Africa at the Crossroads: Will AI Bring Prosperity or Widen Inequality?

Africa is standing at a historic crossroads. Artificial Intelligence (AI) has the power to either fuel shared prosperity or deepen inequality across the continent. With more than 60 percent of Africans under the age of 25, and sub-Saharan Africa projected to contribute half of the world’s new labour-force entrants by 2030, the stakes could not be higher. The region needs to create at least 15 million jobs annually just to keep up with population growth.

For now, informal work dominates—about 86 percent of jobs are in small trade, subsistence farming, or informal services, most offering little security. Agriculture still provides the main source of livelihood but contributes relatively little to GDP. Meanwhile, gaps in electricity, broadband, education, and regulation make AI readiness patchy and uneven across countries.

AI and automation are already reshaping labour markets, but mismatches are glaring. South Africa, Kenya, Nigeria, and Egypt have emerging AI clusters, yet many young people remain unemployed or ill-prepared for the skills that new industries demand. Women face even steeper risks, with reports warning that their jobs in the outsourcing sector are more likely to be automated than men’s—particularly lower-paid, routine roles.

Still, opportunities are real. Scholars like Landry Signé argue that AI could raise productivity in agriculture and services, boosting GDP if governments adopt inclusive policies. Without these guardrails, however, gains may flow mainly to foreign companies and domestic elites, leaving most Africans behind.

Governments are responding with “gatekeeping” strategies—placing export restrictions on critical minerals, pushing for local content in contracts, or demanding data localisation. These moves can give African nations leverage, but without transparency and fair enforcement, they risk elite capture. Data governance is especially urgent: while foreign platforms profit from African user data, communities themselves often see little return.

On the positive side, digital markets are opening new opportunities. Start-ups in fintech, agri-tech, and e-commerce are creating innovations that support farmers, small businesses, and young professionals. Remote sensing and mobile platforms are helping farmers with crop monitoring and insurance, offering alternatives beyond traditional subsidies. Yet persistent gaps in electricity, internet access, and education mean rural and displaced communities risk being left behind.

The continent’s green economy could provide a unifying path. Studies suggest renewable energy, e-mobility, and climate-smart industries could create more than 3 million jobs by 2030 in countries like Nigeria, Kenya, Ethiopia, and the DRC. AI can also strengthen climate resilience by predicting floods, improving land use, and mapping vulnerable communities. Youth-driven AI clusters are already experimenting with local, low-cost solutions that combine environmental and social goals.

Ultimately, Africa’s AI future depends on deliberate choices. Education reform, smarter regulation, inclusive data policies, and investment in local innovation will determine whether AI becomes a tool for broad-based development or a force that deepens divides. The question is not whether AI will shape Africa’s future, but whose future it will serve.