(Ecofin Agency) - While Africa has an overall score lower than the global average, nine countries on the continent stand out, offering high investment potential in AI, thanks in part to strong digital infrastructure, a skilled workforce, and a favorable regulatory environment.

A report released on November 20 by the French Development Agency (AFD) has identified Morocco, Mauritius, and Gabon as the top countries in Africa with the best potential for artificial intelligence (AI) investment.

The report, titled AI Investment Potential Index (AIIPI), evaluates 193 countries based on a variety of factors such as digital infrastructure, political stability, regulatory environment, access to electricity, government effectiveness, human capital development, statistical capabilities, and the presence of a national AI strategy.

These factors are given scores between 0 and 100 to determine an overall score that reflects a country’s ability to attract AI investment. Based on these scores, countries are grouped into four stages. Stage 1 represents low potential, with an AIIPI score of less than 26. Stage 2 indicates medium potential, with scores between 26 and 50. Stage 3 shows high potential, with scores ranging from 51 to 75. Finally, Stage 4 represents very high potential, with scores above 75.

Each stage represents different priorities. Countries in stages 3 and 4 should focus on fostering innovation in AI and refining regulatory frameworks, while those in stages 1 and 2 need to prioritize improving infrastructure and developing human capital.

Nine African countries fall into Stage 3, which shows high investment potential. These include Morocco, Mauritius, Gabon, Rwanda, Kenya, Botswana, Tunisia, Senegal, and Egypt. All of these countries scored above the global average of 49.68, thanks to their strong digital infrastructure, availability of skilled workers, and favorable regulatory environments.

On the other hand, some African countries, including Eritrea, South Sudan, Burundi, the Central African Republic, and Liberia, are in Stage 1, which reflects a low potential for AI development.

Overall, Africa’s score is 36.61 points, which is well below the global average. North America ranks the highest with a score of 70.5, followed by Europe & Central Asia at 64.26, and Latin America & the Caribbean at 50.11. Other regions like East Asia & Pacific (48.35), Middle East & North Africa (47.6), South Asia (43.48), and Sub-Saharan Africa (35.45) follow.

North America and Europe & Central Asia are in Stage 3, meaning they have strong infrastructure, economic stability, and favorable regulations for attracting investment. In contrast, Sub-Saharan Africa and South Asia are in Stage 2, showing that these regions face more challenges for AI investment, such as political instability, limited infrastructure, and underdeveloped financial systems.

The report highlights the need for targeted policy changes and development assistance to help close the gap between regions. This would help improve the attractiveness of countries in stages 1 and 2 for AI investors. It aims to guide governments, financial institutions, and development banks in making strategic investment decisions in AI.

A very small number of countries are in Stage 4, representing very high investment potential. These include the United Arab Emirates, Iceland, Norway, Sweden, and Switzerland.