AI could add $2.9 trillion in value to African economy by 2030

The report estimates that AI has the potential to add $2.9 trillion in value to the African economy by 2030. Currently, Africa represents just 2.5% of the global AI market.

The report's valuation draws on calculations from PwC and McKinsey, highlighting Africa's share of the global GDP at 2.5%. Using this figure, the AI market value for Africa is estimated at $0.4 trillion, derived from the global market value of $16.5 trillion.

AI could vastly improve efficiency across various sectors, especially agriculture, which could drive significant economic growth. However, the report underscores that substantial obstacles must be overcome to enhance the continent’s digital infrastructure. Key challenges include the need for increased investment in data centers and improved power provision.

The report highlights significant gaps in all measures, particularly the availability and quality of African-specific data. Existing data is limited, not easily accessible, and often lacks the required quality.

Despite these challenges, the report suggests there are some quick wins to elevate the system to an acceptable level. Achieving parity in data availability and quality with other regions remains a distant goal.

For Africa to effectively leverage AI, comprehensive investments are needed in data collection, curation, and storage, along with robust data governance and security, the report notes.