Artificial intelligence (AI) could help expand Africa’s digital economy, boost productivity and reduce poverty, but poor households risk being excluded from its benefits because of limited access to affordable internet, devices, electricity and digital skills, the World Bank has warned.
In its October 2026 Africa Economic Update, the World Bank said AI could become a platform for poverty reduction across the continent if access to the technology is broadened.
However, it said the benefits could remain concentrated among wealthier households, highly educated workers, formal businesses and better-connected urban communities if digital access remains unequal.
Nigeria’s developer community grows rapidly
The report highlighted the rapid growth of Africa’s software development communities since the global AI boom.
In Nigeria, the GitHub developer base has expanded tenfold since 2020, according to the World Bank.
Ghana has also recorded significant growth, with its GitHub developer base increasing nearly eightfold. The report linked the acceleration in registrations partly to the availability of free AI coding assistants.
“Some early signals are encouraging, showing that African countries have become increasingly active in software development since the AI boom,” the World Bank said.
The Bank said the growth demonstrates what AI could deliver if more people across Africa gain access to the technology.
AI could boost key sectors
According to the World Bank, broader access to AI could help drive the growth of Africa’s digital services sector while strengthening regional collaboration and boosting productivity. The technology could also bring significant improvements across key sectors, including agriculture, education, healthcare and finance.
“These early signals point to what AI could deliver if access broadens: a larger digital services sector, stronger regional collaboration, and productivity gains in the sectors that touch poor households, from agriculture to education, health, and finance,” the Bank said.
However, the institution warned that affordability remains a major barrier to achieving these gains.
Internet and device costs remain barriers
The World Bank said mobile internet in Sub-Saharan Africa remains the least affordable in the world relative to income.
According to the report, a basic mobile data package costs about twice the United Nations affordability target of 2% of average monthly income.
The cost of internet-enabled devices is another challenge.
The Bank said an entry-level handset costs the poorest 20% of the population the equivalent of about three-quarters of a month’s income.
Electricity access also affects the ability of households to benefit from digital technology.
“Mobile phone ownership alone does not provide meaningful digital access without reliable electricity,” the report said.
Across 19 African countries with data on both phone ownership and electricity-grid connections, only 12% of households in the poorest income quintile have both a phone and an electricity-grid connection.
That compares with 54% among households in the richest income quintile.
Poor households risk missing AI gains
The World Bank said internet use also varies significantly according to household income.
In many African countries, fewer than 10% of adults in the poorest income quintile are online, while online participation exceeds 60% or 70% among adults in the richest quintiles in better-connected economies.
The Bank warned that this gap could cause AI-driven productivity gains to be concentrated among people and businesses that already have the resources to adopt the technology.
Farmers, informal businesses, schools, clinics and communities in underserved areas could therefore remain excluded from the benefits of AI.
“The immediate risk for most African economies is not mass displacement of poor workers by AI, but rather that the productivity gains from AI accrue almost entirely to highly educated workers, formal firms, and richer urban households,” the World Bank said.
Africa needs to expand digital access
The World Bank said African countries need to move beyond simply connecting markets and focus on connecting poor people and underserved communities.
It called for greater investment in:
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Affordable internet connectivity
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Reliable electricity
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Digital skills
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Computing capacity
The Bank said expanding access could help AI become a tool for broader economic participation and poverty reduction.
“If African countries make that transition, AI can become a platform for broad-based productivity growth and poverty reduction. If they do not, it will amplify the advantages of those already connected,” the World Bank said.
The findings underline a key challenge for Nigeria and other African economies: the ability to adopt AI is growing, but ensuring that its economic benefits reach poorer households will depend on how widely access to the underlying digital infrastructure and skills can be extended.
Source: Premium Times
