Africa’s AI future: A pathway to jobs, growth, and the role of private capital
From the discussions at GITEX Nigeria, held earlier this month in Abuja and Lagos, one message was clear: Africa’s digital transformation is already underway. Government leaders, investors, and entrepreneurs gathered to chart how technology can drive the continent’s next chapter of growth. For IFC, it reaffirmed a central conviction: artificial intelligence (AI), when scaled responsibly, can fuel inclusive growth and job creation at scale.
Artificial intelligence is redefining global economies. Studies suggest AI could contribute up to $15 trillion to global GDP by 2030, one of the most significant productivity shifts in modern history. Research also shows it could boost labour productivity by 0.6 percentage points annually through 2040. For Africa, with over 60 percent of its population under 25, rising smartphone penetration, and a vibrant entrepreneurial culture, AI offers a pathway to leapfrog longstanding barriers and create jobs at scale.
“In finance, AI credit-scoring tools used by fintechs are enabling millions of unbanked individuals and small businesses to access loans, fuelling entrepreneurship and inclusion.”
AI is already reshaping sectors linked to the Sustainable Development Goals. In Nigeria’s Edo State, a teacher-led pilot using GPT-4 helped 800 students achieve learning gains equivalent to two years in just six weeks. In Senegal, IFC invested in Kera, a digital health platform whose AI-driven insurance product has cut claims processing from months to seconds, making healthcare more affordable and accessible. In finance, AI credit-scoring tools used by fintechs are enabling millions of unbanked individuals and small businesses to access loans, fuelling entrepreneurship and inclusion.
Today, three priorities stand out as Africa charts this AI-powered future:
1. Africa needs strong digital foundations.
To seize this opportunity, Africa must first address the basics. Today, only 36 percent of Africans have internet access, while unreliable electricity and limited data centre capacity slow adoption.
In fiscal year 2024, IFC committed a record $8.5 billion to digital infrastructure across Africa, including investments in data centres, fibre networks, and broadband. That same year, we invested $1.1 billion specifically to boost digital connectivity. This includes backing Raxio Group’s Tier III data centre expansion across six countries and financing to expand WIOCC’s subsea cables and fibre in Nigeria, DRC, and South Africa. In Lagos, IFC-backed Rack Centre became the first EDGE-certified green data facility in Africa, setting a global benchmark. In Ethiopia, a $1.3 billion collaboration with Safaricom is expanding access to 4G and 5G networks.
These infrastructure projects reduce data costs, connect communities, and enable scalable digital services. These foundational investments are vital for AI-powered innovation to take root and position Africa for global competitiveness.
2. Startups as engines of jobs and innovation
Startups are where innovation meets opportunity. Africa’s startups are solving real-world challenges, from financial inclusion and healthcare access to supply chain inefficiencies. The Google-IFC e-Conomy Africa 2020 report states that Africa’s internet economy could grow from $180 billion by 2025 to $712 billion by 2050, roughly 8.5 percent of GDP.
IFC supports this ecosystem with a $275 million Venture Capital Platform and a $120 million Startup Catalyst Program, which have supported over 1,200 startups spanning fintech, healthtech, edtech, and climate tech. In Nigeria, IFC invested $110 million in TradeDepot, a B2B e-commerce platform empowering women-led retailers with credit and digital tools. Wave Mobile Money is scaling financial inclusion in West Africa; Andela has trained over 175,000 African technologists, creating pathways to global markets; and IFC’s TechEmerge programme is piloting AI diagnostics in Nigeria and Kenya.
Together, these efforts have created over 300,000 jobs, with more than 100,000 women employed, showing that Africa’s entrepreneurial ecosystem can deliver jobs, innovation, and inclusion.
3. Private capital is central to Africa’s AI future.
Public funds alone will not drive Africa’s digital transformation. Currently, less than 1 percent of global AI investment flows into emerging markets beyond China. The role of private capital through equity, blended finance, and public-private partnerships is essential, and it must step up.
IFC is helping catalyse that shift. We partner with African private equity firms such as Africa Capital Alliance, Verod, Uhuru, and Cardinal Stone, combining capital with governance and market expertise to grow resilient, scalable businesses. Our investments also emphasise sustainability, such as the $500 million RIPLE initiative, ensuring that digital growth aligns with climate goals.
Across Africa, IFC’s role is to de-risk investments, crowd in private capital, and create models that can scale across borders.
A shared vision for inclusive development
AI is not just about algorithms and data; it’s about people. It is about equipping young Africans with digital skills, giving small businesses access to new markets, and building infrastructure that is affordable, green, and inclusive.
But the future hinges on today’s choices: governments must set policies enabling digital economies, investors must bring long-term capital, and entrepreneurs must keep driving bold ideas. IFC’s role is to stand at the centre of this ecosystem as a partner and facilitator.
The question for Africa is no longer whether to embrace AI. It is about how inclusively, how quickly, and how boldly the continent moves to make AI a driver of shared prosperity.
Dahlia Khalifa, Regional Director, Central Africa & Anglophone West Africa, IFC
