As Africa moves deeper into the era of artificial intelligence, organizations across the continent face mounting pressure to build the skills needed to compete in a rapidly changing global economy.
A new report by SAP found that two-thirds of organizations in Africa are already introducing career development initiatives focused on artificial intelligence, aimed at upskilling or reskilling their existing workforce. The findings reflect growing recognition that traditional IT skills alone are no longer sufficient as AI adoption accelerates.
“There is a near-universal need for AI-related skills among African companies this year,” said Genevieve Koolen, human resources director at SAP Africa.
The report, titled Africa’s AI Skills Readiness Revealed, shows that organizations are grappling with the dual challenge of attracting scarce traditional technology talent while simultaneously developing AI capabilities. Skills in cloud computing and cybersecurity remain in high demand, but companies increasingly view AI expertise as critical to future growth.
Nearly half of surveyed organizations expect a significant rise in demand for AI skills by 2025, underscoring the pace of digital transformation across the continent. With Africa’s large and youthful population, the report highlights an urgent need for policymakers and education providers to accelerate AI skills development.
According to the findings, 38% of companies consider reskilling employees to be their top skills-related challenge in 2025, while nearly half identified upskilling as a similarly pressing concern. Two-thirds of organizations said helping employees understand the need for reskilling is a priority.
The potential economic impact is substantial. Some estimates suggest AI could contribute as much as $1.5 trillion to Africa’s economy by 2030 if the continent captures 10% of the global AI market. Companies surveyed cited improved decision-making, at 64%, enhanced marketing capabilities, at 51%, and increased innovation, at 47%, as key benefits of AI adoption.
However, the report warns that skills shortages are already having negative effects. Organizations reported failed innovation initiatives, delayed projects, increased pressure on teams and missed opportunities to take on new client work. In response, 94% of surveyed companies now offer training at least once a month.
Despite this increase in training activity, investment levels are falling. SAP’s research found that in 2023, no organization allocated more than 10% of its HR or IT budget to skills development, down from the previous year when a quarter of companies spent more than 15%.
Koolen said companies must take a pragmatic approach that balances long-term reskilling strategies with short-term measures to address immediate shortages. She also warned that declining training budgets could undermine digital transformation efforts and weaken competitiveness.
The report emphasizes the importance of partnerships, noting that public-private collaboration and closer engagement with technology providers could help accelerate the availability of AI skills and support innovation.
In an economy increasingly shaped by technology, the report concludes that investing in AI skills is no longer optional for African organizations but essential for long-term resilience and growth.
