According to the report, benefits from AI will not be distributed evenly across the economy, but will be concentrated in many influential sectors.
The African Development Bank (AfDB) has released a new report outlining a strategic roadmap to unlock the economic and social potential of artificial intelligence (AI) across Africa. Produced under the G20 Digital Transformation Working Group, the report, AI Productivity Improvement in Africa: A Path to Labor Efficiency, Economic Growth and Inclusive Transformation, examines how AI can drive productivity, economic expansion and inclusive development across the continent.
The study, conducted by consulting firm Bazara Tech, estimates that comprehensive deployment of AI could add up to $1 trillion to Africa’s GDP by 2035, equivalent to nearly a third of the continent’s current economic output. This growth potential is underpinned by Africa’s expanding digital infrastructure, growing youthful population, and ongoing reforms across key sectors, positioning the continent as a key frontier for AI-driven development.
According to the report, benefits from AI will not be distributed evenly across the economy, but will be concentrated in many influential sectors. Five priority sectors are expected to account for approximately 58% of total AI-related benefits, or approximately USD 580 billion, by 2035: Agriculture, Wholesale and Retail Trade, Manufacturing and Industry 4.0, Finance and Financial Inclusion, and Health and Life Sciences. These areas were identified based on their economic weight, readiness to deploy AI technologies, and strong potential to deliver comprehensive outcomes.
Nicholas Williams, Manager of ICT Operations at the African Development Bank, said the report identified clear priority areas for early adoption. He noted that the Bank stands ready to mobilize investment to support these actions, and called on governments and the private sector to use this support to drive productivity gains and create quality jobs.
The report highlights that realizing Africa’s AI potential relies on five key interconnected enablers: data, computing infrastructure, skills, trust and capital. This highlights the need for reliable and interoperable data systems, scalable computing power, and a skilled workforce capable of developing and maintaining AI solutions. Strong governance and regulatory frameworks are recognized as essential to building trust and accelerating adoption, along with sufficient capital to de-risk innovation and accelerate deployment.
Additionally, AfDB has outlined a step-by-step roadmap to guide Africa’s AI readiness. The proposed approach includes an ignition phase from 2025 to 2027, an integration phase from 2028 to 2031, and a scale-up phase from 2032 to 2035. These stages are designed to gradually strengthen your foundation, expand adoption, and maximize impact.
Usman Fall, Director of Industry and Trade Development at the bank, emphasized the urgency of action, noting that achieving early milestones by 2026 will help drive Africa’s AI growth momentum. He added that the challenge for Africa is no longer identifying what to do, but ensuring timely and effective implementation.
