SAP Report Warns Africa Must Accelerate AI Skills Development

Africa must urgently accelerate artificial intelligence skills development to remain competitive in the global economy, according to a new report by SAP.

As AI adoption expands across industries, organizations on the continent face growing pressure to equip their workforce with relevant skills. Traditional IT expertise alone is no longer sufficient.

Companies Shift Toward AI Upskilling

The report, titled Africa’s AI Skills Readiness Revealed, found that nearly two-thirds of African organizations have already launched career development initiatives focused on AI. These programs aim to upskill or reskill existing employees.

According to Genevieve Koolen, the demand is widespread. “There is a near-universal need for AI-related skills among African companies this year,” she said.

At the same time, firms continue to compete for scarce traditional technology talent. Skills in cloud computing and cybersecurity remain essential. However, companies increasingly view AI expertise as critical to future growth.

Demand for AI Skills Rising Fast

Nearly half of surveyed organizations expect a sharp increase in demand for AI skills by 2025. This trend reflects the rapid pace of digital transformation across Africa.

With a young and growing population, the continent has strong potential. However, the report stresses that policymakers and education providers must act quickly to scale AI training.

Reskilling emerged as a major concern. About 38% of companies identified it as their top skills challenge for 2025. Meanwhile, nearly half said upskilling is equally urgent. Two-thirds also reported that helping employees understand the need for reskilling is a priority.

Economic Opportunity at Stake

The economic stakes are high. Estimates suggest AI could contribute up to $1.5 trillion to Africa’s economy by 2030 if the continent captures 10% of the global AI market.

Companies already using AI reported tangible benefits. These include improved decision-making at 64%, stronger marketing capabilities at 51%, and increased innovation at 47%.

Skills Gaps Already Hurting Businesses

Despite these opportunities, skills shortages are already causing problems. Organizations reported delayed projects, failed innovation initiatives and increased pressure on existing teams. Many also said they missed opportunities to win new client work.

As a result, 94% of surveyed companies now offer training at least once a month. However, investment levels are declining.

SAP’s research shows that in 2023, no organization allocated more than 10% of its HR or IT budget to skills development. This marks a drop from the previous year, when 25% of companies spent more than 15%.

Call for Partnerships and Investment

Koolen warned that shrinking training budgets could undermine digital transformation and weaken competitiveness. She urged companies to balance long-term reskilling strategies with short-term solutions to address immediate gaps.

Moreover, the report highlights the importance of partnerships. Public-private collaboration and closer engagement with technology providers could help accelerate access to AI skills and support innovation.

Skills Investment No Longer Optional

Overall, the report concludes that investing in AI skills is no longer optional for African organizations. Instead, it is essential for long-term resilience, competitiveness and sustainable growth in an economy increasingly shaped by technology.