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Artificial intelligence (AI) could increase Africa's gross domestic product (GDP) by up to 4 per cent over the next decade, according to a report released by the International Monetary Fund (IMF) on July 21, 2026.
The report, Unlocking the Potential: AI in Sub-Saharan Africa, argued that while AI presents a significant opportunity to boost productivity, create better jobs and improve public services, the region must first overcome longstanding infrastructure and digital readiness challenges.
The report projected that, under current conditions, AI could increase productivity by only 0.2 per cent over the next decade, resulting in around 0.4 per cent cumulative GDP growth. However, if governments improve infrastructure and encourage wider adoption, productivity could rise by about 2.1 per cent, while GDP could increase by nearly 4 per cent over 10 years, adding around 0.5 percentage points to annual economic growth. These estimates highlight that policy decisions, not technology alone, will determine AI's economic impact.
IMF’s AI Preparedness Index ranks Sub-Saharan Africa as the world’s least prepared region for widespread AI adoption, citing weaknesses in digital infrastructure, human capital, innovation capacity and regulatory readiness.
According to the report, infrastructure, not innovation, is the biggest obstacle.
Around half of the region’s population does not have reliable power. Worldwide, around 670 million people are without access to electricity, and an overwhelming proportion of these (85 per cent) are in Sub-Saharan Africa.
IMF said targeted investments in national grids, mini-grids and electricity infrastructure around schools, hospitals and public facilities could create digital hubs capable of supporting AI-powered services.
Reliable internet access remains another major hurdle as only 38 per cent of Africans used the internet in 2024, compared with a global average of 68 per cent, limiting access to cloud-based AI tools, online education and digital businesses. Expanding fibre-optic networks, lowering broadband costs and encouraging open-access infrastructure would significantly improve adoption, the report said.
Africa hosts around 160 data centres, representing about 5.5 per cent of global capacity, with nearly half located in South Africa, Nigeria and Kenya. Without broader investment, the IMF warned, AI infrastructure could become concentrated in a small number of countries, widening digital inequalities across the continent.
Beyond infrastructure, the region also faces shortages of AI engineers, data scientists and specialised computing resources, while many businesses continue to struggle with the high cost of cloud services and advanced processors needed to train AI models.
Despite the infrastructure gaps, the report highlighted examples of AI producing measurable benefits in agriculture, education and healthcare across Africa
IMF has urged governments to prioritise investment in reliable electricity, affordable broadband, data infrastructure and digital skills to support wider AI adoption.
