AI Set to Propel Africa’s Economy by $1 Trillion by 2035, AfDB Reports

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AI Set to Propel Africa’s Economy by $1 Trillion by 2035, AfDB Reports

Africa’s GDP could expand by an additional $1 trillion by 2035, driven by widespread adoption of advanced artificial intelligence (AI) technologies across the continent. The projection comes from a comprehensive report published by the African Development Bank (AfDB) in partnership with consulting firm Bazara Tech. The forecast attributes the anticipated growth to enhanced productivity and Africa’s vast digital potential, representing roughly one-third of the continent’s current GDP.

Africa’s expanding digital capabilities, favorable demographic trends, and ongoing sectoral reforms are positioning the region as a hotspot for AI-driven growth. Beyond boosting GDP, the report estimates that AI adoption could generate between 35 and 40 million digital jobs and integrate 300 million young people into the workforce. Incorporating African data and languages into global AI models is also highlighted as a key step toward more equitable AI solutions worldwide.

The report identifies five “high-impact” sectors expected to capture a majority of this growth, using a data-driven scoring model based on GDP share, digital readiness, and alignment with Sustainable Development Goals. Agriculture is projected to contribute $200 billion, Wholesale and Retail $140 billion, Manufacturing and Industry $90 billion, Finance and Inclusion $80 billion, and Health and Life Sciences $70 billion—together accounting for 58% of the total $1 trillion increase. The remaining 42% ($420 billion) will be distributed among ten other sectors, targeting improvements in food security, healthcare access, financial inclusion, and productivity in informal economies.

Nicholas Williams, Manager of AfDB’s ICT Operations Division, stressed the Bank’s readiness to invest in these sectors and urged governments and the private sector to leverage the investment to achieve productivity gains and create jobs. The report also presents a roadmap for AI readiness, divided into three phases: the ‘Ignition’ phase (2025–2027) focuses on policy frameworks, pilot programs, and foundational computing; the ‘Consolidation’ phase (2028–2031) emphasizes regional digital corridors, sandbox regulations, and scaled investment; and the ‘Scale and Diffusion’ phase (2032–2035) aims to fully activate AI adoption across sectors.

Supporting this strategy are five critical enablers: reliable data to generate AI insights, scalable compute infrastructure, a skilled workforce, trust through governance and regulatory frameworks, and sufficient capital investment. Collectively, these elements are designed to safeguard and accelerate Africa’s AI-driven economic growth, positioning the continent as a major player in the global AI landscape by 2035.

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