A new report, The Role of AI Innovation Clusters in Fostering Youth Employment in Africa: Opportunities, Challenges, and Implications, highlights the vital role AI innovation clusters are playing in empowering Africa’s youth. According to the report, these clusters are key to addressing Africa’s economic and technological challenges while creating exciting opportunities for young people across the continent.
Unveiled by Caribou Digital, a global research firm, in partnership with the MasterCard Foundation, the report explores how local innovations, when nurtured in the African context, can drive progress. These clusters bring together startups, researchers, tech enthusiasts, and government partners to create solutions that address Africa’s unique needs.
Africa is home to the world’s largest youth population, with nearly 60% of its people under the age of 25, and this number is expected to double by 2030, representing 40% of the world’s youth. As of 2020, over 127 AI hubs have been established across the continent, with South Africa leading at 22%, followed by Nigeria, Egypt, and Kenya at 12%, 12%, and 10%, respectively.
Many of these hubs have formed partnerships with international tech giants like Google, IBM, and Microsoft to foster AI innovation. These collaborations often focus on AI research, building local capacity, and strengthening the local AI ecosystem.
Nigeria, with its large population and growing tech scene, is emerging as a key player in AI innovation, particularly in fintech and eCommerce. AI hubs like the CcHub (Co-creation Hub) in Lagos are driving collaboration and the development of AI-powered solutions. Egypt is also heavily investing in AI, with the government prioritising AI as part of its Vision 2030 development plan.
AI innovation clusters consist of independent organisations—startups, businesses, and research groups—that work together in specific regions to boost innovation. These clusters encourage knowledge sharing, helping the flow of ideas, skills, and resources.
The success of these AI clusters is driven by six key components: grassroots AI communities, academia, human capital, policymakers, Big Tech, and investors. Among these, grassroots AI communities are emerging as a dynamic force at the heart of Africa’s AI ecosystem. These communities provide skills training, mentorship, and access to funding, helping young innovators create market-ready solutions and launch successful businesses.
The MasterCard Foundation has been a key supporter of digital innovation and entrepreneurship in Africa, further enabling the continent’s growth in the AI sector.
