The International Monetary Fund (IMF) is urging African governments to embrace Artificial Intelligence to ensure quick economic development on the continent.
According to IMF Managing Director Kristalina Georgieva, AI has the potential to reshape the global economy, especially in labour markets.
Speaking at the Artificial Intelligence (AI) Summit, Kristalina Georgieva highlighted critical areas needed to ensure growth.
“This is the likely largest transformation of our economies that we have experienced since the Industrial Revolution. It can be this big bang that allows us to live longer, healthier, better educated, more productive lives. But it is not given that we would take advantage of the benefits and manage well the risks. We face urgently the necessity to embrace AI and make the best out of it.”
“How concerned we all are at the IMF that growth may be here this year, next year, the year after.
She underscored the need for Africans to inject dynamism into the world economy.
“When we think of what can lift productivity, by far our best chance is in investing in the green transition and in the adoption of AI.”
“We desperately need something that would inject more dynamism into the world economy. We also need to recognize that the scale of the impact of AI is gigantic. When we looked at the labour market’s impact over the next years, in advanced economies some 60% of jobs would be impacted, in emerging markets 40%, in low-income countries 26% and so this is like a tsunami hitting the labour markets.”
The Minister of Finance, Dr. Mohammed Amin Adam, noted the need for speedy efforts to improve the technological landscape.
“As an offshoot, AI is leading to fundamental changes in the way people live, work, and relate to one another, thanks to data-driven algorithms. Since last Thursday, almost 30 countries on our continent are experiencing disruptions in data services. The impact on economic activities is obvious. Electronic payments and delivery services have been disrupted. Public service and general information exchange has also been affected. And we are deeply feeling how much technology impacts our lives.”
“AI is forecast to contribute up to $15.7 trillion economy by 2030, of which $1.2 trillion could be generated in Africa, thereby making AI one of the biggest economic opportunities available to our continent. We are truly in an era where innovations will continue to surprise us. This presents us with opportunities to not only address long-standing challenges but also unlock new avenues for progress, the likes of which our forefathers would never have imagined.”
He highlighted the need for developing countries to be equipped with AI to harness its benefits.
“However, we must acknowledge that the risk of immediate AI-related disruptions will be higher across the developing world if we are not readily equipped to harness the benefits of AI effectively. At the moment, there is a demand-supply imbalance in AI skills across Africa.”
“The Ministry of Finance is also exploring how to leverage AI in public financial management through automated budgeting, predictive revenue forecasting, and real-time expenditure tracking.”
“Ghana and several other African countries are looking to collaborate with development partners such as the IMF, World Bank, and Africa Development Bank, among others, to provide funding, technical and implementation support for AI projects, as well as the development of national AI strategies tailored to our unique needs.”
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