ABSTRACT

This paper examines the transformative potential of artificial intelligence (AI) for economic growth in Africa, highlighting both the significant opportunities and the considerable challenges associated with its adoption. The advent of AI offers a unique chance for African economies to leapfrog traditional development hurdles and address long-standing issues such as poverty, healthcare access, and agricultural inefficiencies. The paper details promising areas for AI applications in Africa, including agriculture, where AI-powered tools can optimise irrigation, predict weather changes, and manage pests, potentially increasing yields and enhancing livelihoods. In healthcare, AI-driven diagnostics, telemedicine, and predictive analytics can improve patient outcomes and resource allocation. The finance sector can leverage AI for enhanced credit risk assessment, boosting financial inclusion. Case studies from Nigeria (Hello Tractor), Rwanda (Zipline), and Kenya (Tala) provide empirical evidence of AI's transformative benefits. Despite these opportunities, the paper identifies key challenges and barriers that impede widespread AI adoption. These include inadequate digital infrastructure, such as limited broadband access and unreliable electricity; a severe shortage of skilled professionals; issues with data availability and quality, including inconsistent collection and privacy concerns; and socio-cultural and regulatory hurdles, such as a lack of trust and appropriate policy frameworks. The paper underscores the crucial role of policy and strategic recommendations in creating an enabling environment for AI. This includes targeted investments in digital infrastructure and education, fostering public-private partnerships, and establishing robust ethical and regulatory frameworks to ensure responsible and inclusive AI deployment. The integration of AI into Africa’s economic landscape requires a collaborative approach involving governments, private companies, and academic institutions. The paper concludes that while AI holds substantial promise for driving inclusive and sustainable economic growth in Africa, realising its full potential necessitates addressing the identified infrastructural, educational, and regulatory challenges through continuous innovation and adaptive governance.