How AI is transforming African economies and businesses
African economies are not being left out in the technological revolution leading to the emergence of Artificial Intelligence (AI), in recent times.
From agriculture and healthcare to finance and customer service, AI is reshaping the way businesses operate, helping tackle challenges and create new growth opportunities across the continent. Here are a few sectors and how AI is transforming these areas:
Agriculture
Agriculture remains the backbone of Africa's economy, with over 50% of its population dependent on farming for their livelihoods. The sector contributes about 35% to the continent’s gross domestic product (GDP). In line with the African Union’s Agenda 2063, which highlights agriculture as a driver of sustainable development and poverty alleviation, AI is being integrated to enhance productivity and efficiency.
Rwanda and Ghana have led efforts in leveraging AI for agricultural advancements. Local startups in these countries are deploying AI-powered drones to identify and map weed infestations.
Rwanda’s government has further embraced AI-driven agricultural extension services, offering farmers real-time advice on weed management based on local conditions and crop types.
Transforming Healthcare
AI applications in African healthcare are still in their infancy but have shown some progress. In South Africa, a logistic classifier system is being used to predict the tenure of health workers in public service, helping to optimize human resource planning.
The African Union Commissioner for Infrastructure, Energy, and Digitalisation, Dr. Amani Abou-Zeid, highlighted AI-driven initiatives during the 2024 World Health Summit in Germany. She pointed to Zambia, Morocco, Zimbabwe, Rwanda, and Egypt as examples of countries harnessing AI to tackle health challenges. “This is not just about a few African countries adopting AI; it’s about creating a common African AI story that reaches every corner, even the most remote rural areas,” she stated.
Meanwhile, in Ghana, Zipline, an autonomous drone delivery service, has surpassed 500,000 deliveries of life-saving supplies to over 2,500 health facilities, with similar operations in Rwanda.
Finance sector
AI is transforming Africa’s financial sector, enhancing customer experiences and driving financial inclusion. Mobile money platforms like Kenya’s M-Pesa and MTN Mobile Money in Ghana use AI to detect fraud and offer personalised financial products. Mobile money transactions in Ghana hit a record GH₵3.019 trillion in 2024.
South African fintech company Jumo uses AI to analyse mobile phone usage patterns and credit histories, offering microloans to individuals without traditional credit histories.
Retail and customer engagement
E-commerce and retail businesses are also leveraging AI to enhance customer experiences. Platforms like Jumia use AI algorithms to recommend products based on user behaviour, creating personalised shopping experiences. AI-driven analytics are also helping businesses understand consumer trends, optimise inventory, and improve marketing strategies. Additionally, AI chatbots are revolutionising customer service by providing instant responses to queries on social media platforms and websites.
Entrepreneurship and startups
The AI revolution in Africa is being driven by a growing number of innovative startups. Nigeria’s Kudi.ai offers virtual assistants for financial services, while Ethiopia’s iCog Labs focuses on AI research and development, advancing natural language processing and robotics.
