Hi Ayodele here,

The momentum around AI in Africa is building fast, and the potential is truly massive. A new report from McKinsey projects that generative AI alone could add up to $100 billion to the continent’s economy each year. We are starting to see this potential turn into real progress, with countries like Ghana and Nigeria leading the way through innovations in language models, security, and digital infrastructure.

This edition highlights the growing opportunities and strategic choices shaping Africa’s AI journey.

Let us dive in.

Around Africa

Africa’s $100 billion Generative AI Opportunity

A recent McKinsey report highlights the transformative potential of generative AI (gen AI) across Africa. The continent stands to unlock up to $100 billion in annual economic value by deploying gen AI at scale across key sectors such as banking, telecommunications, retail, insurance, energy, and the public sector. This projection is in addition to the significant untapped value from traditional AI and machine learning applications, which could more than double the total potential impact.

Key Insights

• Sectoral Impact: Gen AI's influence is expected to vary across sectors. In retail and consumer packaged goods, the most significant impact is anticipated in marketing and sales. In banking and the public sector, customer operations and software engineering are likely to benefit the most. Insurance and telecommunications sectors also foresee substantial gains in customer operations and marketing.

• Current Adoption: While many African institutions are still in the early stages of gen AI adoption, some have already implemented solutions at scale. For instance, a Nigerian telecommunications provider has deployed a chatbot to enhance customer service, and South African financial firms are using gen AI to personalize sales campaigns.

• Challenges and Opportunities: To fully realize gen AI's potential, African organizations must address barriers such as infrastructure limitations, data quality issues, and talent shortages. Emphasizing ethical frameworks, data privacy, and inclusive practices will be crucial in building trust and ensuring sustainable adoption.

Ghana Launches Africa's Largest AI-Powered Security Hub

Ghana has recently inaugurated what is currently the largest artificial intelligence (AI)-driven security center in Africa. Located in Accra, this state-of-the-art facility will use AI to enhance the country's security capabilities. It's designed to help law enforcement agencies prevent and combat crime more effectively by analyzing data and identifying potential threats. The center will also provide advanced forensic services, aiding in criminal investigations. This marks a significant step in Ghana's efforts to leverage technology to ensure the safety and security of its citizens.

Why It Matters: 

The establishment of Africa's largest AI-driven security center in Ghana signifies a crucial move towards the continent developing its own robust cybersecurity infrastructure. This initiative has the potential to offer security solutions that are more tailored to the specific needs and challenges of the region, and importantly, could prove to be a more cost-effective alternative to relying solely on foreign cybersecurity services. By building local expertise and infrastructure, Africa can gain greater control over its digital security landscape, ensuring data sovereignty and potentially fostering economic growth through the development of its own cybersecurity industry. 

NDPC Partners with Tech Firms to Pioneer AI Sandboxes

Nigeria's National Data Protection Commission (NDPC) is collaborating with various technology companies to launch AI sandboxes ("test zones”). Think of these sandboxes("test zones") as safe spaces where organizations can try out and build new AI tools and services without worrying about immediately impacting real users or violating data protection rules. The initiative aims to foster responsible AI innovation and accelerate the adoption of AI technologies within the African continent. By creating these spaces, the NDPC and its partners seek to strike a balance between technological advancement and safeguarding the privacy and rights of individuals in the era of artificial intelligence. The focus is on creating adaptive sandboxes that can evolve alongside the rapidly developing AI landscape.

Why it matters?

The partnership between the NDPC and tech companies to set up AI sandboxes is a meaningful move toward building responsible AI solutions. These sandboxes are safe, controlled spaces for developing and testing AI thereby  making it easier to create technologies that respect data privacy right from the start. This not only speeds up AI adoption across different industries but also helps boost economic growth.

Beyond the tech, this initiative can help build public trust by ensuring AI systems follow data protection laws. It also supports the growth of local talent and could become a leading example for other regions looking to advance in AI while keeping ethics and privacy in check.

NITDA champions small language models for Africa’s AI future

Kashifu Inuwa Abdullahi, the Director-General of Nigeria's National Information Technology Development Agency (NITDA), is championing the adoption of small language models (SLMs) as a strategic pathway for Africa's advancement in artificial intelligence (AI). He emphasized that Africa doesn't need to compete directly with the massive AI infrastructure of large global tech companies. Instead, the focus should be on leveraging SLMs, which are more adaptable and require fewer resources, to address the continent's unique challenges and linguistic diversity.

He pointed to the success of a Nigerian SLM (Afro SLM) developed by a local startup, which has demonstrated strong performance in understanding and processing Nigerian languages, showcasing the potential of localized AI models. He believes that by focusing on SLMs and strategic collaborations, Africa can build a sustainable and impactful AI ecosystem tailored to its specific needs.

Why It Matters:

Focusing on SLMs offers a practical and cost-effective route for Africa to harness the power of AI without needing to replicate the expensive infrastructure of major global players. The success of indigenous SLMs, like Afro SLM, underscores the effectiveness of creating AI models specifically designed for African languages and contexts. This localized approach not only fosters innovation and reduces dependence on foreign AI but also ensures that AI solutions are culturally relevant and directly address the needs of African communities, paving the way for a more inclusive and impactful AI-driven future for the continent.

Other Developments

• TeKnowledge Launches AI-First Services and New Brand in Nigeria

  TeKnowledge has introduced its AI-First Expert Services and a new brand identity in Nigeria, marking seven years of local impact. The announcement was made at the 2025 CxO Summit in Lagos.

  The company employs over 2,000 local experts, and provides tech services to 90 countries. In partnership with Microsoft, it has trained over 7,000 Nigerians in AI, including more than 1,000 women.

  TeKnowledge is also expanding its AI-powered cybersecurity services, with its Security Operations Center based in Nigeria.

• Dyna.Ai Launches in Nigeria with Dyna Day Event

  Dyna.Ai, a global AI-as-a-Service company, officially launched in Nigeria with “Nigeria Dyna Day” on May 15, 2025, at Four Points by Sheraton Lagos. Themed “AI Unleashed,” the event showcased Dyna.Ai’s AI tools for the financial sector.

  The event featured live demos, panel sessions. Among the high-profile guests expected were CBN Governor Olayemi Cardoso, Minister of Communication, Innovation and Digital Economy Dr Bosun Tijani, and NITDA DG Kashifu Abdullahi.

  Dyna.Ai’s entry into Nigeria aims to support fintechs, banks, and government agencies with localized AI solutions to improve efficiency and decision-making.

Around the world

Google Launches AI Accessibility Features for Android and Chrome

Google is rolling out new AI tools to improve accessibility. Key updates include Project Gameface, which lets users control devices using facial movements, and enhancements to the Lookout app that describe images and text for visually impaired users. Chrome will also get AI-powered text summaries. These features aim to make digital access easier for users with disabilities.

Stability AI Unveils On-Device Audio Model for Smartphones

Stability AI has released Stable Audio Open Small, a lightweight AI model that generates short audio clips directly on smartphones. Built with Arm, the model runs offline, producing up to 11 seconds of stereo audio in under 8 seconds.

Trained on royalty-free data, it avoids copyright issues and is designed for creating sound effects and music snippets. The model supports only English prompts and may lean toward Western musical styles.

It is free for individuals and small businesses. Larger companies must obtain a license. The release makes AI audio tools more portable and accessible.

Saudi Arabia Launches 'Humain' AI Venture Amid Major Forum

Saudi Crown Prince Mohammed Bin Salman has introduced "Humain," a new AI company under the Public Investment Fund, aiming to position the kingdom as a global leader in artificial intelligence. The announcement coincided with a high-profile investment forum in Riyadh, attended by former U.S. President Donald Trump and tech leaders including Elon Musk, Sam Altman, and Mark Zuckerberg.

Humain plans to develop advanced AI infrastructure, including data centers and a multimodal Arabic large language model, supporting Saudi Arabia's Vision 2030 goals for economic diversification. The launch underscores Saudi Arabia's commitment to advancing AI technology and fostering international tech partnerships.

Around the Web - Top Picks

• AI agents are reshaping the future of work, business, and productivity.
  A bold debate featuring Replit’s Amjad Masad, Bret Weinstein, and Daniel Priestley explores the risks, opportunities, and scale of disruption.
  Watch the full episode: The Diary of a CEO – AI Debate

• A new wave of industrialisation may be emerging in Nigeria, powered not by factories, but by AI, fintech, and digital services.
  This essay explores how local innovation and global demand are reshaping Nigeria’s economic identity.
  Read the full piece: A Different Kind of Industrialisation – by Tolu Grey

• A new report from the Mastercard Foundation explores how AI is reshaping Africa’s BPO and IT-enabled services sector.
  It highlights emerging risks, workforce opportunities, and the urgent need for upskilling.
  Read the full report: Preparing for AI in Africa’s BPO and ITES Sector

Upcoming African AI Events

International Conference on Artificial Intelligence in Medical Applications (ICAIMA)
Date: 21st - 22nd May, 2025
Location: Alexandria, Egypt
Theme: Artificial Intelligence in Medical Applications
Link: AI in Medical Applications 

International Conference on Artificial Intelligence in Law and Legal Practice (ICALL)
Date: 24 May, 2025
Location: EL Eulma, Algeria
Link: AI in Law 

International Conference on Artificial Intelligence Research (ICAIR)
Date: 28 May
Location: Freetown, Sierra Leone
Link: AI Research

IndabaX Ghana
Date: 18th - 20th June
Location: Ashesi University, Berekuso
Theme: From skills to Impact: Empowering Ghana’s Data science evolution
Link: IndabaXGhana

AI Job Opportunities

• Safaricom – Data Scientist (Generative AI), Nairobi

• Oxygen X– Senior Data Scientist, Lagos

• UN Habitat– AI for Knowledge Initiative Lead, Nairobi

• Unis – AI Robotics Business Partner, Lagos

• Cavista Technologies – Python Engineer (AI/ML) Level I-II. Nigeria

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