- According to a report titled, The Role of AI Innovation Clusters in Fostering Youth Employment in Africa: Opportunities, Challenges, and Implications, Artificial intelligence (AI) innovation clusters play a crucial role in driving youth empowerment across Africa.
- The report, unveiled by Caribou Digital, a global research and advisory firm, in collaboration with the MasterCard Foundation, explores how innovations and enterprises developed locally, when effectively nurtured within the African context, can help tackle the challenges of economic and technological advancement.
- These clusters bring together startups, tech enthusiasts, researchers, and government stakeholders to build solutions tailored to Africa’s unique challenges and opportunities.
Africa is home to the world’s largest youth population, with nearly 60% of its population under age 25 as of 2020, and this is set to double by 2030 covering 40% of the world's youth. In the continent, over 127 hubs have been established with South Africa leading the numbers at 22% followed by Nigeria, Egypt and Kenya, all standing at 12%, 12% and 10% respectively.
Most of these African countries have partnered with international organisations and tech companies such as Google, IBM and Microsoft to foster AI innovation. These collaborations often involve AI research, capacity building programmes and the development of the local AI ecosystem.
Nigeria with its large population and growing tech scene is becoming an important player in AI innovation, as it is home to a growing number of AI startups particularly in fintech and eCommerce. Initiatives like the CcHub ( Co-creation hub) in Lagos, are facilitating collaboration and the development of AI driven solutions.
Egypt is also investing heavily in AI, with the government prioritising AI in its Vision 2030 development plan.
Innovation clusters are a group of independent undertakings - startups, businesses and organisations, that work together in a specific region and sector to promote innovation. These clusters are designed to encourage sharing knowledge and expertise to facilitate the flow of ideas and resources.
These clusters bring together startups, tech enthusiasts, researchers, and government stakeholders to build solutions tailored to Africa’s unique challenges and opportunities.
Per the report, six crucial components are fuelling the success of AI innovation clusters in Africa. They include grassroots AI communities, academia, human capital, policymakers, Big Tech, and investors. Among these, grassroots AI communities have emerged as a dynamic force at the core of Africa’s AI ecosystem.
Through skills training, mentorship programmes, and access to funding, AI hubs are enabling young innovators to develop market-ready solutions and launch successful businesses.
The MasterCard Foundation has been a driving force in supporting digital innovation and entrepreneurship on the continent.
Written by Omoruyi Edoigiawerie, a seasoned startup attorney with over a decade of experience. Learn more.