ATU advocates to boost Africa's AI market shareATU advocates to boost Africa's AI market share

The African continent is lagging behind in artificial intelligence (AI) adoption, with a paltry 2.5% of global AI market share, according to the African Telecommunications Union (ATU).      

Amid prevailing challenges, key stakeholders and other partners are collaborating with the ATU to advance the adoption of AI mechanisms on the continent.         

The Union notes that while the potential of Al to advance the African Union (AU) Agenda 2063 and the United Nations' Sustainable Development Goals (SDGs) is undeniable, it is concerning that Al adoption is still low in Africa compared to the other regions.

The ATU believes that the absence of national AI policies in many African countries is a key barrier, aggravating existing challenges of digital infrastructure, affordability and skills gaps.                    

ATU Secretary-General John Omo told Connecting Africa that if effectively implemented, AI policies will significantly promote the adoption of advanced technologies, address issues of cybersecurity and data protection, and enhance digital innovation and service delivery.

Africa's AI adoption bottlenecks

Omo said on one hand he sees great potential in Africa and appreciates that efforts to explore AI's opportunities have already been successful in critical areas.

Related:AI a top strategic priority for African execs in 2025 – BCG

"These include the application of AI in social networks, businesses, healthcare, agriculture, education and academic contexts. I also appreciate that a lot more has yet to be done to make these sectors significantly adaptive to AI," Omo said.

"On the other hand, Africa's lag in AI adoption is influenced by structural, technological and socio-economic factors. Despite our potential as a continent, significant hurdles remain," Omo added.

The bottlenecks he outlined include infrastructure deficits.

He said Internet penetration in sub-Saharan Africa is around 40%, compared to over 90% in North America and Europe, citing World Bank data from 2023.

He said only 28% of African households have electricity, limiting the deployment of AI technologies.

Another challenge is a low investment in data infrastructure.

Omo said Africa's data collection, processing and storage systems are underdeveloped, with only 17% of African organizations storing data locally, according to International Data Corporation data from 2024.

Another issue is the skills gap and funding constraints, with Africa accounting for only 3% of the global AI talent pool.

Omo said a significant number of skilled professionals are migrating to Europe and North America in search of better opportunities.

Related:Google puts forward policy blueprint for AI in Africa

He believes the talent shortage is further compounded by limited funding for African AI startups, which received less than 1% of global venture capital allocated to AI in 2023.

This lack of funding hinders startups' ability to scale and innovate.

African Telecommunications Union Secretary-General John Omo. (Source: African Telecommunications Union)

The issue of policy and regulatory frameworks has been identified as another bottleneck.

The ATU said that as of 2025, only ten African countries have comprehensive AI strategies, South Africa, Kenya and Egypt among them.

Omo said that addressing challenges requires a paradigm shift to reorient policies toward fostering local innovation, meeting market needs and competing globally.

"This involves expanding digital literacy, promoting public-private partnerships and improving infrastructure. The African Union's Continental AI Strategy, launched last year, emphasizes an Africa-centric, inclusive approach across five key areas: harnessing AI's benefits, building capabilities, minimizing risks, stimulating investment, and fostering cooperation," Omo said.

"We are in the process of rallying the continent around this strategy to ensure a unified trajectory," the Secretary-General added.

Addressing the stagnation of African AI startups

The ATU flagged research which shows that 63% of African startups stagnate at early developmental stages due to inadequate funding and incubation support.        

Omo said the ATU, its member states, partners, and other independent actors are keen on establishing an effective AI regime in Africa – with some efforts already visible, while others are still taking shape.

He said some African nations are hosting innovation and entrepreneurship centers as part of the International Telecommunication Union's (ITU's) Network of Acceleration Centers.

The centers link local startups to international networks, offering specialized training and promoting knowledge exchanges.

The collaboration is attracting funding partners and helping African founders learn about global best practices.

Innovation hubs and skills development spaces like CcHub Nigeria, Data Science Nigeria and iHub Kenya have been established to connect new ventures with established tech experts.

These hubs host coding bootcamps and entrepreneurship workshops which strengthen local talent pools.

There are also targeted funding initiatives, according to Omo, such as the African Development Bank's $500 million digital economy fund of 2024 which finances early-stage ventures, reducing the reliance on foreign capital.

He said that private investors are also increasing their presence.

"Their funds help startups refine products, hire local AI talent and expand into regional markets," Omo said.

On regional integration efforts, the African Continental Free Trade Area (AfCFTA) aims to create a single market for goods and services.

Omo said that this opens larger customer bases for AI solutions including harmonizing regulations across borders to reduce costs and improve market access for startups.

He said the measures have begun to yield tangible outcomes and clearer regulations boost investor confidence, which leads to more funding prospects for AI founders.

Omo said with steady mentorship, startups develop stronger technical expertise and attract local talent, reducing reliance on expensive foreign specialists.

"As a result, more promising ideas gain a foothold and stand a better chance of commercial success. Increased access to capital and expert guidance also enables AI ventures to tackle regional challenges in health, agriculture and finance, among others," Omo explained.

"In the long run, thriving AI startups can create new jobs and foster economic growth, which in turn helps address broader social and developmental gaps across Africa," he told Connecting Africa.

Adoption of national AI policies, cybersecurity and data protection frameworks

Omo said the ATU and other independent actors are actively promoting the development of national AI policies across Africa by advocating for alignment with the AU Data Policy Framework and the AfCFTA.

The efforts aim to ensure standardized approaches to AI governance, ethical data usage and regional economic integration.

Omo said the drive towards standardized data laws lowers regulatory risks for AI developers, facilitates cross-border data flows and reassures investors that personal information is well-protected.

The AU's Malabo Convention on Cybersecurity and Personal Data Protection is also setting continent-wide guidelines.

The convention aims to simplify patent processes and clarify rules on data usage, helping to free startups from unclear legal frameworks.

Omo said that on the legislative front, only six African countries currently have comprehensive data protection laws, prompting the ATU to advocate for broader adoption of the Malabo Convention.

The AU Digital Transformation Strategy running from 2020 to 2030 serves as a cornerstone policy document guiding countries to integrate AI and digital technologies into their national development agendas.

The initiative targets to train at least 10 million Africans in AI-related fields by 2030.

The initiative focuses on equipping citizens with skills in data science, machine learning and AI ethics through partnerships with universities, training institutes and international organizations.

The ATU complements this effort by offering specialized training to policymakers and industry leaders to enhance understanding and governance of AI systems from time to time.

Efforts to strengthen AI adoption are underpinned by initiatives to expand digital infrastructure, including broadband connectivity and data centers, which are essential for AI development.

Value of Africa's AI market and growth projections

Africa's AI market is valued at about $4.92 billion in 2025, representing 2.5% of the global AI sector.

Omo said the value is projected to grow at a compound annual growth rate (CAGR) of 25%, potentially reaching $12 billion by 2030, supported by several factors such as increasing connectivity.

Undersea cable projects such as 2Africa and Equiano are expected to expand Internet access, lower data costs and raise user bases.

By 2026, Africa is expected to have 650 million Internet users, driven by smartphone affordability projects and better infrastructure.

On youth demographics, the ATU said that with 60% of the population under 25, Africa has a large, tech-savvy workforce ready to adopt and develop AI solutions including policy harmonization.