Artificial intelligence could raise sub-Saharan Africa’s economic output by around 4% over the next decade, but only if governments and businesses tackle deficits in electricity, internet access and digital skills, the International Monetary Fund (IMF) said in a new report entitled Unlocking the Potential: AI in Sub-Saharan Africa, published on Tuesday.
The Fund said AI offers African countries a chance to improve productivity, create higher-quality jobs and strengthen public services. Yet it cautioned that the region risks missing much of that opportunity because the foundations needed to adopt and expand the technology remain weak.
Sub-Saharan Africa ranks lowest on the IMF’s AI Preparedness Index, which assesses countries’ digital infrastructure, workforce skills, innovation capacity and regulatory frameworks. The report says unreliable electricity, limited connectivity and shortages of technical expertise constrain both AI uptake and the ability of workers and institutions to adapt to its effects.
The gap is particularly apparent in access to power and the internet. About half of the region’s people lack reliable electricity, while only 38% of Africans were online in 2024, compared with a global average of 68%, Reuters reported, citing the IMF’s findings.
Without substantial reforms, the potential growth effect from AI could amount to only 0.2% over the coming decade, the IMF said. The Fund called for investment in electricity grids and mini-grids, fiber networks and open-access digital infrastructure, along with education and training that build technical and digital capabilities.
The IMF also said governments need credible rules for data protection, competition and AI use so that businesses and the public can trust new systems. The report’s conclusion is that Africa’s AI prospects will be determined less by access to algorithms than by whether countries can build the infrastructure and institutions needed to use them at scale.
