AI likely to add $30bn to Africa's economy by 2034 — Research report

Artificial intelligence is gradually gaining ground in Africa, impacting significantly its economic growth and development.

A new report by the research consultancy public first, commissioned by Google stated that Artificial Intelligence could contribute more than $30bn to Africa’s economy over the next decade.

The report captured the transformative potential of AI and other emerging digital technologies, such as cloud computing, in driving economic growth and addressing critical challenges across the continent.

Part of the report stated that, “With AI, the future of Africa’s digital economy is bright and full of possibilities."

It also explored the surge in internet connectivity across Sub-Saharan Africa, describing it as a “digital decade”, with more than half of the region’s population expected to gain internet access.

It noted that the increased connectivity, coupled with the growing adoption of digital tools, presented a significant opportunity for economic development.

According to the research, "A one per cent rise in internet connectivity could boost the region’s GDP by nearly 6 per cent.

"In 2023 alone, Google’s tools—such as Search, Maps, and YouTube—helped generate $16bn in economic activity across Africa."

The report stated that "Google’s $1bn commitment, announced in 2021, to enhance connectivity, drive innovation, and support local entrepreneurs."

As of May 2024, Google had invested more than $900m in Africa and expects to fulfil its commitment by 2026.

Also the report revealed Scholarships and Digital Skills for Africa programmes trained over 6.5 million people, resulting in a $7.8bn boost in productivity which will in turn impact significantly the economic growth in Africa.

The newly acquired skills have enabled individuals and businesses to operate more efficiently and expand their operations, contributing to the overall economic output, it stated.

It also highlighted that 60 per cent of young adults in Sub-Saharan Africa have used Google Search to apply for jobs, demonstrating the impact of digital tools in building successful careers in the digital economy.

Recommendation for AI adoption in Africa

The report, however, recommended that Africa government must give priority to cloud-first policy and enhance digital infrastructure to support AI adoption and broader digital transformation to harness the potential of AI fully.

The report urged governments to strengthen STEM education, promote AI fluency, and create opportunities for continuous learning.

It also suggested developing high quality, diverse datasets to support responsible AI development and adopting regulations that balance innovation with ethical considerations.

Speaking on the report, the Chief Executive Officer, KAOUN, international, Trixie Lohmirmand, called for increase investment to ensure Africa fully harness the benefits of AI.