African artificial intelligence (AI) companies need better access to government contracts, computing resources and investment if they are to compete with international technology providers, according to technology entrepreneur Kate Kallot.
Kallot called for financial guarantees to help local innovators qualify for public procurement and for a portion of investment entering developing economies to be reserved for domestic and regional companies.
Speaking during a panel discussion at a summit in Seoul, Kallot said development institutions such as the World Bank could help reduce the risks associated with government procurement, allowing local companies to compete on more equal terms with larger international suppliers.
She referred to a $10 million figure in discussing potential support for procurement access and risk-sharing, but the transcript does not establish whether that amount represents a proposed guarantee, a specific programme or an existing commitment.
Kallot also argued that computing power and access to data should be treated as essential infrastructure alongside electricity and connectivity. Without those resources, local companies may struggle to develop artificial intelligence products or adapt existing models to the needs of their markets.
The issue is particularly important for businesses in developing economies that want to build their own models rather than rely exclusively on technology developed elsewhere.
Kallot said some companies would choose to adapt existing AI models, while others would develop their own. Both approaches require access to the technology and resources needed to build and expand products.
She called for more capital to reach local and regional companies so they could develop solutions suited to their own economies and retain a greater share of the value generated by AI.
Nigeria’s Communications and Innovation Minister Bosun Tijani made a related case for investment in local talent and institutions, saying governments should establish the foundations for innovation while enabling entrepreneurs to build businesses on top of them.
Tijani said Nigeria was seeking stronger support for its technical talent training programme and opportunities to develop regional AI laboratories.
Kallot argued that the economic stakes extend beyond the technology industry. She pointed to the 1.2 billion young people expected to enter the working-age population over the next 10 to 15 years, saying access to technology and the ability to build local solutions would influence how much value developing economies capture from AI.
