A new report by SAP is sounding the alarm as African companies are not ready for the AI revolution, at least not from a skills perspective.
The report, titled ‘Africa’s AI Skills Readiness Revealed’, offers a timely look into how organisations across Kenya, Nigeria, and South Africa are gearing up for an AI-driven future — and where the cracks are already starting to show.
“The data is clear: African companies expect demand for AI skills to surge this year,” says Nazia Pillay, Interim Managing Director for SAP South Africa. “Six in ten organisations view AI skills as extremely important to their success — yet 90% are already experiencing negative impacts due to a shortage of those very skills.”
According to the research, delays in projects, failed innovation initiatives, and missed business opportunities are just some of the symptoms of a growing AI talent gap.
From Pandemic Pains to AI Pressure
SAP’s latest study builds on a 2023 report that highlighted widespread challenges in sourcing tech talent across Africa, especially in the wake of remote and hybrid work trends that took hold during the pandemic.
But in just one year, the conversation has shifted from hiring tech talent to finding the right AI and cybersecurity skills.
In fact, every company surveyed expects AI skills to be even more critical in 2025. Among the most sought-after competencies: AI development (85%) and Generative AI (83%). To tackle the widening gap, about two-thirds of companies are launching career development programs focused on AI upskilling and reskilling.
Cybersecurity Takes Centre Stage
Interestingly, cybersecurity has emerged as the most in-demand skill across the board, cited by 86% of organisations, up sharply from 63% in SAP’s previous research.
This makes sense in a region where digital infrastructure is expanding rapidly, and more citizens are gaining access to online services through fintech, e-government, and private-sector initiatives. With more people and services online, the risks — and the need for protection — rise too.
New Skills, New Expectations
The report also reveals changing attitudes around the workplace and what companies value in new hires.
Where technical know-how once dominated, companies are now prioritising affordability and adaptability. That’s a notable shift, especially in fast-moving environments where employees must constantly learn and evolve, particularly with AI set to impact nearly every department and role.
“Reskilling is a top priority for 38% of companies this year,” the report notes. “And helping employees understand why that reskilling is needed has become a major challenge.”
Hybrid and remote work expectations are also presenting fresh dilemmas. Eight in ten organisations now cite accommodating remote work requests from skilled employees as their biggest workplace challenge — up from just 32% last year.
Training Happens More Often — But Budgets Shrink
Despite these challenges, there is some good news. Companies are ramping up how often they offer training to their staff. SAP found that 94% of organisations now provide training at least once a month, up from 74% in the previous study.
Even better, 37% now offer on-demand training, giving employees the flexibility to learn whenever they need it.
However, there’s a surprising twist: budgets for skills development have dropped. This decline could prove risky, as companies that fail to invest now may fall behind in adopting emerging technologies.
“Organisations that don’t invest in the right skills today may find themselves outpaced by competitors who are better equipped to seize AI-driven opportunities,” warns Pillay.
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