AI in Africa: an AfDB report forecasts $1 trillion in additional GDP by 2035
December 15th 2025
The African Development Bank has published a report establishing a strategic roadmap to unlock the economic and social potential of artificial intelligence (AI) in Africa.
Developed within the framework of the G20 Working Group on Digital Transformation, the report entitled “ Africa’s AI Productivity Gain: Pathways to Labour Efficiency, Economic Growth and Inclusive Transformation” presents an overview of the potential of AI to foster development.
The study, conducted by the consulting firm Bazara Tech, reveals that an inclusive deployment of AI could generate up to $1 trillion in additional GDP by 2035, representing nearly a third of the continent’s current economic output. This potential is based on Africa’s growing digital capabilities, favorable demographics, and ongoing sectoral reforms, making Africa one of the most promising regions in the world for AI-driven growth.
According to the report, AI gains are expected to be concentrated in certain high-impact sectors, rather than being evenly distributed across the continental economy. The analysis identified five priority sectors: agriculture (20%), wholesale and retail trade (14%), manufacturing and Industry 4.0 (9%), finance and inclusion (8%), and health and life sciences (7%). Together, these sectors are projected to capture 58% of the total AI gains, or approximately $580 billion by 2035. They combine significant economic size, a high capacity for AI adoption, and high potential for inclusive development.
“ This report outlines key actions and identifies areas where initial implementation should focus ,” said Nicholas Williams, Head of the ICT Operations Division at the African Development Bank. “The Bank is ready to invest in support of these actions. We count on the private sector and governments to use these investments to achieve the identified productivity gains and create quality jobs.”
According to the report, realizing the potential of AI hinges on five interdependent factors: data, computing power, skills, trust, and capital. Reliable and interoperable data forms the foundation of AI knowledge, while a scalable IT infrastructure ensures the efficient deployment of solutions across the continent. The report notes that a skilled workforce is essential for the development, implementation, and maintenance of AI systems, and that trust, fostered by governance and regulatory frameworks, is the foundation for their adoption. It also indicates that these factors, combined with sufficient capital investment to mitigate innovation risks and accelerate deployment, would “ foster an AI-driven growth cycle .”
The report also presents a three-phase roadmap to prepare Africa for artificial intelligence: startup (2025-2027), consolidation (2028-2031) and scaling up (2032-2035).
“ Completing the initial steps by 2026 will kick-start the momentum of AI in Africa ,” said Ousmane Fall, Director of Industrial and Commercial Development at the African Development Bank. “ Africa’s challenge is no longer what to do, but how to do it at the right time .”
Click on this link to read the report.
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