The report, titled Africa’s AI productivity gain: pathways to labour efficiency, economic growth and inclusive transformation, was developed under the G20 Digital Transformation Working Group and produced by consulting firm Bazara Tech.
It highlights AI as a major catalyst for development, job creation and productivity growth on the continent.
According to the study, the projected gains are equivalent to nearly one-third of Africa’s current economic output. The potential is driven by the continent’s young population, expanding digital infrastructure and ongoing reforms across key sectors.
Rather than being evenly distributed, the report finds that AI-driven growth is likely to be concentrated in a handful of high-impact sectors. Agriculture is expected to account for 20% of total gains, followed by wholesale and retail at 14%, manufacturing and Industry 4.0 at 9%, finance and financial inclusion at 8%, and health and life sciences at 7%.
Together, these five sectors could generate about $580 billion by 2035.
The Bank said the scale of the opportunity now requires decisive implementation. Nicholas Williams, Manager of the ICT Operations Division at the African Development Bank, noted that the institution is ready to deploy investment to support priority actions identified in the report, calling on governments and the private sector to translate strategy into measurable productivity gains and quality jobs.
The report identifies five critical enablers for successful AI deployment: data, compute infrastructure, skills, trust and capital. It stresses that reliable data systems, scalable computing power and a skilled workforce are essential, alongside strong governance and regulatory frameworks to build trust. Adequate capital, the study adds, is needed to de-risk innovation and accelerate adoption.
A three-phase roadmap is proposed, covering ignition between 2025 and 2027, consolidation from 2028 to 2031, and large-scale deployment from 2032 to 2035.
Ousmane Fall, Director of Industrial and Trade Development at the African Development Bank, said Africa’s focus must now shift from planning to timely execution, warning that delays could undermine the continent’s opportunity to lead in AI-driven development.
–AfDB/ChannelAfrica–
