As artificial intelligence reshapes the global digital economy, Africa stands at a decisive moment. The World Bank’s Digital Progress and Trends Report 2025 examines what it will take for the continent to build strong, inclusive AI foundations and turn technological potential into sustainable growth.

The World Bank’s Digital Progress and Trends Report 2025: Strengthening AI Foundations offers a timely, data-driven assessment of the global digital economy, with a particular emphasis on the role artificial intelligence can play in driving sustainable development. As countries accelerate their digital transformation, Africa finds itself at a critical juncture. Strategic investment in digital infrastructure, skills and policy frameworks could unlock significant opportunities for growth, innovation and inclusion across the continent.

Artificial intelligence is already reshaping the way societies learn, work and innovate. Its potential to boost productivity, widen access to knowledge and stimulate new industries is considerable. Yet for many low- and middle-income economies, realising these benefits remains difficult. Persistent gaps in infrastructure, skills and financial resources continue to limit widespread adoption.

Developed economies still dominate the AI landscape, accounting for the overwhelming majority of global AI models, start-ups and investment. However, the report highlights the emergence of so-called “small AI” solutions in developing regions. These lightweight and affordable tools are designed to operate on everyday devices such as mobile phones, enabling tangible impact in areas including agriculture, healthcare and education without the need for extensive digital infrastructure. For African economies, this trend presents a practical pathway to harness AI despite structural constraints.

A key contribution of the report is its articulation of four foundational pillars required to build resilient and inclusive AI ecosystems, referred to as the “four Cs”. The first is connectivity. Reliable and affordable internet access remains uneven, with stark disparities between high-income and low-income regions. Without affordable connectivity, participation in an AI-driven digital economy remains out of reach for millions.

The second pillar is compute. Advanced computing resources, including data centres and cloud infrastructure, are essential for developing and deploying AI systems. These capabilities are still heavily concentrated in wealthier economies, leaving much of Africa dependent on external infrastructure and services.

Context forms the third foundation. For AI systems to be effective, they must be grounded in local data, languages and cultural realities. Yet the vast majority of global training data reflects the experiences and priorities of high-income countries. This imbalance underscores the importance of developing local datasets and content that reflect African contexts.

The fourth pillar is competency. Building digital and AI skills, from basic literacy to advanced technical expertise, is critical to long-term success. The report identifies significant gaps in digital competencies, particularly in lower-income countries, which risk constraining both adoption and innovation.

 

Taken together, these four elements form the bedrock of AI readiness. They enable countries not only to adopt global technologies, but also to adapt and develop solutions aligned with local development priorities.

For African countries, the AI transition presents both significant opportunities and real risks. The proliferation of mobile platforms and affordable AI tools offers the possibility of leapfrogging traditional infrastructure constraints. Innovation is already emerging in areas such as microfinance, precision agriculture and telemedicine, where digital tools are addressing long-standing development challenges.

There is also growing potential to nurture local innovation ecosystems. Supporting domestic AI start-ups and research institutions can generate context-specific solutions tailored to markets that are often overlooked by global technology firms. At the same time, demand for digital skills is rising rapidly. Investment in human capital today could position Africa’s workforce to compete in tomorrow’s global economy.

However, the report cautions that without deliberate intervention, existing digital divides could widen. Gaps in connectivity, access to data and computing resources risk reinforcing inequality both within and between countries. Addressing these challenges will require coordinated policy action, effective public-private partnerships and sustained investment.

To this end, the World Bank sets out a clear roadmap for inclusive AI growth. Priorities include strengthening digital infrastructure to expand both connectivity and computing capacity, investing in skills development at scale, reinforcing data governance and regulatory frameworks to balance innovation with the protection of rights and privacy, and fostering local innovation ecosystems that reflect national priorities and cultural contexts.

The message of the Digital Progress and Trends Report 2025 is unambiguous. The transformative promise of artificial intelligence will only be realised if its foundations are strong, inclusive and locally grounded. For African policymakers, entrepreneurs and investors, the report provides both a baseline assessment and a strategic blueprint for entering the next phase of the digital economy, one defined not only by technological adoption, but by equitable and sustainable growth.

Source: Mongabay USA