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IFC Warns Africa Risks Missing Out on AI Boom Without Urgent Investments

By: Cynthia Okafor

September 4, 2025

3 minute read

Conclusion: A Call to Action for Africa’s AI Future The IFC’s warning is clear: Africa must act now to invest in AI infrastructure, skills, and regulatory frameworks. With its youthful population, growing digital adoption, and sector-specific success stories, Africa has the potential to become a global leader in AI-driven innovation. Failing to invest risks leaving the continent behind in what many call the fourth industrial revolution. But with the right policies and investments, AI could add billions to GDP, create millions of jobs, and drive inclusive growth across Africa.

The International Finance Corporation (IFC) has issued a warning that Africa risks missing the global artificial intelligence (AI) boom if immediate action is not taken to strengthen infrastructure, skills development, and regulatory frameworks.

Speaking at the GITEX Nigeria 2025 conference in Lagos, Dahlia Khalifa, IFC’s Regional Director for Central Africa and Anglophone West Africa, emphasized that AI is becoming the defining technology of this era, with the potential to accelerate Africa’s digital and economic growth.

IFC’s Warning: Infrastructure and Skills as the Biggest Gaps

Khalifa stressed that AI could be Africa’s “quantum leap” opportunity, but the continent faces critical challenges:

  • Weak energy and broadband infrastructure
  • Low levels of digital connectivity
  • Shortage of AI-ready skills
  • Slow regulatory adoption for innovation and safeguards

“Unless Africa invests in infrastructure, including energy, broadband, digital connectivity, and also in skills and responsible regulation to enable both innovation and safeguards, these benefits could bypass us,” Khalifa said.

The Global AI Opportunity: $15 Trillion by 2030

Globally, AI is projected to contribute nearly $15 trillion to GDP by 2030, a figure larger than the combined economies of China and India today.

For Africa, the stakes are high:

  • Digital economy projected to add $180 billion to GDP by 2030 (about 6% of output)
  • 230 million jobs expected to be created through digital transformation
  • Youthful population (over 60% under 25) fueling a new wave of digital adoption

Africa’s Unique Digital Advantage

Khalifa highlighted that Africa’s youthful demographics and growing smartphone adoption give it a powerful edge in the digital era.

  • Population growth: From 1.5 billion today to 2.5 billion by 2050
  • Labour market expansion: 600 million young people entering the workforce in 25 years
  • Digital natives: Africa is home to one of the largest pools of young, tech-savvy populations in the world

This makes Africa one of the most promising grounds for digital and AI-driven growth.

AI Success Stories in Africa

Despite structural challenges, AI is already transforming industries across Africa:

1. Education

In Nigeria, a pilot program supported by the Ministry of Education and international partners showed that AI-assisted tutoring helped 800 students gain two years’ worth of learning in just six weeks.

2. Healthcare

  • AI-enabled drones in Ghana and Rwanda cut blood delivery times from hours to 30 minutes.
  • AI imaging tools achieved 90% accuracy in detecting tuberculosis and cervical cancer.

3.Agriculture

Predictive AI platforms are linking smallholder farmers with idle machinery, increasing yields and resilience against climate change.

4. Finance

AI-powered credit scoring has enabled millions of previously unbanked Africans and small businesses to access loans, fueling entrepreneurship and job creation.

Conclusion: A Call to Action for Africa’s AI Future

The IFC’s warning is clear: Africa must act now to invest in AI infrastructure, skills, and regulatory frameworks. With its youthful population, growing digital adoption, and sector-specific success stories, Africa has the potential to become a global leader in AI-driven innovation.

Failing to invest risks leaving the continent behind in what many call the fourth industrial revolution. But with the right policies and investments, AI could add billions to GDP, create millions of jobs, and drive inclusive growth across Africa.

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