Africa’s business process outsourcing (BPO) sector is projected to reach $35 billion by 2028, but AI-powered automation could eliminate over 40% of jobs, a new report warns.
The report, by Caribou Digital and the Mastercard Foundation, estimates more than 1 million Africans work in BPO and IT-enabled services (ITES), a figure expected to grow by 1.8 million by the decade’s end. However, tasks in finance, accounting, and customer service are highly susceptible to automation.
“Entry-level roles will demand more than basic digital skills,” the report stated, urging foundational AI knowledge and technical tool proficiency for young job seekers.
Women in the sector face a 10% higher automation risk due to their overrepresentation in junior roles.
Despite the threat, African workers are adapting. Tools like Microsoft Copilot and ChatGPT are widely used to boost productivity. Many see AI as an enabler, not a replacement.
At last week’s Global AI Summit in Rwanda, African leaders launched a $60 billion Africa AI Fund to expand infrastructure and AI training. Mastercard Foundation’s Rodwell Mangisi called for urgent investments in upskilling to ensure inclusive, high-value employment.
Experts say China will play a key role, having committed to training African youth and deepening tech ties under its 2025–2027 cooperation plan. Professor Xn Iraki of the University of Nairobi noted Africa could follow China’s path by prioritizing STEM education and local innovation.
“Africa has the potential to lead, not just react, in the AI era,” Iraki said.
