Africa’s Artificial Intelligence (AI) landscape is on a fast upward trajectory, with a new Mastercard report projecting the market to reach a volume of $16.53 billion by 2030.
This remarkable growth underscores the continent’s increasing embrace of digital innovation, driven by rising investment, expanding tech ecosystems, and the urgent need for scalable solutions across key sectors like finance, agriculture, health, and education.
With a forecasted compound annual growth rate (CAGR) of 27.42%, AI is poised to become a cornerstone of Africa’s digital transformation, unlocking new opportunities for inclusive development and economic resilience.
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Mastercard in its recently published White Paper titled “Harnessing the transformative power of AI in Africa”, emphasizes the pivotal role of AI in empowering communities, enhancing inclusion, and building a future where all Africans can actively participate in the digital economy.
The payments giant notes that the technology is already influencing industries such as finance, healthcare, agriculture, urban development, and energy, with real-world applications gaining traction across various African nations.
“Africa is at an inflection point, when smart technologies hold the potential to make a real difference to people’s lives. A coordinated, integrated approach to the development and implementation of artificial intelligence (AI) strategies can propel sustainable and equitable development, with gains in fields such as economic policymaking, agriculture, manufacturing, banking, and finance”, said Mark Elliot, Division President, Africa, Mastercard.
Africa’s youthful population with a median age of just 19 years is seen as a core driver of AI adoption. The continent’s digital-savvy youth are among the earliest adopters of AI-powered tools, laying a foundation for broad-based technological transformation.
Several African countries are emerging as regional leaders in AI policy and governance. South Africa, Egypt, Rwanda, Mauritius, Kenya, and Nigeria have rolled out national AI strategies and regulatory frameworks aligned with the African Union’s Declaration on Responsible AI, promoting ethical deployment of emerging technologies.
AI is also playing a significant role in financial inclusion, particularly in markets like Kenya and Nigeria, where platforms such as M-Pesa and AI-powered credit scoring tools are expanding access to finance for underserved populations. Additionally, AI-based mobile payments are breaking down barriers, reducing onboarding costs, and improving security and convenience for users.
The job creation potential of AI is enormous, with estimates suggesting 230 million digital jobs could be generated in Sub-Saharan Africa by 2030. However, a shortage of AI talent remains a critical issue. Efforts by organizations such as Deep Learning Indaba and AI4D Africa are helping address the skills gap by training local professionals and fostering innovation.
Investment is also on the rise. In 2023 alone, AI-focused startups secured $610 million in South Africa, $218 million in Nigeria, and $15 million in Kenya. Tech giants like Google have committed $1 billion to digital transformation efforts across the continent.
Country-level efforts are also accelerating AI adoption:
Morocco is pushing forward with AI in healthcare, agriculture, energy, and finance, with banks reducing operational processing times by 30% and increasing revenues through AI tools.
Kenya has built a robust startup ecosystem supported by incubators and innovation hubs focused on ethical, inclusive AI.
South Africa has invested over $11.45 billion in telecom infrastructure since 2019, enhancing its position as a leading AI research hub.
Nigeria is leveraging AI across security, travel, payments, and health, supported by public-private partnerships like Google.org’s NGN 2.8 billion grant to boost AI education and employment.
Despite the rapid advances, Mastercard cautions that responsible governance is essential to ensure AI promotes inclusive progress rather than widening inequality. The report urges African governments, businesses, and civil society to adopt ethical AI frameworks, scale local talent, and invest in infrastructure that supports sustainable digital growth.
With 60% of the world’s arable land, a young, tech-savvy population, and growing mobile penetration, Africa is uniquely positioned to harness AI for economic transformation. By 2050, with a projected population growth of 800 million, AI will be vital in scaling productivity, meeting rising consumer demands, and unlocking shared prosperity across the continent.