UN urges Africa to borrow and collect more taxes for AI investment

The United Nations Economic Commission for Africa (UNECA) advises African countries to borrow more and improve tax collection. This is to finance vital infrastructure for artificial intelligence (AI) development. A new report from UNECA highlights that Africa's lack of infrastructure means it might not benefit from AI-driven economic growth. Less than 1% of the world's data centers are in Africa. This presents an economic and national control challenge.

The report suggests investing in data infrastructure and power generation. These two areas can help each other. Digital industries need electricity, and reliable power supports digital growth. Public funds alone will not be enough. Governments must strengthen tax collection. They should also use financial markets, pension funds, sovereign wealth funds, and mixed finance options.

Governments should also focus on training people with new skills. They should fully introduce the pan-African free trade area (AfCFTA). This will support technology investments. AI, digital platforms, and robotic production can help Africa reduce its reliance on raw material exports. It can also help sell more finished, high-value goods.

UNECA stated that a country's success depends more and more on its ability to use data and new technologies. Using technology can also help African countries process their own mineral deposits. This means making batteries, computer chips, and other goods. Currently, they often just export the raw minerals.