Africa is on the cusp of a digital revolution, with the African Development Bank estimating that artificial intelligence could add up to $1 trillion to the continent's GDP by 2035. This potential highlights the crucial role digital technology can play in driving economic growth, improving public services, and stimulating innovation. However, realizing this opportunity will require significant investment in the infrastructure needed to support an inclusive and scalable digital economy.
The African Development Bank projects that AI-driven transformation could boost Africa's GDP by approximately 4% by 2035, while the International Monetary Fund's 2026 analysis suggests that current levels of AI readiness could deliver only a 0.2% GDP contribution over the next decade. In contrast, stronger foundations could raise the gains to around 4%. The GSMA estimates that AI could contribute as much as $2.9 trillion to Africa's GDP by 2030 if fully embraced.
Despite this potential, Africa's digital infrastructure gap remains substantial. The continent accounts for just 0.6% of global data centre capacity, despite representing around 20% of the world's population. Africa's active data centre capacity stands at 360 megawatts, with another 238MW under construction and 656MW in the pipeline, compared with a global active capacity of 55 gigawatts.
Expanding this infrastructure will require reliable electricity, which remains a significant constraint on energy-intensive technologies such as AI and data centres. Nearly 600 million Africans still lack access to electricity, but progress is underway. More than 50 million Africans gained electricity access between July 2023 and April 2026 through the World Bank-backed Mission 300 initiative, with Tanzania, Ethiopia, and Nigeria recording significant gains.
Africa's connectivity challenge is increasingly shifting from network coverage to internet adoption. The GSMA reports that only 9% of Africans remain outside mobile broadband coverage, down from 50% in 2014. However, 63% live within coverage areas without using mobile internet, with affordability remaining a major barrier. The median cost of a 2GB mobile broadband plan stands at 4.2% of gross national income per capita, more than double the 2% affordability target.
Digital financial services have already transformed access to banking across the continent. The GSMA's 2026 Mobile Money Report shows that Sub-Saharan Africa accounted for approximately two-thirds of new mobile money accounts globally in 2025. Kenya's M-Pesa platform has around 40 million users and an estimated 90% market share. In rural Kenya, mobile payment adoption among smallholder farmers rose from 15% in 2018 to 68% in 2024.
Modular data centres offer flexible solutions for expanding digital infrastructure in underserved regions. Investments by Microsoft and Meta in Kenya and Nigeria signal growing interest in local digital ecosystems. To fully realize the potential of Africa's digital economy, strategic investment in data centres, reliable power, connectivity, and locally relevant AI systems will be essential, along with stronger data protection frameworks, affordable internet access, and regional cooperation.
Key points
- Artificial intelligence could add up to $1 trillion to Africa's GDP by 2035
- Africa's digital infrastructure gap remains substantial, with the continent accounting for just 0.6% of global data centre capacity
- Digital financial services have transformed access to banking, with Sub-Saharan Africa accounting for two-thirds of new mobile money accounts globally in 2025
