IMF: Africa’s AI Potential Hobbled by Electricity Shortfalls BODY: Johannesburg, South Africa – The International Monetary Fund (IMF) has issued a cautionary note regarding Africa’s burgeoning artificial intelligence (AI) sector, warning that significant electricity shortages across the continent pose a substantial barrier to realizing the full economic potential of AI technologies.
The IMF estimates that AI adoption could add approximately 4% to Africa’s economic output over the next decade, contingent upon substantial infrastructure investment, especially in energy.
However, without such investment, the economic gains could dwindle to a mere 0. 2%, a negligible difference, the Fund asserts. Africa’s digital infrastructure is uneven, with the IMF’s AI Preparedness Index ranking Sub-Saharan Africa as the least prepared region globally for widespread AI adoption.
The continent’s challenges are multifaceted, including weaknesses in digital infrastructure, human capital, innovation capacity, and regulatory readiness.
The absence of reliable electricity is a particularly pressing issue.
The International Energy Agency reports that around 600 million people in Africa lack access to electricity, making power a fundamental obstacle to digital transformation.
The IMF suggests targeted investments in national grids, mini — grids, and electricity infrastructure near schools, hospitals, and public facilities could establish digital hubs capable of supporting AI-powered services. Expanding fibre-optic networks, reducing broadband costs, and fostering open-access infrastructure are also crucial for improving AI adoption. Despite these challenges, there is progress.
Microsoft and UAE — based technology company G42 have announced plans for a $1 billion geothermal-powered data centre campus in Kenya, a significant digital infrastructure project. Cassava Technologies has partnered with NVIDIA to deploy advanced graphics processing units (GPUs) across Africa, bolstering AI computing infrastructure.
The African Union has also adopted its Continental Artificial Intelligence Strategy, offering a framework for member states to develop responsible AI policies, strengthen digital infrastructure, and promote local innovation. National AI strategies are being developed in countries such as Nigeria, Kenya, Rwanda, Morocco, and South Africa.
The IMF emphasizes that capturing the benefits of AI will depend more on governments’commitment to investing in the foundational infrastructure than on the technology itself.
The next few years will be pivotal for Africa to ensure it can harness the power of AI and drive sustainable economic growth.
*Additional reporting by ImNews | Sources consulted: 5*
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This original article was produced by the ImNews editorial team
Source: Africa.businessinsider
Source: Ayodeji Adegboyega
