Experts warn Africa risks becoming mere raw data supplier in AI economy

Stakeholders across Africa’s technology, finance and infrastructure sectors have warned that the continent risks becoming only a supplier of raw inputs in the global artificial intelligence economy unless urgent investments are made in data ownership, talent development, computing infrastructure and financing systems.

The concern dominated discussions at a high-level session titled “The AI Scramble: Who Owns Africa’s Data, Talent and Digital Future?” during the Africa Soft Power Summit 2026 held over the weekend.

According to a statement issued by organisers on Monday, the session formed part of the summit’s second-day discussions under the theme, “Creativity, Innovation, Capital and Commerce.”

Participants included Google Africa Managing Director, Alex Okosi; Chief Executive Officer of iXAfrica Data Centres, Snehar Shah; founder and CEO of Amini, Kate Kallot; and Standard Chartered Bank Kenya’s CEO and Head of Coverage, Corporate and Investment Banking, Birju Sanghrajka.

Founder and CEO of Nairametrics, Ugodre Obi-Chukwu, moderated the discussion.

Speaking during the session, Okosi warned that Africa cannot afford to remain a passive consumer of artificial intelligence products developed outside the continent.

“If we miss this AI era in Africa, then I think that we are doomed,” he said.

“It is critical that Africa not only consumes AI but participates in its underlying architecture. Unless AI recognises African languages, speech patterns and dialects, the technology will not be positioned to solve African problems.”

He cautioned that Africa could repeat patterns seen during the digital media expansion, where African creativity influenced global culture while ownership and monetisation platforms remained largely foreign-controlled.

“Power consolidates real quickly. Unless African operators are present at the foundational level, the economics of the AI era will accrue elsewhere,” he added.

Kallot also raised concerns about Africa reproducing historical extractive economic patterns through data exploitation.

“What has long been described as raw material from Africa is now being mirrored in how the continent’s data is treated. The continent risks supplying the inputs without owning the system,” she said.

She identified data ownership, computing infrastructure and talent development as three critical pillars required for Africa to establish a meaningful position in the AI economy.

Kallot stressed the importance of strengthening local data governance systems and expanding investments in infrastructure and education.

She argued that without stronger ownership frameworks, African-generated data would continue to power technologies developed elsewhere without delivering significant commercial value back to the continent.

On digital infrastructure, Shah noted that Africa still accounts for a relatively small share of global technology infrastructure despite its large youth population.

“The more pragmatic path involves selectively leveraging global technology while building genuine local capacity in the layers that determine data sovereignty, compute access and long-term value capture,” he said.

He pointed to opportunities in renewable energy, digital infrastructure and submarine cable connectivity as areas where Africa could build long-term competitiveness.

Shah cited Kenya’s geothermal energy investments and iXAfrica’s data centre developments as examples of efforts supporting future AI infrastructure.

Addressing financing challenges, Sanghrajka said banks and institutional investors require clearer business models and stronger risk assessment frameworks before committing major funding to AI ventures.

“AI products themselves still require clearer demand signals, defined monetisation pathways and stronger risk frameworks before institutional capital can move at scale,” he said.

He noted that while banks are familiar with financing infrastructure projects such as power facilities and data centres, AI businesses would need stronger commercial structures to attract long-term capital.

Other sessions at the summit examined topics including diaspora influence, investment trends and the economic role of African creators.

The Africa Soft Power Summit 2026 was held under the theme “Africa’s Compound Interest: Aligning Ecosystems of Finance, Creativity and Human Capital for Growth.”

The summit was organised by the Africa Soft Power Group to promote African perspectives in global discussions on business, culture and policy.