African countries should borrow money, increase their own revenue, and use funds like pensions and sovereign wealth funds to build the infrastructure needed to benefit from the growth of artificial intelligence, according to a report released on Thursday by the United Nations Economic Commission for Africa.
The report says that more than 50 countries in Africa risk missing out on economic growth driven by AI because they lack the necessary infrastructure.
It also notes that less than 1% of the world’s data centres are located in Africa, which it describes as “an economic and sovereignty challenge.”
“Strategic investments in data infrastructure and energy generation can reinforce each other by enabling digital industries while supporting electricity demand and reliability,” the UN commission said in the report, which was released at a meeting of African finance ministers in Morocco.
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The report explains that government budgets alone will not be enough to fund these developments. It states that “public budgets alone will not suffice,” and advises governments to improve tax collection and also raise money from financial markets, pension funds, sovereign wealth funds, and blended finance, as seen on Reuters.
It also says governments should focus on training people with the right skills and fully implement the African Continental Free Trade Area (AfCFTA) to support investment in technology.
According to the report, using AI, digital platforms, and robotic production systems can help African countries reduce their dependence on exporting raw materials and instead produce and sell more finished, high-value products.
“Today, competitiveness increasingly depends on a country’s capacity to generate, govern, and apply data and frontier technologies,” the UN commission said.
The report adds that using technology can also help African countries make better use of their large deposits of critical minerals by producing goods like batteries and processors locally, instead of exporting the raw materials.
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Image Credit: Qiraat Africa
