Over the past year, artificial intelligence (AI) and its transformative potential has captured global attention. The potential of AI in helping achieve the 2030 Sustainable Development Goals (SDGs) is well established. AI applications can create social and economic impact, especially in low- and middleincome countries where innovative approaches to inclusive and sustainable development are most needed. Africa represents only 2.5% of the global AI market, yet recent estimates suggest that AI could increase Africa’s economy by $2.9 trillion by 2030— the equivalent of increasing annual Gross Domestic Product (GDP) growth by three per cent. This boost in economic growth could translate into significant development impacts for the continent, providing employment opportunities and helping to raise millions out of poverty.
Mobile connectivity in Sub-Saharan Africa continues to drive digital transformation and socioeconomic advancements. A growing proportion of the population is connected to and using mobile internet, and smartphone penetration is expected to reach 88% by 2030, creating new opportunities for digital inclusion and usage of AI-enabled services. Countries such as Kenya, Nigeria and South Africa already have some of the most advanced tech ecosystems in the region. Kenya is particularly renowned for pioneering mobile money through M-Pesa, while Nigeria has produced several African unicorns. These countries also have tech-related policies that have fostered a relatively conducive environment for innovation and entrepreneurship. Their solid digital foundations can serve as building blocks for the development, deployment and adoption of AI.
However, unlocking the potential of AI will require overcoming several challenges. While the coverage gap has significantly reduced, the usage gap in Sub-Saharan Africa still stands at 59%, meaning that millions of people who live within the footprint of a mobile broadband network are not using mobile internet. Significant digital divides exist and disproportionately affect low-income groups, those who are less educated, rural populations and women, and digitalisation and AI risk exacerbating existing socioeconomic inequalities. Kenya, Nigeria, and South Africa have critical infrastructure gaps and undergo 10 GSMA. (2023). The Mobile Economy Sub-Saharan Africa 2023. 11 The AI Media Group South Africa. State of AI in Africa Report 2022. 12 In this report, local, inclusive and sustainable AI solutions refers to AI applications that are tailored to local needs and constraints to foster inclusivity and prioritise addressing development challenges in line with the SDGs. regular power outages. In addition, insufficient availability of data and lack of data ecosystems, low levels of digital skills and literacy, fragmented or nonenforced policies and nascent research capacities constitute key barriers for the development of the AI ecosystem. AI also brings significant risks in terms of data privacy, bias and discrimination that need to be addressed to ensure safe and responsible use of the technology.
While there has been an acceleration of technology companies leveraging AI and initiatives to develop and promote the use of AI on the continent, these have not necessarily focused on addressing socioeconomic or development challenges. Most existing use cases are typically found in sectors such as IT services, computer software, or management consulting. There is a lack of focus on building local, inclusive, and sustainable AI solutions that can help address the SDGs in Africa. There is a pressing need to identify and test models and use cases that can address development challenges, are tailored to meet the specific needs of local communities, and have the potential to be scaled to amplify their impact. Considering the diverse contexts and cultures across Africa, fostering equitable partnerships to build AI use cases for development and nurture the growth of local ecosystems will be critical to harness the potential of AI to help achieve the SDGs on the continent.
Excerpt of: AI for Africa: Use cases delivering impact (GSMA 2024)