Artificial Intelligence and Economic Development in African Countries: Challenges and Prospects

Lubinda Haabazoka
Additional contact information
Lubinda Haabazoka: University of Zambia, Zambia

in ABEM Conference Proceedings from Academy of Business and Emerging Markets (ABEM), Canada, currently edited by Satyendra Singh

Abstract: Artificial Intelligence (AI) has emerged as a transformative force in global economic development, redefining productivity, innovation, and competitiveness across both advanced and emerging economies. While high-income countries are rapidly integrating AI into industrial policy and strategic national development agendas, African nations face a more complex landscape characterized by both vast potential and structural limitations. This presentation critically examines the role of AI in fostering economic development in African countries, with a particular focus on Zambia as a representative case study. The analysis begins by exploring global trends in AI deployment and their correlation with economic growth, drawing on evidence from leading economies where AI integration has boosted efficiency in sectors such as manufacturing, healthcare, finance, and agriculture. It then shifts to the African context, highlighting emerging use cases, public-private partnerships, and continental initiatives such as the African Union’s digital transformation strategy. Despite these developments, Africa faces significant challenges, including inadequate digital infrastructure, limited access to quality data, low investment in AI R&D, and a persistent skills gap. Zambia is examined as a microcosm of these continental dynamics. Using a mixed methods approach—combining policy analysis, industry data, and stakeholder interviews— the paper evaluates Zambia’s readiness to harness AI for economic transformation. Key sectors analyzed include agriculture, fintech, and public service delivery. The findings suggest that while Zambia has made progress in digital financial inclusion and agritech innovations, its AI ecosystem remains underdeveloped due to institutional, regulatory, and infrastructural constraints. The presentation concludes by offering policy recommendations aimed at fostering a sustainable AI-driven development model in Zambia and other African countries. These include strengthening AI education and research capacity, developing ethical and inclusive data governance frameworks, promoting innovation through targeted investments, and leveraging international partnerships to build AI infrastructure. The study contributes to the growing discourse on technology-driven development in the Global South and underscores the need for context-sensitive, inclusive AI strategies that align with Africa’s broader socio-economic priorities.

Keywords: Artificial Intelligence; Economic Development; Africa (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.abem.ca/wp-content/uploads/2025/07/abem-2025-proceedings.pdf

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:abemcp:023491

Access Statistics for this book

More books in ABEM Conference Proceedings from Academy of Business and Emerging Markets (ABEM), Canada Edinburgh House, 708-99 Wellington Crescent, Winnipeg, R3M0A2, Canada.
Bibliographic data for series maintained by Satyendra Singh ().