A new SAP report has revealed that Africa’s fast-growing digital economy is fueling an unprecedented demand for artificial intelligence (AI) and cybersecurity skills, putting pressure on companies to rapidly adapt. The report, titled Africa’s AI Skills Readiness Revealed, highlights that many organizations across Kenya, Nigeria, and South Africa are already facing negative impacts such as project delays and stalled innovation due to a shortage of AI expertise. SAP’s Interim Managing Director for South Africa, Nazia Pillay, stressed the urgency of addressing this widening skills gap to sustain growth and competitiveness.
The research, conducted at the end of 2024, surveyed mid-size and enterprise-level businesses and found that 90% of companies are struggling due to a lack of skilled AI professionals. A vast majority (85%) are prioritizing AI development, and 83% are focusing on generative AI capabilities. To counteract the deficit, two-thirds of companies have launched career development programs to reskill and upskill their workforce, particularly in high-demand fields like cybersecurity. The report also pointed out that 86% of companies now rank cybersecurity as their top technical priority—up significantly from 63% in 2023.
SAP’s findings also reflect a transformation in workplace dynamics, with hybrid and remote work environments becoming the new norm. In fact, 80% of organizations now cite supporting flexible work as a top challenge—up from 32% in 2023. As a result, hiring practices have evolved, with companies increasingly valuing affordability and adaptability in candidates, signaling a shift toward a more agile, skills-driven workforce capable of evolving alongside AI innovations.
Despite these strategic efforts, organizations still face major hurdles. About two-thirds report difficulty in communicating the value of reskilling initiatives to employees. Additionally, there has been a concerning decline in IT and HR budgets dedicated to skills development, potentially undermining progress. Pillay cautioned that companies failing to invest in talent risk falling behind as technological advancements accelerate.
Ultimately, the report underscores Africa’s position at the forefront of global digital transformation. With millions joining the digital ecosystem and AI reshaping industries, SAP calls for sustained investment in skills development. By focusing on AI and cybersecurity training, flexible work environments, and adaptable talent pipelines, African businesses are being urged to seize new growth opportunities and remain globally competitive.
Source: Punch