The International Finance Corporation (IFC) has said Africa may fail to fully harness the benefits of artificial intelligence (AI) if urgent investments are not made in infrastructure, skills development, and regulatory frameworks.
This was disclosed by Dahlia Khalifa, Regional Director for Central Africa and Anglophone West Africa at IFC, while speaking at the GITEX Nigeria 2025 conference in Lagos on Wednesday, September 3.
Khalifa explained that AI is fast becoming the defining technology of this era and could accelerate Africa’s development.
“Artificial intelligence is emerging as one of the clearest tools enabling the possibility of a quantum leap forward for the continent, and Nigeria is ground zero,” she said.
Despite these opportunities, Khalifa warned that structural gaps remain a major threat to Africa’s ability to compete in the AI-driven economy.
“Unless Africa invests in infrastructure, including energy, broadband, digital connectivity, and also in skills and responsible regulation to enable both innovation and safeguards, these benefits could bypass us,” she said.
Khalifa noted that globally, AI is projected to contribute nearly $15 trillion to GDP by 2030, more than the combined economies of China and India today.
Africa’s digital potential
Khalifa said Africa’s growing population and youthful demographics make the continent one of the most promising grounds for digital growth.
“Over the past decade, Africa’s digital economy has been one of the fastest growing in the world, and it is quickly becoming a centre of attraction,” Khalifa stated
She noted that Africa’s population is set to expand from 1.5 billion to 2.5 billion in the next 25 years, with 600 million young people expected to enter the labour market.
“With more than 60% of Africans under the age of 25, and smartphone adoption rising steadily, Africa is home to one of the largest pools of digital natives in the world,” she said.
She noted that Africa’s digital economy is projected to add $180 billion to the continent’s GDP by 2030, equivalent to about 6% of total output. The digital transition is also expected to create 230 million jobs across various sectors.
More details
Khalifa highlighted several practical cases where AI has already begun transforming sectors across Africa.
- In Nigeria’s education sector, a recent pilot supported by the Ministry of Education and international partners showed that AI-assisted tutoring helped 800 students achieve the equivalent of two years of schooling in just six weeks.
- In healthcare, AI-enabled drones in Ghana and Rwanda reduced blood delivery times from hours to 30 minutes, while AI imaging tools have achieved 90% accuracy in detecting tuberculosis and cervical cancer.
In agriculture, predictive platforms are linking smallholder farmers with idle machinery, boosting yields and building resilience against climate change. Meanwhile, in finance, AI-powered credit scoring has enabled millions of previously unbanked individuals and small businesses to access loans, fuelling entrepreneurship and job creation.
