By Olakunle Oke
Africa’s digital economy is poised for a transformation that could inject up to $2.9 trillion into the continent’s GDP by 2030, driven by cloud computing, artificial intelligence (AI) and high-speed connectivity.
A new report by Heirs Technologies, Africa’s Digital Leap: Cloud, Connectivity & AI in the Next Decade, cautions that the opportunities are vast, but significant gaps in infrastructure, regulation and funding must be swiftly addressed if Africa is to seize its digital future.
The continent, which accounts for nearly 19 per cent of the world’s population, controls less than 1 per cent of global data centre capacity. This imbalance has left African enterprises heavily reliant on international providers and offshore infrastructure, a situation the report warned could undermine competitiveness unless large-scale investment continues.
Despite the shortfall, cloud adoption is gaining pace. The study reveals that 55 per cent of African businesses now operate most of their workloads on cloud platforms, while a further 17 per cent are fully cloud-native. Nigeria, South Africa and Kenya are leading the transition, aided by subsea cable projects such as Meta’s 2Africa, which is set to triple international internet bandwidth.
Artificial Intelligence is also beginning to take hold. The African AI market, worth $4.5 billion in 2025, accounts for just 1.85 per cent of the global industry. Yet startups in Nigeria, Egypt, South Africa and Kenya have raised $1.25 billion since 2019, with applications in agriculture, healthcare, fintech and education gaining the most momentum.
Agriculture tops the field, with platforms such as PlantVillage’s Nuru helping farmers detect crop diseases in real time, even in areas with no internet access. In finance, Nigerian fintech firms like Paystack and Flutterwave are deploying AI-powered fraud detection systems that have blocked illegal transactions worth more than $100 million.
Investment in data centres is also rising. Africa now has 211 operational facilities, with South Africa (49), Nigeria (16), Kenya (18) and Egypt (14) hosting the majority. Global players including Equinix, Microsoft Azure, Google Cloud and AWS are ramping up their presence, while local providers such as Rack Centre and Galaxy Backbone are bolstering regional capacity.
Nonetheless, hurdles remain. Cybersecurity threats are increasing, with Nigeria ranked among the world’s 50 most targeted countries for online attacks. The high cost of connectivity continues to hinder progress, as more than half of mobile users in Sub-Saharan Africa remain on 2G and 3G networks, limiting access to digital services.
Regulatory enforcement is another weak spot. While 39 out of 55 African countries have enacted data protection laws, compliance is uneven, creating uncertainty for cross-border operations. Nigeria, South Africa and Kenya are stepping up oversight, but many other economies remain behind.
Funding disparities also risk widening the divide. Nigeria, South Africa, Kenya and Egypt dominate AI and tech investment, leaving smaller economies underfunded and at risk of being left further behind.
The report forecasts that Africa’s digital economy could expand to $700 billion by 2030, up from $180 billion in 2025, provided governments and private sector actors align on policy, infrastructure and talent development.
Obong Idiong, Chief Executive of Heirs Technologies, summed up the urgency of the moment: “Africa’s digital future won’t be inherited; it must be built. Cloud, AI and connectivity are the levers through which we will foster inclusive growth, local innovation and lasting transformation.”