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.
GIZ's 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.
Developing and selling AI products is expensive. For 65% of companies surveyed, cloud computing and AI infrastructure are their biggest costs, often paid in US dollars. At the same time, more than half sell their products for less than US$2,500 per customer a year. This can make it hard to cover the costs of building and running their products. Winning customers’ trust and helping them understand AI are also challenges, cited by 65% as barriers to growth.
AI businesses sell to different types of customers. Among those surveyed, 88% sell to other businesses, 44% serve government customers and 62% sell to individual consumers. These figures overlap because a business can serve more than one customer group. Many businesses offer subscriptions, but they also use other ways to make money.
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.