The African Development Bank has released a new report outlining a strategic roadmap to unlock the economic and social potential of artificial intelligence across Africa.
Developed under the G20 Digital Transformation Working Group, the report, Africa’s AI Productivity Gain: Pathways to Labour Efficiency, Economic Growth and Inclusive Transformation, examines how artificial intelligence could drive development and productivity gains on the continent.
The study, conducted by consulting firm Bazara Tech, estimates that inclusive deployment of AI could generate up to $1 trillion in additional gross domestic product by 2035. This would represent nearly one-third of Africa’s current economic output. The report attributes this potential to Africa’s expanding digital capacity, favorable demographics and ongoing reforms across key sectors.
According to the findings, the economic impact of AI is expected to be concentrated in a limited number of high-impact sectors rather than spread evenly across the economy. Five priority sectors were identified: agriculture at 20%, wholesale and retail at 14%, manufacturing and Industry 4.0 at 9%, finance and financial inclusion at 8%, and health and life sciences at 7%. Together, these sectors are projected to account for 58% of total AI-driven gains, or about $580 billion by 2035.
“We have set out the key actions in this report, identifying the areas where initial implementation should be focused,” said Nicholas Williams, manager of the ICT Operations Division at the African Development Bank. “The bank is ready to release investment to support these actions. We expect the private sector and governments to use this investment to achieve the identified productivity gains and create quality jobs.”
The report says Africa’s ability to realise these gains depends on five interconnected enablers: data, compute infrastructure, skills, trust and capital. Reliable and interoperable data is identified as the foundation for AI insights, while scalable computing infrastructure is needed to deploy solutions efficiently. A skilled workforce is required to develop and maintain AI systems, and trust, supported by governance and regulatory frameworks, is essential for adoption. Adequate capital investment is also needed to reduce risk and accelerate innovation.
Together, these enablers are expected to create a self-reinforcing cycle of AI-driven growth.
The report also proposes a three-phase roadmap for AI readiness in Africa: an ignition phase from 2025 to 2027, a consolidation phase from 2028 to 2031, and a scale phase from 2032 to 2035.
“Achieving early milestones by 2026 will set Africa’s AI flywheel in motion,” said Ousmane Fall, director of industrial and trade development at the bank. “Africa’s challenge is no longer what to do. It is doing it on time.”
