The World Bank has identified Nigeria, alongside Kenya and South Africa, as one of Africa’s leading centres of Artificial Intelligence (AI) activity. According to the Bank’s latest Africa Economic Update, AI activity on the continent is currently concentrated in these three economies, although adoption remains at an early stage across most African countries. The report focuses on building AI-readiness across Sub-Saharan Africa.
The World Bank views AI as a potentially powerful tool for raising productivity, creating jobs, and improving the delivery of essential services across the continent. The Bank believes that Africa does not need to compete with advanced economies in developing the world’s most sophisticated frontier AI systems. Instead, the continent’s greatest immediate opportunity lies in adopting affordable, locally adapted AI applications capable of solving everyday development problems.
Such AI applications could be deployed in various sectors, including education, agriculture, healthcare, finance, logistics, and public administration. For instance, low-bandwidth AI tools could support student learning and help farmers identify and manage livestock diseases. They could also help small businesses automate routine functions such as accounting and improve productivity.
Andrew Dabalen, World Bank Chief Economist for the Africa Region, emphasized that African governments should build the foundations required to take advantage of AI technology. He stated that investment in an AI-ready economy could unlock productivity gains, spur innovation, and accelerate structural transformation. Dabalen noted that the next challenge is turning growth into more jobs and better opportunities.
However, the World Bank warned that significant infrastructure and institutional gaps could prevent many African countries from fully benefiting from AI. The Bank identified reliable electricity, affordable internet connectivity, digital skills, quality data, and computing infrastructure as critical requirements for successful AI adoption. Effective governance, strong institutions, and technical capacity are also necessary to ensure that AI contributes to development rather than widening existing inequalities.
The World Bank called for greater regional cooperation, including through the African Union’s Continental AI Strategy and the African Continental Free Trade Area. Such cooperation could help African countries scale AI-enabled solutions and generate more and better jobs. Separate World Bank research involving 4,205 firms across seven economies, including Nigeria, found rapid growth in business adoption of AI.
The research found that AI adoption rates among firms surveyed nearly tripled between 2024 and 2025, although sophisticated uses of the technology remained highly concentrated. Managers in developing economies expected AI adoption to have positive effects on productivity and employment over the next three years. The World Bank’s findings highlight the potential of AI to drive growth and development in Africa, but also underscore the need for careful planning and investment to ensure that the benefits are realized.
Key points
- The World Bank has identified Nigeria, Kenya, and South Africa as leading centres of AI activity in Africa.
- AI adoption rates among firms in developing economies nearly tripled between 2024 and 2025.
- The World Bank emphasizes the need for investment in AI-ready economies to unlock productivity gains and spur innovation.
