Artificial Intelligence readiness: Kenya ranked 8th in Africa as AI set to create jobs, boost continent's economy

The ranking is based on a country's ability to adopt and benefit from AI and considers factors such as national AI strategies, the maturity of the tech sector, and the availability of digital infrastructure.

This is according to a new white paper, "AI and the Workforce in Africa: Realising the Region's Potential Through Public and Private Sector Collaboration," published by Cisco and Carnegie Mellon University.

The indices measure the ability to adopt and benefit from AI by assessing over 40 indicators across three pillars: Government, Technology Sector, and Data & Infrastructure.

"They consider the strength of national AI strategies, regulatory and ethical governance, the maturity of the tech sector, and the availability of quality data and digital infrastructure such as broadband and compute capacity," the white paper highlights.

Kenya, South Africa, Nigeria, and Egypt are highlighted as “the primary digital powerhouses on the continent” already pioneering AI solutions to address local challenges in healthcare, agriculture, education, and governance.

However, as a whole, Africa is currently lagging in the global AI market, but the report notes that the future is bright and the AI benefits will lift millions out of poverty.

"Currently, Africa accounts for only 2.5% of the global AI market, which was valued at USD16.5 trillion in 2024," notes the white paper.

"Despite this modest share, recent estimates indicate that AI could boost Africa’s economy by USD2.9 trillion by 2030, equivalent to an annual gross domestic product (GDP) growth increase of three per cent. Such a boost could translate into substantial development gains for the continent, creating employment opportunities and lifting millions out of poverty."

The report reveals that these gains are expected to be concentrated in high-impact sectors like Agriculture through precision farming and AI-based advisory tools; Financial services, via AI-enabled credit scoring, risk modelling, and fraud detection; Healthcare with diagnostic support, telemedicine, and supply chain optimisation and Consumer-facing industries, including retail and hospitality, through personalised marketing, inventory optimisation, and e-commerce.

"These benefits will be driven by a mix of productivity improvements, cost reductions, and the creation of new digital markets and revenue streams. However, they will only materialise if supported by coordinated investment in an AI-ready workforce, digital infrastructure, and policies that incentivise innovation," notes the report.

The paper highlighted a recent study from Access Partnership that estimates that AI could unlock up to Ksh.17 trillion ($136 billion) in economic value by 2030 across just four Sub-Saharan countries – Ghana, Kenya, Nigeria, and South Africa.

"Africa’s AI readiness is not merely a matter of digital innovation or economic competitiveness; it is intrinsically tied to the future of its workforce," reads the report.

"The ability of African countries to prepare for and benefit from AI will directly influence how they grow jobs, develop skills, and enable innovation in the years ahead. Reliable digital infrastructure, resilient data ecosystems, and effective governance frameworks are not just enabling conditions – they are workforce essentials. Without dependable connectivity, talented individuals cannot access, develop, or benefit from AI tools."

The arrow in Africa’s quiver is its young population, which the white paper notes can help catalyse an AI leapfrogging opportunity.

“With Africans accounting for 42% of the world’s youth and 75% of the continent’s population under the age of 35 by 2030, the region holds the world’s largest potential AI workforce.21 The continent is projected to host one-quarter of the world’s working-age population by 2050,” reads the report.

“Young Africans already demonstrate strong tech engagement: 78% report using AI tools weekly, higher than in Europe or the United States.”

Despite the rosy outlook, significant challenges remain.

A majority of Africans lack internet access, something that limits the reach and impact of AI technologies. The other issue is the need for a more skilled workforce.

Other challenges highlighted were a lack of digital content in African languages (only 0.02%), which greatly hinders the development and local relevance of AI models, and inadequate infrastructure, which could slow down the adoption and scaling of AI solutions.