How responsible AI can be a catalyst for inclusive economic growth in Africa

Africa is at a digital crossroads as its rapid adoption of digital technologies converges with the transformative potential of artificial intelligence (AI). Far from being a passive recipient, the continent is uniquely positioned to lead in shaping AI’s ethical deployment by using it to address its own distinct challenges such as financial exclusion, linguistic diversity and infrastructure gaps.

The Africa Declaration on AI and the Continental AI Strategy are testament to Africa’s commitment to a human-centred, inclusive digital future. Mastercard’s recently published white paper, Harnessing the Transformative Power of AI in Africa highlights how responsible AI that’s rooted in local context and integrity can unlock transformative outcomes across sectors including agriculture, healthcare, education, energy and finance.

But responsible AI is not a luxury, it’s a necessity. In Africa, where digital systems increasingly mediate access to finance, education and healthcare, AI must be transparent, fair and privacy conscious. This ethical foundation ensures that AI serves communities rather than marginalising them.

Through its development of policy frameworks and fostering of grassroots innovation, Africa demonstrates a proactive stance that sets a global benchmark for ethical AI. From this foundation of trust, Africa can find a springboard for inclusive economic growth through AI-powered financial innovation.

The imperative for responsible AI is clear. And a commitment to ethical deployment is crucial, especially in the Global South, where data usage must be carefully considered. Every AI solution deployed must be built on integrity and trust. This is particularly vital in a continent where a significant portion of the population lacks access to financial services, presenting a significant market opportunity for ethical AI solutions.

Africa’s mobile money revolution has laid the groundwork for AI-driven financial services and enabled millions of unbanked people to access financial services through their mobile phones. This provides a robust platform for payments, savings and credit. And it lays the foundation for more sophisticated AI applications through fintech innovation.

Smart technologies like AI-powered credit scoring and fraud detection are democratising access to finance. This can be seen with companies like M-Pesa and M-KOPA in Kenya, and in AI-backed credit scoring models in Nigeria, which are enabling loans for previously unbanked populations.

The rich local datasets that come from these mobile ecosystems enable the development of contextually relevant AI models, accelerating innovation across sectors. The estimated market size for AI in Africa is projected to reach $16.53 billion by 2030. Such significant growth truly underscores the immense financial potential that ethical AI can unlock.

As digital payments scale, so do the risks, however. The currency of the digital economy is trust, and cybersecurity is its foundation. Transparency in AI is crucial to building trust and encouraging adoption across African communities. This is vital in the Global South, where data usage must be carefully considered to ensure AI systems are built with integrity and that they foster trust among users and stakeholders. A commitment to transparency ensures AI development and deployment benefits people while respecting their privacy and rights.

Responsible AI and digital payments are deeply intertwined. Ethical AI enhances trust in financial systems, expands access and drives economic participation. This synergy fosters entrepreneurship, supports small businesses and empowers underserved communities. For example, the MADE Alliance, co-chaired by Mastercard, the World Bank Group and the African Development Bank, which aims to extend digital access to 100 million individuals and businesses by 2034, exemplifies this integrated vision.

The impact on financial inclusion is tangible. AI can analyse mobile money data to assess loan risk more accurately than conventional methods, opening up funding opportunities for those previously excluded. This is a critical step towards economic growth and poverty reduction. Furthermore, AI enhances security and regulatory compliance through better fraud detection and faster Know Your Customer (KYC) checks, creating a more secure and trustworthy financial ecosystem.

AI can drive economic growth, enhance inclusion and solve real-world problems. Challenges remain, however. Bridging infrastructure and skills gaps, while ensuring robust data privacy protections, is essential to realizing AI’s full promise.

Transformation requires collaboration. Governments, private sector leaders, academia and civil society must co-create agile, principles-based regulatory frameworks. The digital strategy of the Mastercard Foundation – a fully independent global organization established by Mastercard nearly 20 years ago – includes support for a wide ecosystem of universities, training institutions and innovation hubs to develop local talent in areas such as AI, machine learning and STEM.

These efforts are designed to ensure that the benefits of AI and digital innovation are inclusive and accessible, empowering Africa’s next generation of digital leaders. Investment in local talent, infrastructure and innovation ecosystems is essential. Digital and financial inclusion are still critical to ensuring equitable access to AI technologies.

Africa’s leadership in responsible AI and digital payments offers a blueprint for equitable development. By embedding ethics into innovation and scaling inclusive financial technologies, the continent could unlock unprecedented prosperity. Combining responsible AI, robust cybersecurity and inclusive payment technologies can enable a digitally connected Africa to thrive.