African Development Bank report predicts that leveraging AI to increase productivity will add $1 trillion to GDP by 2035 — TradingView

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Abidjan: The African Development Bank has released a report establishing a strategic roadmap to unlock the economic and social potential of artificial intelligence (AI) across Africa. Africa's AI Productivity Gain: Pathways to Labor Efficiency, Economic Growth and Inclusive Transformation, developed under the G20 Digital Transformation Working Group, outlines A1's potential to accelerate development.

The study, conducted by consulting firm Bazara Tech, found that comprehensive AI adoption could generate up to $1 trillion in additional GDP by 2035. This represents almost a third of the continent's current economic output. This potential is underpinned by Africa's growing digital capabilities, favorable demographics and ongoing sector reforms, making it one of the most promising regions for AI-led growth globally.

The report says AI dividends are expected to be concentrated in selected sectors with high impact, rather than being spread evenly across African economies. The 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 total AI benefits, or approximately $580 billion, by 2035. These sectors combine economic scale, readiness for AI adoption, and strong potential to deliver comprehensive development outcomes.

Nicholas Williams, ICT operations manager at the bank, said: “In this report, we have set out key initiatives and identified areas to focus on for initial implementation.” “The Bank stands ready to make investments to support these actions. We look forward to the private sector and governments leveraging this investment to ensure we achieve productivity gains and create quality jobs.”

The report argues that realizing the potential of AI will depend on five interrelated enablers: data, computing, skills, trust, and capital. Reliable and interoperable data will form the foundation of AI insights, and scalable computing infrastructure will enable efficient deployment of solutions across the continent. They point out that a skilled workforce is essential to developing, implementing, and maintaining AI systems, and that trust built through governance and regulatory frameworks supports adoption. The report also notes that these enablers, along with appropriate capital investments to de-risk innovation and accelerate deployment, will “facilitate an AI-driven growth cycle.”

The report also outlines a three-stage roadmap for Africa's AI readiness: Ignition (2025-27), Integration (2028-31), and Scale (2032-35).

“Achieving early milestones by 2026 will set Africa's AI flywheel into motion,” said Ousmane Fall, director of industry and trade development at the bank. “Africa's challenge is no longer what to do, but how to do it on time.”

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