Leveraging data and Artificial Intelligence to bridge Africa's $90 billion infrastructure gap

AFRICA’ infrastructure deficit, a $90 billion annual gap, casts a long shadow over the continent's future. The African Development Bank estimates this shortfall shaves nearly 2% off GDP growth each year, choking economic potential and social progress.

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From unreliable power grids to crumbling roads, these gaps inflate costs, isolate communities and stifle opportunity.

Yet, within this challenge lies a chance to reimagine infrastructure through data and artificial intelligence (AI), transforming obstacles into pathways for growth. The infrastructure gap ripples across Africa's economy and society. Poor logistics, with transport costs 30-40% higher than in other regions, undermine the African Continental Free Trade Area's (AfCFTA) promise of a 52% boost in intra-African trade.

These inefficiencies translate into pricier goods and fewer jobs, locking nations in a cycle of lost potential. Limited access to electricity and reliable roads further restricts digital economies and isolates rural areas, with logistics bottlenecks costing the continent $130 billion annually in economic inefficiencies. Closing this gap is not just a necessity but an economic opportunity, poised to unlock billions in growth and attract investment from across the globe.

Systemic barriers sustain this crisis. African governments collect less tax revenue than other developing regions, leaving them with limited funds for major projects. Compounding this, fewer than 10% of proposed infrastructure projects reach financial close, as 80% falter at the feasibility stage due to inadequate planning. Private investment, which hit only $40 billion in 2021, remains a fraction of what's needed. At the heart of these issues lies a critical flaw: incomplete, outdated and fragmented data. Without real-time insights into road conditions, energy access, or logistical efficiency, planning becomes guesswork and investors shy away from high-risk ventures.