AI Made in Africa: Voices from AI Businesses Across Africa
A new report from the AI Made in Africa project explores how African AI businesses are growing, the opportunities they see, and the challenges they face, from the high cost of computing to limited access to specialised talent and the right kind of investment.
Drawing on research across the continent, the first African AI Business Survey, and insights from businesses, policymakers, experts and investors, the report offers a clearer picture of what it will take for Africa’s AI ecosystem to thrive.
Artificial intelligence (AI) is a major driver of economic growth, social progress, and sustainable development across the African continent. Operating in close partnership with the African Union (AU) and in alignment with Agenda 2063: The Africa We Want, the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH is implementing the AI Made in Africa project.
The AI Made in Africa project aims to help create the conditions for African businesses to develop and benefit from AI. It focuses on supporting innovation in the private sector, encouraging dialogue between businesses and policymakers, and improving access to the data needed to develop and use AI. Ultimately, the project seeks to support the growth of a strong, sustainable and self-reliant African AI ecosystem.
To better understand what is happening on the ground, the AI Made in Africa project partnered with Briter to study the growth and development of AI businesses across Africa. The study looked at how the African AI business landscape has evolved over the past ten years, combining research on AI businesses across the continent with the first African AI Business Survey. It also included conversations and engagements with AI businesses, policymakers, experts and investors.
The findings are brought together in the report AI Made in Africa: Voices from AI Businesses Across Africa. The report provides a clearer picture of who is building AI businesses in Africa, what these businesses are trying to achieve, the opportunities they see, and the challenges they face as they grow.
Key takeaways from the report
AI is becoming central to African businesses. Many established start-ups in areas such as agriculture, fintech, healthcare and logistics have adopted AI to improve their existing products and services. But a newer generation of companies, particularly those launched since the rise of generative AI in 2022, are built around AI from the start. For these companies, AI is not an add-on. It is at the heart of what they do.
AI is expensive to develop and sell. For 65% of companies, cloud services and computing are their biggest costs, and these expenses are often paid in US dollars. At the same time, 56% sell their products for less than US$2,500 a year. This makes it difficult to cover the cost of developing and running AI products. Building trust is another major challenge, with 68% identifying it as the biggest barrier to growth.
Most AI products are designed for organisations rather than individuals. Eighty-eight per cent of companies sell to other businesses, while 44% sell to governments. Many also use subscription models rather than one-off sales. This points to a strong focus on building steady, long-term relationships with organisations and institutions, rather than relying on large numbers of individual customers.
Companies are investing in their own talent. Finding people with advanced AI skills is difficult, particularly when African companies are competing with employers around the world for experienced professionals. Many are responding by investing in their existing staff and creating training programmes to help junior employees develop the skills they need.
Businesses need the right kind of investment, not just more investment. African AI companies often face longer sales processes when working with governments and large organisations. They also have to manage currency risks and the high cost of creating and maintaining their own data. Founders therefore need investors who understand these challenges and are willing to support companies over a longer period. The issue is not simply a lack of funding, but access to funding that reflects how AI companies in Africa actually grow.
Whether you are a founder, investor, ecosystem builder or policymaker, the report highlights what needs to change to help African AI businesses grow. This includes greater support for research and development, more affordable access to computing resources, better alignment of data rules across countries, and safe spaces for businesses to test new AI solutions. Together, these changes can help African AI businesses grow in ways that reflect the realities and opportunities of the continent.
Pre-register to receive the report as soon as it launches: https://kobo-ee.giz.de/x/ZdDXEt9t
Download the executive summary