The key to harnessing Africa’s AI future: Leveraging the Demographic Dividend and Investing in Infrastructure
03 April, 2025
The opinions expressed in this article are solely those of the authors, and do not necessarily reflect the opinions or views of the Mo Ibrahim Foundation.
Africa’s demographic boom and rapid advancements in technology present a transformative opportunity for the continent. As AI reshapes the global landscape, Africa’s youthful population is set to be a driving force in this revolution. To unlock its full potential, Africa needs critical infrastructure, investment in human capital, and a strategic vision that places its young innovators at the forefront. Two of our Now Generation Network leaders share their view on what it will take to truly harness the power of AI for Africa’s future.
Mike Mpanya’s Perspective: Can Africa’s AI Power Boom?
Africa’s demographic dividend can fuel an economic ‘boom’, but it requires three key enablers: infrastructure, education, and healthcare. Technology has always been the foundation of transformation, however history has shown us that true progress is made when technology is shaped by those who use it. AI built for Africa, by Africans, will transform Africa by focusing on solving the regions’ unique challenges.
Infrastructure has for long been the missing piece of the puzzle, but change is underway. AI is driving regional integration despite the continent’s infrastructure gaps by optimising logistics, trade, and finance. AI-powered geospatial tools continue to expand internet access, as seen in South Africa’s Rain 5G networks and Kenya’s BRCK, ensuring digital connectivity for economic growth. Another pivotal development is the recent announcement by Cassava Technologies and Nvidia to establish Africa’s first major AI compute infrastructure.
This is more than a technological milestone—it is a strategic necessity. Historically, Africa has exported raw materials and imported finished goods. We must not repeat this pattern by exporting our data and importing finished AI models. Avoiding AI colonisation requires Africa to develop its own compute power, ensuring that its data remains on the continent and benefits its people. Data sovereignty is crucial for governance and risk mitigation. With stricter global and African data laws like South Africa’s POPIA and Europe’s GDPR, local data hosting is essential for compliance. Ensuring Africa controls its AI future will be a key strategic challenge but necessary for long-term sovereignty and economic freedom – and to end a luta continua.
AI innovation thrives across the continent. However, investments in connectivity, energy, and infrastructure are crucial for building competitive AI ecosystems. Algorithmic advancements, as seen in models like DeepSeek, show that AI success isn’t solely dependent on computing power but also on innovation. By leveraging this innovation and building the necessary infrastructure, Africa can turn its demographic boom into an opportunity to advance into the future - a future that started yesterday.
Mike Mpanya is an African entrepreneur and the CEO of Nubi.
Aida Ndiaye’s Perspective: Africa’s crucial role in the AI revolution
In 2023, a viral New York Times article reiterated what many Africa experts already knew: by 2050, it's estimated that 1 in 4 people globally will be African[1]. Africa's demographic boom is imminent. This growing and youthful population has often been met with ambivalence. Some view it as a 'ticking time bomb', while others see it as a 'demographic dividend,' a competitive advantage to be seized[2].
Africa's demographic shift isn't the only major global wave that the world must grasp; AI is also rapidly advancing and already described as a revolution. While the scale and societal impact of AI are still unfolding, its transformative potential is clear. This is a technology that’s impact will be comparable to that of electricity or the internet.
Today, these two waves are entirely disconnected. Africa is largely absent from the global AI race. None of the world's leading AI companies are African. Venture capital investment in AI in the US reached nearly $80 billion, a stark contrast to the significantly smaller amounts invested in Africa[3].
While India and China are strategically positioning themselves in the global AI landscape, Africa faces significant challenges. The time calls for an ambitious and strategic vision, recognising Africa's booming population as a key asset in delivering the transformative power of AI.
AI development requires skilled labour across its value chain, from data mining and labelling to AI engineers and scientists developing technology. African talent can fill this gap, which is crucial not only to ensure Africa's participation in the AI race but also to guarantee that AI technology reflects Africa's needs and interests, helping to address the continent's most pressing challenges.
As global leaders convene at the Global AI Summit on Africa, the role of youth should be central, and young African innovators must be championed. It’s time for concrete plans to upskill young Africans and build meaningful partnerships with global AI companies to ensure Africa has not only a seat at the table but has a voice, too.
Aida Ndiaye is an international business leader with expertise in building and leading large-scale tech projects and driving organizational strategy at the intersection of tech and policy.
[1] https://www.nytimes.com/interactive/2023/10/28/world/africa/africa-youth-population.html
[2] https://repository.uneca.org/handle/10855/40049
[3] https://www.smetoday.co.uk/technology/us-china-uk-lead-ai-investments/
