Can AI fix Africa's contrasting economies? Part 1
AI has shifted from being a far-off idea to a transformative force in industries globally, ranging from healthcare and finance to agriculture. This transformation is not just on the horizon—it's already underway. The global AI market, valued at approximately $757 billion in 2025, is set to surge to over $3.6 trillion by 2034, making AI a pivotal component of the Fourth Industrial Revolution.
In Africa, the promise of AI is vast. The continent’s AI market is projected to hit $16.53 billion by 2030, through annual growth of 27%, according to TechAfrica News. Nations such as Nigeria, Kenya, South Africa, Angola, and Ethiopia are leading the charge, applying AI to sectors like FinTech, healthcare, and agriculture to address local challenges and spur economic development. With over 60% of its population under the age of 25, Africa has an unprecedented opportunity, the same article notes. This youthful workforce could be the engine of digital innovation and job creation—if investments are made strategically today.
The path to widespread AI adoption in Africa is challenging. While mobile broadband is common, 60% of the population remains without access. The continent holds less than 1% of the world’s data center capacity which limits its ability to handle the large amounts of data AI needs, according to industry analysts cited in the TechAfrica News article. Additionally, around 600 million people in Africa still lack reliable access to electricity, a critical requirement for AI operations. These infrastructure gaps could worsen the digital divide, leaving rural areas behind as urban centers advance.
AI holds great potential for economic growth, but it’s a double-edged sword. If not handled well, it could deepen inequality. Economic challenges and political instability make it harder for some regions to invest in the necessary AI infrastructure and policies. Without addressing these issues, the digital divide could widen, turning AI from an opportunity into a threat.
A deeper understanding of its adoption in Africa is crucial to ensure AI’s benefits are equitable and contribute to inclusive growth, Akim Benamara, author of a TechAfrica News article about AI the continent observes.
Then vs. now
Sub-Saharan Africa's economy has traditionally relied on farming and extracting resources like oil, gold, and minerals. This focus on basic industries, along with political instability and the lasting effects of colonialism, held back technological growth. Many countries struggled with weak industries, underdeveloped financial systems, and poor infrastructure, making it difficult to move forward.
Today, the picture is more diverse. While agriculture remains crucial for many African nations, countries like Nigeria, Kenya, and South Africa have successfully diversified into the technology, finance, and services sectors. These sectors have not only created jobs but also contributed to economic expansion, with regional GDP growth averaging 3-4% annually in recent years. However, this progress remains uneven, with rural areas still lacking access to essential services like electricity and the internet—both vital for the implementation of AI.
Stronger economy and their political environment
By 2025, the most economically influential countries in Sub-Saharan Africa will likely include Nigeria, South Africa, Kenya, Angola, and Ethiopia. Despite facing their own unique challenges, these nations are making notable progress in AI adoption, driven by economic growth, political stability, and strategic investments in technology.
South Africa, one of Africa’s biggest economies, leads in digital transformation, supported by its democratic government and strong infrastructure. However, challenges like inequality and occasional political instability remain.
Kenya has grown into a tech hub with a stable government and a clear plan for AI growth.
Nigeria, Africa’s largest economy, is a federal republic with a democratic system. It has a growing tech sector, supported by its young, tech-savvy population, but regional conflicts and poor infrastructure still slow down AI progress.
Angola and Ethiopia are rich in natural resources but face different challenges. In Ethiopia, the state-driven AI strategy through the Ethiopian Artificial Intelligence Institute (EAII) can limit private sector innovation. Political tensions and ethnic conflicts add to the uncertainty, making it tough for startups to thrive. In Angola, a single-party system and inconsistent policies discourage investment. Both countries struggle with unreliable power and limited internet access, which slow their AI development.
Weaker economy and their political challenges
Countries like Burundi, Mozambique, and South Sudan face substantial challenges when it comes to AI adoption. Corruption is a factor in several African countries as it makes it harder for the government to bring in foreign investments that could improve infrastructure and boost technological development.
The Corruption Perceptions Index (CPI) is a global measure of public sector corruption, published annually by Transparency International. It scores countries from 0 (very corrupt) to 100 (very clean) based on expert opinions and surveys.
Burundi still relies on small-scale farming, but natural disasters, soil erosion, and political instability slow down its economic growth. Historically ranked among the most corrupt countries, Burundi is often found near the bottom of the CPI.
Mozambique, recovering from a long civil war, faces poor infrastructure, widespread poverty, and limited access to basic services. Ongoing political instability and corruption, has contributed to Mozambique's CPI ranking of 146 and a score of 25/100, which as hindered efforts to attract investment for digital infrastructure, limiting the country’s AI potential.
South Sudan, the world’s youngest country, has faced ethnic violence and political instability since gaining independence in 2011. With poor internet and unreliable electricity, it lags in the digital age, and pervasive corruption further blocks infrastructure development and economic progress, isolating the country from the global digital economy. South Sudan ranks last on the CPI, with a score of 8/100.
In all three countries, corruption drains resources and blocks progress in improving infrastructure. Weak governance hinders their ability to adopt AI, highlighting the critical need for reform and investment to help them stay competitive in the global digital economy.
The AI question: Can Africa advance?
Africa’s AI journey has just begun, and it’s one filled with both promise and challenges.
As the continent navigates its path to AI adoption, some countries are accelerating, while others are still finding their foundation. Africa’s AI journey is marked by clear contrasts—thriving tech hubs alongside regions struggling with basic infrastructure. While the potential for transformative change is immense, significant hurdles remain.
Every journey has a starting point. To understand where Africa’s AI story is headed, we should first look back at its early steps. Stay tuned as we explore the foundations, challenges, and pivotal moments that have shaped the continent’s approach to this groundbreaking technology.