Clifford Chance

In July 2024, the African Union published the first Continental Strategy on AI, supported  by UNESCO, to promote an Africa-centric and inclusive approach to AI adaptation, governance and innovation. Building on this strategic foundation, Clifford Chance led the plenary at the African Corporate & Government Counsel Forum in Accra in October 2024, which emphasised six essential takeaways for business to consider:

1. Design AI tools with local opportunities and risks in mind
2. Collaborate transparently with regulators
3. Focus on digital skills
4. Foster governance frameworks
5. Invest in infrastructure
6. Co-ordinate across borders

AI Developments in Africa

African countries are playing a central role in the global conversation about AI. In April 2024, the G7 Italian Presidency met with African Union (AU) officials and African ambassadors, as well as private sector stakeholders, to strengthen partnership on sustainable and accessible AI development. International cooperation between China and African countries is also increasing, following the Forum on China-Africa Cooperation in September 2024, where commitments were made to advance rule-making for global digital governance and stem potential AI dangers. In the same month, at the UN's Summit of the Future Action Day, Rwanda and Singapore announced a world first AI Playbook, outlining best practices of how policymakers across the world have implemented AI strategies and governance frameworks in their countries. The Playbook aimed to shape inclusive global discourse on harnessing the potential of AI.  Earlier in the year, the US announced a partnership with Kenya to harness AI, facilitate data flows and empower digital upskilling. 

The AU's Continental Strategy on AI provides for the establishment of an appropriate AI governance system and regulations at national and regional levels. It also specifically promotes research and innovation in AI through partnerships between the public and private sectors. This follows the development of national AI strategies in countries including Egypt, Rwanda, Mauritius, Tunisia and Senegal, at various stages of implementation.

Use of AI across African countries and in a wide range of sectors is expanding hugely – whether in healthcare, financial services, access to housing or transportation, AI is has the potential to immensely benefit society. According to the UN, research has shown that AI has the potential to generate $1.2 trillion worth of economic activity in Africa, representing a 5.6% increase in the continent's GDP by 2030.

In light of such a growth in adoption, business leaders, policy-makers and investors will need to think carefully about what rules are and should be in place to govern emerging technologies, while continuing to drive efforts to reap the benefits of such a transformative technology in Africa.  

Key Insights

In October 2024, Clifford Chance were the platinum sponsors of the African Corporate & Government Counsel Forum (ACGC) annual conference in Accra, Ghana. Participants at the conference included Microsoft, MTN, Citi and Standard Chartered. At our opening plenary session, we explored some of these issues in depth alongside in-house counsel. We have laid out our key insights for businesses developing, deploying and using AI in Africa. While taking advantage of the transformative opportunities posed by AI in Africa, it will be crucial to understand the distinct cultural and linguistic context of each country in which a business operates.

• Design AI tools with local opportunities and risks in mind: AI tools should be designed with specific local risks in mind – what problems can AI solve in the country it will be deployed in? What societal factors or biases do you need to think about? How can you ensure that datasets reflect local diversity, including low-resourced languages and symbols? Businesses should learn from other global markets but tailor technologies to suit the distinct needs of African countries.
• Collaborate transparently with regulators: As AI evolves and is adopted by a growing number of African businesses, including in legal teams, transparent collaboration with regulators will be crucial alongside the development of the technology. Businesses should be a central part of driving the regulatory agenda, to ensure that governance enables the uptake of AI rather than restricting it.
• Focus on digital skills: Awareness and education about AI is critical for encouraging adoption in the workplace. As the continent with the youngest population on earth, African businesses should encourage and foster an uptick of digital skills and information literacy so that youth can be at the forefront of building and training AI for the global market. It is particularly important to ensure that vulnerable groups (including women, people with disabilities, and those in remote areas) are included in this process.
• Foster governance frameworks: Industry and businesses should build trust into its technology, understanding and identifying risks and AI-specific harms, and putting in place guardrails. Governance frameworks can focus on data privacy, IP infringement, cybersecurity, discrimination and safety considerations. This can include drawing up responsible AI principles and policies which are aligned with the population a business' AI systems serve.
• Invest in infrastructure: Without investment in sophisticated infrastructure, it will be difficult for businesses to take advantage of AI opportunities in Africa – this includes high-speed internet, connected devices, reliable electricity generation and data centres. Public-private partnerships can help kickstart and scale transformative projects, especially for digital infrastructure and innovation hubs.
• Co-ordinate across borders: A cooperative regional approach to AI and data strategies will help businesses facilitate data sharing, interoperability, and knowledge sharing, all of which are critical for an AI ecosystem to flourish. Standardised approaches to areas such as AI safety, technical safeguards, and data privacy across Africa may also help foster consumer trust, build a predictable business environment, and simplify the compliance burden for some businesses.