Tech Outsourcing Sector in Africa Faces Potential Disruption by AI, Affecting Nearly Half of All Tasks by 2030
Preparing Africa's Workforce for the AI-Driven Future
A new report by Caribou, Genesis Analytics, and the Mastercard Foundation has highlighted the potential impact of artificial intelligence (AI) on Africa's tech outsourcing sector, and the steps that can be taken to future-proof jobs in this growing industry.
The report reveals that just 10% of tasks in Africa's tech outsourcing sector are fully resistant to automation. This revelation underscores the urgent need for action to ensure that the continent's workforce is AI-ready.
Currently, workers in Africa's outsourcing sector are already utilizing AI for tasks such as coding, content creation, and customer service. This allows them to focus on higher-value, strategic work. However, entry-level jobs, which constitute 68% of the workforce, are threatened by automation. Finance and Accounting positions face similar risks, with nearly two-thirds of junior-level tasks at risk of automation.
To address this challenge, the report outlines a series of key approaches. These include skilling and training, policy and strategy alignment, multi-stakeholder governance, leveraging AI for education and job matching, inclusive economic policies, investment mobilization and infrastructure, and proactive policies to address gender disparities.
In terms of skilling and training, initiatives such as Deep Learning Indaba and AI4D Africa aim to train local professionals to address the critical shortage of AI talent in Africa. Strengthening vocational training and continuously updating education to reflect AI competencies will help prepare workers for future-ready roles.
Policy and strategy alignment is another crucial aspect. Several African countries are leading AI policy development with strategies and regulatory frameworks focused on ethical deployment and inclusive growth. Rwanda’s National AI Strategy exemplifies a forward-looking approach to leveraging AI while aligning with global best practices.
Multi-stakeholder governance is also essential. The Africa AI Council and Thematic Working Groups under Smart Africa bring together government, academia, industry, and civil society experts to shape AI policies and mobilize investments continent-wide.
AI can enable personalized learning for students in remote areas, helping build relevant skills for emerging digital roles. Digital platforms can also assist in matching workers to AI-relevant opportunities, thus reducing skill mismatches that often affect entry-level jobs in BPO and ITES.
Beyond training, employment policies need to address informal sector inclusion, social security, and worker rights to create equitable, sustainable livelihoods and avoid exacerbating inequalities during the automation transition.
Growing investment from global players like Google and the expansion of AI-driven financial services support workforce readiness indirectly by fostering vibrant digital ecosystems.
The report also emphasizes the need for AI-driven upskilling and reskilling programs, particularly for women and young professionals. Customer Experience roles, accounting for 44% of BPO employment, are especially vulnerable, with half of tasks potentially automatable. Proactive policies are needed to address gender disparities, as women's tasks in the sector are 10% more vulnerable to automation than men's.
The focus is on transitioning workers into higher-paying roles in cybersecurity, AI management, and data services. Africa's BPO and ITES industries are projected to reach $272.1 million in Kenya by 2025 and grow at 5.96% annually.
The report predicts that AI could automate 40% of tasks in Africa's growing tech outsourcing sector by 2030. However, it does not mention any new facts about the current growth rate of Africa's BPO and ITES industries or the percentage of tasks that could be automated by 2030.
In brief, Africa’s workforce can be prepared for AI-driven automation by combining education reform, targeted skill development, robust AI governance, and inclusive socio-economic policies that anticipate future labor market shifts in digital service industries. The report aims to future-proof jobs and unlock Africa's $35 billion BPO potential by 2028.
- To capitalize on the growing potential of AI in the business sector, it is crucial to invest in education-and-self-development programs that focus on AI competencies.
- As the adoption of AI continues to grow in Africa's finance sector, it is essential to implement reskilling and upskilling programs for professionals to maintain their viability in the AI-driven future.
