Africa could unlock up to $1 trillion in additional GDP by 2035 through the inclusive deployment of artificial intelligence, according to a new report released by the African Development Bank (AfDB), positioning AI as a major driver of productivity, economic growth and job creation across the continent.
The report, Africa’s AI Productivity Gain: Pathways to Labour Efficiency, Economic Growth and Inclusive Transformation, was developed under the G20 Digital Transformation Working Group and sets out a strategic roadmap for harnessing AI to support Africa’s development ambitions. The study was conducted by consulting firm Bazara Tech.
The AfDB estimates that the potential AI dividend is equivalent to nearly one third of Africa’s current economic output, driven by the continent’s expanding digital infrastructure, young population and ongoing reforms across key sectors.
Growth Concentrated in Five Key Sectors
The report finds that AI-driven growth will not be evenly distributed across the economy but concentrated in a few high-impact sectors. Agriculture is projected to capture the largest share of gains at 20 per cent, followed by wholesale and retail at 14 per cent, manufacturing and Industry 4.0 at 9 per cent, finance and financial inclusion at 8 per cent, and health and life sciences at 7 per cent.
Together, these five sectors are expected to account for 58 per cent of total AI-related gains, amounting to about $580 billion by 2035. According to the Bank, these sectors combine economic scale, readiness to adopt AI and strong potential to deliver inclusive development outcomes.
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Investment Push and Private Sector Role
Nicholas Williams, Manager of the ICT Operations Division at the AfDB, said the report identifies clear priority areas for early implementation and investment.
“We have set out the key actions in this report, identifying the areas where initial implementation should be focused,” he said. “The Bank is ready to release investment to support these actions. We expect the private sector and governments to utilise this investment to achieve the identified productivity gains and create quality jobs.”
The report stresses that AfDB financing will play a catalytic role, helping to crowd in private capital and reduce risks associated with early-stage AI investments.
Five Enablers for AI Growth
According to the report, realising Africa’s AI potential depends on five interlinked enablers: data, compute, skills, trust and capital. Reliable and interoperable data is essential for generating insights, while scalable computing infrastructure will allow AI solutions to be deployed efficiently across the continent.
A skilled workforce is needed to develop, implement and maintain AI systems, while trust, built through governance and regulatory frameworks, will underpin adoption. Adequate capital investment is also required to de-risk innovation and accelerate deployment, helping to sustain long-term growth.
Roadmap to 2035
The AfDB outlines a three-phase roadmap towards AI readiness. The ignition phase, from 2025 to 2027, will focus on foundational investments and pilot initiatives. This will be followed by a consolidation phase from 2028 to 2031 to strengthen institutions and scale proven solutions. The final scale phase, from 2032 to 2035, aims to embed AI across key sectors and maximise economic impact.
“Achieving early milestones by 2026 will set Africa’s AI productivity cycle in motion,” said Ousmane Fall, Director of Industrial and Trade Development at the AfDB. “Africa’s challenge is no longer what to do. It is doing it on time.”
The Bank believes artificial intelligence presents a significant opportunity for Africa to boost productivity, enhance competitiveness and support inclusive growth, provided decisive action is taken in the coming years.
