Africa could generate up to $1 trillion in additional Gross Domestic Product (GDP) by 2035 through the adoption of artificial intelligence (AI), according to a new report released by the African Development Bank (AfDB).
The report, titled Africa’s AI Productivity Gain: Pathways to Labour Efficiency, Economic Growth and Inclusive Transformation, was developed under the G20 Digital Transformation Working Group and outlines a strategic roadmap for unlocking AI-driven productivity and inclusive economic growth across the continent.
Conducted by consulting firm Bazara Tech, the study finds that inclusive deployment of AI technologies could increase Africa’s economic output by nearly one-third of its current GDP. The report attributes this potential to Africa’s expanding digital infrastructure, favourable demographics, and ongoing reforms across key economic sectors.
According to the findings, the economic impact of AI will be concentrated in a limited number of high-impact sectors rather than distributed evenly across the economy. Five priority sectors, agriculture (20%), wholesale and retail (14%), manufacturing and Industry 4.0 (9%), finance and financial inclusion (8%), and health and life sciences (7%) are projected to account for 58% of total AI-related gains, estimated at about $580 billion by 2035.
“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. He added that the Bank is prepared to release investment to support these priorities and expects governments and the private sector to utilise the funding to achieve productivity gains and create quality jobs.
The report states that realising Africa’s AI potential depends on five interlinked enablers: data, compute, skills, trust, and capital. It notes that reliable and interoperable data is essential for AI insights, while scalable computing infrastructure is required for efficient deployment. A skilled workforce is identified as critical to developing and maintaining AI systems, alongside trust built through governance and regulatory frameworks. Adequate capital investment is also required to de-risk innovation and accelerate adoption.
In addition, the AfDB outlines a three-phase roadmap to support Africa’s AI readiness, comprising ignition (2025–2027), consolidation (2028–2031), and scale (2032–2035).
“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.”
The African Development Bank said the roadmap is intended to guide policymakers, investors, and development partners in aligning efforts to ensure AI contributes to productivity growth, job creation, and inclusive transformation across the continent.
