This report delivers data-driven insights into how Artificial Intelligence (AI), with a particular focus on Generative AI (GenAI), is transforming Africa’s payments and E-Commerce sectors. It examines adoption trends, sectoral value potential, governance challenges, and workforce readiness across key markets.
AI adoption in Africa’s payments and E-Commerce markets in 2025 is expanding rapidly, unlocking multi-sector value potential, while governance gaps and workforce shortages constrain inclusive scaling.
AI progress accelerates, yet readiness gaps persist
AI adoption is expanding across Africa through strategic policies, new infrastructure, and collaboration between public and private sectors. By 2025, more than 75% of young Africans used AI tools weekly, reflecting strong engagement and digital readiness. Still, fragmented data, weak infrastructure, and talent shortages slow progress, with leading markets like Nigeria, South Africa, and Egypt driving growth while others fall behind.
Payments and commerce drive AI-led innovation
Fintech and E-Commerce are leading AI integration, applying Generative AI in fraud detection, automation, and personalized customer experiences. Rising transaction costs and demand for inclusion are boosting the use of AI-powered payment tools and digital assets. In retail, AI supports conversational shopping and supply chain insights, though scaling remains limited by infrastructure and data gaps.
Sector growth outpaces regulatory readiness
AI is advancing across banking, retail, telecom, and insurance, improving operations and compliance. Yet governance frameworks trail behind, with few countries adopting comprehensive AI regulations. Early steps like national councils and Data Embassies mark progress, but persistent concerns over bias, cybersecurity, and ethics highlight the need for stronger oversight.
Key Questions Answered
- What were the top AI adoption barriers in Africa in 2025?
- What share of Nigerians used Generative AI in 2025?
- Which sectors led AI use cases in Africa in 2024?
- What share of Egyptians trusted AI to protect data in 2024?
- What was the dominant type of AI used in Africa in 2024?
Table of Contents
1. Key Takeaways2. Management Summary
Samples
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Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Tala
- Jumo
- Kudi.ai
- Absa Group
- Flutterwave
- EcoCash
- M-Pesa
- TradeDepot
- Zendawa
- FarmAdvice
- Crop2Cash
- Logidoo
- Kitovu
- Viamo
- Digital Green
- Safaricom
