By Angela Kyerematen-Jimoh, Africa business expert and Microsoft Digital Transformation Business Lead for Africa
On 30 October 2024, I addressed policymakers, business leaders andinvestors at the annual FT Africa Summit in London on strategies for advancing artificial intelligence (AI) and technology in Africa.
I’ve been looking at key African tech markets like Nigeria, Kenya, South Africa and Egypt as central players in Africa’s AI development.
South Africa has positioned itself as a leader in the continent’s digital transformation, particularly in AI. The country’s policies, investments, and partnerships between the government and private companies are driving the use of AI to boost the economy and make growth more inclusive. This sets a solid foundation, not only for South Africa, but for Africa's broader role in the global digital economy.
South Africa’s competitive advantage in AI is based on its broad consumer base, strong legal framework and the government’s commitment to fostering digital skills, and investments in infrastructure.
Integrating AI for competitive advantage
South Africa is tapping into AI to stay competitive by integrating it into key industries. In finance, AI is used for tasks such as fraud detection and automating routine processes like credit scoring. This is freeing human resources for more strategic tasks and increasing efficiency in a critical sector.
In healthcare, AI is transforming how doctors interact with patients by automating notetaking and streamlining diagnostic processes, allowing medical professionals to focus more on patient care. This is especially important in countries where the doctor-to-patient ratio is low. By incorporating AI into these sectors, countries are improving efficiency and delivering better services.
Building a culture of innovation
South Africa’s approach to AI is not just about adopting new technologies; it is embedding innovation into the economy. The South African government has been intentional about fostering a culture of innovation, to position the country as a tech hub in Africa. Initiatives like the Fourth Industrial Revolution (4IR) Commission, started in 2019, bring together government, businesses, and schools to develop the skills needed for the future economy.
South Africa is also creating an innovation-friendly environment that protects local entrepreneurs and attracts foreign investors. Policies are designed to safeguard local ideas while making it easier for global companies to invest. This balance ensures the tech sector stays globally competitive on a global scale.
Fostering digital inclusivity
A key part of South Africa’s AI strategy is inclusivity. The government is working to ensure that the benefits of AI and technology reach all citizens, particularly those in rural and underserved areas. Partnerships between the public and private sectors have been essential in launching programs focused on digital skills and infrastructure development in these regions. These efforts help reduce inequality and ensure more people can participate in the digital economy.
Since 2021, South Africa’s tech sector has attracted significant venture capital, showing growing international confidence in the country’s digital potential. This influx of funding is not only boosting local innovation but also creating new opportunities for startups, driving economic growth and job creation.
Addressing concerns around AI
Despite advancements, AI is often viewed with trepidation, particularly concerning its potential impact on employment. It is an understandable fear on a continent with high unemployment. The worry is that AI could lead to job losses in sectors where automation could replace human roles. Concerns about data privacy, AI hallucinations, and cybersecurity also contribute to the unease.
However, many now recognise that while AI may eliminate certain jobs, it creates new opportunities for people to learn new skills and remain competitive in the AI-driven economy. Many companies and startups are creating new opportunities and focusing on reskilling workers to prepare them for jobs in a new digital landscape.
Many senior executives are realising the value that AI can bring, not only in their professional roles but also in their personal lives. By seeing the everyday utility of AI, these leaders are becoming more comfortable to integrate it into their work environments. Guardrails, such as ethical AI frameworks and data protection policies, are helping to alleviate some of the concerns about AI, ensuring its adoption is safe and responsible.
The road ahead
South Africa’s leadership in AI is bolstered by a regulatory framework that seeks to promote innovation while considering ethical issues. In April, the Department of Communications and Digital Technologies released a draft national artificial intelligence plan. This forward-thinking strategy outlines the government’s vision for integrating AI across various sectors and promoting responsible innovation through a regulatory framework.
Ethical AI, data privacy, and cybersecurity are critical components of South Africa’s AI strategy. As the technology becomes more embedded in industries and society, there is a growing emphasis on transparency in AI decision-making processes, ensuring that AI systems are fair, accountable, and aligned with fundamental human rights. Protecting individuals’ data while fostering a culture of innovation will be essential in maintaining public trust and ensuring that AI development benefits everyone.
Regional leadership
If South Africa remains committed to inclusive growth, ethical AI practices, and collaboration across borders, the country is securing its place as a technological leader and setting the stage for Africa to become a major player in the global digital economy.
South Africa is not merely participating in the global AI revolution—it is actively shaping it. Through smart policies, public-private partnerships, and a focus on digital skills, the country is laying the groundwork for sustainable growth in the digital age.
It has begun the important work of helping to drive conversations and policies across Africa and using its experience to help with infrastructure development for technological advancement.
As the world continues to embrace AI and digital technologies, South Africa’s leadership in this space will be critical in driving Africa’s broader economic and technological growth.
With the right policies and partnerships, South Africa is well-positioned to lead Africa’s digital future and ensure the continent remains a key player in the global digital economy.
Opinions expressed do not necessarily reflect those of the organisations with which Kyerematen-Jimoh is involved.