HARARE – Africa’s artificial intelligence (AI) economy is on a fast upward trajectory, with projections showing its total value rising from US$4.51 billion in 2025 to US$16.53 billion by 2030, according to a new Mastercard whitepaper. The report outlines a compound annual growth rate (CAGR) of 27.4%, driven by digital transformation across key sectors including finance, agriculture, health, and logistics.
Mastercard’s findings suggest AI could be one of the most significant forces reshaping Africa’s labour markets this decade. The company projects the creation of over 230 million digital-sector jobs across Sub-Saharan Africa by 2030, positioning AI as a major catalyst for employment rather than a threat to traditional roles.
Young Demographics, Mobile Penetration Drive Growth
Analysts attribute the continent’s AI potential to its youthful population — with a median age of just 19 — and its strong mobile-first digital adoption. Mastercard’s report highlights ongoing innovations such as AI-driven fraud detection systems, predictive analytics for smallholder farmers, and AI-powered diagnostics tools, which are already transforming local industries.
Infrastructure Gaps and Data Sovereignty Challenges
However, Africa’s path to AI-led prosperity faces hurdles, especially in infrastructure and data governance. The continent currently holds less than 1% of global data centre capacity, meaning most African data is stored abroad — creating both operational inefficiencies and sovereignty concerns.
Experts warn that limited access to consistent electricity, secure cloud services, and high-performance computing remains a major obstacle, particularly in regions outside capital cities.
Uneven Readiness Across the Continent
AI readiness remains uneven, with countries like Egypt, Mauritius, South Africa, and Rwanda showing advanced policy frameworks, while others lag behind. UNESCO and Mastercard researchers emphasise that public investment in digital skills, local data centres, and AI regulations will determine which nations lead the next technological wave.
Big Tech Investments and Local Control
Major global technology players — including Google and Microsoft — are investing heavily in African cloud and AI infrastructure, contributing millions of dollars to new regional hubs and training programmes. While these initiatives boost local capacity, they also raise questions about data ownership and economic independence.
To address these challenges, industry experts recommend tighter control over data provenance through enterprise blockchain technologies. These systems can secure consent records, track data usage, and enhance transparency through immutable ledgers — an approach gaining traction among African policymakers.
Strategic Investment Needed for Inclusive Growth
Analysts agree that African governments must view AI not merely as a commercial industry but as core infrastructure — essential to national competitiveness and social development. Recommended measures include:
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Expanding local data storage facilities to reduce reliance on foreign servers.
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Implementing AI skills training programmes for the continent’s youth.
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Establishing robust data protection and governance laws that balance innovation with citizen rights.
Promising examples are already visible, such as the Digital Africa Corridor linking Nigeria and Cabo Verde, designed to boost cross-border data flows and digital collaboration.
A Defining Decade for Africa’s Digital Future
Experts argue that Africa’s AI revolution could usher in higher crop yields, smarter health systems, and broader financial inclusion if managed responsibly. But to turn these projections into reality, governments must make bold investments in infrastructure, education, and regulation.
As Mastercard’s study concludes, countries that act early — combining secure data ecosystems with transparent governance and inclusive partnerships — will be best positioned to capture AI’s immense promise and ensure its benefits reach all citizens.
— Reporting by The Zimbabwe Mail Business Desk
