UN urges Africa to borrow, boost revenue to fund AI infrastructure gap

African governments are being urged to take a more assertive financial approach to avoid missing out on the global artificial intelligence boom, as the United Nations Economic Commission for Africa warned that the continent’s limited infrastructure risks leaving more than 50 countries behind in the race for digital transformation.

Africa urged to fund AI infrastructure

In a report released at a meeting of African ministers of finance in Morocco, the Ethiopia-based UN commission said nations should consider borrowing, strengthening domestic revenue collection, and mobilizing capital from pension funds and sovereign wealth funds to build the digital and energy infrastructure needed to support artificial intelligence adoption.

The commission said Africa’s current position highlights a widening global gap. Less than 1 percent of the world’s data centers are located on the continent, a shortfall the report described as both an economic and sovereignty challenge. Without sufficient data infrastructure, African economies risk depending on external digital systems while losing opportunities to develop local industries tied to artificial intelligence, cloud computing, and advanced data services.

The report framed the challenge not only as a technology issue but also as a financing and policy priority. Public budgets alone will not be enough to fund the required infrastructure, the commission said, urging governments to strengthen domestic tax collection while tapping financial markets, pension funds, sovereign wealth funds, and blended finance structures. These funding sources, the report added, could help governments accelerate investments in data infrastructure and energy generation, two areas it said are closely linked.

AI, power investments reinforce growth

Strategic investments in digital infrastructure and power generation can reinforce each other, according to the commission, by supporting electricity demand while enabling digital industries that rely on stable and reliable energy. The report also called for governments to prioritize skills training and fully implement the African Continental Free Trade Area to complement technology investments and encourage cross-border digital growth.

The commission said artificial intelligence adoption, alongside digital platforms and robotic production systems, could help African economies reduce their dependence on commodity exports. By strengthening manufacturing capacity and digital industries, countries could move toward producing and exporting finished, high-value goods rather than relying primarily on raw materials.

“Today, competitiveness increasingly depends on a country’s capacity to generate, govern, and apply data and frontier technologies,” the UN commission said, emphasizing that access to artificial intelligence tools and infrastructure will shape economic growth and industrial development.

Africa moves beyond raw exports

The report also highlighted the role of Africa’s critical minerals, noting that stronger technology capacity could allow countries to process more of their own resources. Instead of exporting raw materials, governments could use artificial intelligence and advanced manufacturing to produce batteries, processors, and other finished goods domestically, creating new industries and jobs while retaining more value within local economies.

Taken together, the commission’s message was clear: financing artificial intelligence infrastructure is no longer optional. For African governments, borrowing strategically, boosting revenue, and mobilizing domestic capital may determine whether the continent becomes a consumer of global technology or a participant in shaping the next phase of economic growth.