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Unlocking Africa’s Trade Potential: Harnessing the Power of AI
In recent years, the global community has witnessed significant advancements in artificial intelligence (AI) and its potential to revolutionize various industries. As the African continent endeavours to unleash its full economic potential, AI has emerged as a critical tool for empowering trade and fostering growth. By harnessing the power of AI, Africa can significantly enhance its trade capabilities, foster economic development, and propel itself to the forefront of global commerce.
AI has the potential to revolutionize trade in Africa in various ways, unlocking its economic potential. Here are some examples and data to support this:
- Market analysis:
Market analysis is a critical component of trade and commerce, and AI-powered tools have rapidly emerged as a game-changer in this domain. These technologies can sift through vast volumes of data to discern market trends, consumer preferences, and demand patterns, providing valuable insights for businesses. Kenya’s Twiga Foods serves as a compelling example of the transformative impact of AI in market analysis. By leveraging AI algorithms, Twiga Foods can effectively analyze purchasing patterns and forecast market demand, thereby optimizing their supply chain management and minimizing food wastage. This not only enhances operational efficiency but also contributes to sustainable business practices.
The expected growth of AI investment in the Middle East and Africa further underscores the significance of AI for market and customer analysis. According to the International Data Corporation (IDC), spending on AI systems in the Middle East and Africa region is projected to reach $530 million by 2022. The allocation of substantial investments towards AI initiatives for market and customer analysis signifies the increasing recognition of the potential benefits that AI can bring to businesses operating in these regions. As a result, the integration of AI tools for market analysis is poised to become a widespread practice among enterprises, offering a competitive edge and propelling growth in the trade sector.
- Supply chain optimization:
Supply chain optimization is a critical focus area for businesses, and AI has proven to be a powerful tool in achieving this goal. By leveraging AI algorithms, companies can accurately predict demand, mitigate stockouts, and optimize inventory levels, thereby streamlining the entire supply chain process. A concrete example of the transformative impact of AI in supply chain optimization can be seen in the operations of Peermont Hotels in South Africa. Through the implementation of AI-driven technologies, Peermont Hotels has been able to enhance its procurement processes, leading to significant cost savings and marked improvements in supply chain management efficiency.
The potential for AI to revolutionize supply chain operations is underscored by a report from Accenture, which highlights the substantial economic impact that AI could have on the African economy. The report suggests that AI has the potential to contribute up to $215 billion to the region’s economy over the next decade, with supply chain and manufacturing standing out as key sectors that could benefit extensively from AI integration. This forecast reflects the immense potential for AI to drive innovation, enhance productivity, and deliver tangible economic gains across various industries within the African continent. As such, the adoption of AI for supply chain optimization is poised to play a pivotal role in shaping the future of business logistics and operations in Africa.
- Financial services:
Financial services stand to undergo a significant transformation with the integration of AI-powered solutions, offering a multitude of benefits for both businesses and consumers. One notable area where AI is making a substantial impact is in the realm of credit scoring and risk assessment. By harnessing advanced algorithms and data analytics, AI-powered financial services are revolutionizing the traditional credit evaluation process, ensuring more efficient and accurate assessments. Furthermore, AI is enabling the provision of personalized financial advice, facilitating improved access to finance for businesses and individuals alike.
A compelling illustration of the transformative potential of AI in the financial sector can be witnessed in Nigeria, where Carbon has successfully leveraged AI to offer instant loans to individuals and small businesses based on their digital footprint. This innovative approach not only streamlines the lending process but also promotes financial inclusion by providing swift and convenient access to credit for previously underserved segments of the population.
The profound impact of AI on the African economy is underscored by a report from the Boston Consulting Group, which highlights the substantial contribution that AI could make to the region’s economy. According to the report, AI has the potential to contribute up to $1.2 trillion to the African economy by 2035, with the financial services sector positioned to experience a particularly significant impact. This forecast reflects the immense potential for AI to drive innovation, enhance efficiency, and foster growth within the financial services industry, ultimately leading to broader economic benefits for the African continent as a whole. Thus, the integration of AI-powered solutions in the financial sector holds immense promise for revolutionizing the landscape of financial services in Africa.
- Trade facilitation:
Trade facilitation, characterized by the seamless movement of goods and services across borders, stands to experience a significant transformation due to the integration of AI technologies. One pivotal aspect where AI can revolutionize trade processes is by automating the often complex and time-consuming documentation, customs procedures, and logistics involved in international trade. Through advanced algorithms and data analysis, AI facilitates the optimization of these processes, effectively reducing delays and improving efficiency.
A noteworthy example of AI’s impact on trade facilitation can be observed in the African Development Bank’s implementation of “Boost Africa,” an AI-powered platform designed to streamline trade finance for businesses. By leveraging AI, this platform has successfully reduced administrative burdens and enhanced trade efficiency, ultimately facilitating increased access to trade finance for businesses across the African continent.
The potential of AI to significantly enhance trade facilitation in Africa is echoed in research conducted by McKinsey, which projects that AI technologies could potentially contribute $300-450 billion to African GDP by 2030. This substantial economic impact underscores the pivotal role of trade facilitation as one of the critical areas for AI-driven transformation and economic growth across the African continent. Consequently, the integration of AI in trade facilitation holds immense promise for fostering greater efficiency, reducing barriers, and driving economic development within the global trade landscape.
To fully leverage the transformative potential of AI in trade, Africa should prioritize strategic investments in AI infrastructure, which encompasses the development and deployment of advanced technological frameworks and systems that can effectively support AI-driven trade facilitation. Additionally, there is a critical need to prioritize building AI expertise by investing in digital skills development programs, training initiatives, and educational curriculums focused on AI technologies. This concerted effort can help cultivate a skilled workforce equipped to harness AI to optimize trade processes, thereby promoting sustainable economic growth and development.
Furthermore, fostering partnerships with international AI companies and organizations can significantly enhance Africa’s access to cutting-edge AI solutions and expertise. Collaborative initiatives, joint ventures, and technology transfer partnerships with established global players in the AI industry can facilitate knowledge exchange, technology transfer, and capacity building, ultimately augmenting Africa’s AI capabilities and competitiveness in the international trade arena.
In addition to infrastructure development and knowledge empowerment, creating supportive policies that effectively align with the dynamic nature of AI technologies is imperative. These inclusive policies should address regulatory frameworks, data privacy, intellectual property rights, and ethical considerations related to AI in trade, fostering an enabling environment that nurtures innovation, protects stakeholders, and encourages responsible AI adoption. By formulating forward-thinking policies, Africa can proactively shape an environment conducive to AI-driven trade advancements while mitigating potential risks and challenges associated with AI deployment.
In essence, these combined efforts to invest in AI infrastructure, build expertise, foster international partnerships, and develop supportive policies are essential for Africa to harness AI’s potential as a catalyst for economic growth, enhance trade competitiveness, and unlock its full potential as a key player in the global trade landscape. Through a comprehensive approach that addresses infrastructural, human capacity, collaborative, and regulatory dimensions, Africa can position itself to effectively harness AI technologies to drive inclusive and sustainable economic development.
In conclusion, the integration of AI in trade has the potential to unlock Africa’s economic potential and pave the way for sustainable growth and prosperity. Through leveraging AI-powered technologies, Africa can streamline processes, enhance market access, and foster innovation in various industries. However, successful integration will require concerted efforts from governments, businesses, and other stakeholders to invest in AI infrastructure and skills development, and ensure equitable access. By embracing the transformative power of AI in trade, Africa can position itself as a formidable player in the global economy, driving progress and prosperity across the continent.
♦ Professor Ojo Emmanuel Ademola is a Nigerian Professor of Cyber Security and Information Technology Management, and holds a Chartered Manager Status, and by extension, Chartered Fellow (CMgr FCMI) by the highly Reputable Royal Chartered Management Institute.
“The Executive wields significant and often unchecked influence over the institutions critical to the democratic process” —Anthony Obi Ogbo
As Nigeria approaches the 2027 general elections, all eyes are on incumbent President Bola Ahmed Tinubu of the All Progressives Congress (APC), who is expected to seek a second term amid mounting national discontent. His administration, marred by persistent allegations of corruption, ethnic favoritism, and constitutional overreach, has faced sharp criticism from both civil society and opposition blocs. Questions surrounding fiscal opacity, particularly in budget allocations, alongside his controversial academic credentials and ineffective international engagements, have intensified public skepticism about his leadership and intentions.
In what may signal the onset of a fierce political confrontation ahead of this pivotal election, three heavyweight opposition figures—former Vice President Atiku Abubakar and former Governors Nasir El-Rufai and Rotimi Amaechi—have jointly set their sights on unseating President Tinubu and dismantling the grip of the APC. Describing the current administration as presiding over a regime marred by deepening poverty, rampant insecurity, economic stagnation, and institutional decay, the trio announced a political realignment to “rescue Nigeria from systemic collapse.”
The bold declaration has already intensified political tensions, drawing a sharp rebuttal from the APC. Through its National Publicity Secretary, Felix Morka, the ruling party dismissed the trio’s criticisms as “a calculated deflection,” arguing that the opposition figures themselves failed to deliver lasting reforms during their combined 24 years in high-level political office between 1999 and 2023.
This brewing political contest sets the stage for a historic election cycle, where questions of leadership credibility, national recovery, and democratic integrity will dominate the national discourse. While the opposition continues to build up, only a few are sufficiently engaged with the entrenched institutional challenges that threaten the very integrity of Nigeria’s democratic process —the most formidable being the implausibility of unseating a sitting President. This entrenched difficulty is not merely a function of political popularity or party dominance but rather a deeply imbalanced governance architecture that disproportionately empowers the executive arm of government.
The Nigerian executive wields significant and often unchecked influence over the institutions critical to the democratic process: security agencies, the judiciary, and the electoral commission. These are the very pillars responsible for safeguarding transparency, enforcing the rule of law, and ensuring the integrity of elections. However, in practice, they often operate under the shadow of executive pressure, patronage, or outright control.
This over-centralization of authority creates a political environment where incumbents are not only insulated from accountability but are also equipped with the institutional leverage to influence electoral outcomes in their favor. Consequently, genuine political competition becomes stifled, opposition parties systematically weakened, and democratic transitions of power rendered exceptional rather than routine.
The concentration of power within the executive—particularly its influence over security forces, the judiciary, and the electoral commission—creates a dangerous imbalance that favors incumbency at the expense of free competition. Without meaningful reform and the insulation of democratic institutions from political interference, the 2027 elections risk becoming another exercise in formality rather than a true expression of the people’s will. The stakes, as history has repeatedly shown, could not be higher.
In Nigeria’s deeply flawed political architecture, incumbency is not merely an advantage but a strategic stronghold. Successive presidents have leveraged the whole state machinery, including control over security, electoral institutions, and judicial levers, to secure re-election or ensure succession within their party ranks. The structural imbalance heavily tilts the political playing field in favor of those already in power.
Historically, no incumbent president has lost a re-election bid—except Goodluck Jonathan in 2015, whose defeat is widely attributed not to the strength of his opposition but to internal missteps. Isolated by layers of sycophantic advisers and disconnected from public sentiment, Jonathan placed trust in a political echo chamber that ultimately misled him. His loss marked a rare exception in Nigeria’s democratic experiment, underscoring how even incumbency can falter under the weight of complacency and strategic miscalculation.
Despite criticism over economic hardships and security challenges, the APC’s political machinery remains robust. The party has witnessed defections from opposition ranks, further strengthening its base. While the opposition is strategizing to mount a formidable challenge, the incumbent’s entrenched position, coupled with a fragmented opposition landscape, suggests that Tinubu’s prospects for re-election remain strong. The interplay of political strategy, institutional control, and recent policy initiatives positions the APC favorably as the nation heads toward the 2027 elections.
Until structural reforms ensure true independence and insulation of key democratic institutions from executive overreach, the notion of a free and fair political contest, especially against incumbents, will remain more theoretical than real.
♦Publisher of the Guardian News, Professor Anthony Obi Ogbo, Ph.D. is on the Editorial Board of the West African Pilot News. He is the author of the Influence of Leadership (2015) and the Maxims of Political Leadership (2019). Contact: anthony@guardiannews.us
♦ Professor Ojo Emmanuel Ademola is a Nigerian Professor of Cyber Security and Information Technology Management, and holds a Chartered Manager Status, and by extension, Chartered Fellow (CMgr FCMI) by the highly Reputable Royal Chartered Management Institute.
In many African countries, it has become quite impossible for one to ascend to political success without having an influential godfather to “knight” you into politics or someone of political clout to sponsor you into politics.
The concept of Godfatherism is a guiding principle and reference to contemporary politics in Nigeria. This type of political quagmire has held the true virtues of democracy and free and fair elections hostile.
The interesting thing about Godfatherism is that it is often referenced to politics in African countries; however, this is a global phenomenon affecting most countries in the world in various degrees. And it is no surprise that Nigeria’s polity is filled with Grandfather/Godson duos.
Two groups of people are often left out of the equation and conversation when it comes to politics in Nigeria—ambitious young people and women. Nigeria is still very much considered to be a patriarchal society where a woman’s success may sometimes be relegated to that of a man/godfather, her father, or her husband.
I believe we are trying to deliberately change the tides of respecting women who are self-made, gifted, ambitious, and successful on their own accord. In addition, there is a tendency to despise young people for their age, assuming that because they are young they are naïve, ill-prepared, and “not serious.
” You often hear older politicians saying, “Politics is not a child’s play.” However, every politician started from somewhere. A true democracy or that which anchors itself in liberty, equality, and justice unifies every member of society and creates a space where all ideas, talents, and skills are nurtured and welcomed.
Any government that runs its political entity on the foundation of Godfatherism is doing itself a disservice. What ends up happening in a government that has been unable to rid itself of such, is that it often finds itself unable to resolve political, social, economic, and cultural issues over time.
No matter the leader, the problems facing the country never come to a resolution or completion period. You have generations of people facing the same issues carried over by previous generations. The sad part of it all is that every society has several individuals, groups, and civil societies that have the answers and solutions to solving pressing issues facing its nation. However, a whole segment of the population is ignored due to gender and age discrimination.
The only reason why Godfatherism still exists is because there is a need to maintain a certain status quo that only benefits a small number of people in a society in which the vast majority are not able to take part.
The only way to disrupt Godfatherism is for every woman and young person to continue to step up, stand out, and use their voice as an instrument of change. Change does not happen overnight, but I am hoping that there will be one, perhaps two out of the millions of young people and women around the world, who will rise to the highest seat in the land and change the narrative and picture of how a global leader should look.
♦ Yetunde Odugbesan-Omede, Ph.D., is currently the Director of the Office of Community and Civic Engagement and Professor of Global Affairs and Politics at Farmingdale State College (FSC), East Farmingdale, New York.
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