In the current landscape of tech evolution, Artificial Intelligence (AI) has emerged as a key force with global ramifications. Its influence is markedly evident in Africa, where the adoption and integration of AI technologies are reshaping economic, social, and political dimensions.
In line with the transformative potential of Artificial Intelligence (AI), forecasts highlight the significant economic contribution AI could make on a global scale. The report suggests that AI has the potential to contribute up to $15.7 trillion to the global economy by the year 2030.
Notably, Africa stands to gain a substantial share of this economic impact, with an estimated $1.2 trillion attributed to the continent. This forecast indicates a notable 5.6% rise in Africa’s GDP by 2030. This means that using AI correctly could revolutionize how we offer services, making them better and more affordable for a larger number of people. The global spotlight is on AI, and African leaders have an opportunity to secure the resources needed to make positive changes.
Yet, there’s a lot at stake—
In a very diverse continent such as Africa, infrastructure challenges persist, encompassing power grid deficiencies, limited internet access, and an underdeveloped IT ecosystem. The journey to adopt AI encounters obstacles like high costs for internet access and computing, data scarcity, and a shortage of technical skills. Unaddressed, these challenges may hinder the initial growth of the AI ecosystem on the continent.
The Potential of AI in Africa —The Good.
The integration of Artificial Intelligence (AI) in Africa holds meaningful potential across diverse sectors, with significant economic projections and practical applications. From economic growth projections to practical applications in healthcare, agriculture, urban development, and education, there is a concerted effort to harness AI’s potential across various sectors and countries on the continent.
In a recent report by Microsoft —AI in Africa Meeting the Opportunity, President Lilian Barnard emphasized the ongoing AI revolution in Africa, highlighting the continent’s commitment to responsible and ethical AI practices
The AI revolution in Africa is not just a possibility; it is already underway. With responsible regulation, partnerships, and a steadfast commitment to responsible and ethical AI, we are poised to unlock a future with unprecedented opportunities.
Lilian Barnard, President, Microsoft Africa
AI’s transformative impact extends across critical sectors in Africa. In healthcare, AI-powered diagnostic solutions in Rwanda and Ghana are enhancing medical imaging analysis, contributing to the early detection of diseases like breast cancer and tuberculosis. Additionally, companies like Zipline are optimizing drone delivery routes for medical supplies through AI, improving access to essential medications in remote areas, and strengthening healthcare systems.
According to a recent report, the technology has the potential to significantly boost Africa’s economy by an impressive $1.5 trillion. This figure, equivalent to half of the continent’s current gross domestic product (GDP), becomes particularly noteworthy if African businesses can secure a 10% share in the global and rapidly expanding AI market.
The agricultural sector is benefiting from AI as a supportive tool for resource management. Startups in Nigeria and Kenya, such as UjuziKilimo and Farmcrowdy, leverage AI to analyze soil and weather data, offering personalized advice to farmers. This application results in increased productivity and food security, particularly benefiting smallholder farmers and local communities.
In urban development, AI is providing tailored solutions to Africa’s unique needs. An example is South Africa’s eThekwini Municipality in KwaZulu-Natal, which has embraced AI to become a data-driven smart city, enhancing water and sanitation services.
AI’s role in financial inclusion is also quite noteworthy, particularly in East Africa, where mobile banking platforms like M-Pesa utilize AI for credit scoring and microloan services. This revolutionizes banking in the region, extending financial services to previously unbanked populations.
Recognizing the potential of AI, several African countries are actively developing or have already published national AI strategies. Countries such as Mauritius, Egypt, Rwanda, Tunisia, Ghana, and Ethiopia are at the forefront of these strategic initiatives, signaling a concerted effort to harness the benefits of AI for their respective nations.
On a continental scale, the African Union is proactively addressing AI governance by convening experts to formulate a comprehensive African Union Artificial Intelligence (AU-AI) Continental Strategy. This strategy aims to address the technological, ethical, economic, security, and social dimensions of AI, fostering a holistic approach to AI governance.
The Challenges of AI in Africa
Despite its potential, the adoption and utilization of AI in Africa face several limitations. These challenges include a shortage of relevant technical skills, inadequate infrastructure, limited investment in research and development, and the need for adaptable regulatory frameworks.
One major obstacle is the skills gap, particularly among the youth, which prevents Africa from fully embracing transformative technologies like AI. Additionally, data limitations hinder the development of AI applications, as there’s a scarcity of high-quality and diverse data reflecting the local context. Limited funding for research and development further impedes progress in AI innovation.
There’s also concern about the displacement of jobs due to automation, though many believe that integrating AI into production processes can enhance productivity, improve human capabilities and skills, generate new job roles, and potentially reshape existing ones
rather than replace human workers.
In a chat, Akim Benamara, Founder of TechAfrica News, and Stefan Steffen, Group Head of Data and AI at Telkom Group, delved into Telkom’s integration of AI and their perspective on its role in the workforce. When asked about their stance on AI as a supportive tool rather than a replacement for workers, Steffen emphasized,
Our perspective on AI is one of augmentation, where it supports and enhances the capabilities of our workforce. We focus on using AI to guide and assist our service agents and technicians, making them experts in their roles.
Stefan Steffen, Group Head of Data and AI, Telkom Group
Furthermore, cultural skepticism and a lack of understanding of AI, along with the challenge of integrating AI with existing systems, present additional barriers. Also, in infrastructure, where urban centers often experience rapid digitalization, while rural areas still lack consistent internet connectivity and power supply.
Policy frameworks also play a pivotal role, with many countries lacking robust policies and legislation on digitalization. Nonetheless, efforts by some nations, such as Ethiopia, Ghana, Rwanda, and Mauritius, to formulate AI strategies underscore progress in this arena.
Collaborative initiatives, including partnerships with international tech firms and AI research institutions, are bridging some of these gaps. However, the journey to full-fledged AI adoption in African statistical systems remains fraught with challenges.
While enthusiasm for AI’s potential abounds, Africa must address infrastructural, financial, human resource, and policy hurdles to fully harness the transformative power of AI in statistics. With strategic investments and collaborative efforts, Africa can navigate these challenges and lead in innovative AI applications for societal progress and economic development.
Future Outlook —Opportunities for AI Inclusion in Africa
Looking ahead, In Africa, the integration of Artificial Intelligence (AI) presents a pivotal opportunity across various sectors, including financial services, healthcare, agriculture, education, and climate resilience, aligning with the Sustainable Development Goals (SDGs). Despite the presence of over 2,400 AI startups in the region, their impact remains limited to select markets and sectors.
AI adoption is gaining traction in key sectors such as healthcare, financial services, and agriculture. Notable examples include Jumo and MNT Halan in fintech, and Deep Echo and Diagnosify in healthcare. The GSMA is actively researching AI use cases in Kenya, Nigeria, and South Africa, with a focus on promoting the ethical use of mobile big data and AI for advancing SDGs.
Achieving inclusive AI in Africa necessitates local big data sets to inform AI models and the development of AI skills at all levels of the workforce. As 5G and the Internet of Things (IoT) are deployed, more real-world data is collected in real time, empowering AI systems to become more sophisticated. In the telecoms sector, AI is improving connectivity and customer experiences by optimizing and automating networks. This collaboration presents a substantial opportunity for policymakers and regulators to facilitate inclusive and efficient digital transformation, contributing to socioeconomic development and the attainment of the Sustainable Development Goals (SDGs).
Rwanda has taken a pioneering step by devising the first National AI policy in Africa. Regulators have embraced an inclusive approach, engaging local experts and collaborating with regional and international actors to build a robust, ethics-based, and inclusive AI policy. This approach sets a precedent for other countries to follow, emphasizing collaboration and knowledge-sharing to advance AI integration across Africa.
To seize these opportunities, Africa must invest in AI education, foster innovation, and create supportive regulatory frameworks, paving the way for a brighter future powered by AI.
More importantly, for this potential to be fully realized, collaboration between the public and private sectors is paramount, as with other pressing issues in Africa. For instance, initiatives like Microsoft’s collaboration with African governments and businesses are already demonstrating the potential.
By pooling resources, sharing expertise, and crafting realistic frameworks, Africa can not only overcome challenges but also unlock the full potential of AI for sustainable development and inclusive growth, ensuring that it benefits society as a whole.
