The International Monetary Fund (IMF) has warned that sub-Saharan Africa risks missing out on the economic benefits of artificial intelligence (AI) unless governments invest heavily in reliable electricity, internet connectivity and digital skills.
The warning is contained in the IMF’s latest report titled “Unlocking the Potential: AI in Sub-Saharan Africa,” released on Tuesday.
According to the report, AI could increase the region’s economic output by about 4% over the next decade if countries accelerate AI adoption and address major infrastructure challenges.
However, under current conditions, the IMF estimates that AI would boost productivity by only 0.2% and economic growth by just 0.4% over the same period.
“For Sub-Saharan Africa, the central concern is not the risk of technological disruption, but whether countries will be able to adopt, adapt, and scale AI quickly enough to capture its benefits,” the report stated.
The IMF identified unreliable electricity as one of the biggest obstacles to AI adoption, noting that about half of the region’s population lacks reliable power, while frequent outages continue to affect businesses.
The report also highlighted poor internet access, revealing that only 38% of Africans used the internet in 2024, compared to the global average of 68%.
In addition, the IMF said the region faces a shortage of digital talent, with less than one-quarter of higher education students enrolled in STEM-related courses.
Despite these challenges, the report noted that investment in AI infrastructure is beginning to grow across Africa, citing major projects by Microsoft, G42, Cassava Technologies, and NVIDIA.
The IMF identified Nigeria, South Africa, Mauritius, Botswana and Namibia as the sub-Saharan African countries with the greatest potential to benefit from AI if barriers to adoption are removed.
The global lender urged African governments to invest in electricity, affordable broadband, technical education and innovation, warning that countries that fail to do so risk falling further behind as AI continues to transform the global economy.
