Leading research and advisory firm, Caribou Digital, in partnership with the Mastercard Foundation, has today released a new report titled; The Role of AI Innovation Clusters in Fostering Youth Employment in Africa: Opportunities, Challenges, and Implications.
The report offers insights on what role Artificial Intelligence (AI) innovation can play in addressing Africa’s persistent youth unemployment challenges and shaping a more prosperous future for the continent’s workforce.
The report makes a compelling call for a unified and strategic approach from governments, academia, Big Tech, and investors to cultivate and transform Africa’s AI ecosystem.
In 2020, 60% of Africa’s population was under 25 and its tech-savvy youth population is set to double by 2030, making up 42% of the world’s youth.
This represents a significant opportunity to expand Africa’s tech talent pool, create broad-based jobs within the AI industry, and drive economic growth.
Africa’s AI ecosystem is home to more than 127 hubs with South Africa hosting the largest concentration (22%), followed by Nigeria (12%), Egypt (12%), and Kenya (10%) all of which play instrumental roles in overcoming barriers and accelerating economic and talent development.
The report highlights six components of a cluster driving AI innovations in Africa: grassroots AI communities, academia, human capital, policymakers, Big Tech, and investors.
Among them, grassroots AI communities comprising data scientists and AI professionals have emerged as a strong nucleus for Africa’s AI landscape.
Groups like Data Science Africa, Deep Learning Indaba, and Data Science Nigeria are shaping the future by building skills, showcasing African AI research globally, attracting investments, and creating jobs.
The communities bring people and ideas together, connecting local talent with global opportunities, from international events to everyday WhatsApp chats, sparking growth and innovation across the continent.
Using both qualitative and quantitative methods to uncover key insights, it is assessed that while the grassroots initiatives remain critical in bridging the continent’s AI skills gap, offering upskilling opportunities and job placements, limited resources constrain their potential.
This highlights a collective drive by all components of innovation clusters is essential to advance a thriving ecosystem.
To achieve this, the report offers the following recommendations:
- Academia should expand AI programs, train more professors, and align university curricula with industry needs.
- Policymakers and African governments should develop comprehensive national AI strategies that balance innovation with ethical safeguards.
- The government should also prioritise infrastructure development such as reliable electricity, affordable internet, and better data access to support AI growth.
- Big Tech should foster fair partnerships that empower local ecosystems, prioritize knowledge transfer, and protect data sovereignty.
- Investors should diversify funding beyond health and agriculture to unlock AI’s potential in other critical sectors like education and financial inclusion.
- Donors should invest heavily in human capital development initiatives, particularly those focused on youth employment. They fund training programs, scholarships, and fellowships that aim to build a pipeline of skilled AI professionals.
Commenting on the report, Abbie Phatty-Jobe, research & engagement manager at Caribou Digital, said:
“Artificial Intelligence, harnessed collaboratively, has the power to positively shape the African employment landscape and boost the economy. In collaboration with our research partners, we have explored emerging clusters within the distinct context of Africa to address critical challenges and accelerate development; their success depends on a collective strategic approach that tackles inclusivity, and targeted investment in local talent and infrastructure. By empowering grassroots communities, strengthening academia-industry ties, and fostering equitable partnerships, we can build an AI ecosystem that truly reflects Africa’s unique strengths and aspirations.”
Speaking about the key role of grassroots communities in driving innovations, Wadzi Comfort, a researcher and digital economy expert, said
“The emergent AI innovation clusters across Africa showcase remarkable ingenuity and potential in the face of scarce resources. Tech-savvy, motivated young people; – our greatest asset emerging from Africa’s youth population boom; are spearheading local AI-powered solutions to address local challenges, demonstrating exceptional agency and creativity. These innovations span a wide spectrum, including AI-powered diagnostic tools, Informal educational academies, Large Language Models (LLMs) in local languages, community-driven knowledge sharing platforms and collaborative tech convenings. These youth-driven initiatives and their innovators merit substantial support and resources to accompany their agency, and foster their growth and impact.”
Private investors, African governments, and donors not only provide crucial financial resources but also shape the direction of innovation by prioritising specific areas of investment.
Venture capital for DeepTech startups has soared from $86 million in 2015 to $1.2 billion in 2023, with over 300 investors—65% based in Africa—and 127 innovation hubs driving growth.
Key government initiatives, like Nigeria’s AI Research Scheme and South Africa’s AI Institute, alongside philanthropic support from the Mastercard Foundation and Bill & Melinda Gates Foundation, will keep creating an environment that addresses local challenges, drives innovation, and positions Africa at the forefront of AI technology.
The report employs the snowball research method to conduct in-depth interviews with 25 African AI experts, including policymakers, educators, and industry leaders, uncovering the state, challenges, and opportunities for AI innovation clusters.
It also highlights insights from 18 young tech professionals involved in AI or tech fields from Zindi, Africa’s largest data science community, on their skills, job prospects, challenges, and AI’s impact on employment.
Additionally, the report includes a comprehensive review of academic studies, policy documents, and reports on AI, innovation clusters, and youth employment across Africa.
