The African Development Bank (AfDB) has released an important new report outlining a strategic roadmap to unlock the economic and social potential of artificial intelligence (AI) across Africa. The report, produced under the framework of the G20 Digital Transformation Working Group, is titled “Improving AI Productivity in Africa: Pathways to Labor Efficiency, Economic Growth and Inclusive Transformation” and provides a comprehensive assessment of how AI can accelerate development, improve productivity and support inclusive growth on the continent.
The study, conducted by consulting firm Bazara Tech, estimates that comprehensive and well-managed adoption of AI technologies could generate up to $1 trillion in additional GDP by 2035, equivalent to almost a third of Africa’s current economic output. This projected growth is being driven by a combination of factors, including the expansion of Africa’s digital infrastructure, a young and rapidly growing workforce, increasing mobile and internet penetration, and ongoing policy and sector reforms in many countries.
According to the report, Africa is uniquely positioned to benefit from AI-driven transformation if adoption is aligned with development priorities. This analysis shows that the economic impact of AI will likely not be distributed evenly across all sectors, but will likely be concentrated in a small number of high-impact industries with significant productivity bottlenecks and advances in digitalization.
Five priority sectors have been identified to capture the majority of the benefits from AI by 2035. Agriculture is expected to account for 20% of total benefits, reflecting AI’s potential to improve yields, optimize supply chains, strengthen climate resilience, and support smallholder farmers. Wholesale and retail trade follows at 14%, led by AI-powered logistics, demand forecasting, and digital marketplaces. Manufacturing and Industry 4.0, supported by automation, smart factories and predictive maintenance, is expected to contribute 9%. Financial services and inclusion accounted for 8%, with AI improving credit scoring, detecting fraud, and enabling underserved populations to access finance. Health and life sciences account for 7%, as AI supports diagnostics, disease monitoring, drug discovery, and more efficient healthcare systems. Together, these sectors are expected to generate approximately $580 billion, or 58% of total AI dividends.
AfDB officials emphasized that the report is action-oriented, not just analytical. Nicholas Williams, the bank’s ICT operations manager, said the roadmap clearly identified priority areas for early implementation. He said the Bank stands ready to commit investment funds to support these efforts and looks forward to governments and the private sector leveraging this financing to drive productivity gains and create quality jobs across the continent.
The report highlights that unlocking the full potential of AI relies on five interrelated enablers: data, computing, skills, trust, and capital. High-quality, reliable, and interoperable data is recognized as the foundation of effective AI systems. Deploying AI solutions at scale, especially in resource-constrained environments, requires scalable and affordable computing infrastructure. Equally important is developing a skilled workforce, from engineers and data scientists to policymakers and regulators, who can design, deploy, and maintain AI technologies.
Trust has been highlighted as a key factor for AI adoption. This includes strong governance frameworks, ethical guidelines, data protection laws, and transparent regulatory systems to ensure that AI is used responsibly and inclusively. Finally, the report highlights the importance of appropriate capital investment to de-risk innovation, support startups, and accelerate the adoption of AI solutions across the public and private sectors. Together, these enablers can create the self-reinforcing cycle of AI-driven growth described in the report.
To realize this vision, AfDB has outlined a three-step roadmap for Africa’s AI readiness. The Ignition phase (2025-2027) will focus on foundational investments in data infrastructure, skills development, and pilot projects. The integration phase (2028-2031) aims to strengthen the organization, expand successful use cases, and deepen regional integration. The final scale phase (2032-2035) envisions continent-wide deployment of AI solutions with measurable impacts on productivity, employment, and inclusive development.
Usman Fall, Director of Industry and Trade Development at the World Bank, emphasized the urgency of implementation, noting that achieving early milestones by 2026 is critical to getting Africa’s AI “flywheel” in motion. He stressed that the main challenge facing the continent is no longer a lack of ideas or strategies, but the ability to implement them quickly and effectively.
