SAP has released a new report, Africa’s AI Skills Readiness Revealed, offering insights into how African companies are responding to the growing need for artificial intelligence skills and examining the broader landscape of AI integration across the continent.
Nazia Pillay, interim managing director for SAP South Africa, said the findings underscore an urgent business imperative. “The data is clear: African companies expect demand for AI skills to rise this year, with six in 10 saying these skills are ‘extremely important’ to their success,” she said. “Already, 90% of surveyed companies report negative consequences due to AI skills shortages, including project delays, failed innovation efforts, and an inability to pursue new opportunities.”
Growing Skills Demand Across the Continent
The report builds on SAP’s 2023 tech skills study, which detailed challenges related to tech talent availability in Africa amid the rise of remote and hybrid work. The 2024 research, conducted in Kenya, Nigeria, and South Africa among mid-size and enterprise-level firms, reflects a business landscape increasingly shaped by AI technologies.
Every organization surveyed said it anticipates a growing demand for AI skills in 2025 and acknowledged an existing skills gap. The most in-demand competencies include AI development (85%) and generative AI (83%).
To address the shortage, two-thirds of companies are implementing AI-focused career development programs to upskill or reskill employees.
Cybersecurity Tops the Tech Skills Wish List
While AI remains a priority, cybersecurity emerged as the most sought-after tech skill, with 86% of companies citing its importance – up sharply from 63% in the previous year. This growing emphasis likely reflects the rapid expansion of Africa’s digital economy and increased efforts to connect citizens through digital initiatives.
Evolving Workplace Expectations
African companies are also grappling with shifting workforce expectations. Eight in 10 organizations say supporting hybrid or remote work requests from skilled employees is their top workforce challenge this year, compared with just 32% last year.
Non-technical hiring priorities have also shifted. In 2023, technical expertise and industry-specific knowledge topped the list, while affordability ranked low. This year, affordability is the leading attribute companies look for in candidates, with adaptability ranking second.
This shift comes as companies focus more on reskilling (38%) and upskilling (48%) workers to meet evolving tech demands. However, two-thirds of employers said helping staff understand the need for reskilling is among their biggest challenges.
Training Gains Momentum Despite Budget Cuts
According to SAP, companies are increasing their training efforts. Ninety-four percent of organizations now offer employee training at least monthly, up from 74% in 2023. Those offering on-demand training rose from 28% to 37%.
However, budget allocations tell a different story. The percentage of IT or HR budgets dedicated to skills development has declined.
“The drop in investment is worrying,” Pillay said. “Companies that fail to prioritize skills development now risk falling behind their more agile, better-prepared competitors.”
