By Ayomide Otitoju
The African Development Bank (AfDB) has released a strategic report outlining pathways for harnessing artificial intelligence (AI) to drive economic and social development across Africa. Titled Africa’s AI Productivity Gain: Pathways to Labour Efficiency, Economic Growth and Inclusive Transformation, the study was developed under the G20 Digital Transformation Working Group and highlights the continent’s potential to leverage AI for transformative growth.
Conducted by consulting firm Bazara Tech, the report estimates that inclusive AI deployment could add up to $1 trillion to Africa’s GDP by 2035—equivalent to nearly one-third of the continent’s current economic output. The potential is driven by Africa’s expanding digital capacity, favorable demographics, and ongoing sectoral reforms, positioning the region as a global hotspot for AI-driven growth.
The study identifies five high-impact sectors expected to capture 58% of the total AI gains, or around $580 billion by 2035: agriculture (20%), wholesale and retail (14%), manufacturing and Industry 4.0 (9%), finance and inclusion (8%), and health and life sciences (7%). These sectors combine scale, readiness for AI adoption, and strong potential for inclusive development outcomes.
“We have set out the key actions in this report, identifying the areas where initial implementation should be focused,” said Nicholas Williams, Manager of the ICT Operations Division at AfDB. “The Bank is ready to release investment to support these actions. We expect the private sector and governments to leverage this funding to achieve the projected productivity gains and create quality jobs.”
The report emphasizes five interlinked enablers crucial for realizing AI’s potential: data, compute, skills, trust, and capital. Reliable, interoperable data underpins AI insights, scalable computing infrastructure allows efficient deployment, and a skilled workforce ensures AI systems can be developed and maintained. Trust, built through governance and regulatory frameworks, is essential for adoption, while targeted capital investment is needed to de-risk innovation and accelerate deployment, fostering a cycle of AI-driven growth.
AfDB also proposes a three-phase roadmap for Africa’s AI readiness: ignition (2025–2027), consolidation (2028–2031), and scale (2032–2035).
“Achieving early milestones by 2026 will set Africa’s AI flywheel in motion,” said Ousmane Fall, Director of Industrial and Trade Development at the Bank. “Africa’s challenge is no longer what to do—it is doing it on time.”
