- A new report from software company SAP shows African companies are in a hurry and struggling to mature their workers with the latest AI technology.
- However, these efforts are hampered by the low budget for skill development.
- Companies are rushed in as AI is thought to be likely to donate $1.5 trillion to Africa's economy by 2023.
A new report from German multinational software company SAP reveals that as businesses across Africa surpass traditional IT skills, they are increasing their employees with new innovations in AI.
“AI-related skills need to be largely alive among African companies this year,” said Genevieve Koolen, HR director at SAP Africa.
“And because traditional IT skills such as cloud and cybersecurity-related capabilities remain high in demand, companies are currently facing the dual challenge of attracting and maintaining traditional technological talent, building greater AI capabilities within their business.”
In a recently released report revealing the preparation of AI skills in Africa, SAP explains that all companies surveyed across the continent from Nigeria to South Africa and beyond are hoping for an increase in demand for AI skills in 2025.
“38% of companies surveyed said that employee reskilling is the best skill-related challenge for them in 2025, with nearly half saying the same as high-end skills. The impact of these changes is two-thirds of companies that say they need two-thirds to help them understand why they need it.
But why are African companies looking for themselves to reach these new AI skills? Answer: Profit.
“Some studies estimate that AI can contribute $1.5 trillion to Africa's economy by 2030.
“African organizations live in the possibilities presented by AI-related innovation. Companies recognize that AI has made improvements in decision-making (64%), marketing capabilities (51%) and innovation (47%) possible.”
Lack of access to AI skills has led to already failed projects in Africa
The report also details that insufficient access to AI skills has already caused problems for businesses on the continent. This led to “failed innovation initiatives, project completion, greater pressure on the team, and inability to take on new client projects.”
Across the continent, economic crisis has led to a decline in budgets allocated for skill development, indicating a potential barrier for AI skills to be more robust across Africa.
“A previous survey conducted in 2022 stated that a quarter of organizations spends more than 15% of their HR or IT budgets on skill development and training. This year, the single organization that formed part of the research spent more than 10%,” says Koolen.
“This moment requires a practical approach that combines long-term skill development, including immediate skills and uplifting, and short-term steps that ease some of the immediate pressure and create space for a more robust skill development initiative,” she says.
In South Africa, businesses are already using AI technology. Advtech, the nation's largest private education group, has folded its technology into education software through its subsidiary of IIE, and now more than 60,000 students have access to AI.
