The groundbreaking ceremony of Kigali Innovation City (KIC) within the Kigali Special Economic Zone – September 10, 2024 (Photo by Events Factory)
In an era where artificial intelligence (AI) is reshaping economies globally, Rwanda and Kenya have emerged as leaders in AI readiness within the East African Community (EAC), according to study commissioned by International Monetary Fund.
These two nations stand out for their robust digital infrastructure, innovation ecosystems, and commitment to building a digitally skilled workforce.
However, significant disparities exist across the region, with Burundi, DR Congo, Somalia, Tanzania, and Uganda lagging behind in terms of foundational AI preparedness indicators.
The study, “Gen-AI: Artificial Intelligence and the Future of Work”, released last month, explores the potential impact of artificial intelligence (AI) on global labor markets and economies.
It highlights that nearly 40% of global employment is exposed to AI, with advanced economies being more susceptible due to their higher concentration of cognitive-intensive jobs, while emerging market and low-income countries face challenges in harnessing AI benefits due to weaker digital infrastructure and skills gaps.
The research team also used data from the IMF’s AI Preparedness Index (AIPI), which evaluates countries’ readiness to adopt AI through four key dimensions: digital infrastructure, innovation and economic integration, human capital and labor market policies, and regulation and ethics.
Among EAC countries, Rwanda ranks highest due to its strategic investments in STEM education, e-government initiatives, and smart city projects like the Kigali Innovation City. The government’s focus on fostering a tech-savvy population has positioned Rwanda as a regional leader in leveraging AI technologies.
Rwanda has done study on anticipated impact of AI, which found that “even with basic use cases”, the technology could contribute up to six percent to the country’s GDP, according to Paula Ingabire, the Minister for ICT and Innovation, who spoke at the World Economic Forum (WEF) last month.
She highlighted uses like early warning systems for farmers to know weather patterns, as well as public administration uses for example in tax administration.
Kenya closely follows Rwanda, showcasing strong performance across all four dimensions of the AIPI. As a hub for technological innovation in East Africa, Kenya benefits from its vibrant startup ecosystem centered around Nairobi’s Silicon Savannah.
Investments in broadband expansion, mobile money platforms, and fintech solutions have created fertile ground for AI adoption.
Despite these successes, other EAC countries face substantial challenges in preparing for the AI-driven future. Tanzania, while showing moderate progress in expanding internet access and promoting digital literacy, lacks the comprehensive ecosystem seen in Rwanda and Kenya. Limited investment in STEM education and insufficient focus on regulatory frameworks hinder Tanzania’s ability to fully embrace AI technologies.
Uganda similarly struggles with underdeveloped digital infrastructure, particularly in rural areas. Although there are pockets of innovation, such as incubators supporting young entrepreneurs, the country lags behind in creating an enabling environment for widespread AI adoption.
At the lower end of the spectrum, Burundi, DR Congo, and Somalia exhibit critical gaps in AI readiness. These countries suffer from minimal digital infrastructure, limited access to quality education, and weak institutional frameworks.
In Burundi, where food price inflation surged to 27.3% by December 2024, priorities remain skewed toward addressing immediate survival needs rather than investing in future-oriented technologies.
Similarly, DR Congo faces severe constraints due to its large size, underdevelopment, and ongoing conflicts, which impede efforts to build a digitally inclusive society.
Somalia’s situation is even more dire, with decades of instability leaving little room for advancements in digital infrastructure or education. While recent World Bank reports highlight opportunities for leapfrogging through scalable AI-backed solutions, practical implementation remains elusive without foundational investments.
Initiatives outline in the IMF report—leveraging AI to enhance public service delivery, modernize agriculture, and bolster healthcare—could provide a lifeline for these nations.
For example, AI-powered predictive analytics could improve crop yields in regions prone to climate shocks, while telemedicine solutions could address shortages of qualified medical personnel.
However, achieving meaningful progress requires overcoming significant hurdles. Weak digital infrastructure, lack of skilled labor, and inadequate regulatory frameworks remain persistent barriers. Moreover, the ethical implications of AI deployment necessitate careful consideration, especially in contexts characterized by fragile governance structures.
The IMF report also emphasizes the need for harmonized global principles and localized legislation to ensure responsible AI use. Given the cross-border nature of AI applications, international cooperation becomes crucial. Efforts like the Bletchley Declaration, signed by 28 countries and the European Union, exemplify collaborative approaches to navigating the complexities of AI governance.
Looking ahead, policymakers in the EAC must strike a balance between encouraging innovation and safeguarding vulnerable populations. Advanced economies and emerging markets with stronger AI readiness indices should invest in capacity-building initiatives for their less prepared neighbors. Such solidarity could help narrow the digital divide and promote shared prosperity.
As highlighted in the IMF study, AI adoption will likely amplify existing inequalities unless proactive measures are taken. Wealthier economies, including Kenya and Rwanda, are better positioned to capitalize on AI’s productivity gains but risk exacerbating disparities if they fail to extend benefits to marginalized groups. Conversely, low-income countries may struggle to integrate AI into their growth models without adequate support.
Ultimately, the success of AI adoption in the EAC hinges on collective action. By prioritizing foundational elements like digital infrastructure and human capital development, all member states can lay the groundwork for harnessing AI’s full potential. Additionally, fostering regional cooperation and learning from successful case studies will be vital for ensuring that no country is left behind in this technological revolution.
While Rwanda and Kenya lead the charge in AI readiness, concerted efforts are needed to uplift the rest of the region. Through sustained investment, policy reforms, and international partnerships, the EAC can position itself as a leader in leveraging AI for sustainable development. Failure to act decisively risks deepening inequality and perpetuating cycles of poverty, underscoring the urgency of embracing this transformative technology responsibly and inclusively.
Among African countries, South Africa and Nigeria stands out as one of the continent’s most advanced economies in terms of AI preparedness.
Globally, the landscape of AI readiness varies significantly between advanced economies, emerging markets, and low-income countries. Advanced economies, particularly those in North America and Western Europe, dominate the upper echelons of the AIPI due to their mature industries, service-driven economies, and high concentrations of cognitive-intensive jobs.
Countries like the United States and Germany lead the way, with extensive investments in AI research, widespread adoption of digital tools, and comprehensive regulatory frameworks. Emerging market economies, including India, Brazil, and South Africa, occupy an intermediate position on the index.
