The African Development Bank has released a report establishing a strategic roadmap to unlock the economic and social potential of artificial intelligence (AI) in Africa.
Produced within the framework of the G20 Working Group on Digital Transformation, the report, titled “Improving AI Productivity in Africa: A Path to Labor Efficiency, Economic Growth and Inclusive Transformation,” outlines the potential of AI to drive development.
The study, conducted by consulting firm Bazara Tech, found that comprehensive adoption of AI could generate up to $1 trillion in additional GDP by 2035, equivalent to almost a third of the continent’s current economic output. This potential builds on Africa’s growing digital capabilities, favorable demographics and ongoing sector reforms, making Africa one of the world’s most promising regions for AI-driven growth.
According to the report, advances in AI are not expected to be evenly distributed across the continent’s economies, but will be concentrated in specific areas of high impact. The analysis identified five priority areas: Agriculture (20%), Wholesale and Retail Trade (14%), Manufacturing and Industry 4.0 (9%), Finance and Inclusion (8%), and Health and Life Sciences (7%). Together, these sectors are expected to capture 58% of the total AI profits by 2035, or approximately $580 billion. These sectors combine large economic scale, high capacity for AI implementation, and high potential for comprehensive development.
“This report outlines key actions and identifies areas to focus on early implementation,” said Nicholas Williams, head of ICT operations at the African Development Bank. “The Bank stands ready to invest to support these activities. We look forward to the private sector and governments leveraging these investments to achieve confirmed productivity gains and create quality jobs.”
According to the report, realizing AI’s potential will depend on five interdependent factors: data, computing power, skills, trust, and capital. Reliable and interoperable data forms the foundation of AI knowledge, and a scalable IT infrastructure ensures efficient deployment of solutions across the continent. The report notes that a skilled workforce is essential to developing, deploying, and maintaining AI systems, and that trust fostered by governance and regulatory frameworks is the foundation for AI system deployment. It also shows that these factors, combined with sufficient capital investment to de-risk innovation and accelerate deployment, “facilitates AI-driven growth cycles.”
The report also lays out a three-stage roadmap for preparing Africa for artificial intelligence: Start-up (2025-2027), Integration (2028-2031) and Scale-up (2032-2035).
“Completing the initial stages by 2026 will accelerate the momentum of AI in Africa,” said Ousmane Fall, director of industrial and commercial development at the African Development Bank. “Africa’s challenge is no longer what to do, but how to do it at the right time.”
Click this link to read the report.
Source: Agency Ecofin
