Africa at risk of losing AI ground
Africa faces the risk of being left behind in the global artificial intelligence race before gaining a foothold, a recent analysis warns. The continent lacks the necessary digital infrastructure to compete effectively.
The analysis, published by the Boston Consulting Group and titled “Advancing Africa’s AI and Digital Economy”, highlights a potential scenario where Africa exports its data to train foreign AI models, only to later pay for access to the same technology.
The continent represents 18% of the world’s population but holds less than 1% of global data center capacity. Its digital economy contributes just 5% to its GDP, far below the global average of 15%.
AI is expected to contribute $15.7 trillion to the global economy by 2030. Under current conditions, however, Africa’s digital economy is projected to account for only 8.5% of its GDP by 2050.
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The disparity extends to generative AI, where large language models support fewer than 2% of Africa’s approximately 2,000 languages. This leaves most of the population without meaningful access to these tools.
Hamid Maher, who leads BCG’s tech hub in Africa, noted that the continent has the world’s youngest population and the fastest-growing cloud market. Still, it lacks the infrastructure to shape its digital future. “Success depends on capturing value from the technology stack—building, governing, and retaining data and talent locally,” he said. “The challenge is no longer about adopting technology but producing it.”
Three key barriers to growth
The report outlines three major obstacles: fragmentation, brain drain, and dependence on imported systems.
No African country has an economy exceeding $500 billion, making large-scale infrastructure investments difficult to justify. The continent also struggles to retain AI talent. Of its 62,000 specialists, 38% work remotely for foreign companies instead of local ones.
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Reliance on imported technology increases costs. African businesses often pay up to 35% more than global peers for the same systems due to vendor lock-in and expensive licensing fees.
Possible solutions: shared infrastructure and open-source systems
The report suggests three strategies to address these challenges: building shared digital infrastructure through public-private partnerships, pooling investments across countries or sectors, and favoring open-source systems over proprietary ones.
Rwanda’s IremboGov platform serves as a model for the first approach. Operated under a long-term concession by a private company while the government maintains oversight, the platform has processed over 51 million transactions since 2015 and provides access to more than 100 public services.
For investment pooling, the report highlights the African Continental Free Trade Area’s protocol on digital trade as a way to reduce costs for shared infrastructure like cloud services and fraud-detection systems.
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Morocco’s national population register demonstrates the benefits of open-source adoption. Built on MOSIP, a digital identity platform developed in India, the system allowed Morocco to customize its solution while retaining control over technical and economic value.
Trust remains a significant obstacle. A 2026 white paper found that citizens in 94% of emerging economies lack legal recourse over how their data is used. Eighteen countries operate identity systems without adequate legal protections.
The findings indicate that without decisive action, Africa’s role in the AI revolution may be determined by external forces before it has the opportunity to define its own path.
