From Cloud to AI: Why Africa Is Poised for a New Golden Era of Digital Innovation

1995 was in some respects a banner year for the nascent technology industry – the PalmPilot was a smash hit, PlayStation took the world by storm, and a company named after a rainforest started selling books online. The desktop computer was revolutionising access to computing, and Windows 95 had just been launched, rapidly becoming the world’s most popular operating system.

Thirty years later, people have a powerful computer in their back pocket – their smartphone, gamers across the globe can play together online, and technology is present in every facet of our lives. Life as we know it has been transformed by crucial innovations at key moments, enabling technology to be more accessible to billions of people, and opening avenues towards a vibrant global digital economy. These innovations have changed technology from something you use – hardware – to something that is accessible through many channels.

Today, the world is on the brink of another transformative era. Harnessing the power of AI, not only can companies and corporations introduce new efficiencies and speed of operations, but anyone with an idea can build something, opening the door for non-technical people to get involved in the technology world, from anywhere in the world. Harnessing local skills, ideas, innovation, and know-how, entrepreneurs and companies can stoke the fires of a global AI economy. So, what can we learn from previous key innovations that changed the landscape?

A pivotal moment in the tech industry was the move to the cloud. With this evolution, it was no longer about hardware; it was about solutions. The adoption of cloud technology provided scalable, cost-effective solutions that are accessible to individuals and enterprises of all sizes.

This would not have been possible without the development of critical infrastructure, including improved broadband connectivity and the establishment of datacentres to provide cloud access. The focus of hyperscale cloud providers on developing datacentres early on played a critical role in the rapid diffusion of cloud in Africa and enabled African enterprises to leapfrog some of the traditional IT constraints, fostering innovation and economic growth.

Microsoft was the first hyperscale cloud provider to launch an enterprise-grade data center region on the continent, while the launch of Edge Nodes in Nigeria and Kenya has enhanced network speed and cloud service accessibility for local businesses. This infrastructure has enabled countless businesses to leverage secure, enterprise-grade cloud services, accelerating their AI transformation journeys.

Robust technology infrastructure ecosystem development continues to be vital to economic growth, with plans for additional data centres and edge nodes across the continent, scaling infrastructure for the AI digital economy.

Mobile technology is the next innovation that has dramatically increased access to digital services, which is particularly relevant in Africa, where remote locations and underdeveloped infrastructure were barriers to entry. With mobile phones being more affordable and widespread than traditional computers, millions of people could now find information, education, and services that were previously out of reach.

African entrepreneurs have developed life-changing services using mobile technology, with pioneers like M-PESA in Kenya revolutionising the way people conduct transactions, allowing those without access to traditional banking to save, transfer money, and pay for goods and services. Other Kenyan startups like Twiga Foods and SunCulture have harnessed the power of mobile to boost food security, providing smallholder farmers with resources and access to markets through technology-aided agriculture.

It’s hardly surprising that even today, mobile connectivity is a key driver of digital transformation and socioeconomic growth in Africa. In its recent report on the mobile economy in sub-Saharan Africa, the GSMA found that the mobile ecosystem supported 1.5 million jobs directly and more than 2.2 million jobs in other sectors in 2023.

Now, integration of AI in mobile technology is transforming smartphones into highly intelligent and adaptive devices, while governments and businesses are increasingly using 4G and 5G networks alongside technologies like AI and IoT to enhance productivity and service delivery. Understanding the critical importance of connectivity in rural and remote areas, Microsoft has worked with Mawingu to bring quality speed, affordable internet to underserved regions in Kenya and East Africa. This connectivity will create new opportunities for commerce, education, healthcare, and the delivery of government services across Kenya.

What cloud computing and mobile technologies have in common is the democratisation of access to technology. Both have been pivotal in increasing the reach of technology, yet both are dwarfed by the possibility introduced by widespread access to and adoption of, artificial intelligence.

By harnessing local skills, ideas, innovation and know-how, African entrepreneurs and companies can stoke the fires of a global AI economy. The opportunity is enormous. According to PwC’s Global Artificial Intelligence Study, it is estimated that AI will contribute more than $1.2 trillion to Africa’s economy by the year 2030. With the IDC forecasting global AI-centric system spending to surpass $300 billion by 2026 and ICT spending in Sub-Saharan Africa to exceed $110 billion by 2027, Microsoft is focused on helping organisations fully leverage AI’s potential, with investments into critical areas such as skills development, infrastructure and support for startups and entrepreneurs.

In Kenya, we are already seeing the green shoots of AI opportunity. By fostering tech start-ups through initiatives such as Microsoft’s Founders Hub, working with organisations to take advantage of AI tools, and leveraging AI to address local challenges in sectors such as healthcare, agriculture and infrastructure, Africa can create sustainable economic growth that provides opportunities for people to thrive without seeking greener pastures elsewhere in the world.

Partnerships such as the one between the Microsoft Founders Hub and the NVIDIA Inception programme will help startups develop innovative African AI solutions. The African financial services industry (FSI) is making positive strides, with local and pan-African fintech startups such as Pesawise, Popote and M-KOPA adopting AI tools to offer new and personalized services for consumers and small businesses alike. In the healthcare sector, African-led innovation by companies like Zendawa and Amref Health Africa is making a crucial difference in helping people access healthcare resources, while agri-tech innovation is helping farmers adapt to climate change.

The challenges that Africans face – financial inclusion, access to quality education, access to healthcare, AI-enabled agritech, and growing the formal and informal economies – are relevant to countries worldwide. African solutions can be applied globally to address these societal and economic challenges. Of course, technology without skills is a hollow promise. Support from private sector partnerships such as the AI National Skilling Initiative (AINSI) will help to build a generation of AI-skilled digital natives.

Suppose Africa can deliver on the promise of its youth population and develop the digital skills and innovations needed globally. In that case, the next 30 years promise to be a new golden era for the continent. Developing a thriving digital economy that provides opportunities for Africans to stay in their communities while benefitting from much-needed jobs and revenues, the continent could become a net exporter of mutually beneficial AI-driven solutions.

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Phyllis Migwi is the Country Manager, Microsoft Kenya