African countries have been urged to increase borrowing, boost domestic revenue and tap pension and sovereign wealth funds to finance critical infrastructure needed to benefit from the global artificial intelligence (AI) boom, according to a new report by the United Nations Economic Commission for Africa.

The report warned that more than 50 countries on the continent risk missing out on AI-driven economic transformation due to inadequate infrastructure.

It noted that Africa currently hosts less than 1% of the world’s data centres, describing the gap as both an economic and sovereignty challenge.

“Strategic investments in data infrastructure and energy generation can reinforce each other by enabling digital industries while supporting electricity demand and reliability,” the commission said in the report, released during a meeting of African finance ministers in Morocco.

The UN body stressed that public funding alone would not be sufficient, calling on governments to strengthen tax collection systems while leveraging financial markets, pension funds, sovereign wealth funds and blended finance to mobilise capital.

It also urged policymakers to prioritise skills development and fully implement the African Continental Free Trade Area to support technology-led growth.

According to the report, wider adoption of AI, alongside digital platforms and automated production systems, could help African economies reduce dependence on raw commodity exports and shift towards higher-value manufacturing.

“Today, competitiveness increasingly depends on a country’s capacity to generate, govern, and apply data and frontier technologies,” the commission said.

The report added that increased investment in technology could enable African countries to process more of their own critical mineral resources into products such as batteries and processors, rather than exporting them in raw form.

UN tells African governments to borrow and raise money for AI infrastructure

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