Africa: Ai's Growth Potential in Africa Hinges On Electricity, Connectivity and Skills, IMF Says

What the report says

AllAfrica, republishing a July 22, 2026 article from The Reporter in Addis Ababa, reported that a new International Monetary Fund assessment says artificial intelligence could lift Sub-Saharan Africa’s economic output by about 4% over the next decade if countries invest heavily in power, internet access and digital skills. The IMF warned that, without those changes, productivity gains could be minimal, estimated at around 0.2%.

The report places Sub-Saharan Africa among the least prepared regions for broad AI adoption, ahead only of South Asia on the IMF’s AI Preparedness Index, according to the article. The Fund cited weak digital infrastructure, shortages of technical expertise and limited regulatory capacity as major barriers. It also said the central challenge for the region is less about job disruption than whether countries can adopt and scale AI fast enough to benefit from it.

Electricity and connectivity were highlighted as core constraints. The IMF said about half of the region’s population lacks reliable power, and recommended investment in national grids and mini-grids serving schools, health facilities and public institutions. Internet use also remains low: the article cites 38% of Africans online in 2024, compared with a global average of 68%. The Fund also pointed to limited computing capacity, with Africa hosting about 160 data centers, concentrated largely in South Africa, Nigeria and Kenya.

The article said Kenya and Rwanda lead East Africa in AI readiness, while Ethiopia ranks lower, despite expanded 3G and 4G coverage. The broader significance is that AI-related growth may depend less on the technology itself than on whether governments can build the infrastructure, education systems and regulatory frameworks needed to use it widely.