As Africa enters the era of artificial intelligence, organizations across the continent are facing increasing pressure to build the skills needed to compete in a rapidly changing global economy.
Two-thirds of African organizations have already implemented career development initiatives focused on artificial intelligence to upskill or reskill existing employees, according to a new report from SAP. The findings reflect a growing recognition that traditional IT skills are no longer sufficient as AI adoption accelerates.
“There is an almost universal need for AI-related skills among African companies this year,” said Genevieve Coolen, HR director at SAP Africa.
Titled “Africa’s AI Skills Readiness Revealed,” the report shows that organizations are grappling with the dual challenge of attracting scarce traditional technology talent alongside developing AI capabilities. While cloud computing and cybersecurity skills remain in high demand, companies are increasingly seeing AI expertise as essential to their future growth.
Almost half of organizations surveyed expect demand for AI skills to increase significantly by 2025, highlighting the pace of digital transformation across the continent. Given Africa’s large population and young population, the report highlights the urgent need for policy makers and education providers to accelerate AI skills development.
The survey results show that 38% of companies believe reskilling employees will be their top skills challenge in 2025, and nearly half identify upskilling as an equally pressing concern. Two-thirds of organizations say getting employees to understand the need for reskilling is a priority.
The potential economic impact is significant. Some estimates suggest that if the continent captures 10% of the global AI market, AI could contribute up to $1.5 trillion to the African economy by 2030. Companies surveyed cited improved decision-making (64%), enhanced marketing capabilities (51%), and increased innovation (47%) as the main benefits of implementing AI.
But the report warns that skills shortages are already having a negative impact. Organizations reported failed innovation efforts, delayed projects, increased pressure on teams, and missed opportunities to take on new customer work. Correspondingly, 94% of companies surveyed now offer training at least once a month.
Despite this increase in training activity, investment levels are declining. According to SAP research, no organization allocated more than 10% of their HR or IT budget to skills development in 2023, down from the previous year, when a quarter of companies spent more than 15%.
Mr Coolen said companies needed to take a pragmatic approach that balanced long-term reskilling strategies with short-term measures to address immediate talent shortages. He also warned that reduced training budgets could undermine digital transformation efforts and weaken competitiveness.
The report highlights the importance of partnerships, noting that public-private collaboration and closer collaboration with technology providers can help accelerate the use of AI skills and support innovation.
As economies are increasingly shaped by technology, investing in AI skills is no longer optional for African organizations, but is essential for long-term resilience and growth, the report concludes.
