Africa is making an audacious $60 billion bet on Artificial Intelligence (AI) development. This amount, representing 2.2 percent of the continent’s 2.78 trillion GDP, forms part of the Africa AI Fund, which aims to mobilise public, private, and philanthropic capital to create a safe, inclusive, and competitive African AI economy.
The investment commitment forms part of the Africa Declaration on AI, signed by 52 African countries, including Nigeria, during the recent Global AI Summit on Africa held in Rwanda. Yet, while bold, Africa’s commitment pales when compared to its global counterparts.
China plans to invest $1.4 trillion in AI development over the next 15 years to compete with the United States, which recently announced a private sector-led AI infrastructure investment of up to $500 billion. Both countries have made significant progress with AI, with China’s DeepSeek temporarily stealing the shine off the US’s ChatGPT recently.
The launch of ChatGPT in November 2022 accelerated the global AI race. Since then, AI has become integrated into everything, with companies and countries ramping up investments and policies to secure global leadership in the emerging technologies. “We are on the brink of a technological revolution…,” stated the International Monetary Fund.
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Between 2019 and 2023, the US invested $328.55 billion in AI development, while China invested $132.67 billion, according to data from AIPRM. Industry experts say closing this gap is crucial to Africa’s development.
“AI and machine learning will empower Africa to solve most of its challenges faster and more cost-effectively,” said Juliet Ehimuan, former Google Director for West Africa.
GSMA, the global body for telcos, notes that AI could increase Africa’s economy by $2.9 trillion by 2030. The continent currently accounts for just 2.5 percent of the global AI market.
“The African continent lags in AI readiness and adoption, but recognition of AI’s potential to address critical socio-economic issues is growing….,” researchers at the Global Center on AI Governance wrote in their new report titled ‘AI in Africa: A Landscape Study.’
Developing and deploying AI technology on the continent has been hindered by infrastructure shortcomings. The researchers highlighted that AI needs robust computing resources, steady electricity, high-speed internet and data storage possibilities, all of which remain underdeveloped on the continent.
The African AI declaration acknowledges these challenges and outlines plans to use the AI Fund to invest in developing and expanding AI infrastructure, “scaling African AI enterprises, building a robust pipeline of AI practitioners, and strengthening domestic AI research capabilities, while upholding principles of equity and inclusion.”
The declaration also endorsed the creation of the Africa AI Council under the leadership of the Smart Africa Steering Committee, co-chaired by the African Union Commission and the International Telecommunications Union.
“The establishment of the Africa AI Council will mark a significant step towards realizing Africa’s potential in the AI-driven global economy,” said Lacina Koné, chief executive officer of Smart Africa.
Despite the many constraints, Africa’s youthful population may offer its greatest AI advantage, said Bosun Tijani, Nigeria’s minister of Communications, Innovation and Digital Economy at the AI summit.
“A lot of the developed countries are declining in population because they are not giving birth to more kids, aging population as well. So, Africa has a unique opportunity in the AI landscape, and that unique opportunity is only going to be tapped if we prioritise investments in our young people,” he said.
James Manyika, Google’s Senior Vice President leading Research, Labs, Technology and Society, echoed this sentiment, “Equipping Africans with AI skills through training and STEM education is critical.”
Beyond talent, Africa needs to invest in research and development, scale vibrant AI ecosystems, and foster cross-continent and global partnerships, according to the Google boss.
“Collaboration is vital for accelerating and scaling all the above. Again, African-led innovation will be essential to making this happen,” he stated.
Tijani further noted that Africa must address its data limitations to close its AI gap. “One critical thing is that the ability of these young people to build will also be limited by the availability of data because most of our languages, contexts and realities are still in dark data. They’ve not been digitised and connected, and there is no AI if the data is not local,” he added.