Africa risks remaining a consumer rather than a producer of artificial intelligence unless governments accelerate investment in digital infrastructure, particularly data centres, according to a new report by Boston Consulting Group (BCG).
The report, Advancing Africa’s AI and Digital Economy, warns that despite accounting for 18 per cent of the world’s population, Africa has less than one per cent of global data centre capacity. The continent’s digital economy currently contributes just five per cent of GDP, well below the global average of 15 per cent.
If current trends continue, BCG projects Africa’s digital economy will account for only 8.5 per cent of GDP by 2050, leaving the continent behind as artificial intelligence reshapes the global economy.
The warning comes as AI is forecast to contribute an estimated $15.7 trillion to global economic output by 2030, presenting significant opportunities for countries with the infrastructure needed to develop, host and commercialise digital services.
According to BCG, Africa’s greatest challenge has shifted from adopting technology to producing it.
BCG Managing Director and Senior Partner Hamid Maher said the continent’s youthful population and rapidly growing cloud market provide a strong foundation, but inadequate digital infrastructure continues to limit its ability to retain data, skilled talent and economic value.
The report cautions that without sufficient local infrastructure, African nations risk sending valuable data to overseas technology companies, where AI models are developed before the resulting products are licensed back to African users at a cost.
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It also highlights a linguistic challenge, noting that fewer than two per cent of Africa’s estimated 2,000 languages are adequately represented in large language models, restricting AI adoption across many communities.
Kenya is among the countries seeking to address those shortcomings by positioning itself as a regional digital hub.
The government has stepped up efforts to attract investment in cloud computing and data centres, promoting Kenya as a gateway for digital services across Eastern and Central Africa.
The country already hosts major carrier-neutral and enterprise data centres operated by companies including iXAfrica, Africa Data Centres, Safaricom, Liquid Intelligent Technologies and the Konza National Data Centre. Oracle is also establishing its first cloud region in Kenya, further strengthening Nairobi’s role as a regional cloud computing centre.
The Konza National Data Centre has become a key part of Kenya’s digital transformation agenda, providing cloud infrastructure for government and private sector services while supporting artificial intelligence, big data analytics and digital public services.
Kenya’s digital economy is also expected to expand significantly. GSMA estimates digital transformation could add about Sh662 billion to the country’s GDP by 2028 and create approximately 300,000 jobs, driven by increased adoption of digital technologies across sectors such as agriculture, manufacturing, transport and trade.
Despite this progress, the International Monetary Fund (IMF) says Sub-Saharan Africa continues to face major barriers to AI readiness, including unreliable electricity, limited internet connectivity and inadequate digital infrastructure.
Internet penetration across Africa stood at about 38 per cent in 2024, while the continent’s data centre capacity remains concentrated in a handful of countries, notably South Africa, Nigeria and Kenya.
To strengthen Africa’s digital competitiveness, BCG recommends expanding digital infrastructure through public-private partnerships, encouraging cross-border investment to achieve greater scale, and adopting open-source digital technologies to reduce dependence on costly foreign software.
