AI may add $30bn to Africa’s economy by 2034 – Report

Artificial Intelligence (AI) is projected to contribute over $30 billion to Africa’s economy within the next decade, according to a comprehensive report by the research consultancy Public First. This study, commissioned by Google, underscores the transformative power of AI and other cutting-edge digital technologies, such as cloud computing, in accelerating economic growth and addressing key challenges across the African continent.

The report described AI as a cornerstone of Africa’s burgeoning digital economy, with the potential to unlock new opportunities and drive innovation in various sectors. It emphasized that the integration of AI into everyday processes could reshape industries, enhance productivity, and create a more inclusive economic landscape. “With AI, the future of Africa’s digital economy is bright and full of possibilities,” the report stated, painting a hopeful picture of the continent’s technological evolution.

One of the report’s key highlights was the dramatic increase in internet connectivity across Sub-Saharan Africa, a phenomenon it referred to as a “digital decade.” More than half of the region’s population is expected to gain internet access within the next few years, paving the way for broader adoption of digital tools and services. The report also revisited Google’s $1 billion commitment, announced in 2021, to enhance connectivity, foster innovation, and support local entrepreneurs across the continent.

As of May 2024, Google had already invested over $900 million toward this initiative and is on track to fulfill its promise by 2026. The company’s investments have been pivotal in transforming Africa’s digital landscape. The report particularly emphasized the importance of skills development, which is critical to unlocking Africa’s economic potential. In 2023, Google’s Developer Scholarships and Digital Skills for Africa programs trained more than 6.5 million individuals, leading to a substantial $7.8 billion boost in productivity across various sectors.

These newly acquired skills have not only allowed individuals to improve their employability but have also enabled businesses to operate more efficiently and expand their market reach. As a result, the report noted, AI and digital tools are making a significant contribution to the continent’s overall economic output. Furthermore, it highlighted the growing reliance on digital platforms, revealing that 60 percent of young adults in Sub-Saharan Africa have used Google Search to apply for jobs, illustrating the role of digital technologies in fostering career development and supporting the growth of the digital economy.

The report urged African governments to adopt proactive measures to maximize the benefits of AI and digital transformation. Key recommendations included implementing cloud-first policies, enhancing digital infrastructure to support AI adoption, and prioritizing STEM education to build a future-ready workforce. The report also emphasized the importance of promoting AI fluency among the population and creating opportunities for continuous learning to ensure the continent remains competitive in the global digital landscape.

Additionally, the report called for the development of high-quality, diverse datasets to facilitate responsible AI development and the formulation of regulations that balance innovation with ethical considerations. By doing so, governments can create an environment conducive to the sustainable and inclusive growth of AI technologies.

Experts echoed the report’s findings, highlighting the critical need for increased investment and support to enable Africa to fully harness the benefits of AI. Trixie LohMirmand, Chief Executive Officer of KAOUN International, underscored the importance of bridging Africa’s funding gap to unlock the transformative potential of AI. Speaking to The Punch in June, LohMirmand stressed that addressing this funding challenge is essential for revolutionizing Africa’s economy and ensuring long-term prosperity.

In conclusion, the report painted a promising picture of Africa’s digital future while emphasizing the need for collaborative efforts among governments, private sector players, and international partners to realize the full potential of AI. By addressing key challenges and embracing innovation, Africa stands poised to emerge as a leader in the global digital economy.