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

What the report says

AllAfrica, carrying a report from The Reporter in Addis Ababa, said the International Monetary Fund has warned that Sub-Saharan Africa’s potential gains from artificial intelligence depend heavily on basic infrastructure and skills. In a report released Tuesday, the IMF estimated AI could lift the region’s economic output by about 4% over the next decade if governments invest substantially in reliable electricity, internet connectivity and digital capabilities. Without such reforms, the article said, productivity gains could be as low as 0.2%.

The IMF’s assessment places Sub-Saharan Africa near the bottom globally on AI readiness, ahead only of South Asia, according to the report. The Fund cited weak digital infrastructure, shortages of technical expertise and limited regulatory capacity as barriers to adoption and to managing workplace changes linked to automation. It also said reliable power remains a major obstacle, with about half the region’s population lacking dependable electricity access.

Connectivity and computing capacity are also highlighted as constraints. The report said only 38% of Africans used the internet in 2024, compared with a global average of 68%, and recommended broader fiber-optic networks and open-access broadband to reduce costs. Africa was reported to host about 160 data centers, around 5.5% of the global total, with nearly half located in South Africa, Nigeria and Kenya.

The article said Kenya and Rwanda lead East Africa in AI readiness, while Ethiopia ranks among lower-performing countries despite expanded mobile network coverage. The broader significance is that AI may widen existing development gaps unless countries pair digital ambitions with power systems, education and regulatory reforms.