By Seade CAESAR
When the leaders of the world’s major economies gathered in Johannesburg for the 2025 G20 Summit, the global conversation revolved around digital transformation, fair development, and the future of the Global South.
Yet among all the announcements made during the summit, one statement stood out as strategically important for the African continent: the United Arab Emirates’ commitment of $1 billion to expand artificial intelligence infrastructure and AI-enabled development across Africa.
Although the UAE is not a permanent member of the G20, its presence as a special guest nation and its bold investment announcement signaled a clear message, the Gulf state sees Africa not only as a partner, but as a cornerstone of its emerging global technology vision.
This initiative, described as one of the most ambitious AI-development commitments ever directed toward Africa, places the UAE at the center of a new era of digital cooperation between Africa and the Gulf.
A Strategic Moment at a Strategic Summit
The 2025 G20 Summit, held for the first time on African soil, provided the perfect platform. With a theme centered on “Solidarity, Equality, and Sustainability,” the summit highlighted the need for accessible digital transformation, inclusive growth, and modern infrastructure for the developing world.
The UAE delegation, led by Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, seized the moment to unveil a bold plan that aligns global development priorities with technological innovation. The announcement was delivered by UAE Minister of State Saeed bin Mubarak Al Hajeri, who framed the initiative as a commitment to ensuring that “no part of the Global South is left behind in the age of artificial intelligence.”
In a world where artificial intelligence is becoming a foundation for economic competitiveness, the UAE positioned itself not merely as a donor, but as a development partner ready to shape the next technological frontier in Africa.
What the US$1bn AI Initiative includes
AI Infrastructure for the Continent
The UAE’s initiative places strong emphasis on building modern AI infrastructure that many African countries currently lack. This includes expanding access to high-performance computing systems, advanced data centers, secure cloud platforms, and AI-ready hardware such as specialised chips.
By providing these foundations, the initiative aims to help African governments, universities, and private firms run sophisticated AI models, process large datasets, and develop home-grown digital solutions. Strong infrastructure is essential for scaling national digital services, supporting innovation, and enabling long-term technological independence.
AI-Enabled Services for National Development
AI-enabled services for national development focus on applying artificial intelligence to solve real sectoral challenges across the continent. Through this pillar, the UAE aims to support African governments in modernizing education with digital learning tools, strengthening healthcare through AI-driven diagnostics, improving agricultural productivity with predictive analytics, and enhancing climate resilience using early-warning systems. It also includes digital identity systems, automated public services, and data-driven policy tools. The goal is to deploy practical, scalable AI solutions that directly improve everyday lives.
Partnerships, Training, and Capacity Building
The UAE’s initiative places strong emphasis on developing local talent and institutional capacity across Africa. Beyond providing technology, the plan promotes long-term collaboration between Emirati institutions, African governments, universities, and private sector actors. It includes specialised AI training programs, skills development for youth, technical workshops, and support for policy makers to strengthen digital governance. By building human capital alongside infrastructure, the initiative ensures African countries can operate, adapt, and sustain AI systems independently over time.
Support for Scalable, Real-World Solutions
The UAE’s initiative places strong emphasis on deploying AI systems that produce measurable results rather than small pilot experiments. The goal is to help African countries adopt solutions that can operate at national or regional scale whether in agriculture, health, education, or governance.
This focus ensures that AI tools are integrated into everyday systems, serving millions rather than select communities. It also encourages long-term sustainability, local ownership, and real impact aligned with national development priorities.
Why the UAE is making this investment
Strengthening Africa-Gulf Cooperation
The UAE’s AI initiative deepens long-standing political and economic ties between Africa and the Gulf by shifting cooperation into high-tech, and future-focused sectors. It positions both regions as partners in digital development, expands bilateral engagements, encourages shared innovation, and lays the foundation for long-term collaboration in trade, security, investment, and technological growth.
Advancing Its Global AI Leadership
The UAE’s initiative strengthens its push to become a global leader in artificial intelligence by extending its technological influence beyond its borders. By supporting AI adoption across Africa, the UAE showcases its capability, deepens international partnerships, and positions itself as a driving force shaping AI innovation, governance, and development worldwide.
Expanding Its Soft Power and Economic Links
The UAE’s AI initiative deepens its soft power by positioning the country as a forward-thinking development partner for Africa. Through technology cooperation, it strengthens diplomatic influence, opens new trade corridors, and creates long-term economic ties. This engagement boosts the UAE’s credibility, global visibility, and strategic partnerships across emerging African markets.
Supporting the Global South
The UAE’s initiative signals a commitment to uplifting developing nations by ensuring they are not excluded from the benefits of advanced technology. By investing in AI capacity, digital infrastructure, and skills across Africa, the UAE promotes shared growth, reduces global inequality, and strengthens South-South cooperation for long-term development.
What This Means for Africa
The announcement is a major opportunity for African governments, universities, private sector players, start-ups, and civil society.
Closing the Digital Divide
The UAE’s AI initiative can narrow Africa’s digital gap by expanding access to modern computing power, reliable data infrastructure, and advanced digital services. By supporting connectivity, AI-enabled tools, and capacity building, the plan helps underserved communities gain opportunities previously limited to technologically advanced regions, enabling more inclusive economic participation and accelerating continent-wide digital transformation.
Transforming Key Sectors
The UAE’s AI initiative has the potential to transform key sectors across Africa by introducing advanced digital tools that improve efficiency and service delivery. In education, AI can enhance learning and teacher support. Healthcare systems benefit from faster diagnostics, while agriculture gains precision tools for better yields. Climate monitoring, digital identity, and public services also become more reliable through intelligent, data-driven solutions.
Building Local Talent and Institutional Capacity
Building local talent and institutional capacity is central to the UAE’s AI initiative. It focuses on training African professionals, supporting universities, and equipping government agencies with the skills needed to adopt and regulate AI effectively. By strengthening digital literacy, technical expertise, and policy readiness, the program ensures African countries can independently manage, innovate, and sustain AI-driven development over the long term.
Boosting Digital Innovation and Start-Ups
The UAE’s AI initiative creates a stronger foundation for Africa’s tech start-ups by expanding access to advanced computing, reliable data infrastructure, and AI development tools. With better resources, innovators can build and scale solutions in health, agriculture, education, and fintech. This support encourages entrepreneurship, attracts investment, and strengthens Africa’s digital economy and innovation ecosystem.
Countries Likely to Benefit First
Although the plan is continent-wide, several countries may be early beneficiaries due to existing UAE partnerships and readiness for digital transformation. These include:
- South Africa
- Kenya
- Nigeria
- Ghana
- Rwanda
- Egypt
- Ethiopia
- Morocco
- Senegal
Each of these nations has digital strategies that could integrate AI at scale with UAE support.
A New Chapter in Africa-Gulf Digital Relations
The UAE’s $1 billion AI initiative signals a major turning point in Africa-Gulf relations, shifting the partnership from traditional trade and investment to high-value technological cooperation. By placing AI at the center of its engagement, the UAE positions itself as a long-term digital development partner for African nations.
This new chapter deepens diplomatic ties, encourages knowledge exchange, and opens pathways for joint innovation across sectors like education, health, agriculture, and climate resilience. It also reflects a broader geopolitical shift in which Gulf states are emerging as key players in shaping Africa’s digital future, fostering collaboration rooted in technology and shared development goals.
Key Sectors Expected to Surge Under the UAE’s AI Initiative
Short Term: Rapid Uptake & Foundational Growth
In the short term, Africa will experience rapid digital uptake as the UAE’s $1 billion AI initiative drives early gains in ICT, fintech, e-governance, and logistics. ICT and data-center activity are expected to grow by 8-12% annually, while fintech already Africa’s fastest-growing sector could expand by 15-20% with AI-enabled fraud detection and digital payments. Digital identity systems may cover an additional 150-200 million people, improving service access. Fast-deploying AI logistics tools could reduce delivery inefficiencies by 10-15%. Overall, frontrunner economies may see a 0.3-0.6% GDP uplift from early AI integration.
Medium Term: Productivity & Sector Transformation
Africa is expected to see major productivity gains as AI becomes embedded in national systems. Agriculture could experience 5-15% increases in yields through precision farming and climate-based analytics. AI-enabled healthcare may cut diagnostic delays by up to 40%, improving workforce health and reducing system inefficiencies.
Education technologies could raise learning outcomes by 20-30%, while expanding the digital-skilled workforce by 10-20 million people. Manufacturing is projected to achieve 8-12% efficiency gains through predictive maintenance and automation. Public sector adoption of AI could improve service-delivery efficiency by 15-25% across participating countries.
Long Term: Structural Transformation & High-Value Industries
Africa is expected to shift into high-value, tech-driven industries as AI infrastructure matures. The continent’s AI and software sector could exceed $200 billion, while advanced manufacturing and robotics may increase industrial output by 30-40%.
Renewable energy optimized by AI is projected to power over 50% of new electricity generation. Digital trade and e-commerce could surpass $300 billion, driven by AI-enabled logistics and payments. Creative digital industries gaming, film, animation may grow by 8-12% annually. Smart-city development will accelerate, with AI integrated into utilities, transport, and planning, supporting sustained long-term GDP growth.
Conclusion: A Transformative Opportunity
The UAE’s $1 billion AI initiative represents more than financial support; it signals a strategic shift toward technology-driven development across Africa. By launching this commitment at the G20 Summit, the UAE positioned itself as a key partner in shaping the continent’s digital future.
If African countries align policy, infrastructure, and capacity-building with this opportunity, the initiative could accelerate growth, modernize critical sectors, empower local talent, and strengthen Africa-Gulf cooperation. It marks a pivotal moment in Africa’s AI-driven transformation.
Seade is the Executive Director,Africa Global Policy and Advisory Institute
(With strong focus on Africa-Gulf cooperation)
The post UAE’s G20 announcement unveils US$1bn AI Development Initiate across Africa appeared first on The Business & Financial Times.
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