AfDB report projects $1trn additional Gross Domestic Product (GDP) by 2035 with use of AI to enhance productivity

The African Development Bank has released a report establishing a strategic roadmap for unlocking the economic and social potential of artificial intelligence (AI) across Africa.

Developed under the G20 Digital Transformation Working Group, Africa’s AI Productivity Gain: Pathways to Labour Efficiency, Economic Growth and Inclusive Transformation  gives an overview of the potential of A1 to foster development.

The study, carried out by consulting firm Bazara Tech, finds that inclusive AI deployment could generate up to $1 trillion in additional GDP by 2035- equivalent to nearly one-third of the continent’s current economic output.

This potential is underpinned by Africa’s growing digital capacity, favorable demographics, and ongoing sectoral reforms, making it one of the most promising regions for AI-driven growth globally.

According to the report the AI dividend is expected to be concentrated in select high-impact sectors, rather than spread evenly across Africa’s economy. Analysis identified five priority sectors—agriculture (20%), wholesale and retail (14%), manufacturing and Industry 4.0 (9%), finance and inclusion (8%), and health and life sciences (7%)—which together are projected to capture 58% of the total AI gains, or approximately $580 billion by 2035.

These sectors combine economic size, readiness to adopt AI, and strong potential to deliver inclusive development outcomes.

“We have set out the key actions in this report, identifying the areas where initial implementation should be focused,” said Nicholas Williams, Manager of the ICT Operations Division at the Bank. “The Bank is ready to release investment to support these actions. We expect the private sector and the government to utilize this investment to ensure we achieve the identified productivity gains and create quality jobs”.

The report asserts that realising the potential of AI depends on five interlinked enablers: data, compute, skills, trust, and capital. Reliable and interoperable data forms the foundation for AI insights, while scalable compute infrastructure ensures solutions can be deployed efficiently across the continent.

It notes that a skilled workforce is essential to develop, implement, and maintain AI systems, and trust—built through governance, and regulatory frameworks—underpins adoption. The report also notes that the enablers, together with adequate capital investment  to de-risk innovation and accelerate deployment,  would “foster a cycle of AI-driven growth.”

The report also outlines a three-phase roadmap toward Africa’s AI readiness: ignition (2025-27), consolidation (2028-31) and scale (2032-35). “Achieving early milestones by 2026 will set Africa’s AI flywheel in motion,” said Ousmane Fall, Director of Industrial and Trade Development at the Bank. “Africa’s challenge is no longer what to do — it is doing it on time.”