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Technology
25 March 2025

Africa And Malaysia Accelerate AI Adoption For Economic Growth

Nations pursue pioneering AI strategies to foster innovation and resilience in the digital economy.

Cassava Technologies, a company led by Zimbabwean telecoms tycoon Strive Masiyiwa, has announced a pivotal partnership with the US tech giant Nvidia to establish what they claim will be Africa's first AI factory. This initiative aims to develop a powerful and super-secure data center facility leveraging Nvidia’s advanced AI computing technology. According to Cassava, this AI factory will significantly enhance access to cutting-edge AI capacities, empowering African businesses, governments, and researchers to innovate and maintain competitiveness in a rapidly evolving tech landscape.

The AI factory is set to be operational by June 2025 in South Africa, with expansion plans for additional facilities in Egypt, Kenya, Morocco, and Nigeria. Masiyiwa noted, "This will give African businesses, governments and researchers access to cutting-edge AI computing capacity – helping them develop smarter AI products, streamline operations, and stay competitive in a fast-changing world." Furthermore, he emphasized that building digital infrastructure for the AI economy is crucial for Africa to fully seize opportunities within the fourth industrial revolution.

As Cassava moves forward, the company will utilize Nvidia’s accelerated computing technology to deliver AI as a Service (AIaaS) through its pan-African fiber-optic network and data centers. Jaap Zuiderveld, vice-president for Europe, Middle East and Africa at Nvidia, stated, "AI is helping innovators solve our greatest challenges in agriculture, healthcare, energy, financial services and many other industries, creating opportunities in Africa." This collaboration promises not only to enhance technological independence but also to bolster the continent’s capacity for local solutions to local challenges.

Meanwhile, across the seas, Malaysia is also gearing up for significant advancements in its digital economy through the integration of artificial intelligence (AI) and blockchain technologies. Prime Minister Datuk Seri Anwar Ibrahim recently led discussions that underscored the urgency of rolling out AI applications across various industries, particularly in the burgeoning Islamic digital assets and halal sector. He urged a coordinated response among multiple ministries to ensure seamless technological integration while addressing cybersecurity concerns.

The establishment of the National Geoeconomic Command Centre highlights Malaysia's strategy to enhance economic resilience amid global uncertainties. This initiative, attributed to the Investment, Trade, and Industry Ministry, is tasked with monitoring tariffs, sanctions, and supply chain risks to bolster Malaysia’s position as a credible trading partner. Minister Tengku Datuk Seri Zafrul Abdul Aziz emphasized that Malaysia's strong potential lies in its ability to transform challenges into robust economic strategies.

Within this evolving landscape, Bank Negara Malaysia (BNM) is proactively exploring blockchain technology to strengthen its national financial systems, potentially paving the way for a Central Bank Digital Currency (CBDC). Governor Datuk Seri Abdul Rasheed Ghaffour noted that while immediate implementation is not prioritized, creating a secure platform for blockchain applications remains a focus. The partnership of BNM with global regulators on asset tokenization aims to enhance transparency in financial transactions, fostering greater investor confidence.

Furthermore, the recent performance of Palantir Technologies Inc. has caught the attention of investors, with its stock price rising by 29.45% in 2025 alone, enhancing its market capitalization to approximately $220.30 billion. Kenny Polcari, chief market strategist at Slatestone Wealth, remarked that he remains steadfast in his bullish outlook on Palantir, indicating the company’s pivotal role in global economic and AI frameworks.

In the broader context of AI infrastructure, companies like Delta and Microsoft are making strides to bolster capabilities that support AI operations. Delta recently introduced next-generation power and cooling solutions tailored for AI data centers, which is critical as energy demands from these facilities escalate. Microsoft, set to launch its Malaysia West cloud region in the second quarter of 2025, promises to inject $10.9 billion into the local economy and generate nearly 38,000 jobs by 2028.

Finally, the Yale School of Management is gearing up to host the 2025 Responsible AI in Global Business conference on April 3, 2025. This event aims to explore ethics and innovation in the age of AI, bringing together scholars, business leaders, and students to discuss pathways for responsible AI deployment. Jennifer Frederick, Yale's associate provost, highlighted that while generative AI can democratize access to learning, institutions must continuously recalibrate pedagogy to prepare future leaders effectively. She reiterated, "We need to embrace the idea of ‘AI for everyone,’ or we risk repeating patterns that benefit only a narrow slice of humanity."

As nations like Africa and Malaysia pursue ambitious AI strategies, the emphasis on ethical frameworks and responsible practices is paramount. In navigating the rapidly changing digital landscape, these emerging technological innovations serve as a beacon for sustainable growth and enhanced economic resilience.