A new report by research consultancy, Public First has revealed that Artificial Intelligence (AI) could contribute more than $30 billion to Africa’s economy over the next decade.
The report commissioned by Google, emphasizes highlights the transformative potential of AI and other emerging digital technologies, such as cloud computing, to drive economic growth and address critical challenges across the continent.
From improving healthcare outcomes to enhancing agricultural productivity, the report stated that AI’s applications are vast and hold incredible potential to drive growth and help solve some of Africa’s most pressing challenges.
For instance, it noted that AI technologies could improve healthcare outcomes by providing more accurate diagnostics and treatment options, while also enhancing agricultural productivity through better data analytics and precision farming techniques.
“With AI, the future of Africa’s digital economy is bright and full of possibilities,” the report stated.
Surge in internet connectivity
The report, which also explored connectivity in Africa, stated that Sub-Saharan Africa is entering a “digital decade,” with over half of the region’s population expected to gain internet access.
This surge in connectivity, combined with the growing adoption of digital tools, it said, presents significant opportunities for economic development.
The research suggests that even a 1% increase in internet connectivity could boost GDP by nearly 6%, underscoring the crucial role digital technology will play in shaping the continent’s future.
Google’s impact
The report reveals that in 2023 alone, Google’s tools—such as Search, Maps, and YouTube—helped generate $16 billion in economic activity across the region.
“This underscores the important role these tools play in fostering growth, connectivity, and opportunity.
“At the same time, Google’s $1 billion commitment, announced in 2021, continues to enhance connectivity, drive innovation and support local entrepreneurs across the continent,” it said.
- While emphasizing the importance of skills development in unlocking Africa’s economic potential, the report noted that in 2023, Google’s Developer Scholarships and Digital Skills for Africa programs trained over 6.5 million people, resulting in a $7.8 billion boost in productivity.
- The report highlights that these newly acquired skills have enabled individuals and businesses to operate more efficiently and grow their operations, contributing to overall economic output.
- Moreover, 60% of young adults in Sub-Saharan Africa have used Google Search to apply for jobs, further demonstrating the impact of digital tools in building successful careers in the digital economy.
Recommendations for African governments
To fully capitalize on the potential of AI and other digital technologies, the report outlines several strategic recommendations for the governments such as prioritizing cloud-first policies and enhancing digital infrastructure to support AI adoption and broader digital transformation.
- It said African countries would also need to strengthen STEM education, promote AI fluency, and create opportunities for continuous learning.
- The report further suggested the development of high-quality, diverse datasets to support responsible AI development, while also adopting regulations that balance innovation with ethical considerations.
What you should know
In 2021, Google announced a $1 billion investment over five years to help improve connectivity and boost Africa’s digital transformation.
The fund, according to the company, is to be channeled into digital infrastructure to increase connectivity; investment in startups to help boost Africa’s digital transformation, and investment in security initiatives to help strengthen cybersecurity.
As of May 2024, Google said it has invested more than $900 million in Africa and expects to fulfill its commitment by 2026.