AI could lift Sub-Saharan Africa economy 4% if power, internet improve, IMF says
An IMF report suggests that AI could boost Sub-Saharan Africa's economy by 4% over the next decade, provided there are significant improvements in electricity, internet access, and digital skills. Without these infrastructure reforms, the growth impact is expected to be negligible.
Why it matters
It highlights the critical role of basic infrastructure as a prerequisite for developing nations to participate in the global AI-driven economic boom.
JOHANNESBURG, July 21 (Reuters) – Artificial intelligence could boost Sub-Saharan Africa’s economy by about 4% over the next decade with better electricity supply, internet access and digital skills, an International Monetary Fund paper showed on Tuesday, but without such reforms the growth dividend could be negligible.
As countries and companies race to secure AI’s economic benefits, investment in data centres, energy infrastructure and digital networks is surging worldwide.
But Sub-Saharan Africa, which ranks lowest on the IMF’s AI Preparedness Index, risks capturing only a fraction of the potential gains if infrastructure bottlenecks remain unaddressed, the paper found.
“Policy changes will be key to whether further growth can be unlocked from AI,” said Martin Schindler, Deputy Division Chief and Mission Chief in the Fund’s African Department and lead author of the paper.
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