Africa's AI Market to Surge to $16.5 Billion by 2030 Driven by Sector Innovation

The AI market in Africa is projected to expand significantly, reaching USD 16.5 billion by 2030, up from USD 4.5 billion in 2025, according to a Mastercard report titled Harnessing the transformative power of AI in Africa [1]. This pan-African study outlines the continent’s readiness, opportunities, and roadmap for responsible AI adoption across key sectors such as agriculture, healthcare, education, energy, and finance. The report emphasizes that AI, when deployed responsibly and inclusively, can drive transformative outcomes and support inclusive growth.

Mastercard highlights Africa’s unique demographic profile, mobile-first infrastructure, and entrepreneurial spirit as key enablers of AI adoption. The continent is positioned not just as a beneficiary of AI but as an active architect of its future. The report calls for multi-stakeholder collaboration and investment to realize the full potential of AI, particularly in infrastructure, data, talent development, and policy frameworks [1].

Mark Elliott, division president for Africa at Mastercard, noted that AI is already reshaping lives across the continent through practical applications in farms, clinics, and classrooms. He emphasized that responsible, locally rooted AI could drive job creation and expand access to formal financial services. The report estimates that up to 230 million digital jobs could be created in Africa by 2030, largely through AI-enabled solutions such as credit scoring and fraud prevention [1].

Greg Ulrich, Mastercard’s chief AI and data officer, stressed the importance of trust in AI systems. He underscored the company’s commitment to building responsible, inclusive AI technologies that deliver value to customers, partners, and employees. This approach, he argued, is innovation with integrity [1].

The report also outlines regional progress in AI development. South Africa is emerging as a continental leader, having attracted USD 610 million in AI-focused venture capital in 2023, with expectations of reaching USD 3.7 billion in total investment by 2030. The country is home to the Artificial Intelligence Institute of South Africa, which supports education, research, and industry collaboration. National plans aim to develop up to 300 AI start-ups and train 5,000 AI professionals by 2030 [1].

Kenya is advancing as an AI innovation hub, leveraging its “Silicon Savannah” status to deploy AI across sectors such as health and finance. For instance, Tala uses mobile data for credit scoring, while Jacaranda Health’s UlizaLlama chatbot provides maternal health support in local languages. The Kenyan government has launched a National AI Strategy (2025–2030), aimed at establishing the country as a regional leader in AI research, innovation, and commercialization [1].

Nigeria ranks second in the number of AI start-ups on the continent and secured USD 218 million in venture capital in 2023. The country is using AI to personalize learning and deliver microfinance services. With a projected AI market size of USD 1.4 billion by 2025, Nigeria’s proactive government policies and private-sector innovation suggest strong growth potential [1].

Morocco is emerging as a key AI hub in North Africa, particularly in healthcare, energy, and agriculture. Institutions such as Mohammed VI Polytechnic University and DeepEcho are driving local AI innovation, while the MoroccoAI Annual Conference supports national dialogue on AI’s future. The country’s Digital 2030 strategy aims to attract USD 1.1 billion in investment and create 240,000 digital jobs by 2030 [1].

Despite the progress, the report warns of potential challenges, including data fragmentation, language exclusion, and inconsistent regulation, which could exacerbate the digital divide. Addressing these issues will be critical to ensuring AI contributes equitably to Africa’s digital and economic transformation.

The report draws on insights from African technologists, policymakers, academics, and entrepreneurs, including contributions from UNESCO and the African Centre for Economic Transformation. It concludes that strategic collaborations between governments, fintechs, and global partners will be essential in unlocking AI’s full potential in Africa [1].

Source: [1] “AI market in Africa to top $16.5 billion by 2030”, Mastercard report says (https://technext24.com/2025/08/06/ai-africa-top-16-5b-2030-mastercard/)