Africa Is Growing Fast in Technology, But Needs More Digital Skills – New Report

A new report from SAP Africa (done in 2022/2023 and released in May 2025) shows that Africa is using technology more and more to help grow its economy and create new jobs. The report looked at 100 large companies in Kenya, Nigeria, and South Africa. It shows how much digital technology is changing things, what challenges still exist, and how much potential Africa has to succeed with technology.

It also includes information from McKinsey & Company that shows how Africa could make billions of dollars by using technologies like generative AI (gen AI)  a type of artificial intelligence that can create new content like text, images, and more.

Africa’s Digital Economy Is Growing Fast

• In 2019, digital technology made up 5.2% of Africa’s total economy.

• By 2025, it is expected to grow to 8.5%.

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• In South Africa, it could grow even more — to 15–20% of the country’s economy by 2025.

• More people in Africa are using the internet. From 2019 to 2021, internet users increased by 115%.

• From 2014 to 2022, 191 million Africans started using digital payments (like mobile money).

• Africa’s population is very young and growing fast. By 2050:

  • Nigeria could grow from 228 million to 377 million people.

  • Kenya from 55 million to 91.6 million.

  • South Africa from 60 million to 68 million.

Huge Need for Digital Jobs and Skills

• Africa could create 230 million digital jobs by 2030.

• To meet this demand, 650 million people in Africa will need to learn digital skills or be retrained.

• Companies across the continent are already seeing this need:

  • 100% of those surveyed said they now need more tech-skilled workers.

  • The most wanted skills are:

    • Cybersecurity (86%)

    • AI developers (85%)

    • Gen AI experts (83%)

    • Cloud computing, data analytics, and digital transformation specialists

• 94% of companies are already giving regular training to workers.

• Many are looking to partner with schools and training centres.

Different Countries, Different Challenges

The report looked closely at Nigeria, Kenya, and South Africa:

Nigeria

• Economy: $364 billion

• Internet use: 43%

• Mobile use: 87%

• Unemployment: Low (3.1%)

• Main industries: Agriculture, services, and industry

Kenya

• Economy: $108 billion

• Internet use: 32.7%

• Mobile use: 133%

• Unemployment: 5.6%

South Africa

• Economy: $380.7 billion

• Internet use: Highest at 72.3%

• Mobile use: 187%

• Unemployment: High at 32.1%

These numbers show that some countries are ahead in internet use and infrastructure, while others need more support.

Big Projects Are Helping

Several programs are helping Africa become more digital:

• African Union’s Digital Strategy: A plan for digital growth across the continent.

• World Bank’s DE4A program: Helps improve broadband and digital access.

• Nigeria: “3 Million Technical Talent” (3MTT) program to train tech workers.

• Kenya: “DigiKen” program, supported by the UN, encourages digital innovation.

• South Africa: Government programs to improve internet access and tech education.

These projects are very important to help people learn new skills and connect to the digital world.

AI and Automation Are Growing – But Skills Are Missing

Many companies in Africa are using automation to do work that would normally require AI experts. This is because AI skills are still hard to find.

• 66% of companies say they use automation to fill the AI skills gap.

• South Africa (68%) and Nigeria (67%) are using it the most.

• But none of the companies had fully solved the problem of training people in AI skills. This shows that teaching people is just as important as using the technology.

Gen AI Can Be a Game-Changer

Generative AI could help Africa grow its economy in a big way:

• Globally, gen AI could add $2.6–$4.4 trillion every year.

• In Africa, it could add $61–$103 billion in value each year.

• The most benefits could come from:

  • Traditional AI (about 60%)

  • Gen AI (the rest)

Biggest Opportunities:

• Banking: Could earn $4.7–$7.9 billion more through AI.

• Retail: Could earn $6.6–$10.4 billion more.

• Telecom: Could earn $6.0–$9.6 billion more by using AI for better customer service, sales, and technical support.

However, many companies are still testing AI and not fully using it yet.

What Needs to Be Done

Africa is moving fast toward a digital future. But for this to work, countries need to:

• Build more internet infrastructure

• Train millions of people in tech skills

• Help all regions grow equally

• Invest in innovation and education

Africa’s large, young population and fast-growing internet use are big advantages. But without enough skills and support, many people could be left behind.

In short: Africa has a huge chance to grow through digital jobs and technology like AI. But it must invest in people, education, and infrastructure to make the most of