Africa stands to gain up to $103 billion (approximately Sh13.4 trillion) every year by scaling generative artificial intelligence (Gen AI) solutions across key sectors, according to a new report by McKinsey & Company.
The study, titled The Economic Potential of Generative AI, The Case for Africa, reveals that over 40 per cent of institutions on the continent have already begun experimenting with Gen AI tools. However, most remain in the early or pilot stages of implementation.
McKinsey says seven sectors, banking, retail, telecom, insurance, mining, public services, and consumer goods, are likely to deliver the greatest value in the near term.
“Generative AI is not a future trend for Africa, it’s a present-tense opportunity,” said Mayowa Kuyoro, one of the authors of the report. “This is a transformative moment for the continent that cannot be allowed to slip away.”
READ: Kenya’s Rising Cyber Threats: Why Securing the Digital Economy Is Now an Urgent Priority
The report highlights practical use cases already emerging on the continent. In Nigeria, banks are using large language models to automate risk assessments, while Kenyan edtech platforms are deploying Gen AI to personalise student learning experiences.
Despite the innovation, challenges persist. Many African countries still face barriers in data infrastructure, access to skilled talent, and a lack of robust regulation.
“There’s no doubt that Africa faces hurdles,” Kuyoro noted. “But the ingenuity we’re seeing in how Gen AI is being used to solve local problems is nothing short of inspiring.”
The report calls for targeted investment in domain-specific solutions, improved access to AI-ready datasets, and clear regulatory frameworks that encourage responsible and inclusive AI adoption.
If implemented at scale, McKinsey believes Gen AI could contribute up to 3 per cent of Africa’s annual GDP.
“This is not about catching up, it’s about leapfrogging,” Kuyoro added. “Africa has the chance to not just participate in the AI revolution, but to help shape it.”
