IMF: AI growth in Sub-Saharan Africa depends on electricity, connectivity, and skills investment
via The Reporter Ethiopia2 min read
Artificial intelligence could boost Sub-Saharan Africa's economic output by approximately four percent over the next decade, provided governments invest significantly in electricity, internet connectivity, and digital skills, according to a recent report from the International Monetary Fund. Without these reforms, the region would see only marginal gains, with productivity increasing by as little as 0.2 percent. The IMF notes that Sub-Saharan Africa is one of the least prepared regions for widespread AI adoption, trailing every part of the world except South Asia in AI readiness. This gap is attributed to weak digital infrastructure, shortages of technical skills, and limited regulatory capacity. Reliable electricity, with about half the region lacking dependable access, and internet access, with only 38 percent of Africans using the internet in 2024, are major obstacles. The region also has limited computing infrastructure, hosting only about 160 data centers globally. Kenya and Rwanda lead East Africa in AI readiness due to strong private technology sectors and coordinated government policies, respectively. Ethiopia, however, ranks lower, despite expanding its telecommunications network. The IMF emphasizes that strengthening digital infrastructure, expanding reliable electricity access, and investing in technical education are crucial for the region to benefit economically from AI.
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This summary was AI-generated from a story originally published by The Reporter Ethiopia.
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