The United Nations Economic Commission for Africa UNECA has called on African governments to increase borrowing and strengthen domestic revenue to fund critical artificial intelligence (AI) infrastructure, warning that the continent risks falling behind in the global digital race.
Africa’s AI Gap Raises Urgency
According to UNECA, Africa currently accounts for less than 1% of global data centre capacity—a gap that could expose countries to economic and digital sovereignty risks. Without adequate infrastructure such as data centres, cloud systems. And high-speed connectivity, the continent may struggle to fully benefit from the growing AI economy.
A report by McKinsey & Company estimates that AI could contribute between $2.9 billion and $4.8 billion to Africa’s economy by 2030. However, experts warn that unlocking this potential will require significant upfront investment in digital infrastructure and skills development.
UNECA stressed that relying solely on limited government budgets will not be enough. Urging countries to explore alternative funding strategies to close the gap.
Push for New Funding Strategies
To finance AI development, UNECA recommends a mix of increased borrowing, improved tax collection, and the mobilisation of domestic capital. This includes tapping into pension funds and sovereign wealth funds to support long-term infrastructure investments.
The agency also emphasized the need for policy reforms to attract private sector participation and ensure efficient use of funds. Strengthening revenue systems, reducing tax leakages, and improving financial governance were highlighted as key steps.
As global competition in AI intensifies, UNECA says Africa must act quickly to build the infrastructure needed to stay relevant. With the right investments and policies, the continent could unlock new economic opportunities, drive innovation, and secure its place in the rapidly evolving digital economy.
