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Africa Business Insights
Stephene Chikozho
Artificial Intelligence(AI) is no longer a distant concept confined to Silicon Valley labs; it is here, embedded on our farms, in hospitals, banks and some Government offices.
But as AI’s influence grows, so does a pressing question: Will this technology create opportunities for Africa’s youthful population, or will it displace millions of workers, deepening inequality?
AI’s double-edged sword
The World Economic Forum (WEF) forecasts that by 2030, AI could displace 92 million jobs globally while creating 170 million new roles.
In Africa, the stakes are even higher.
The continent’s working-age population is projected to reach 1,1 billion by 2040, yet 230 million jobs will require digital skills by 2030.
While AI promises to unlock productivity and innovation, its adoption risks leaving behind those unprepared for the seismic shifts ahead.
Job displacement: A looming threat
In Nigeria, 13 major banks have integrated AI-powered chatbots, raising concerns about the future of customer service roles. Similarly, AI-driven automation in agriculture threatens 20 million jobs, according to Nigerian projections. Globally, 41 percent of companies plan workforce reductions by 2030 due to AI, with roles like graphic designers, payroll clerks and legal secretaries facing obsolescence.
Africa’s public sector — its largest employer — is particularly vulnerable.
Routine administrative tasks, from tax processing to record-keeping, are prime targets for automation. Without urgent upskilling, millions could find themselves sidelined in an AI-dominated economy.
Job creation
Yet AI is also a catalyst for new industries. The African Union’s Continental AI Strategy envisions AI as a driver of Agenda 2063, with potential contributions to healthcare, agriculture and climate resilience. Startups like South Africa’s Lelapa AI (focusing on African languages) and Senegal’s Kera (healthcare AI) exemplify homegrown innovations creating high-value roles. The International Labour Organisation reports that Africa’s digital economy already supports 2,1 million jobs, projected to grow to 3,5 million by 2024. Emerging fields — AI ethics, data science and robotics — are absorbing talent. For instance, Nigeria’s Securities and Exchange Commission now regulates robo-advisory services, a sector expected to manage US$9,34 billion by 2028.
Meanwhile, roles like “AI ethicist” and “precision agriculture analyst” are gaining traction, blending technical expertise with local context.
Bridging the skills gap
The divide between AI’s promise and reality hinges on education. While 72 percent of African executives rank AI as a top strategic priority, only 31 percent of companies have upskilled even a quarter of their workforce.
Boston Consulting Group (BCG)’s 2025 AI Radar report highlights a critical challenge: Sixty-eight percent of African firms struggle to hire or train AI talent.
Grassroots solutions
Tech hubs and innovation centres are stepping up. In Senegal, Cheikh Hamidou Kane Digital University advocates AI curricula that reflect African languages and cultural contexts.
Meanwhile, South Africa’s AI research hubs — focused on fintech, agriculture and defence — are advancing niche applications but lack cohesive national funding. Governments are waking up.
Nigeria’s draft AI strategy aims to equip 70 percent of its youth with AI skills, though implementation remains sluggish. The African Union’s push for digital literacy programmes has boosted STEM (Science, Technology, Engineering and Mathematics) enrolment by 15 percent, yet rural areas still grapple with electricity and internet gaps.
The geopolitical landscape
Africa’s AI future is also shaped by global dynamics. While the United States and China dominate AI development, Africa risks becoming a bystander without local data sovereignty. Seydina Moussa Ndiaye, a Senegalese AI expert, warns: “If we depend on foreign AI, our culture and context will not be represented, leading to biased systems.”
South Africa’s G20 presidency offers a chance to lead ethical AI governance, yet its own national strategy remains stalled. Meanwhile, collaborations with tech giants like Google and Meta are a double-edged sword: While they bring resources, they could overshadow local innovators.
Case studies: Balancing risk and reward
Healthcare: AI-powered diagnostics are revolutionising maternal care in Kenya and tuberculosis detection in South Africa. Yet, without safeguards, these tools could exacerbate disparities in underserved regions.
Agriculture: Startups like Nigeria’s Hello Tractor use AI for precision farming, boosting yields. However, smallholder farmers lacking digital access risk exclusion.
Finance: Kenya’s M-Pesa leverages AI for fraud detection, but layoffs in traditional banking sectors underscore the need for reskilling.
The path forward
To harness AI’s potential, Africa must:
Prioritise policy — Finalise national AI strategies (for example, South Africa’s stalled plan) and align them with the African Union’s framework.
Invest in infrastructure — Expand broadband access and renewable energy to power data centres.
Upskill at scale — Governments and firms must adopt BCG’s “10-20-70” model (70 percent of efforts on workforce transformation).
Foster local innovation — Support startups addressing African challenges, from language preservation to climate resilience.
Ethical governance — Enforce regulations to prevent AI misuse, particularly during elections and protect data privacy.
Conclusion
AI is neither a saviour nor a destroyer — it is a tool. Its impact depends on Africa’s ability to steer its own narrative.
With 60 percent of the population under 25, the continent has the demographic dividend to thrive in the AI era.
But this requires bold leadership, inclusive policies and a commitment to turning challenges into opportunities.
Stephene Chikozho is the chief executive of Africa Business Inc. He writes in his personal capacity. You can follow him on social media (Instagram, Facebook, X, LinkedIn, Threads) WhatsApp +263772409651 or email [email protected]