Telecom
AI Investment Gap Threatens Africa’s Future Growth
Africa risks falling behind in the global artificial intelligence (AI) economy, unless governments and the private sector rapidly increase investment in digital infrastructure, data capabilities and home-grown innovation.
This is according to a research report by Boston Consulting Group (BCG), titled: “Advancing Africa’s AI and digital economy”.
It focuses on how Africa can accelerate investment in digital infrastructure, AI capabilities and regional collaboration, to build a competitive AI-driven economy and avoid falling behind in the global AI race.
The report argues that while AI is expected to contribute $15.7 trillion to the global economy by 2030, Africa is capturing only a fraction of the opportunity because it lacks the infrastructure, skills and investment needed to compete in the emerging AI economy.
Although the continent has one of the world’s youngest populations and rapidly growing digital adoption, BCG warns that Africa remains primarily a consumer of digital technologies, rather than a producer of the infrastructure, platforms and intellectual property that will underpin future economic growth.
“Africa stands at a defining moment in the global AI revolution,” says Hamid Maher, MD and senior partner at BCG and one of the report’s authors.
“The continent has significant structural advantages, including a young population, growing digital adoption and the opportunity to build without legacy constraints.
“However, unless Africa invests in owning its digital infrastructure, data and AI capabilities, it risks becoming a consumer rather than a creator of the technologies that will shape future economic growth.
“The decisions taken today will determine whether Africa captures value from AI or simply imports it.”
Structural weaknesses
The report highlights the widening gap between Africa and the rest of the world. While digital activities account for about 15% of global GDP, Africa’s digital economy contributes only 5% of the continent’s GDP. At its current pace, this figure is projected to reach only 8.5% by 2050, it notes.
BCG says this slow progress comes despite encouraging developments, including Africa’s position as the world’s fastest-growing cloud market and strong adoption of mobile technology.
However, the continent accounts for 18% of the world’s population but less than 1% of global data centre capacity. At the same time, fewer than 2% of Africa’s approximately 2 000 languages are supported by large language models, limiting the relevance and accessibility of AI technologies for millions of people.
The report warns that these shortcomings are becoming increasingly significant as AI reshapes global industries. Traditional growth sectors − such as business process outsourcing, call centres and labour-intensive manufacturing − are likely to become increasingly automated, reducing opportunities that previously helped emerging economies industrialize.
“Without stronger participation in AI production, Africa risks exporting its data, while importing expensive AI services developed elsewhere, repeating historical patterns in which the continent supplied raw materials but captured little value from downstream industries,” it warns.
Three key barriers
BCG identifies the top challenges that continue to constrain Africa’s AI ambitions.
The first is economic fragmentation. “Africa’s 54 economies are individually too small to justify many of the large-scale investments required for AI infrastructure, while organisations within countries often lack sufficient capital to build digital platforms independently, “it says.
The second challenge is a shortage of AI talent. According to the report, Africa has about 62 000 AI specialists, representing only around 5% of the global AI workforce. Many of these professionals work remotely for overseas employers, limiting the development of domestic AI ecosystems.
“Africa has the ambition and, crucially, the talent it needs. With focus, coordination and political will, the continent can transition from disadvantaged digital consumer to empowered digital value creator and can secure its economic future.”
The third barrier is reliance on imported technology. African organisations often face higher software licensing costs than their international counterparts, while remaining dependent on foreign technology vendors, restricting innovation and limiting local value creation, the report asserts.
Patrick Dupoux, MD and senior partner at BCG, said these structural constraints are not unique to Africa, but require coordinated action.
“The challenge is not simply about adopting more digital technologies,” he points out.
“It is about ensuring African institutions increasingly build, govern and own the infrastructure, data and innovation ecosystems that power AI. Countries that produce AI capabilities rather than merely consume them will capture far greater economic value and create more sustainable jobs for future generations.”
Building Africa’s AI future
Rather than focusing solely on technology adoption, the report argues that Africa must establish the foundations needed to create its own AI economy.
BCG recommends building digital public infrastructure through public-private partnerships, with digital identity systems, payment platforms and secure data exchange networks serving as core building blocks.
The report also stresses the importance of stronger data governance to ensure information can be securely shared, while remaining under African ownership and control.
Ali Ziat, MD and partner at BCG, said collaboration will be essential if Africa is to compete globally.
“No single country or organisation can build Africa’s digital future alone,” he said.
“Pooling investment, creating shared infrastructure and embracing open systems will make projects financially viable, while encouraging innovation across borders. Combined with strong governance and coordinated leadership, these actions can help Africa become a global AI value creator instead of remaining on the side-lines.”
MTN Group has moved a step closer to taking full ownership of telecommunications tower operator IHS Towers, after shareholders of the infrastructure company approved the proposed acquisition at an extraordinary general meeting (EGM).
The telecommunications group announced that IHS shareholders voted in favour of the transaction by the required two-thirds majority at the EGM held on 4 August, satisfying one of the key conditions precedent to the deal.
MTN first announced in February that it had entered into an agreement to acquire the remaining shares in IHS, a move that would give the mobile operator full ownership of one of Africa’s largest independent tower companies.
The acquisition forms part of MTN’s Ambition 2030 strategy, which aims to strengthen the group’s digital infrastructure capabilities and diversify revenue streams as demand for connectivity, cloud services and artificial intelligence (AI) continues to grow across the continent.
“The approval by IHS shareholders is an important step toward completion of the transaction,” says Ralph Mupita, MTN Group president and CEO.
“Within our Ambition 2030, the three-platform strategy, towers are a critical value-creation driver that will strengthen MTN’s strategic and financial position for the future, in a world where digital infrastructure and AI are becoming increasingly essential to Africa’s growth and development.”
Tower infrastructure has become increasingly strategic for mobile network operators as demand for high-speed mobile broadband, cloud computing and AI-powered services drives the need for expanded and more efficient network capacity.
The proposed acquisition is expected to strengthen MTN’s position as it continues expanding its digital ecosystem across Africa, where it serves more than 300 million subscribers.
IHS is one of the world’s largest tower companies, with nearly 29 000 towers in Africa serving various mobile network operators in five key MTN markets.
According to the mobile operator, the proposed transaction, which follows discussions noted in February, marks an important step to unlock compelling value for MTN, and strengthen and reintegrate its ownership of critical digital infrastructure across Africa.
For IHS shareholders, MTN notes, it provides an attractive opportunity to crystalise value.
The funding for the proposed transaction of the remaining shares MTN does not already own, for a consideration of $2.2 billion (R35 billion), will be through cash of approximately $1.1 billion on IHS’s balance sheet, along with available liquidity and debt from MTN.
MTN has approximately 24.7% shareholding in IHS, and as part of the transaction, it intends to take the company private through the acquisition of all outstanding shares it does not own, pursuant to a cash merger.
By reintegrating the tower assets, MTN says it will be able to internalise the margin currently paid to IHS, benefit from current and future incremental third-party revenues, improve cost predictability and unlock significant long-term value embedded in its existing investment.
The transaction remains subject to the receipt of the necessary regulatory approvals, which MTN says are still in progress. No timeline has been provided for the completion of the acquisition.
Telecommunications services provider Airtel Nigeria has further extended its national retail footprint with the rollout of 350 out of a planned 500 premium experience centres, which are designed to bring faster, more convenient service closer to millions of Nigerians.
The new retail shops, officially unveiled at a symbolic launch at City Mall, Onikan, Lagos, mark the latest phase in Airtel Nigeria’s grand retail strategy. They significantly expand the company’s extensive network of over 9,000 exclusive shops across every local government area, more than 350 premium experience centres, and over 73,000 retailers in all top towns and cities nationwide.
Built as compact, high-efficiency touchpoints, the newly launched shops are designed to enable subscribers complete all transactions such as Home Broadband, Fiber and Outdoor Units Subscription, Postpaid Plan Subscription, Enterprise Applications Enquiry and Subscription, as well as Prepaid Product services such as SIM registration and Data Plan purchase, other enquiries and comprehensive account support.
Simultaneously, several shops commenced operations at Purple Mall, Lekki; Marina, Lagos Island; Magodo, Lagos; Oke-Ilewo, Abeokuta; Trend Setter Mall, Benin; Abakaliki, Ebonyi State; Kano City Mall, Kano; Carpenters Mall, Gwarinpa, Abuja; and other parts of the country.
The rollout emphasises the company’s continued investment in customer experience and responds directly to feedback from customers seeking quicker access to everyday services without the longer waiting times that may be associated with larger retail centres.
Speaking on the company retail objectives, Joypratip Sengupta, Director, Sales and Distribution, Airtel Nigeria, explained that quality retail experience ultimately drives customer satisfaction. “Our goal is to demonstrate our dedication to exceptional quality of service, and these new shops, by their design, location, and equipment fit right within our goal to deliver superior service to every one of our customers,” he said.
He added that the expansion reflects Airtel Nigeria’s belief that excellent customer experience goes beyond technology to ensuring customers can receive support whenever and wherever they need it.
“Our business at Airtel is to ensure that we bring our services closer to our customers, and everything we do is centred on putting the customer first. These experience centres are open to help customers carry out their transactions faster and with greater ease. Whether you want to replace a SIM, purchase one of our routers, recharge airtime or data, or resolve any service issue, you can now do so more conveniently and closer to where you are,” he said.
He explained that the initiative represents a significant update to Airtel’s retail strategy, placing greater emphasis on accessibility, speed, and convenience.
“These express shops are designed to reduce traffic at our larger shops while giving customers faster access to the services they need. More importantly, they reinforce our vision of building the most accessible customer service network in Nigeria. As the telecom operator with the country’s largest retail footprint, we will continue expanding into more neighbourhoods, making it easier for customers to connect with Airtel wherever they are,” Sengupta noted.
In her remarks at the launch, Lynda Amechi, Head, Shops and Retail Postpaid Business, revealed that the new retail model was born from listening to customers and reimagining how Airtel delivers its services.
She said, “At Airtel, some of our best ideas come directly from our customers. One of the recurring concerns we received was the time customers sometimes spent waiting at our larger experience centres, even when they only needed simple transactions completed. We listened carefully and realised that many of these requests could be resolved within minutes if we brought our services closer to the communities where customers live and work.”
These new shops are also integrated into Airtel Nigeria’s broader customer experience agenda, which have seen the company continue to invest in digital self-service platforms, AI-powered customer support, nationwide customer forums, and significant network expansion across the country.
With this phase of shop launches, Airtel Nigeria has expanded customer access across the country while integrating digital innovation into physical touchpoints.
The Presidential Renewed Hope Media Tour has commended the National Agency for Science and Engineering Infrastructure (NASENI) for its progress in advancing indigenous technology development, describing the agency as a key driver of President Bola Tinubu’s Renewed Hope Agenda and Nigeria’s industrial transformation.
The commendation came during a visit by the presidential media delegation to NASENI’s headquarters in Abuja, where members inspected the agency’s technology and manufacturing facilities.
Speaking on behalf of the delegation, Mr. Bayo Onanuga, Special Adviser to the President on Communication, Information and Strategy, described the agency’s achievements as “impressive, impressive, impressive.”
He said NASENI’s progress demonstrated the capacity of Nigerian youths to excel when provided with the right leadership and support.
Onanuga also praised the leadership of the Executive Vice Chairman and Chief Executive Officer of NASENI, Khalil Suleiman Halilu, for repositioning the agency to support the Federal Government’s industrialisation objectives.
In his remarks, Halilu said sustainable industrial growth does not necessarily depend on producing goods entirely from local inputs but requires strategic investment in technology development, innovation and partnerships.
He explained that the agency is focusing on commercially viable innovations capable of creating jobs, reducing production time and supporting the Federal Government’s Nigeria First Policy.
According to him, NASENI is also strengthening technology transfer, commercialisation of research outputs, mentorship programmes for innovators and the Innovate Naija Challenge, which offers a ₦500 million prize fund to support promising Nigerian innovations.
The Minister of Information and National Orientation, Mohammed Idris, commended NASENI’s achievements and urged the media to give greater visibility to the Federal Government’s programmes and accomplishments across various sectors.
Also speaking, Hadiza Bala Usman stressed the need for stronger strategic communication and increased patronage of locally developed technologies and innovations.
Similarly, Sunday Dare advocated policies that would encourage Ministries, Departments and Agencies to prioritise NASENI products and other locally manufactured goods.
Other members of the delegation, including Tunde Rahman and Otega Ogra, also commended the agency’s strategic partnerships and locally developed technologies.
During the tour, the delegation inspected facilities dedicated to drone technology, helicopter assembly, reverse engineering, precision manufacturing, renewable energy, agricultural technology and recycling systems.
The visitors also witnessed the implementation of NASENI’s 3Cs framework—Creation, Collaboration and Commercialization—which the agency said is driving indigenous manufacturing, innovation and technology transfer.
At the end of the visit, stakeholders called for sustained nationwide campaigns to promote Nigerian-made products, strengthen local manufacturing, reduce dependence on imports and accelerate the country’s industrialisation agenda under President Tinubu.
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