The GSM Association (GSMA) has identified South Africa as a pivotal player in leveraging artificial intelligence (AI) for socio-economic development and climate impact.
However, insufficient AI skills could impede SA’s ability to harness its full potential.
In its recent report: “AI for Africa: Use cases delivering impact” − funded by the UK Foreign, Commonwealth and Development Office − the GSMA highlights that while Africa currently accounts for only 2.5% of the global AI market, emerging AI applications hold the potential to boost the continent's economic growth by $2.9 trillion by 2030.
This newly-released analysis on SA underscores AI’s transformative capacity in agriculture, energy, climate action and health.
South Africa, with its robust compute capabilities, data centres, and vibrant research and development ecosystem, stands out as a regional leader in AI, it says.
While SA has fewer AI use cases in the areas covered in the research, compared to peers like Kenya and Nigeria, its focus on advanced sectors − such as financial inclusion, manufacturing, education and healthcare − presents significant opportunities to extend AI's benefits to broader social and environmental challenges, it says.
Max Cuvellier Giacomelli, head of mobile for development at the GSMA, comments: “AI has the power to support the transition of South Africa’s key industries by significantly boosting efficiency, sustainability and resilience.”
While the potential for AI to drive socio-economic growth in SA is immense, several barriers need to be addressed. The GSMA report identifies the limited availability of high-quality local data, the high costs of AI-related technologies and the AI skills gap as primary challenges.
“Our latest report outlines AI’s transformative potential, showcasing innovative solutions poised to elevate productivity and reliability,” notes Giacomelli. “By overcoming barriers like local data availability or digital skills, the country can hope to harness AI’s potential to propel socio-economic growth and sustainable development for all.”
The research emphasises the importance of building robust data ecosystems, increasing investments in AI infrastructure and enhancing digital skills training programmes.
“To fully harness AI’s transformative capabilities, the report advocates for a multi-faceted approach involving partnerships across the public and private sectors, investment in local data and AI ecosystems, and policy support.
“Encouragingly, South Africa’s smartphone penetration, currently at 56%, is expected to reach 75% by 2030, positioning mobile-based AI solutions as a practical way to extend AI’s benefits across the population,” according to the report.
Optimising energy efficiency
According to the GSMA, AI has the potential to transform SA’s energy sector, but its application is still in the early stages.
SA’s energy sector constantly grapples with ageing infrastructure, reliance on coal, and the need to ensure reliable and sustainable energy access for all.
“Despite successes in expanding access and incorporating renewable sources, SA’s energy sector faces significant challenges in reaching rural areas and maintaining reliability,” states the report.
“AI technologies can be used in combination with tools like geospatial mapping, to enhance energy distribution and reliability, as well as increase the uptake of off-grid solutions like solar home systems.”
Limiting healthcare inequalities
SA’s health sector carries a high disease burden and provides unequal access to quality services. AI has the potential to significantly enhance efficiency and scale existing digital solutions, notes the report.
“By automating tasks such as patient management and hospital resource allocation, improving the accuracy of medical imaging diagnostics, and deploying AI-powered telemedicine platforms, AI can make healthcare more accessible, particularly in rural areas.”
The report highlights innovative local start-ups like Envisionit Deep AI and Quro Medical, which are leveraging AI to advance medical imaging and enable remote diagnosis.
Future farming innovation
In terms of enhancing productivity in agriculture, the report points out SA has a relatively advanced agricultural sector, employing less than 20% of the country’s workforce and featuring a mix of developed commercial players and subsistence farmers.
It identifies substantial opportunities for digital technologies and AI to enhance resource allocation efficiency, boost agricultural productivity and yields, improve market access for farmers, and minimise inputs and crop wastage.
“However, several challenges hinder the widespread adoption of AI innovations in agriculture. These include the availability of data and devices such as smartphones and sensors, as well as unreliable connectivity in some rural areas.
“Although smartphone penetration is relatively high in SA, the cost of mobile data can remain a barrier, and there is a notable lack of digital skills among key end-users, which further complicates the integration of AI technologies,” according to the report.
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