IFC: Africa risks missing out on AI benefits without investment in infrastructure

The International Finance Corporation (IFC) says Africa risks missing out on the transformative benefits of artificial intelligence (AI) if it fails to invest in infrastructure.

Dahlia Khalifa, the IFC regional director of Central Africa and Anglophone West Africa, spoke during the 2025 Gulf Information Technology Exhibition (GITEX) Nigeria conference on Wednesday in Lagos.

Khalifa said AI in Africa is transforming the continent, unlocking extraordinary promise to scale traditional barriers and accelerate progress in key sectors like health, education, and finance.

The IFC director, however, warned that without significant investments in critical infrastructure, including energy, broadband, and digital skills, Africa risks missing out on the transformative benefits of AI.

Quoting IFC’s recent report, titled ‘Digital Opportunities in African Businesses’, she said digital transformation will boost productivity, raise wages, and create better jobs for millions, benefiting over 600,000 formal businesses and 40 million microenterprises.

“This is why the role of the private sector and public-private dialogue is decisive,” the IFC director said.

“Infrastructure is the foundation, but entrepreneurship is the engine and to seize this opportunity, we need reliable broadband, robust data centres, modern digital infrastructure, and more energy, particularly clean energy that is sustainable.

“We need investment in skills and training programmes that prepare Africa’s youth for the jobs of today and tomorrow.

“We need partnerships between governments, the private sector, and international institutions to create the right policies, foster trust, and mobilise capital at scale.”

She said the IFC is committed to unlocking Africa’s digital future, having financed over $6 billion in digital infrastructure across the continent, including data centres, fibre networks, and affordable broadband, over the last decade.

‘YOUNG INNOVATORS REWRITING AFRICA’S FUTURE’

On the continent’s opportunities, the IFC executive said Africa’s demographics give it a competitive edge in the digital economy, with Nigeria positioned to take the centre stage.

Khalifa said a young generation of innovators is rewriting Africa’s future, fuelled by rapid internet adoption and mobile penetration that is expanding the digital economy at a remarkable speed across the continent.

She said Africa’s population surge, growing from 1.5 billion to 2.5 billion in the next 25 years, will bring 600 million youths into the job market, driving the fastest growth globally and charting the continent’s future.

“With more than 60 percent of Africans under the age of 25, and smartphone adoption rising steadily, Africa is home to one of the largest pools of digital natives in the world,” the IFC director said.

“Over the past decade, Africa’s digital economy has been one of the fastest growing in the world and is quickly becoming a centre of attraction.

“By 2030, it is projected to contribute about $180 billion to Africa’s Gross Domestic Product (GDP).”

DUBAI WORLD TRADE CENTER VP LAUDS LAGOS STARTUPS

Also speaking, Trixie Lohmirmand, the executive vice-president of the Dubai World Trade Center, commended Lagos startup innovators for thriving despite challenges, describing them as the fastest-rising and fastest-growing emerging stars globally.

Lohmirmand noted that Nigeria’s resilience enables it to scale new heights, creating a high-speed space for technology to thrive in Lagos and beyond.

She said Nigeria would be given access to thrive, as Lagos becomes a hub where innovative “unicorns” build new infrastructure and industries from scratch.