AfDB Roadmap Shows AI Could Add $1 Trillion to Africa’s Economy by 2035

According to the report, Africa is uniquely positioned to benefit from AI-driven transformation if adoption is aligned with development priorities.

The African Development Bank (AfDB) has released a major new report outlining a strategic roadmap to unlock the vast economic and social potential of artificial intelligence (AI) across Africa. Developed under the framework of the G20 Digital Transformation Working Group, the report, titled Africa’s AI Productivity Gain: Pathways to Labour Efficiency, Economic Growth and Inclusive Transformation, provides a comprehensive assessment of how AI can accelerate development, improve productivity, and support inclusive growth on the continent.

The study, conducted by consulting firm Bazara Tech, estimates that inclusive and well-governed deployment of AI technologies could generate up to $1 trillion in additional GDP by 2035—an amount equivalent to nearly one-third of Africa’s current economic output. This projected growth is driven by a combination of factors, including Africa’s expanding digital infrastructure, a young and rapidly growing workforce, increasing mobile and internet penetration, and ongoing policy and sectoral reforms across many countries.

According to the report, Africa is uniquely positioned to benefit from AI-driven transformation if adoption is aligned with development priorities. Rather than gains being evenly distributed across all sectors, the analysis shows that AI’s economic impact is likely to be concentrated in a small number of high-impact industries where productivity bottlenecks are significant and digital readiness is advancing.

Five priority sectors are identified as capturing the bulk of AI-driven gains by 2035. Agriculture is expected to account for 20% of the total benefits, reflecting AI’s potential to improve yields, optimize supply chains, enhance climate resilience, and support smallholder farmers. Wholesale and retail trade follows with 14%, driven by AI-enabled logistics, demand forecasting, and digital marketplaces. Manufacturing and Industry 4.0 are projected to contribute 9%, supported by automation, smart factories, and predictive maintenance. Financial services and inclusion account for 8%, with AI enabling better credit scoring, fraud detection, and access to finance for underserved populations. Health and life sciences represent 7%, as AI supports diagnostics, disease surveillance, drug discovery, and more efficient health systems. Together, these sectors are expected to generate around $580 billion, or 58% of the total AI dividend.

AfDB officials emphasized that the report is not merely analytical but action-oriented. Nicholas Williams, Manager of the ICT Operations Division at the Bank, said the roadmap clearly identifies priority areas for early implementation. He noted that the Bank is prepared to deploy investment capital to support these initiatives and expects governments and the private sector to leverage this financing to drive productivity improvements and create high-quality jobs across the continent.

The report stresses that unlocking AI’s full potential depends on five interlinked enablers: data, compute, skills, trust, and capital. High-quality, reliable, and interoperable data is identified as the foundation for effective AI systems. Scalable and affordable computing infrastructure is needed to deploy AI solutions at scale, particularly in resource-constrained environments. Equally important is the development of a skilled workforce capable of designing, deploying, and maintaining AI technologies, from engineers and data scientists to policymakers and regulators.

Trust is highlighted as a critical factor for widespread AI adoption. This includes strong governance frameworks, ethical guidelines, data protection laws, and transparent regulatory systems that ensure AI is used responsibly and inclusively. Finally, the report underscores the importance of adequate capital investment to de-risk innovation, support startups, and accelerate the deployment of AI solutions across public and private sectors. Together, these enablers can create what the report describes as a self-reinforcing cycle of AI-driven growth.

To operationalize this vision, the AfDB outlines a three-phase roadmap for Africa’s AI readiness. The Ignition phase (2025–2027) focuses on foundational investments in data infrastructure, skills development, and pilot projects. The Consolidation phase (2028–2031) aims to strengthen institutions, scale successful use cases, and deepen regional integration. The final Scale phase (2032–2035) envisions continent-wide deployment of AI solutions with measurable impacts on productivity, jobs, and inclusive development.

Ousmane Fall, Director of Industrial and Trade Development at the Bank, stressed the urgency of implementation, noting that early milestones achieved by 2026 will be crucial in setting Africa’s AI “flywheel” in motion. He emphasized that the key challenge facing the continent is no longer a lack of ideas or strategies, but the ability to execute them swiftly and effectively.