A recent report titled “The Digital Opportunity of Sub-Saharan Africa” indicates that Artificial Intelligence (AI) could contribute more than $30 billion to Sub-Saharan Africa’s economy over the next decade.
Commissioned by Google and published by Public First, a policy and strategy consultant, the report highlights AI’s potential to enhance productivity and introduce new goods and services, particularly in key sectors such as agriculture, healthcare, and fintech.
Nigeria is positioning itself to spearhead Africa’s AI-driven transformation, with its government actively developing a National AI Strategy. On August 28, 2023, Bosun Tijani, Nigeria’s Minister of Communications, Innovation, and Digital Economy, announced plans to curate a list of Nigerian-born researchers who will co-create the National AI Strategy. This initiative aims to leverage AI to address pressing challenges while fostering economic growth.
In April 2024, the Nigerian government revealed plans to collaborate with 120 researchers, startups, and stakeholders under the National Information Technology Development Agency (NITDA) to establish a framework for driving AI adoption in the country.
Similarly, the Kenyan government announced a partnership with Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH to develop its own National AI strategy.
On September 10, 2024, the Nigerian government, through Tijani, unveiled a partnership with Google to launch a ₦100 million fund aimed at empowering 10 Nigerian startups utilizing AI in their technology products, further promoting AI innovation in the country.
Google’s substantial investment in Africa’s digital infrastructure is accelerating this transformation. The report notes that the tech giant’s $1 billion commitment has already generated $16 billion in economic activity across the region in 2023 alone.
This investment, along with increased Internet connectivity and cloud computing, is expected to spur further innovation and entrepreneurship, creating new opportunities for Africa’s youth.
“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.
As more than half of Africa’s population is projected to gain Internet access in the next decade, AI has the potential to tackle some of the continent’s most significant challenges and stimulate economic growth. The report suggests that even a 1% increase in Internet connectivity could boost GDP by up to 6%.
“With AI, the future of Africa’s digital economy is bright and full of possibilities,” the report stated
Additionally, the study estimates that investments in digital technologies—especially AI, mobile broadband, and cloud computing—could double returns for the region’s economy by 2030. Countries like Nigeria, South Africa, Ghana, and Kenya are anticipated to experience notably stronger returns from these investments.