Artificial Intelligence (AI) is poised to have an impact on the world that could rival—or even surpass—the significance of the Industrial Revolution. For Africa, this presents both transformative opportunities and unique challenges as businesses strive to harness the power of AI, writes Sifiso Dube, Senior Consultant at BDO South Africa.
At its core, AI can be understood as the ability of machines and computers to perform tasks that have traditionally required human intelligence. According to a recent GSMA report, Africa currently represents just 2.5% of the global AI market, but this figure could grow significantly, potentially boosting the continent’s economy by $2.9 trillion by 2030—equivalent to raising annual GDP growth by 3%.
African business leaders now find themselves at a crucial crossroads. To fully embrace the potential of AI, they must carefully balance technological advancements with a nuanced understanding of the local business landscape. This means confronting the realities of infrastructure gaps, skills shortages, labour dynamics, and power constraints. While many discussions around AI have been dominated by global narratives, it’s essential to consider AI from an Afro-centric perspective to ensure it meets the specific needs and realities of the continent.
The Promise of AI in Transforming African Business
AI has emerged as a powerful driver of innovation and efficiency across sectors. In Africa, where markets are diverse and evolving, AI holds the potential to overcome longstanding challenges and spur growth.
One of AI’s most significant promises is in improving accessibility and inclusion. In sectors such as finance, education, and healthcare, AI applications can bridge existing gaps, particularly for marginalised and underserved communities. A compelling example is Viamo, a social tech enterprise that uses AI to provide critical information to millions of people in disconnected areas. Viamo’s technology works on basic feature phones and doesn’t require internet access—demonstrating how AI solutions can be tailored to Africa’s unique needs.
Beyond accessibility, AI can dramatically enhance operational efficiency by automating repetitive, time-consuming tasks. For instance, AI-powered inventory systems can optimise supply chains, while AI-driven chatbots manage customer inquiries, cutting costs and improving service responsiveness. This allows businesses to focus on more strategic objectives.
AI’s capacity to analyse large datasets quickly also enables data-driven decision-making. By leveraging predictive analytics, African businesses can forecast market trends, understand consumer behaviour, and adjust their offerings to stay competitive. More importantly, business leaders can interpret this AI-generated data within the context of their specific markets, crafting strategies that are both resilient and relevant.
What Does AI Mean for Africa?
The integration of AI into African economies presents immense possibilities, but it also raises important questions that business leaders must address. With Africa being the world’s fastest-growing continent and expected to have a consumer base of 1.7 billion people by 2030, the potential for AI is enormous. However, realising this potential requires a careful, context-specific approach.
AI offers the chance to drive inclusive growth in Africa, but this will only happen if businesses adopt a broad stakeholder view. The digital divide in Africa disproportionately affects rural communities, women, those with less education, and low-income groups. AI could either exacerbate these inequalities or, with thoughtful application, help close the gap. Nigerian startup WFP, which uses AI to predict food insecurity, is an example of how AI can be deployed to address critical challenges in Africa, supporting broader economic inclusion and sustainability.
Small and medium-sized enterprises (SMEs), which comprise about 90% of businesses in Sub-Saharan Africa and contribute roughly 40% of GDP, are central to the continent’s economic growth. These businesses have immense potential to benefit from AI, but they also require support to participate fully in this new technological era. Entrepreneurs must be empowered to not just use AI but to develop and own AI-driven solutions tailored to Africa’s specific challenges. Governments, research institutions, and private enterprises must work together to foster the innovation that will enable Africa to maximise AI’s economic potential.
Building Africa’s AI-Ready Workforce
AI may not replace human workers outright, but it will certainly transform the workforce. Harvard Business School professor Karim Lakhani argues that individuals who master AI will outcompete those who do not. As such, education and training programs must focus on human skills that complement AI. By nurturing creativity, strategic thinking, and empathy, African businesses can ensure that AI enhances, rather than replaces, the human element of business. Simultaneously, Africa’s education systems must prioritise STEM (science, technology, engineering, and mathematics) fields to equip individuals with the skills needed to innovate and build AI solutions.
Shaping Trustworthy AI
For AI to thrive in Africa, data quality and ethical standards are critical. Businesses, governments, and civil society must collaborate to establish frameworks that encourage innovation while ensuring responsible AI development. A significant challenge in this area is that many existing AI models, such as OpenAI’s ChatGPT, are primarily trained on Western data. For AI to be effective in Africa, the data it uses must be relevant and accurate, reflecting the continent’s unique contexts. Without high-quality data, AI systems risk producing biased or inaccurate outcomes, undermining their utility and trustworthiness.
The future of business in Africa hinges on harnessing cutting-edge AI technologies to fuel innovation and growth. Success will come not just from adopting AI, but from doing so with a deep understanding of Africa’s social, political, and economic realities. By blending AI-driven innovation with human expertise, ethical transparency, and local relevance, African business leaders can unlock transformative opportunities. Ensuring that this growth is inclusive, sustainable, and rooted in the continent’s values will be essential to realising AI’s full potential in shaping Africa’s future.
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