AI investment needed to secure Africa’s digital sovereignty – Idaretsit

The AI Industry is projected to reach $4.8 Trillion in size by 2033, according to the UN.

This is much larger than the combined GDP of 54 African countries today.

With over $650 billion invested in Artificial Intelligence over the last decade, the fourth industrial revolution is surging ahead.

Looking at this closely, I had pondered on how this opportunity could extend to low-income countries in Africa and the emerging South. AI will fuel the world’s creative economy, transform health care systems, strengthen military defence, democratize access to education, and improve agricultural yields in the future.

It could also widen the economic and social gap between the global north and the global south, leading to job cuts while unlocking latent possibilities in research and development – an intriguing paradox.

With 17% of the world’s population and 1% of global digital infrastructure, Africa needs more investment in digital/data technology than it currently attracts. Without consistent investment in Data or AI infrastructure, Africa will depend on other countries, which will expose the continent to a litany of risks, including connectivity latency, biased algorithms,  digital colonisation, capital flight and inadvertently widen the poverty gap in a future powered by data and machines.

There is a need for an inclusive and sustainable approach to AI Investment. To attract investment sustainably, African policymakers must understand the economics of data extraction and how this is similar to exporting unprocessed raw materials and importing finished goods created from these raw materials.

Policy makers must see these opportunities through the lens of the resource curse or the paradox of plenty. They must take proactive steps to advance technology/data sovereignty, leading to inclusivity, sustainability and equitable access devoid of bias.

Tremendous opportunities exist across the Data Sourcing, Data Labelling, Ingestion and Data Enablement phase of the AI value chain for  African countries. From Data annotation to Data Cleaning and Preparation, etc, opportunities for economic upside and data inclusivity exist at the early stage of the AI value chain.

At these early stages, human capital is required to prepare data for training AI models. With Africa’s predominantly youthful population and low labour cost, we can unlock substantial economic upside and foster greater data inclusivity globally. The initial stages of the AI value chain, encompassing these critical data-centric tasks, are instrumental to technology inclusivity, sovereignty, equity and sustainability.

Data labelling, a process of adding meaningful information to raw data to facilitate machine learning and artificial learning, is a $22.46 billion global industry and is expected to grow at a CAGR of 20.34% from 2025 to 2034. This is a good investment opportunity. The participation of African countries in Data labelling will contribute to local economic growth, ensuring diverse datasets on Africa are adequately represented, mitigating bias, and promoting more equitable and inclusive AI products.

Investing in and developing capabilities in these fundamental data preparation stages is therefore crucial for realizing the full potential of AI. Some African companies, such as Lelapa and Sama, are actively providing these services for hyperscalers around the world.

The core primacy, or at the heart of AI technology, is accurate datasets. Dataset inaccuracy is a problem that plagues the burgeoning industry.

African companies focusing on providing accurate African datasets for AI models are champions and heroes driving Technology inclusiveness, Digital sovereignty and AI Autonomy.

This was the crux of my message at the recently concluded United Nations-backed AI for developing countries conference in Vienna, Austria.

Our future cannot be defined by others but by ourselves, and on our terms. We may have missed the first, second and perhaps the third industrial revolution, but another beckons. The 4th Industrial Revolution is here. The era of Human-Physical interaction, Internet of Things (IOT), Artificial Intelligence and Robotics is here.

There is wind in our sails, and we have a very youthful population (ideal for data enablement or the foundational building blocks for AI technologies). There is a huge investor appetite for AI infrastructure and services. There is a global demand for more inclusive, equitable and sustainable AI technologies and on this path is a litany of opportunities.

Can African countries participate in this revolution by becoming part of the value chain? Can Investors find Africa attractive for AI investment? Can Africa, with all its challenges, attract AI investment?

Yes, Africa can!

There are tremendous risks if we are passive or reactive. We will miss out on investment opportunities and will face a barrage of biased technology products, which will be detrimental to our identity, healthcare, education, culture, financial services, defence, literally everything powered by AI.

Tremendous efforts have been made by African countries to be a part of the revolution.

From the African Union launching the continental AI strategy to the National AI Strategy and Frameworks of some African countries such as  Nigeria, Kenya, Egypt and South Africa. Some African countries have taken proactive steps in providing clarity on AI strategy and their future.

This is another chance to attract local and foreign investment, another opportunity to join the Global North to build planetary inclusiveness and Digital sustainability.

We are the architects of our future, and we must define the story that will be told, irrespective of the challenges we face today.

This we must do and this we must NOW!

There Is No Beauty But the Beauty of Action – An African Proverb.

Abasiama Idaresit, CEO of Wild Fusion Holdings, is a distinguished technology entrepreneur and venture capitalist with extensive experience investing in African tech companies.

Recognized by the UN-backed MIPAD (Most Influential People of African Descent) Top 100 and France’s Choiseul Institute as a Top 200 Under-40 Young Economic Leader in Africa, he is celebrated for his visionary leadership.

Under Idaresit’s guidance, Wild Fusion Holdings has diversified to include a Central Bank-licensed Agency Bank focused on financial inclusion, a venture capital subsidiary, a Digital Training Centre, and a Digital Marketing agency network spanning Nigeria, Ghana, and Kenya.

Beyond his executive role, Mr. Idaresit serves on the Board of LEAP Africa, a youth-focused non-profit supported by Mastercard and the Gates Foundation, demonstrating his commitment to fostering youth leadership and development across the continent. His entrepreneurial spirit, strategic vision, and dedication to social impact establish him as one of the leaders in African business and philanthropy.

AI investment needed to secure Africa’s digital sovereignty – Idaretsit - Nairametrics