Sub-Saharan Africa could increase its economic output by about 4% over the next decade by embracing artificial intelligence, but only if governments address persistent gaps in electricity, internet connectivity and digital skills, according to a new International Monetary Fund (IMF) report.
The paper, released on Tuesday, warns that without decisive reforms, the region could see AI-driven economic growth of just 0.2% over the same period, leaving it on the margins of the global AI revolution.
According to the IMF, Sub-Saharan Africa ranks lowest on its AI Preparedness Index and trails every other region except South Asia in AI adoption, with inadequate infrastructure, limited digital skills and weak regulatory capacity identified as the main barriers.
Martin Schindler, Deputy Division Chief and Mission Chief in the IMF’s African Department and the report’s lead author, said policy decisions made now will determine whether the region can fully benefit from AI.
“Policy changes will be key to whether further growth can be unlocked from AI,” Schindler told Reuters, adding that a 0.2% growth outcome would be “a rounding error.”
The report said the region’s biggest challenge is not the disruptive impact of AI but its ability to adopt and scale the technology quickly enough to remain competitive.
“For Sub-Saharan Africa, the central concern is not the risk of technological disruption, but whether countries will be able to adopt, adapt, and scale AI quickly enough to capture its benefits and avoid falling further behind,” the report stated.
Co-author Andrew Tiffin said reliable electricity remains the foundation for AI adoption, noting that investments in data centres could also help accelerate broader electrification across the continent.
