Africa risks becoming a permanent consumer rather than a creator of artificial intelligence unless it urgently invests in digital infrastructure, especially data centres.
A new report by Boston Consulting Group (BCG) dubbed Advancing
Africa's AI and Digital Economy paints a stark picture of the
continent's digital divide.
Although Africa is home to 18 per cent of the world's
population, it accounts for less than a percentage of global data centre
capacity, while its digital economy contributes only five per cent of GDP.
This is far below the global average of 15 per cent.
The report projects that, at the current pace, Africa's digital economy will account for just 8.5 per cent of GDP by 2050, leaving the continent trailing other regions in the rapidly expanding AI economy.
The warning comes as artificial intelligence is expected to
contribute an estimated $15.7 trillion to the global economy by 2030, creating
enormous opportunities for countries with the infrastructure needed to host,
process and commercialise digital services.
BCG argues that Africa's biggest challenge is no longer
technology adoption but technology production.
"Our core challenge is no longer about technology adoption;
it is about tech production," said Hamid Maher, BCG managing director and senior
partner.
He notes that while Africa has the world's youngest population
and one of the fastest-growing cloud markets, it lacks the digital
infrastructure needed to retain data, talent and economic value.
The report warns that African countries risk exporting valuable
data to foreign technology firms, which develop AI models abroad before selling
the resulting services back to African users under costly licensing
arrangements.
The continent also faces a significant language gap, with less
than two per cent of Africa's roughly 2,000 languages adequately supported by
large language models, limiting AI adoption across local communities.
Kenya, however, is positioning itself among the countries
seeking to narrow that gap.
The government has intensified efforts to attract investments in cloud computing and data centres, describing the country as a digital gateway for Eastern and Central Africa.
Officials say Kenya already hosts major
carrier-neutral and enterprise data centres operated by firms including
iXAfrica, Africa Data Centres, Safaricom, Liquid Intelligent Technologies and
the Konza National Data Centre.
Oracle is also establishing its first cloud region in Kenya,
reinforcing Nairobi's growing role as a regional cloud-computing hub.
The Konza National Data Centre has become a cornerstone of the
government's digital transformation strategy, providing cloud infrastructure
for both public and private sector services while supporting artificial
intelligence, big data analytics and e-government platforms.
Kenya's broader digital economy is also expanding rapidly.
According to GSMA, digital transformation could contribute
about Sh662 billion to Kenya's GDP by 2028 while creating roughly 300,000 jobs,
driven by wider adoption of digital services across agriculture, manufacturing,
transport and trade.
Still, challenges remain. The International Monetary Fund (IMF)
recently noted that Sub-Saharan Africa continues to lag in AI readiness because
of unreliable electricity, limited internet access and inadequate digital
infrastructure.
Only about 38 per cent of Africans were using the internet in
2024, while the continent hosts only a fraction of the world's data centres,
concentrated mainly in South Africa, Nigeria and Kenya.
To reverse the trend, BCG recommends three priorities: expanding
digital infrastructure through public-private partnerships and pooling investments
across African markets to achieve scale.
It also wants the continent to embrace open-source digital technologies that reduce dependence on expensive foreign software.
