AI News Monitor

A new study from the African Development Bank (AfDB) projects that artificial intelligence could add $1 trillion to Africa’s economy by 2035, but only if the continent rapidly coordinates investments in digital infrastructure, skills, and regulation.

The report, titled “Africa’s AI Productivity Gain,” argues that AI presents a “generational opportunity” for the world’s youngest and fastest-growing continent. It forecasts that strategic adoption could boost Africa’s GDP by nearly one-third over a baseline projection, creating 35 to 40 million new digital jobs and generating an estimated $150 billion in additional annual tax revenue.

“The AI dividend is not given, but it is attainable with concerted effort and coordination,” the report states.

The analysis identifies five key sectors—agriculture, retail, manufacturing, finance, and health—as the primary engines of this growth, poised to capture about 58% of the potential gains. It cites existing African innovators, like Kenya’s Twiga Foods, which uses AI to optimize agricultural supply chains and offer microloans, as early templates for success.

However, the report delivers a stark warning: Africa’s window to secure this future is closing. It currently lags significantly behind global peers in foundational “readiness” areas, scoring an average of 32 out of 100 on a composite index that measures data ecosystems, computing power, skills, governance, and access to capital. The largest gaps are in computing infrastructure and trustworthy regulation.

To bridge this divide, the AfDB prescribes an urgent, continent-wide roadmap centered on five flagship programs. These include building a network of six shared, GPU-rich “Data Embassies” to provide affordable computing power, establishing an African sovereign data commons, and launching a $10 billion blended-finance fund to scale AI ventures.

“Africa is not 40 years behind,” the report concludes. “It is 40 points behind. And that can be closed with the right partnerships, policies, and focus.” The study frames the next two years as critical, urging national governments, regional bodies, and global partners to align on policy and break ground on shared infrastructure by the end of 2026 to avoid being locked out of the AI-driven economy.