The African Development Bank has released a report outlining a strategic roadmap to unlock the economic and social potential of artificial intelligence (AI) across Africa. Titled Africa’s AI Productivity Gain: Pathways to Labour Efficiency, Economic Growth and Inclusive Transformation, the study was developed under the G20 Digital Transformation Working Group and highlights AI’s capacity to drive inclusive development across the continent.
Conducted by consulting firm Bazara Tech, the report estimates that inclusive AI deployment could generate up to $1 trillion in additional GDP by 2035, equivalent to nearly one-third of Africa’s current economic output. This growth potential is supported by the continent’s expanding digital infrastructure, favorable demographics, and ongoing sectoral reforms, positioning Africa as one of the most promising regions globally for AI-driven economic transformation.
The report identifies five priority sectors expected to capture the majority of AI gains: agriculture (20%), wholesale and retail (14%), manufacturing and Industry 4.0 (9%), finance and inclusion (8%), and health and life sciences (7%). Together, these sectors could account for $580 billion of the projected GDP increase by 2035. These areas were selected based on their economic size, readiness to adopt AI, and potential to deliver inclusive development outcomes.
According to Nicholas Williams, Manager of the ICT Operations Division at the Bank, the report sets out key actions for initial AI implementation, with the Bank ready to release investment to support these measures. The expectation is for governments and the private sector to leverage these investments to realize productivity gains and generate quality jobs.
The report emphasizes that realizing AI’s potential relies on five interlinked enablers: data, compute, skills, trust, and capital. Reliable and interoperable data forms the foundation for AI insights, scalable compute infrastructure ensures efficient deployment, and a skilled workforce is essential for system development and implementation. Trust, supported by governance and regulatory frameworks, underpins adoption, while capital investment helps de-risk innovation and accelerate deployment, creating a cycle of AI-driven growth.
A three-phase roadmap toward AI readiness is outlined, consisting of ignition (2025-27), consolidation (2028-31), and scale (2032-35). Ousmane Fall, Director of Industrial and Trade Development at the Bank, emphasized the importance of timely action, noting that achieving early milestones by 2026 will set Africa’s AI growth trajectory in motion and transform the continent’s economic landscape.
