Telecom

Morocco, Mauritius, and Gabon Top Africa’s AI Investment Potential, Report Finds

Morocco, Mauritius, and Gabon Top Africa’s AI Investment Potential, Report Finds
Wednesday, 27 November 2024 15:49

(Ecofin Agency) - While Africa has an overall score lower than the global average, nine countries on the continent stand out, offering high investment potential in AI, thanks in part to strong digital infrastructure, a skilled workforce, and a favorable regulatory environment.

A report released on November 20 by the French Development Agency (AFD) has identified Morocco, Mauritius, and Gabon as the top countries in Africa with the best potential for artificial intelligence (AI) investment.

1 investissement

The report, titled AI Investment Potential Index (AIIPI), evaluates 193 countries based on a variety of factors such as digital infrastructure, political stability, regulatory environment, access to electricity, government effectiveness, human capital development, statistical capabilities, and the presence of a national AI strategy.

These factors are given scores between 0 and 100 to determine an overall score that reflects a country’s ability to attract AI investment. Based on these scores, countries are grouped into four stages. Stage 1 represents low potential, with an AIIPI score of less than 26. Stage 2 indicates medium potential, with scores between 26 and 50. Stage 3 shows high potential, with scores ranging from 51 to 75. Finally, Stage 4 represents very high potential, with scores above 75.

Each stage represents different priorities. Countries in stages 3 and 4 should focus on fostering innovation in AI and refining regulatory frameworks, while those in stages 1 and 2 need to prioritize improving infrastructure and developing human capital.

Nine African countries fall into Stage 3, which shows high investment potential. These include Morocco, Mauritius, Gabon, Rwanda, Kenya, Botswana, Tunisia, Senegal, and Egypt. All of these countries scored above the global average of 49.68, thanks to their strong digital infrastructure, availability of skilled workers, and favorable regulatory environments.

1 global

On the other hand, some African countries, including Eritrea, South Sudan, Burundi, the Central African Republic, and Liberia, are in Stage 1, which reflects a low potential for AI development.

Overall, Africa’s score is 36.61 points, which is well below the global average. North America ranks the highest with a score of 70.5, followed by Europe & Central Asia at 64.26, and Latin America & the Caribbean at 50.11. Other regions like East Asia & Pacific (48.35), Middle East & North Africa (47.6), South Asia (43.48), and Sub-Saharan Africa (35.45) follow.

1 regions

North America and Europe & Central Asia are in Stage 3, meaning they have strong infrastructure, economic stability, and favorable regulations for attracting investment. In contrast, Sub-Saharan Africa and South Asia are in Stage 2, showing that these regions face more challenges for AI investment, such as political instability, limited infrastructure, and underdeveloped financial systems.

The report highlights the need for targeted policy changes and development assistance to help close the gap between regions. This would help improve the attractiveness of countries in stages 1 and 2 for AI investors. It aims to guide governments, financial institutions, and development banks in making strategic investment decisions in AI.

A very small number of countries are in Stage 4, representing very high investment potential. These include the United Arab Emirates, Iceland, Norway, Sweden, and Switzerland.

On the same topic
• Senegal's fixed broadband subscribers grew from 177,363 to 747,163 between 2020 and 2024• Fibre now leads over FWA and ADSL in fixed connectivity, with...
• Vodacom aims to grow mobile financial service users from 88 million to 120 million• Vision 2030 strategy centers on expanding M-Pesa and VodaPay across...
• Uganda’s telecom industry has launched a joint anti-vandalism initiative led by UCC.• Over 820 cable vandalism incidents and widespread service...
Microsoft has launched the African Regional Cybersecurity (ARC) Initiative, starting in Kenya. The program includes cyber risk management,...
Most Read
01

The African Development Bank has approved a $304 million loan to Botswana to support the southe...

African Development Bank Approves $304 Million Loan to Support Botswana's Fiscal Stability and Economic Reforms 
02

BRVM and Africa50 signed a deal to create new infrastructure financing tools The plan inclu...

BRVM and Africa50 Partner to Fund Infrastructure in WAEMU
03

The Economic Community of West African States (ECOWAS) parliamentarians met in Lomé from May 6 to 9,...

ECOWAS Parliament Calls for Airfare Tax Cuts to Make Flying Affordable
04

Nigeria’s audit industry grew 65% in 2024, reaching 28.2 billion naira ($14.4 million). KPMG, EY,...

Big Four Hold 99% Share of Nigeria’s Audit Market in 2024
05

Africa’s digital economy is growing rapidly, and the demand for data storage, processing power, and ...

Safaricom and iXAfrica Launch East Africa’s AI-Ready Data Centre Services
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

Benjamin FLAUX
bf@agenceecofin.com 
Téls: +41 22 301 96 11 
Mob: +41 78 699 13 72
Média kit : Download

EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.