Africa is undergoing a digital transformation, and the active and effective use of artificial intelligence (AI) could provide significant solutions to the continent’s unemployment challenges.
This, in turn, could substantially and sustainably enhance the continent’s prosperity. A report by the Mastercard Foundation and Caribou Digital supports this view, emphasizing the need for strategic partnerships among governments, Big Tech companies, investors, and academia to strengthen the AI ecosystem.
In 2020, 60% of Africa’s population was under the age of 25. This tech-savvy demographic is showing increased interest in technology, and the number of youth engaging with it is expected to double by 2030. The continent is home to more than 127 AI hubs, with the majority located in South Africa (22%), followed by Egypt (12%) and Nigeria (12%). Kenya ranks third with 10%.
The report identifies six critical elements for the effective use of AI: grassroots AI communities, academia, human capital, policymakers, Big Tech companies, and investors. Groups such as Data Science Africa, Deep Learning Indaba, and Data Science Nigeria, composed of AI professionals, play a key role in skill development and showcasing African AI research on a global scale.
The report advises investors to expand beyond health and agriculture, directing funds toward areas such as education and financial inclusion, which could positively impact the growth of the AI ecosystem.
Big Tech companies should develop partnerships that strengthen local ecosystems and prioritize knowledge transfer. Academia needs to expand AI programs, train more educators, and modernize curricula.
Governments should invest in comprehensive national AI strategies, improve infrastructure, and support sectors like electricity and internet connectivity. Donors should fund programs that develop human capital, including scholarships, fellowships, and educational initiatives.
Venture capital directed at deep-tech initiatives has grown from $86 million in 2015 to $1.2 billion in 2023. Government initiatives, such as Nigeria’s AI Research Program and South Africa’s AI Institute, are creating environments that foster innovation and position Africa as a global leader in AI.
By addressing these elements, Africa can effectively utilize its youthful population, overcome local challenges, and establish itself as a key player in the global AI landscape.