Urgent need for AI skills development accelerates across Africa

In a rapidly evolving technological landscape, African organisations are recognising the necessity to enhance their traditional IT skills amidst the accelerating adoption of artificial intelligence (AI).

A new report by SAP indicated that two-thirds of organisations in Africa are proactively introducing career development initiatives with AI specialisation aimed at upskilling or reskilling their current workforce.

This initiative is viewed as a crucial response to the looming demands of the AI era.

Genevieve Koolen, HR Director at SAP Africa, emphasised the urgency for AI-related skills among companies operating on the continent.

“There is a near-universal need for AI-related skills among African companies this year,” she stated.

As companies navigate the dual challenges of attracting and retaining traditional tech talent while simultaneously fostering AI capabilities, career development opportunities have become paramount.

With traditional IT skills in high demand, particularly in cloud and cybersecurity, it’s clear why most organisations are focusing on enhancing their workforce’s capabilities in AI.

The 'Africa’s AI Skills Readiness Revealed' report released by SAP highlights that surveyed companies anticipate a significant spike in demand for AI skills by 2025.

Nearly half of the participants expect a noteworthy increase, underscoring the frenetic pace of digital transformation within the continent.

With Africa boasting a burgeoning youth population, the urgency for policymakers and educational institutions to fast-track AI skills development is more pronounced than ever. Koolen points out that “38% of companies surveyed consider the reskilling of employees a top skills-related challenge for them in 2025, while nearly half echo the same sentiment regarding upskilling.”

This sentiment is echoed by two-thirds of organisations that prioritise helping employees understand the necessity of reskilling.

Wide-reaching impacts of skills shortages

The implications of a skilled workforce in AI could be monumental, with some forecasts suggesting that AI could inject $1.5 trillion into Africa’s economy by 2030, provided the continent can secure 10% of the global AI market.

Companies are beginning to grasp the myriad possibilities stemming from AI innovations.

They cite perceived benefits including improved decision-making (64%), enhanced marketing capabilities (51%), and spurred innovation (47%).

Nevertheless, the undercurrent of skills scarcity is already manifesting in detrimental ways, leading to failed innovation initiatives, delayed project completions, heightened team pressure, and an inability to pursue new client projects. In response, organizations are increasing training frequency, with 94% now offering training at least monthly.

However, despite this training push, concerns are rising regarding declining budgets for skills development.

A stark observation from SAP's research reveals that no organisation surveyed in 2023 allocated more than 10% of their HR or IT budgets to skills development—a decrease from the previous year's quarter of organisations that spent over 15%.

Strategies for building an AI-capable workforce

While the full impact of AI on Africa’s workforce remains speculative, Koolen outlines several practical measures companies can adopt:

• Be prepared: Companies must ready themselves for an imminent shortage of critical AI-related skills. A pragmatic approach that melds long-term reskilling and upskilling strategies with immediate, short-term measures is essential to successfully navigate this transitional phase.
• Prioritise training: The shrinking budget for training is concerning. Koolen warns that insufficient investment in skills development could lead to failed digital transformation initiatives, eroding competitiveness and ultimately affecting the bottom line.
• Partner well: With systemic challenges surfacing in equipping youth with work-ready skills, collaborative public-private partnerships can accelerate the pace of skills availability. Moreover, collaboration with technology vendors can enhance organisations' capacity to support AI-led innovations.

In a world where technological prowess can dictate economic success, it is paramount for African organisations to take informed, decisive steps towards fostering an AI-ready workforce.

The message is clear: investing in skills now is not just an option, it's a necessity for future resilience and growth.

BUSINESS REPORT