Africa Must Build Better Data Systems to Unlock AI’s Economic Potential

By Benson Daniel

Africa needs stronger data systems and digital infrastructure if the continent is to fully benefit from the rapid expansion of artificial intelligence, with experts warning that limited access to reliable, locally relevant data could hold back productivity and economic growth.

The growing use of AI is creating opportunities across healthcare, agriculture, education, financial services and public administration. But the technology depends heavily on the availability of accurate and accessible data that reflects local realities, languages, markets and institutions.

The need for better data is becoming more urgent as African countries seek to move beyond simply importing AI tools and begin adapting them to their own development challenges. The World Bank has identified local data, digital infrastructure, reliable electricity, internet access and skills as important foundations for developing economies seeking to gain from AI.

For Africa, the quality of available data is particularly important. Many countries still have fragmented public records, limited digitalisation of government information and gaps in data collection across sectors. These weaknesses can make it difficult for AI systems to produce reliable results or provide solutions tailored to African conditions.

Better data could also help businesses make more informed decisions. Companies could use reliable datasets to understand consumers, improve supply chains, manage risks, forecast demand and develop products suited to local markets.

In agriculture, for example, AI can combine weather, soil and crop information to provide farmers with more precise guidance. In healthcare, better data can support disease surveillance and medical screening, while in education it can help tailor learning materials to students’ needs.

The economic opportunity is significant because AI can increase access to expertise in countries where highly specialised professionals remain in short supply. The World Bank says AI is already being used in developing economies for applications including agricultural advice, healthcare and education, while smaller and lower-cost AI systems could extend these benefits to people using basic phones and other less sophisticated technologies.

However, data alone will not be enough. African countries also need reliable electricity, affordable internet, computing capacity, digital skills and regulatory systems capable of supporting responsible data use and AI development.

There is also a growing question of data ownership. As African businesses and governments generate increasing amounts of valuable information, the ability to store, protect and use that data locally could become an important part of the continent’s digital economy.

For Nigeria and other African economies, improving data infrastructure could therefore become as important as attracting investment in data centres and AI computing. Stronger local datasets would help ensure that AI systems understand African markets instead of relying predominantly on information generated elsewhere.

Africa’s AI opportunity will ultimately depend not only on how quickly the continent adopts new technologies, but also on whether it can build the data and infrastructure needed to make those technologies useful at scale.