The Chief Executive Officer of KAOUN International, Trixie Lohmirmand, has stated that Africa’s funding gap needs to be closed to enable the continent to harness the potential of artificial intelligence to revolutionise its economy.
He noted that AI adoption could contribute about $1.2tn to Africa’s economy.
Lohmirmand, who is also the principal organiser of GITEX Africa in Morocco, highlighted the transformative power of AI, particularly in the healthtech and finance sectors.
Despite AI’s promise, African startups are struggling to secure the necessary investments.
Last year, while $50bn was allocated globally for AI, African startups received only $600m, Lohmirmand told The PRIMANEWS in an interview.
“This platform (GITEX Africa) is crucial for startup founders to connect with global investors and stay informed about international developments,” she averred.
GITEX Africa 2024 technology fair kicked off on Wednesday and ended on Friday in Marrakech, Morocco, with thousands of exhibitors from 130 countries and nearly 700 startups in attendance.
According to research firm Disrupt Africa, funding in Africa’s tech startup ecosystem experienced a significant decline in 2023.
Total investment in African digital startups fell by 27.8 per cent to $2.4bn, with 406 startups raising this amount, down from over $3bn in 2022.
Startups often struggle to connect with angel investors, missing out on valuable funding and mentorship opportunities, the GITEX organiser said.
Lohmirmand stressed the importance of events like GITEX, which offer vital opportunities to meet key players and gain insights into what investors look for in startup founders.
“These events provide opportunities to meet key players, including big tech companies and venture capitalists. It’s important for startups to note that investors often consider the personalities of startup founders when making investment decisions.
“Moments like these provide valuable opportunities to learn what investors are looking for and understand all the critical factors involved,” she expounded.
Further, the CEO KAOUN added that the development of AI policies and regulations remained in its infancy.
While the European Union has made strides with new legislation, much work is needed globally.
African countries like Nigeria and Kenya are beginning to draft their own AI roadmaps, aiming to foster a more unified approach across the continent.
According to the World Bank, infrastructure development also presents a significant hurdle, with an estimated $6bn needed annually to bridge the digital gap.
This includes essential investments in data centres and other critical infrastructure to support technological growth.
Experts called for increased investment and support to ensure Africa could fully harness the benefits of AI.
The President of Ring Capital and former French Minister of Gender Equity, Elisabeth Moreno, noted that Africans were still subjected to prejudices and stereotypes, which also affect investments.
Speaking at a panel session themed “Investing in Africa: Is it Worth the Hustle?”, Moreno emphasised that Africa was one of the fastest-growing continents in terms of human population and a key market for investment.
“This is a large market that needs solutions on education, climate change, and all kinds of infrastructure, and we are still wondering if Africa is a place to invest in. How come we still have this kind of question when you see the need for development this continent has?” she remarked.
