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The International Monetary Fund (IMF) has urged governments across sub-Saharan Africa to accelerate investments in electricity, digital infrastructure, internet connectivity and workforce skills, warning that the region could miss out on the economic benefits of artificial intelligence (AI) without urgent action. In a report titled Africa Can Grow Faster With AI If It Moves Now, the IMF said AI could increase the region’s economic output by about four per cent over the next decade by boosting productivity, creating better jobs and improving public service delivery. However, it stressed that these gains depend on countries addressing long-standing infrastructure and digital readiness challenges. According to the IMF, the biggest threat to Africa is not that AI will eliminate jobs, but that the continent could fall further behind if it fails to adopt and scale the technology quickly. The report estimates that under an ambitious reform agenda, AI could contribute around four per cent to sub-Saharan Africa’s GDP over the next 10 years. Without major improvements in infrastructure and policy, however, the technology’s impact could be limited to just 0.2 per cent. The Washington-based lender noted that the region currently ranks lowest on its AI Preparedness Index due to weak digital infrastructure, limited technical expertise, inadequate regulations and low investment in research and innovation. One of the major barriers identified is unreliable electricity. The IMF said nearly half of the population in sub-Saharan Africa still lacks dependable access to power, making it difficult for businesses, technology firms and research institutions to operate AI systems that require stable electricity. To address this challenge, the Fund called for increased investment in national power grids and the expansion of mini-grid solutions around schools, hospitals and innovation hubs to support digital and AI-driven industries. The report also highlighted limited internet access as another obstacle. While mobile phone usage has grown significantly, only about 38 per cent of Africans were using the internet in 2024, compared to the global average of roughly 68 per cent. The IMF said expanding broadband infrastructure, fibre-optic networks and affordable internet access would help accelerate AI adoption across the continent. Beyond infrastructure, the organisation emphasised the need for stronger investment in education and digital skills. It recommended expanding science, technology, engineering and mathematics (STEM) education while equipping workers with practical AI and digital competencies to prepare them for future employment opportunities. The IMF believes AI could play a transformative role in sectors such as agriculture, healthcare, education, financial services and public administration. Potential applications include AI-powered weather forecasting for farmers, intelligent diagnostic tools for hospitals, and improved tax administration and public financial management for governments. The report also noted growing private sector investment in Africa’s AI ecosystem. It cited Microsoft’s partnership with G42 to develop a $1 billion geothermal-powered data centre in Kenya and Cassava Technologies’ collaboration with NVIDIA to deploy advanced graphics processing units across several African countries, initiatives expected to strengthen the continent’s AI computing capacity. Despite these developments, the IMF warned that AI infrastructure remains concentrated in a few countries. It noted that Africa has around 160 data centres, most of them located in South Africa, Nigeria and Kenya, raising concerns that the benefits of AI could be unevenly distributed unless more countries improve their digital infrastructure. The Fund further called for robust regulatory frameworks that encourage innovation while protecting privacy, strengthening cybersecurity and ensuring the responsible use of artificial intelligence. According to the IMF, Africa’s ability to benefit from AI will depend less on developing sophisticated AI models and more on addressing fundamental challenges such as reliable electricity, wider internet access, digital skills development and supportive policies. It concluded that with decisive action, artificial intelligence could become a major driver of economic growth, higher productivity and more inclusive development across the continent rather than another missed technological opportunity.