AI governance in Africa: Embracing the 24-hour economy for sustainable growth

By Dr. David King BOISON

Artificial Intelligence (AI) has emerged as one of the most transformative technologies of the 21st century, reshaping industries, economies, and governance worldwide. AI refers to the simulation of human intelligence in machines, allowing them to learn, reason, and make decisions with minimal human intervention.

This technological revolution is significantly altering the way businesses operate, governments function, and societies interact. The global AI market was valued at approximately USUS$136.6 billion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 37.3percent from 2023 to 2030, reaching an estimated USUS$1.8 trillion by 2030 (Grand View Research, 2023). AI’s contribution to the global economy is substantial and continues to expand rapidly.

According to a report by PricewaterhouseCoopers (PwC), AI is expected to add USUS$15.7 trillion to the global economy by 2030. Of this, USUS$6.6 trillion will result from productivity gains, while USUS$9.1 trillion will stem from increased consumption driven by AI-powered services and products (PwC, 2020). The United States and China, as leading AI adopters, are leveraging AI-driven innovations to enhance industrial productivity, boost economic efficiency, and improve overall quality of life.

The transformative power of AI is evident across multiple sectors. In healthcare, AI-driven diagnostics, robotic surgeries, and predictive analytics could generate USUS$150 billion in annual savings for the U.S. healthcare system by 2026 (Accenture, 2021). AI is also revolutionizing transportation with autonomous vehicles, which could reduce traffic congestion and lower traffic-related fatalities by 90percent (McKinsey & Co, 2022). In agriculture, AI-powered precision farming and automated irrigation systems are projected to increase global food production by 70percent by 2050, meeting the demands of a rapidly growing population (FAO, 2021).

For African economies, AI offers an opportunity to bridge developmental gaps, optimize resource management, and stimulate economic growth. However, its successful deployment requires sound governance frameworks that balance innovation with ethical and regulatory considerations. The absence of AI governance policies in many African nations poses risks such as biased algorithms, misuse of data, and lack of accountability in AI-driven decision-making. Thus, AI governance is crucial to ensuring that AI’s benefits are equitably distributed while minimizing potential risks.

The 24-hour economy is an economic model that promotes continuous operations across various industries, allowing businesses to remain productive beyond the traditional 9-to-5 work schedule. Major cities such as New York (USA), Tokyo (Japan), and London (UK) have successfully leveraged this model, witnessing a 10–20percent increase in GDP growth due to round-the-clock commercial activities (World Bank, 2021).

A 24-hour economy brings multiple benefits. It fosters job creation by enabling night shifts and flexible work arrangements, reducing unemployment. It improves consumer access by ensuring services and products are available at all hours, enhancing customer satisfaction and convenience. Additionally, it boosts economic growth by extending business operations and increasing revenue generation across various sectors. AI plays a pivotal role in facilitating the 24-hour economy, particularly in Africa, where infrastructure limitations and labor constraints often restrict economic output.

AI-driven automation, predictive analytics, and digital assistants enable industries to function seamlessly without human intervention. For instance, in Ghana, AI-powered fintech solutions are revolutionizing mobile banking, allowing businesses to operate efficiently, even in remote areas with limited banking infrastructure. AI-driven customer service chatbots and automated financial transactions ensure that economic activities continue around the clock.

This article examines AI governance in Africa and its role in driving a 24-hour economy. It highlights the opportunities and challenges of AI adoption, emphasizing strategic governance frameworks to ensure ethical and inclusive AI deployment. The article explores Africa’s position in the global AI revolution, using successful case studies, particularly Ghana’s AI advancements, as models for replication.

Additionally, it provides actionable recommendations for AI governance, investment, and economic transformation. As Africa embraces the Fourth and Fifth Industrial Revolutions (4IR & 5IR), strategic policies and partnerships will be crucial. Responsible AI governance can unlock economic potential and position Africa as a global AI leader

Understanding AI and its economic impact

1. Definition of artificial intelligence

Artificial Intelligence (AI) refers to the development of computer systems that can perform tasks traditionally requiring human intelligence. These tasks include learning, reasoning, problem-solving, perception, and language understanding. AI systems utilize machine learning (ML), deep learning, natural language processing (NLP), and robotics to automate processes and enhance decision-making across industries.

AI can be classified into three broad categories. Narrow AI (Weak AI) is designed to perform specific tasks, such as facial recognition or voice assistants like Siri and Alexa. This is the most widely used form of AI today. General AI (Strong AI) is a theoretical concept where AI can perform any intellectual task that a human can, with reasoning and understanding equivalent to human cognition. Super AI, which remains hypothetical, refers to AI surpassing human intelligence in all aspects, making independent decisions without human intervention.

1. Global AI industry overview

The AI industry has experienced exponential growth over the past decade, becoming a key driver of economic transformation across the globe. As AI continues to integrate into multiple industries, its economic impact has become more pronounced.

Current market size and growth projections

The global AI market was valued at USUS$136.6 billion in 2022 and is projected to grow to USUS$1.8 trillion by 2030, expanding at a compound annual growth rate (CAGR) of 37.3percent (Grand View Research, 2023). AI’s contribution to the global GDP is expected to reach 14percent by 2030, adding approximately USUS$15.7 trillion to the global economy (PwC, 2020). Investment in AI startups has also surged, reaching USUS$92 billion in 2022, reflecting growing confidence in AI-driven solutions (CB Insights, 2023).

AI’s contribution to different sectors globally

AI is driving innovation across multiple industries, enhancing efficiency, and unlocking new economic opportunities. In healthcare, AI-powered diagnostics, robotic surgeries, and AI-assisted drug discovery could generate USUS$150 billion in annual savings by 2026 (Accenture, 2021). The finance sector has also greatly benefited from AI, with AI-driven fraud detection, algorithmic trading, and personalized banking solutions helping banks save an estimated USUS$447 billion annually (McKinsey & Co, 2022).

The impact of AI is also significant in manufacturing, where the introduction of smart factories and automation is expected to generate USUS$3.7 trillion in value by 2025 (World Economic Forum, 2023). Similarly, in retail, AI-powered customer insights and recommendation engines have driven a 20–30percent increase in revenue for industry giants like Amazon and Alibaba (Deloitte, 2023). These examples illustrate how AI is reshaping industries globally, making processes more efficient, cost-effective, and data-driven.

1. Sector-specific impact of AI in Africa

The impact of AI in Africa is growing, with multiple industries leveraging AI-driven solutions to address economic challenges, improve efficiency, and drive growth. AI is revolutionizing sectors such as engineering, transportation, healthcare, maritime management, and agriculture, making them more productive and sustainable.

1. Engineering – AI-powered simulations and predictive analytics are improving infrastructure planning, significantly reducing construction costs by 20–30percent. Smart sensors embedded in civil engineering projects help monitor structural integrity and enhance safety, reducing risks associated with poor maintenance and unforeseen disasters. AI-driven building information modeling (BIM) is also optimizing construction efficiency across Africa.
2. Transportation – AI is transforming transportation in Africa, particularly in urban areas where traffic congestion and inefficiencies pose economic and logistical challenges. AI-driven traffic management systems and autonomous vehicles are reducing travel time by 25percent in major African cities (Smart Africa Report, 2023). Additionally, AI-powered fleet management systems are optimizing logistics operations across Ghana and Kenya, making transport networks more efficient and cost-effective.
3. Maritime and port management – AI-driven port automation is improving Africa’s trade efficiency by reducing bottlenecks in maritime logistics. The integration of AI-powered cargo tracking and smart port management systems has significantly improved operations in key ports. In South Africa’s Durban Port, AI-based port logistics have increased efficiency by 35percent, minimizing cargo handling delays and boosting trade competitiveness (African Development Bank, 2023).
4. Healthcare – AI is revolutionizing healthcare in Africa, particularly in diagnostics, telemedicine, and pharmaceuticals. AI-driven medical imaging and predictive analytics are improving diagnosis accuracy and reducing misdiagnosis rates by 30percent. In Ghana, mPharma, an AI-powered health-tech company, is enhancing medicine accessibility and affordability across West Africa, making essential drugs available in remote regions. AI-powered telemedicine platforms are also expanding healthcare access to underserved rural communities, bridging gaps in the healthcare system.
5. Agriculture – AI is playing a pivotal role in agricultural transformation across Africa. AI-powered drones and precision farming technologies in Kenya have led to a 20percent increase in crop yields, while also reducing pesticide usage by 40percent (FAO, 2022). In Ghana, AI-enabled agritech platforms such as Farmerline are helping farmers optimize supply chains, predict weather patterns, and manage resources more effectively. AI-powered irrigation systems are also improving water management, ensuring sustainable farming practices amid climate change concerns.
6. Defining AI Governance

Explanation of AI governance and its importance

AI governance refers to the frameworks, policies, and regulations that guide the development, deployment, and ethical use of Artificial Intelligence (AI) technologies. It encompasses legal, ethical, and operational measures to ensure AI systems are transparent, accountable, and fair while minimizing risks such as bias, misinformation, and privacy violations.

AI governance is essential to mitigate ethical concerns and ensure responsible AI deployment. Ethical AI development ensures that AI systems are designed and used responsibly, preventing discrimination and bias in areas such as hiring, financial decisions, and law enforcement. Data privacy and security form another crucial aspect, protecting sensitive personal and corporate data from misuse and cyber threats.

Accountability measures are necessary to establish guidelines for AI developers and companies, ensuring they take responsibility for AI-driven decisions. Regulatory compliance further helps industries align AI applications with national and international laws, promoting legal clarity. Lastly, a strong AI governance framework encourages public and business trust, making organizations and consumers more confident in adopting AI-driven solutions.

Africa’s AI governance is still in its early stages, and without well-defined policies, the continent risks falling behind in global AI competitiveness. Implementing proactive AI governance will not only attract investment and drive innovation but also help position Africa as a key player in the evolving AI-driven economy.

Key components of effective AI governance

An effective AI governance framework consists of multiple key components that ensure AI is ethically and legally regulated while fostering innovation.

1. Ethical AI frameworks – Ensuring fairness, transparency, and non-discrimination is fundamental in AI governance. AI applications must be free from biases that disproportionately affect marginalized communities, especially in sectors such as employment, finance, and law enforcement. AI fairness guidelines should mandate diverse data training sets to prevent racial, gender, or economic biases from influencing AI-driven decisions.
2. Regulatory measures – Governments must introduce AI-specific legislation to define corporate responsibilities and consumer rights. AI governance bodies should be established to monitor compliance and ensure that businesses and public institutions follow ethical AI development practices. Without legal regulations, AI could be misused in surveillance, misinformation campaigns, and discriminatory financial practices.
3. Data protection and privacy laws – AI relies on large datasets, making data governance a critical issue. AI governance should enforce data protection laws similar to the European Union’s General Data Protection Regulation (GDPR), ensuring that AI-driven businesses collect, store, and process data securely and ethically. Privacy frameworks should prevent unauthorized data sharing and promote ethical AI usage in industries handling sensitive information, such as healthcare, finance, and digital identity management.
4. AI risk management – AI governance must include a risk management strategy to assess and mitigate AI-related risks. Governments and industries should develop impact assessment frameworks that categorize AI applications based on their potential risks to society. Additionally, clear guidelines on AI liability and decision-making transparency should be introduced to ensure that organizations remain accountable for AI-generated outcomes.
5. Collaboration between government, industry, and academia – A strong AI governance framework requires collaboration between policymakers, private sector leaders, and academic researchers. Governments must engage AI experts and tech companies in policy-making to ensure regulations do not stifle innovation while still prioritizing ethical considerations. Academia plays a crucial role in AI research, talent development, and public education, helping countries develop homegrown AI capabilities rather than relying on foreign expertise.

Global best practices in AI governance

Several countries have developed advanced AI governance models that Africa can learn from to create a structured AI regulatory framework.

1. European Union (EU) – The European Union (EU) has introduced some of the world’s most comprehensive AI regulations, ensuring ethical AI deployment while fostering innovation. The AI Act (2021) categorizes AI risks into low, high, and unacceptable levels, ensuring greater oversight for AI applications that impact human rights, financial stability, and social systems. Additionally, the General Data Protection Regulation (GDPR) serves as a global benchmark for AI-related data privacy protections, setting strict data collection, processing, and sharing guidelines.
2. United States (USA) – The United States has prioritized AI research, development, and ethical AI governance through legislative measures. The National AI Initiative Act (2021) promotes AI-driven advancements while ensuring ethical considerations in AI deployment. Furthermore, the Blueprint for an AI Bill of Rights (2022) outlines ethical principles, ensuring that AI systems prioritize fairness, accountability, and security in applications that impact human lives.
3. China – China has adopted a state-led AI governance model, emphasizing AI safety, regulation, and national security. The Artificial Intelligence Regulation Guidelines (2021) focus on controlling AI applications that may impact national stability, ensuring AI-driven businesses comply with government policies. China’s heavy investment in AI research and infrastructure has positioned it as a global AI leader, but its governance model is more centralized compared to Western approaches.

>>>to be continued

>>> the writer is a Maritime & Port Expert | AI Consultant | Senior Fellow, CIMAG. He can be reached via [email protected]

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