The African Development Bank (AfDB) has released a landmark report outlining a strategic roadmap to unlock the economic and social potential of artificial intelligence (AI) across Africa, projecting up to $1 trillion in additional GDP by 2035 if AI is deployed inclusively.
Developed under the G20 Digital Transformation Working Group, the report titled Africa’s AI Productivity Gain: Pathways to Labour Efficiency, Economic Growth and Inclusive Transformation provides a comprehensive overview of how AI can accelerate development, boost labour productivity and drive inclusive economic transformation across the continent.
AI as Africa’s Next Growth Engine
The study, conducted by consulting firm Bazara Tech, estimates that AI-driven growth could be equivalent to nearly one-third of Africa’s current economic output. This opportunity is underpinned by Africa’s expanding digital infrastructure, youthful and tech-savvy population, and ongoing reforms across key sectors—positioning the continent as one of the world’s most promising regions for AI-led growth.
However, the report cautions that the AI dividend will not be evenly distributed across the economy.
Five Sectors to Capture Majority of AI Gains
According to the AfDB analysis, AI productivity gains are expected to be concentrated in five high-impact sectors, which together could account for 58% of total AI benefits, or roughly $580 billion by 2035:
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Agriculture (20%)
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Wholesale and retail trade (14%)
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Manufacturing and Industry 4.0 (9%)
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Finance and financial inclusion (8%)
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Health and life sciences (7%)
These sectors were identified based on their economic size, readiness to adopt AI technologies, and strong potential to deliver inclusive development outcomes, particularly in job creation and service delivery.
AfDB Ready to Unlock Investment
“We have set out the key actions in this report, identifying the areas where initial implementation should be focused,”
said Nicholas Williams, Manager of the ICT Operations Division at the African Development Bank.
“The Bank is ready to release investment to support these actions. We expect the private sector and governments to utilize this investment to ensure we achieve the identified productivity gains and create quality jobs.”
Five Enablers Critical to AI Success
The report stresses that realising Africa’s AI potential depends on five interlinked enablers:
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Data – reliable, interoperable and accessible datasets
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Compute – scalable digital and cloud infrastructure
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Skills – a workforce capable of developing and deploying AI systems
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Trust – strong governance, ethical standards and regulatory frameworks
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Capital – targeted investment to de-risk innovation and accelerate deployment
Together, these enablers—supported by adequate capital—would help “foster a cycle of AI-driven growth,” the report notes.
Three-Phase Roadmap to AI Readiness
The AfDB outlines a three-phase roadmap to guide Africa’s AI journey:
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Ignition (2025–2027): Building foundations and early adoption
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Consolidation (2028–2031): Strengthening institutions and scaling pilots
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Scale (2032–2035): Widespread deployment and economic integration
“Achieving early milestones by 2026 will set Africa’s AI flywheel in motion,”
said Ousmane Fall, Director of Industrial and Trade Development at the Bank.
“Africa’s challenge is no longer what to do — it is doing it on time.”
A Defining Moment for Africa’s Digital Future
As global competition around AI intensifies, the AfDB report positions decisive action, coordinated investment and strong public-private collaboration as critical to ensuring Africa does not miss its moment. With the right choices made now, AI could become a cornerstone of the continent’s next phase of sustainable and inclusive growth.
