African countries are being encouraged to borrow more, boost domestic revenue, and mobilize pension and sovereign wealth funds to build the infrastructure needed to benefit from the growing artificial intelligence (AI) sector, according to a report by the United Nations Economic Commission for Africa (UNECA).
The Ethiopia-based commission warns that Africa risks falling behind in AI-driven economic growth due to significant infrastructure gaps. Currently, the continent hosts less than 1% of the world’s data centers, a shortfall described as both an economic and sovereignty challenge. Without urgent investment, African nations may struggle to compete in the global digital economy.
AI adoption could add an estimated $2.9 to $4.8 billion to Africa’s economy by 2030, according to McKinsey. However, UNECA stresses that relying solely on public funding is insufficient. Governments are urged to strengthen tax collection, improve access to financial markets, and mobilize capital from pension funds, sovereign wealth funds, and blended finance solutions to close the investment gap.
The report also emphasizes the importance of skills development, digital literacy, and full implementation of the African Continental Free Trade Area (AfCFTA). By adopting AI, digital platforms, and automated production systems, African economies can diversify away from raw commodity exports toward higher-value manufacturing and services, fostering more competitive and sustainable growth.
Finally, African countries are encouraged to leverage their vast reserves of critical minerals to produce batteries, processors, and other advanced products locally rather than exporting raw materials. This strategy can enhance technological self-reliance and position Africa as a hub for innovation and AI-driven economic growth.
Source: UN Says Africa Should Borrow and Boost Revenue to Capture AI Opportunity
