A new African Development Bank report outlines how artificial intelligence could unlock up to $1 trillion in additional GDP for the countries of Africa by 2035, positioning AI as a practical driver of productivity and inclusive growth across the continent.
Source: African Development Bank Group (AfDB)
The African Development Bank (AfDB) has released a comprehensive report detailing how artificial intelligence could significantly accelerate economic growth and transformation across Africa.
Developed under the G20 Digital Transformation Working Group, the study, Africa’s AI Productivity Gain: Pathways to Labour Efficiency, Economic Growth and Inclusive Transformation, presents a strategic roadmap for harnessing AI to enhance productivity, competitiveness, and social outcomes.
According to the report, inclusive deployment of AI technologies could generate as much as $1 trillion in additional GDP by 2035, equivalent to nearly one-third of Africa’s current economic output. The analysis suggests that Africa’s expanding digital infrastructure, young and growing workforce, and ongoing reforms across key industries create favorable conditions for AI-driven growth, provided implementation is timely and coordinated.
Rather than spreading evenly across the economy, the projected gains are expected to concentrate in a number of high-impact sectors. Agriculture is forecast to capture the largest share of AI-driven value, accounting for around 20% of total gains, followed by wholesale and retail trade at 14%, manufacturing and Industry 4.0 at 9%, finance and financial inclusion at 8%, and health and life sciences at 7%. Together, these sectors could generate approximately $580 billion in value by 2035, reflecting both their economic scale and readiness to adopt AI solutions.
Source: African Development Bank Group (AfDB)
The report emphasizes that unlocking this potential depends on five closely linked enablers: data, compute, skills, trust, and capital. It notes that reliable and interoperable data is essential for effective AI systems, while scalable computing infrastructure is required to deploy solutions across diverse markets.
A skilled workforce is identified as critical to developing and maintaining AI technologies, alongside governance and regulatory frameworks that build trust and encourage adoption. Adequate capital investment is also highlighted as necessary to de-risk innovation and accelerate deployment, creating a self-reinforcing cycle of AI-driven growth.
To guide implementation, the AfDB outlines a three-phase roadmap for AI readiness. The ignition phase, running from 2025 to 2027, focuses on foundational investments and early pilots, followed by a consolidation phase between 2028 and 2031, and a scale phase from 2032 to 2035 aimed at continent-wide deployment.
AfDB officials indicated that the Bank has identified priority actions and stands ready to mobilize investment to support them, with governments and the private sector expected to play a central role in execution. The report concludes that Africa’s primary challenge is no longer defining what needs to be done, but delivering progress at speed to ensure AI translates into productivity gains, job creation, and inclusive economic growth.
