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African countries risk being left behind in the global artificial intelligence (AI) race unless they urgently invest in infrastructure and mobilise new sources of financing, according to a new report by the United Nations Economic Commission for Africa.
The report warns that limited digital capacity—particularly the scarcity of data infrastructure—poses a major barrier to the continent’s economic transformation. With less than 1% of the world’s data centres located in Africa, the commission describes the gap as both an economic and sovereignty concern, potentially restricting the region’s ability to fully harness emerging technologies.
To close this gap, the commission is urging governments to look beyond traditional public funding. It recommends strengthening domestic revenue mobilisation while also tapping into pension funds, sovereign wealth funds, financial markets and blended finance structures to support large-scale investments. Public budgets alone, it notes, will not be sufficient to meet the growing demand for digital and energy infrastructure.
The report, released during a meeting of African finance ministers in Morocco, highlights the strong link between energy systems and digital expansion. It emphasises that strategic investments in electricity generation can complement the growth of data infrastructure, ensuring both reliable power supply and the development of digital industries.
Beyond infrastructure, the commission calls for a broader policy shift. It encourages countries to priorities skills development and accelerate the implementation of the African Continental Free Trade Area, which could help create a more integrated market for technology-driven growth.
According to the report, wider adoption of AI, digital platforms and automated production systems could enable African economies to move away from heavy dependence on raw commodity exports. Instead, countries could produce and export higher-value finished goods, boosting competitiveness in global markets.
The commission also stresses the importance of leveraging Africa’s vast reserves of critical minerals. By investing in technology and industrial capacity, countries could process these resources locally into products such as batteries and semiconductors, rather than exporting them in raw form.
Ultimately, the report underscores that future economic competitiveness will depend on how effectively countries can generate, manage and apply data and advanced technologies—making decisive action on infrastructure and investment a pressing priority for the continent.
By: Andrews Kwesi Yeboah