Leveraging data and AI to bridge Africa's $90 billion infrastructure gap

IOL News

23-04-2025

The African Development Bank estimates this shortfall shaves nearly 2% off GDP growth each year, choking economic potential and social progress.
By Nomvula Mabuza
Africa's infrastructure deficit, a $90 billion annual gap, casts a long shadow over the continent's future.
The African Development Bank estimates this shortfall shaves nearly 2% off GDP growth each year, choking economic potential and social progress.
From unreliable power grids to crumbling roads, these gaps inflate costs, isolate communities and stifle opportunity.
Yet, within this challenge lies a chance to reimagine infrastructure through data and artificial intelligence (AI), transforming obstacles into pathways for growth.
The infrastructure gap ripples across Africa's economy and society. Poor logistics, with transport costs 30-40% higher than in other regions, undermine the African Continental Free Trade Area's (AfCFTA) promise of a 52% boost in intra-African trade.
These inefficiencies translate into pricier goods and fewer jobs, locking nations in a cycle of lost potential. Limited access to electricity and reliable roads further restricts digital economies and isolates rural areas, with logistics bottlenecks costing the continent $130 billion annually in economic inefficiencies.
Closing this gap is not just a necessity but an economic opportunity, poised to unlock billions in growth and attract investment from across the globe.
Systemic barriers sustain this crisis. African governments collect less tax revenue than other developing regions, leaving them with limited funds for major projects.
Compounding this, fewer than 10% of proposed infrastructure projects reach financial close, as 80% falter at the feasibility stage due to inadequate planning. Private investment, which hit only $40 billion in 2021, remains a fraction of what's needed.
At the heart of these issues lies a critical flaw: incomplete, outdated and fragmented data. Without real-time insights into road conditions, energy access, or logistical efficiency, planning becomes guesswork and investors shy away from high-risk ventures.
Leveraging Data and AI to Bridge Africa's $90 Billion Infrastructure Gap A bold, AI-enabled strategy can turn disparate data into actionable insights, revolutionizing infrastructure planning. A continent-wide, open-source repository could aggregate real-time metrics from all 54 African nations—project costs, completion rates, demographic needs.
Kenya's Open Data Portal shows how such platforms can break down silos and guide decisions. AI can pinpoint high-return projects, like solar grids in underserved rural areas, ensuring efficient, impactful investments.
Satellite imagery and geographic information systems, as used by Digital Earth Africa, offer real-time oversight to prevent delays and mitigate environmental risks, supporting projects like Ethiopia's Grand Renaissance Dam. Mobile apps, inspired by Ushahidi, can empower citizens to report issues like potholes or outages, fostering accountability and highlighting urgent needs. Rwanda's partnership with Zipline demonstrates the transformative potential of data-driven solutions. Since 2016, Zipline has leveraged real-time data to deliver blood and vaccines by drone, slashing delivery times from hours to minutes and serving over 2,500 health facilities.
This innovation not only bolsters healthcare but also shows how technology can address logistical gaps, drawing investment and offering a scalable model for infrastructure challenges across Africa. Technology alone cannot bridge the infrastructure gap—robust governance is the bedrock of success.
Across Africa, distrust in data systems and a shortage of skilled professionals pose significant barriers.
Citizens hesitate to share data without assurances of privacy and governments struggle to implement AI tools without local expertise. South Africa's Protection of Personal Information Act (POPIA), enacted in 2020, offers a model for addressing these concerns. By enforcing strict data privacy standards, POPIA has bolstered public confidence, enabling projects like digital health platforms that rely on secure data-sharing.
Similarly, capacitybuilding initiatives are critical. Carnegie Mellon University Africa, based in Rwanda, trains hundreds of data scientists annually, equipping them to develop and manage AI-driven infrastructure solutions.
For example, graduates have contributed to optimizing Rwanda's energy grid, ensuring data tools translate into real-world impact. Beyond privacy and skills, governance must foster transparency to attract investment. Clear regulatory frameworks, like those piloted in Kenya for public-private partnerships, reduce risks for investors, making projects like the Nairobi-Mombasa Expressway more bankable.
Without these governance pillars—privacy, Leveraging Data and AI to Bridge Africa's $90 Billion Infrastructure Gap capacity and transparency—the promise of data and AI risks remaining out of reach. Significant hurdles remain. With internet penetration in rural Africa at just 25%, community-driven data collection faces limitations.
Privacy concerns, even with laws like POPIA, could erode trust in data platforms.
Yet, these challenges are not insurmountable. Targeted investments in digital infrastructure, such as expanding mobile networks and public education campaigns to clarify data privacy protections can pave the way for success.
The path to closing Africa's infrastructure gap demands collective action, rooted in collaboration and innovation. African governments must lead by launching pilot data platforms in high-need regions, where real-time insights can guide energy and transport projects with precision. Multilateral institutions, such as the African Development Bank and United Nations, should channel resources into AI-driven project pipelines, demonstrating the viability of data-driven approaches through measurable outcomes.
Technology companies, both global and local, must unite to develop scalable tools—from geospatial analytics to citizen-reporting apps—that empower planners and communities to address infrastructure challenges effectively. Investors hold a critical role in this transformation.
By backing data-driven projects through dedicated infrastructure funds, they can mitigate risks, unlock substantial economic returns and drive sustainable growth across the continent.
The opportunity is clear: coordinated action today can turn Africa's infrastructure vision into reality, fueling prosperity for generations. Africa's $90 billion infrastructure gap is a challenge that demands bold innovation.
Data and AI, from centralized platforms to predictive analytics, hold the key to unlocking AfCFTA's potential for a 52% surge in intra-African trade and reversing the 2% annual GDP losses that hobble progress.
Inaction carries a steep price—billions in economic potential slip away each year, leaving communities disconnected and opportunities unrealized.
By embracing data-driven solutions, Africa can build a future where reliable roads link markets, electricity powers digital economies and infrastructure fuels job creation and prosperity. The tools exist and the stakes are clear: act now to transform the continent's infrastructure and secure a thriving, connected tomorrow.
Nomvula Mabuza is a Risk Governance and Compliance Specialist with extensive experience in strategic risk and industrial operations. She is an MBA candidate at Henley Business School, South Africa.
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