The United Nations Economic Commission for Africa has called on African governments to significantly increase borrowing, strengthen domestic revenue mobilisation, and tap into pension and sovereign wealth funds to finance critical infrastructure needed to benefit from the global artificial intelligence boom.
In a recent report, the UN body warned that Africa risks being left behind in the rapidly evolving digital economy due to persistent infrastructure gaps, particularly in data and energy systems. The commission noted that despite its large and growing population, the continent currently hosts less than one percent of the world’s data centres, a shortfall it described as both an economic and sovereignty challenge.
This infrastructure deficit means that much of Africa’s data is processed and stored outside the continent, raising concerns about cost, latency, and control over sensitive information such as financial, medical, and security data. Experts argue that without local data processing capacity, African economies may struggle to fully harness AI technologies or build competitive digital industries.
The UNECA report stressed that public funding alone will not be sufficient to close the investment gap. Instead, governments are being encouraged to adopt a more diversified financing strategy that includes improved tax collection, deeper capital markets, and the mobilisation of long term funds such as pension savings and sovereign wealth assets.
The recommendation to increase borrowing comes at a time when many African countries are already managing high debt levels, making the proposal both strategic and controversial. However, the UN argues that targeted borrowing for productive infrastructure, particularly in digital and energy systems, could yield long term economic returns that outweigh the risks if managed properly.
Artificial intelligence is increasingly seen as a key driver of future economic growth, with global investments in AI accelerating across industries. For Africa, the technology presents an opportunity to leapfrog traditional development pathways by improving productivity in sectors such as agriculture, healthcare, manufacturing, and financial services.
According to estimates referenced in the report, AI could contribute billions of dollars to Africa’s economy by the end of the decade, provided that the necessary infrastructure and policy frameworks are put in place. However, without urgent investment, the continent risks missing out on these gains and falling further behind more technologically advanced regions.
Beyond financing, the UNECA also highlighted the importance of skills development and regional integration in supporting AI adoption. It called for stronger investment in education and digital skills to prepare the workforce for emerging technologies, as well as full implementation of the African Continental Free Trade Area to create a unified market that can support digital innovation and scale.
The report noted that competitiveness in the modern global economy is increasingly determined by a country’s ability to generate, manage, and apply data and advanced technologies. This shift places pressure on African governments to move quickly in building digital infrastructure and regulatory systems that can support innovation.
In addition, the commission pointed to Africa’s vast reserves of critical minerals as a strategic advantage in the global technology supply chain. Rather than exporting raw materials, countries are being encouraged to invest in local processing and manufacturing capabilities, enabling them to produce higher value products such as batteries, semiconductors, and other components essential for AI systems.
The call to action reflects a broader recognition that Africa’s economic future will be closely tied to its ability to participate in the digital and technological transformation reshaping the global economy. While challenges remain, including financing constraints and infrastructure deficits, the report suggests that coordinated investment and policy reforms could unlock significant opportunities.
Ultimately, the UNECA’s message is clear: Africa cannot afford to be a passive participant in the AI revolution. To remain competitive, governments must take deliberate steps to mobilise resources, build infrastructure, and position their economies to benefit from one of the most transformative technological shifts of the modern era.
