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AI Set to Boost Africa’s Economy by Over $30 Billion

September 25, 2024

According to a new report, titled, AI set to boost Africa’s economy by over $30 billion in the next decade.

The report, commissioned by Google and published by Public First, a policy, research, opinion and strategy consultant, notes that AI’s potential to increase productivity and deliver new goods and services could significantly reshape key sectors, including agriculture, healthcare, and fintech.

Nigeria aims to lead Africa’s AI-driven transformation, with its government actively developing its National AI Strategy.

On August 28, 2023, Nigeria’s Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, announced that he was curating a list of Nigerian-born researchers to contribute to co-creating a National AI Strategy. The initiative aims to harness the potential of AI to solve pressing challenges while enhancing economic growth.

In April 2024, the Nigerian government disclosed plans to enlist 120 researchers, startups, and stakeholders to join the National Information Technology Development Agency (NITDA) to set up a framework to drive AI adoption in the country.

In the same month, the Kenyan government said it’d collaborate with Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH to develop a National Artificial Intelligence (AI) strategy.

On September 10, 2024, the Federal Government through Bosun Tijani announced its partnership with Google to launch a ₦100 million fund to empower 10 Nigerian startups using AI in their technology products to drive Artificial Intelligence (AI) innovation in Nigeria.

Google’s investment

Google’s ongoing investment in Africa’s digital infrastructure is further accelerating this transformation. The report claims the search giant’s $1 billion commitment has so far generated $16 billion in economic activity across the region in 2023 alone.

This investment, combined with growing Internet connectivity and cloud computing, is expected to drive further innovation and entrepreneurship, unlocking new opportunities for Africa’s youth.

Given that more than half of Africa’s population is set to gain Internet access in the next decade, AI has the potential to address some of Africa’s most pressing challenges and grow the economy. According to the report, even a 1% increase in Internet connectivity could boost GDP by up to 6%.

The study also estimates that any investment in digital technologies, particularly AI, mobile broadband, and cloud computing, would double the return for the region’s wider economy by 2030. Nigeria, South Africa, Ghana, and Kenya are projected to see significantly stronger returns.

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