Africa's ambitions for artificial intelligence are soaring, but with infrastructure yet to keep pace, partnerships such as the UAE's $1 billion initiative are critical for progress, analysts say.
The UAE said at the G20 Leaders’ Summit in Johannesburg on Saturday it would invest $1 billion to expand AI infrastructure and AI-enabled services across Africa.
Such partnerships are crucial for Africa as the continent rapidly expands digital adoption but faces crucial gaps in infrastructure needs.
The continent accounts for less than 1 per cent of global data-centre capacity, despite demand skyrocketing, an Africa Data Centres Association–Oxford Business Group study found.
The International Energy Agency’s Africa Energy Outlook 2024 estimates about 600 million people still lack access to electricity across the continent, while mobile internet remains among the most expensive globally relative to income, according to the Alliance for Affordable Internet’s 2024 report.
"There is a strong policy ambition and increasing investment, yet the scale and pace of infrastructure still need to expand to meet national AI goals," said Moussa Beidas of PwC Middle East.
Sid Bhatia, area vice president and general manager for the Middle East, Turkey and Africa at Dataiku, said the main obstacles remain talent shortages, weak data-governance frameworks, and limited capacity to use and maintain AI models.
He said strategies such as edge computing, synthetic-data generation and hybrid-cloud models can ensure AI systems remain functional even in markets with unstable electricity and connectivity.
Overall, Africa’s AI and digital infrastructure is advancing but remains far from maturity, according to Kartik Jayaram, senior partner, Nairobi, at Mckinsey.
McKinsey’s latest research data shows that Africa’s AI and digital infrastructure is still at an early stage, with steady progress. "The total installed data centre capacity across the five leading markets – Egypt, Kenya, Morocco, Nigeria and South Africa, remains below 500 megawatts. This is small compared to developed regions, but it forms an important foundation for future growth," said Mr Jayaram.
Partnerships key
The UAE is rapidly scaling its domestic AI capabilities and positioning itself as a global exporter of advanced computing.
The country now ranks second worldwide, with more than 188,000 advanced AI chips and about 6,400MW of compute capacity, a TRG Datacentres Global AI Capability report found.
Geopolitical analyst Rachel Ziemba, founder of Ziemba Insights, said the UAE’s long-term commitment is clear.
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“I definitely think that the UAE’s commitment to build AI infrastructure in Africa and the Middle East is high, and they will continue to invest at a range of levels both at home and abroad,” she said.
Infrastructure variability across the continent will shape where investment flows most effectively.
“The challenges are significant, yes, and may frame which countries attract the most investment, but the priority is real," Ms Ziemba added. "Countries with more stable domestic power and capacity to scale it will be in a better position."
Part of the UAE’s strategy is to develop a technology stack to export globally, Ms Ziemba said. “One challenge will be navigating the US and Chinese ecosystems and technology access, as well as the domestic issues,” she added. “Africa is important to the UAE's vision of energy, resource and AI deployment.”
Robert C Mogielnicki, senior resident scholar at Arab Gulf States Institute in Washington DC, says AI investments in Africa from the UAE "reflect the higher-risk, higher-reward mentality that is driving much of the momentum behind Gulf interest in advanced technologies".
"Gulf countries like the UAE are investing at home, in key global markets like the US, and also in emerging markets ... they hope [the investments] will pay off big on the financial and strategic fronts,” he said.
Industry executives say the UAE’s investment could sharply accelerate AI deployment across African businesses and government services.
The funding “acts as a powerful accelerant for AI adoption, moving African projects from pilot to operational scale", Mr Bhatia said.
Jessica Constantinidis, innovation officer for the EMEA region at ServiceNow, said the UAE investment "gives Africa the foundational layer it has been missing to operationalise AI at scale".
“Africa doesn’t need perfect infrastructure to lead in AI," she said. "It needs the right architecture: edge-first compute, physical AI for data generation and workflow automation to turn intelligence into impact.
The investment could help deliver substantial gains in sectors such as logistics, energy, finance and public services, analysts said.
"Africa’s AI infrastructure is at an inflection point. With foundations in place, sustained investment and stronger execution will be key to realising the continent's AI ambitions," said Mr Beidas.
Targeted partnerships can act as a catalyst, according to McKinsey's Mr Jayaram. "Progress can be accelerated if these efforts align with local data strategies, reliable power and human capital development," he said.
