Africa’s rapidly expanding digital economy is driving an unprecedented demand for artificial intelligence (AI) and cybersecurity skills, with companies struggling to keep pace, according to a new report by SAP . The study, titled “Africa’s AI Skills Readiness Revealed,” warns that a shortage of expertise is already derailing projects and stifling innovation across the continent.
Conducted at the end of 2024, the research surveyed mid-size and enterprise-level companies in Kenya , Nigeria , and South Africa , shedding light on how organizations are adapting to meet the technological demands of 2025. The findings underscore the urgency of addressing the growing skills gap.
Interim Managing Director for South Africa at SAP, Nazia Pillay , emphasized the critical need for action. “The data is clear: African companies expect the demand for AI skills to surge this year, with six in ten saying AI skills are ‘extremely important’ to their success,” Pillay stated.
The report highlights that 90 per cent of surveyed companies are already experiencing negative consequences due to the shortage of AI expertise. These include project delays, stalled innovation, and lost business opportunities. Furthermore, 85 per cent of organizations anticipate increased demand for AI development skills in 2025, while 83 per cent are prioritizing generative AI capabilities.
To bridge the gap, two-thirds of companies are implementing career development programs to upskill or reskill employees in AI specialties. However, the demand for cybersecurity skills remains paramount, with 86 per cent of companies emphasizing their importance—a sharp rise from 63 per cent in SAP’s 2023 tech skills report.
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“The rapid growth of Africa’s digital economy, coupled with millions of citizens joining the digital ecosystem, is driving the critical need for cybersecurity expertise,” Pillay explained.
Compared to SAP’s 2023 findings, which highlighted post-pandemic challenges in attracting tech talent, the 2024 report reveals evolving workplace dynamics. Supporting hybrid and remote work has become the top skills-related challenge for 80 per cent of organizations, a significant increase from 32 per cent previously.
Hiring criteria have also shifted, with affordability now the primary attribute sought in candidates, followed by adaptability—a key trait for navigating AI-driven reskilling. While 38 per cent of companies prioritize reskilling and 48 per cent focus on upskilling, 66 per cent report difficulties in conveying the importance of these initiatives to employees.
“The pace of technological change demands adaptable workforces ready to embrace new skills,” Pillay noted.
To address the skills demand, 94 per cent of African companies now offer IT training at least monthly, up from 74 per cent in 2023. Additionally, 37 per cent provide training opportunities anytime, compared to 28 per cent previously. However, the report raises concerns about declining IT and HR budgets allocated to skills development. “Companies that fail to invest in skills today risk falling behind in leveraging emerging technologies,” Pillay warned.
Building on its 2023 tech skills report, SAP’s latest findings illustrate a continent at the forefront of digital transformation. As Africa’s digital economy expands, the focus on AI and cybersecurity skills, alongside flexible work models and robust training, positions organizations to capitalize on new opportunities.
The report calls for renewed investment in skills development to ensure African companies remain competitive globally. With the right strategies, Africa can harness its digital potential and lead in the global tech landscape.
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