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PRIMA NEWS > Blog > Technology > AI may add $30bn to Africa’s economy by 2034 – Report
AI may add bn to Africa’s economy by 2034 – Report
Technology

AI may add $30bn to Africa’s economy by 2034 – Report

Prima News
Last updated: October 9, 2024 3:05 am
Prima News
Published: October 9, 2024
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Artificial Intelligence could contribute more than $30bn to Africa’s economy over the next decade, according to a new report by research consultancy Public First.

The report, commissioned by Google, highlighted the transformative potential of AI and other emerging digital technologies, such as cloud computing, in driving economic growth and addressing critical challenges across the continent.

“With AI, the future of Africa’s digital economy is bright and full of possibilities,” the report stated.

It also explored the surge in internet connectivity across Sub-Saharan Africa, describing it as a “digital decade”, with more than half of the region’s population expected to gain internet access.

It noted that the increased connectivity, coupled with the growing adoption of digital tools, presented a significant opportunity for economic development.

The research suggested that a one per cent rise in internet connectivity could boost the region’s GDP by nearly 6 per cent, emphasising the critical role of digital technology in shaping Africa’s future.

In 2023 alone, Google’s tools—such as Search, Maps, and YouTube—helped generate $16bn in economic activity across Africa, according to the report.

The report also noted Google’s $1bn commitment, announced in 2021, to enhance connectivity, drive innovation, and support local entrepreneurs.

As of May 2024, Google had invested more than $900m in Africa and expects to fulfil its commitment by 2026.

Emphasising the role of skills development in unlocking Africa’s economic potential, the report revealed that in 2023, Google’s Developer Scholarships and Digital Skills for Africa programmes trained over 6.5 million people, resulting in a $7.8bn boost in productivity.

The newly acquired skills have enabled individuals and businesses to operate more efficiently and expand their operations, contributing to the overall economic output, it stated.

It also highlighted that 60 per cent of young adults in Sub-Saharan Africa have used Google Search to apply for jobs, demonstrating the impact of digital tools in building successful careers in the digital economy.

To fully harness the potential of AI and other digital technologies, the report recommended that African governments prioritise cloud-first policies and enhance digital infrastructure to support AI adoption and broader digital transformation.

The report further urged governments to strengthen STEM education, promote AI fluency, and create opportunities for continuous learning.

It also suggested developing high-quality, diverse datasets to support responsible AI development and adopting regulations that balance innovation with ethical considerations.

Experts called for increased investment and support to ensure Africa could fully harness the benefits of AI.

The Chief Executive Officer of KAOUN International, Trixie Lohmirmand, told The PUNCH in June that Africa’s funding gap needed to be closed to enable the continent to harness the potential of artificial intelligence to revolutionise its economy.

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