Artificial intelligence could add over $1 trillion to Africa’s economy by 2035. Achieving this requires faster investments in digital infrastructure and energy, a study presented at the Infra for Africa Forum found.
The analysis, conducted by Bazara Tech for the African Development Bank during the 2023 G20 meetings in South Africa, highlighted agriculture, wholesale and retail, manufacturing, finance, and health as sectors poised for AI-driven expansion. These gains depend on closing critical gaps in power and computing capacity.
Power, not parity, is the priority
Bazara Tech CEO Boye Ademola told attendees that Africa’s challenge does not involve competing with global AI leaders like OpenAI or Claude. The continent lacks the capital for large-scale data centers or model development, he explained. The focus should instead shift to practical applications that address local needs.
“We are not in a position to make the kind of investments being made by US companies,” Ademola said. “Real growth lies in using these models to create use cases that improve communities.”
Mozambique’s minister of communications and digital transformation, Américo Muchanga, identified reliable, affordable electricity as the biggest obstacle. AI data centers require significantly more power than traditional facilities, making energy investments essential. “We must continue investing in power generation and distribution,” he stated.
Vitesse Africa CEO Uche Orji shared the concern. “The biggest gap in AI deployment in Africa is power,” he said. “Compute and data center capacity is measured in megawatts, which shows how central power is to this effort.” Orji added that policy should prioritize low-cost energy over debates about data sovereignty. “The first step is to use resources to produce affordable power,” he noted.
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The energy bottleneck extends beyond supply. Even if data centers are built, high electricity costs could make AI operations uncompetitive. Discussions about localizing data storage remain premature when basic needs are unmet.
Connecting the unconnected
British International Investment CEO Leslie Maasdorp said development finance institutions must back both digital infrastructure and the entrepreneurs driving innovation. His group has invested in M-Kopa, a Kenyan factory assembling affordable smartphones, to help bridge the gap.
Google’s policy lead for Sub-Saharan Africa, Charles Murito, pointed to another issue: the “usage deficit.” While 3G and 4G networks cover nearly the entire continent, millions remain offline because devices are still too expensive.
The study’s projections assume a scenario where governments, investors, and tech companies align on priorities. Reality is less straightforward. The $1 trillion figure is not guaranteed but a target requiring progress in power, infrastructure, and affordability.
For now, the focus stays on fundamentals. Without reliable electricity, affordable devices, and a trained workforce, the continent’s digital future will remain distant.
Africa’s ability to harness AI depends on solving these challenges.
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