GSMA has identified South Africa as a key player in the use of artificial intelligence (AI) for socio-economic development and climate impact. In its latest report, “AI in Africa – Use Cases Driving Impact”, funded by the UK Foreign, Commonwealth and Development Office (FCDO), GSMA highlights that while Africa currently accounts for only 2.5% of the global AI market, emerging AI applications have the potential to drive economic growth on the continent by a staggering $2.9 trillion by 2030, according to research by AI4D Africa.
Agriculture: Improving Productivity and Food Security
South Africa has a relatively advanced agricultural sector that employs less than 20% of the workforce, mostly developed commercial players and subsistence farmers. The report identifies significant opportunities for digital technologies and AI to improve resource allocation efficiency, increase agricultural productivity and yields, improve farmers’ market access, and minimize input and crop waste.
Energy: Optimizing Access and Efficiency
South Africa’s energy sector is grappling with challenges including aging
infrastructure, reliance on coal, and ensuring access to reliable and sustainable energy
for all.
Despite South Africa’s success in expanding access to and incorporating renewable
energy, the South African energy sector faces significant challenges in delivering
electricity to rural areas and maintaining reliability.
Climate Action: Building Resilience
With high vulnerability to climate change, South Africa would benefit greatly from AI-driven climate action solutions. The report highlights that the use of AI in disaster preparedness, natural resource management, and biodiversity conservation is critical to mitigating the effects of climate change.
Health: reducing inequalities
Challenges facing South Africa's health sector include a high burden of disease and unequal access to quality services. Artificial intelligence has the potential to significantly increase efficiency and expand existing digital solutions.
Challenges and Opportunities
While the potential for AI to drive socio-economic growth in South Africa is huge, there are still some barriers that need to be addressed. The report cites the limited availability of high-quality local data, the high cost of AI-related technologies, and the AI skills gap as key challenges.
Encouragingly, smartphone penetration in South Africa currently stands at 56% and is expected to reach 75% by 2030, positioning mobile-based AI solutions as a practical way to extend the benefits of AI to the entire population.
