Effect of Artificial Intelligence on Telecommunications and the Digital Economy in Africa: Platform Monopoly, Data Sovereignty Crisis, and Digital Industrial Policy Solutions

Platform Monopoly, Data Sovereignty Crisis, and Digital Industrial Policy Solutions

Abstract

This study examines how artificial intelligence is transforming telecommunications and the digital economy in Africa, paying close attention to the risks of platform dominance, the growing concerns around data sovereignty, and the policy choices needed to strengthen Africa’s digital independence. It adopts a mixed-methods approach, drawing on documentary analysis, comparative regulatory review, and secondary data from GSMA, the International Telecommunication Union, the African Development Bank, and national regulators in Nigeria, Kenya, South Africa, Ghana, and Egypt. Guided by Platform Regulatory Theory and Digital Colonialism Theory, the study identifies six key areas of disruption. These include the growing dominance of foreign platforms in AI-driven services such as search, social media, and cloud infrastructure; the widespread extraction of African data with limited local control; and the increasing pressure faced by domestic digital firms competing with global platforms. The study also highlights how algorithmic systems are shaping public discourse without adequate accountability, alongside rising dependence on foreign digital infrastructure and the continued exclusion of low-income populations due to access and affordability challenges.

The findings show that foreign platforms control between 76% and 98% of major digital sectors, while regulatory capacity across the selected countries remains weak. The study describes this as an “African AI digital sovereignty deficit,” where key digital systems are externally controlled. To address this, it proposes a practical policy framework focused on strengthening regulation, investing in local infrastructure, supporting digital enterprises, and improving coordination at the continental level.