AI Set to Boost Africa's Economy by $30bn Over Next Decade

A recent report underscores the transformative potential of Artificial Intelligence (AI) in Africa, forecasting a $30 billion boost to the continent’s economy within the next decade.

This projection highlights AI’s critical role in shaping Africa’s economic future as digital transformation accelerates across the region.

Commissioned by Google and conducted by the research firm Public First, the report emphasizes AI’s ability to drive economic growth and tackle significant challenges in Africa.

It notes that AI can enhance agricultural productivity through advanced data analytics and precision farming, as well as improve healthcare outcomes with better diagnostic and treatment options.

The report states, “Africa’s digital economy has a bright future with AI,” pointing to a “digital decade” in Sub-Saharan Africa, where over half of the population is expected to gain internet access. Increased connectivity and the adoption of digital tools offer substantial economic growth opportunities. Specifically, a one per cent rise in internet access can lead to a GDP increase of over six per cent, demonstrating the profound impact of digital technology on the continent’s future.

In 2023, Google products such as YouTube, Maps, and Search contributed $16 billion to regional economic activity, reinforcing the importance of these tools in fostering growth and connectivity.

Additionally, Google’s ongoing $1 billion commitment, announced in 2021, aims to enhance connectivity, drive innovation, and support local entrepreneurs across Africa.

Talent development is also crucial for unlocking Africa’s economic potential. The report highlights that over 6.5 million individuals participated in Google’s Developer Scholarships and Digital Skills for Africa initiatives in 2023, resulting in a $7.8 billion productivity boost.

The new skills acquired have empowered individuals and businesses to operate more efficiently, enhancing overall economic output. Furthermore, 60 per cent of young adults in Sub-Saharan Africa have sought employment opportunities through Google Search, underscoring the significance of digital technologies in facilitating successful careers in the evolving digital economy.