IMF: AI Could Boost Africa's Economy by 4% if Electricity and Internet Infrastructure Are in Place

The International Monetary Fund (IMF) report suggests that improving electricity, internet access, and digital skills in sub-Saharan Africa could boost economic output by approximately 4% over the next decade through AI adoption. Without these reforms, growth is projected to remain at just 0.2%. The report emphasizes that infrastructure, not AI itself, is critical for realizing the technology's benefits, with Andrew Tiffin, a co-author, calling the 0.2% projection 'rounding error.' Africa's AI adoption rate is the lowest globally, and electricity shortages—afflicting nearly half the population—pose a major barrier. Internet access remains limited, with 2024 utilization at 38% compared to a global average of 68%. Private sector investments, including Microsoft and G42's $1 billion data center in Kenya and GPU installations by companies like Nvidia, are underway, though IMF warns against over-concentration of capital in select nations.