maintains research facilities in Kenya and South Africa, and Google operates an AI facility in Ghana. Why did they choose to live there? They definitely want to hear about the fresh ideas that startups, AI researchers, and other organizations are working on, as well as new trends that can be commercialized. This kind of foresight is smart for business and will continue to be needed. In 30 years, one in five people on the planet will be African, so if your company wants to be the first to market, a local presence in Africa will be essential to cater to this growing demographic market.

Leveraging AI and emerging technologies in healthcare and medicine

Tropical Africa is a breeding ground for many emerging diseases that pose a threat to global health. These areas also have high rates of poverty and limited access to quality health care. As a result, there is a strong need for new medical technologies that can be used to prevent, diagnose, and treat existing and emerging diseases. AI and other emerging technologies have the potential to transform healthcare in Africa by detecting disease outbreaks earlier, developing more effective treatments, and improving access to quality care. Additionally, these technologies can help reduce healthcare delivery costs by automating tasks and increasing efficiency.

U.S. technology multinationals are investing in AI and other emerging technologies because they recognize the potential impact these technologies could have on global health. By commercializing and scaling African-originated R&D innovations, the private sector, technology multinationals, and academic institutions are working together to improve the lives of millions of people across the continent and other frontier markets. Zindi, a startup based in Cape Town, South Africa, called on African data scientists to develop solutions to combat the coronavirus crisis at its peak. Similarly, Christian Happi, Professor of Molecular Biology and Genomics and Director of ACEGID at Redeemers University in Nigeria, assembled a team of data scientists to sequence the SARS-CoV-2 virus using AI and other advanced technologies.

Opportunities in Africa for US technology multinationals

US technology multinationals are turning to Africa and other frontier markets as a proving ground to test AI and other emerging technology solutions, as the continent is home to a diverse entrepreneurial ecosystem, particularly technology incubators, accelerators, and co-working spaces. These entrepreneurial ecosystems are beginning to serve as testing grounds for new ideas that may not take off in developed markets for a variety of reasons, including lack of baseload power and the high cost of internet data. The continent also has a growing population of young people leveraging digital technology, creating a huge opportunity for companies looking to expand their customer base and workforce.

Important African minerals used in emerging technologies

Several critical minerals, such as cobalt, lithium, graphite, and platinum metals, serve as essential materials for everyday technologies such as consumer electronics, yet are hitherto untapped markets to power the world’s emerging technology ecosystem. Furthermore, Africa’s natural resources also offer an opportunity to make the continent a leader in the global green transition to battery-powered electric vehicles. Although this market is largely cornered by China, African countries have recently begun banning raw raw materials used in emerging technologies as African governments realize the potential to generate more revenue from these critical minerals. For example, Zimbabwe has recently introduced a ban on raw lithium, and other African countries are beginning to recognize the opportunity to leverage critical minerals for their own development (increased foreign direct investment, value addition, and job creation), above geopolitical competition among the world’s industrial powers.

The challenge of expanding R&D innovation in Africa

The challenge with scaling R&D innovations is that bringing them to market requires significant investments of time and money, and these investments are often riskier than traditional businesses. For U.S. technology multinationals, the opportunity to increase R&D investment in Africa is an attractive proposition. The continent has a huge population and a growing middle class, but its resources are largely untapped. However, doing business in Africa comes with challenges unique to Africa, such as infrastructure constraints and political instability. Nevertheless, for companies willing to invest on the continent, the rewards can be significant.

Scaling R&D and innovation in Africa faces significant challenges, including:

• Infrastructure: Many African countries lack the basic infrastructure needed to support large-scale research and development activities. Challenges include unreliable baseload power, communications, and transportation.
• Skilled labor: Many African countries have low levels of education and lack trained personnel to work in research and development facilities.
• Political instability: Doing business in Africa involves political risks. These risks include instability, corruption, and government intervention.

Benefits of an Africa-centric R&D innovation strategy

Pursuing an Africa-centric R&D innovation strategy has many benefits, including the ability to more effectively scale innovation across frontier and emerging markets. By focusing on developing technologies that can be adapted for use in tropical climates, U.S. technology multinationals can gain first-mover advantage in African markets and tap into a vast untapped customer base. Additionally, this strategy will help us build long-term relationships with local partners and suppliers, which are essential for successful operations in Africa. Africa’s natural environment, which includes semi-arid, desert, and tropical climates, can also be a suitable testing ground for innovations that have the potential to succeed in developed markets. Additionally, by investing in research and development of technologies relevant to the continent’s needs, U.S. companies can position themselves as global leaders in the race to develop impactful innovations for Africa. Finally, by 2030, African youth are expected to account for 42 percent of the world’s youth population. This is a huge demographic that is tech-savvy, ambitious, and hungry for economic opportunity.

conclusion

US technology multinationals are recognizing the potential to expand African-centric R&D innovation in Africa. With a growing digitalized population and access to rich untapped data resources for AI, the continent offers significant opportunities to responsibly develop AI and other emerging technologies. By leveraging local knowledge and expertise, U.S. technology companies can develop new products and services designed specifically for African markets, while also contributing to the development of innovative solutions that can be applied globally in emerging and developed markets.

Image: Credit: Tim Johnson via Unsplash