New research by Caribou and Genesis Analytics, in partnership with the Mastercard Foundation, has found that 40% of tasks in Africa’s Tech Outsourcing Sector, including BPO (Business Process Outsourcing) and ITES (IT-Enabled Services), could be automated by 2030, creating new pathways for workers to move into higher-skilled, higher-paying roles. With just 10% of tasks fully resilient to automation, strategic investment in widespread AI upskilling and training will be key to unlocking Africa’s $35 billion BPO potential by 2028.
Rodwell Mangisi, Director of Digital Economy Pan African Programs at the Mastercard Foundation said: “Africa’s tech outsourcing industry is expanding rapidly, adding new jobs and opportunities each year. As AI transforms global business processes, Africa can lead by ensuring its workforce is AI-ready. By investing in targeted upskilling programs, especially for women and young professionals, we can ensure this 6% annual growth translates into sustainable, high-value employment that benefits all demographics.”
The South African Tech Outsourcing Sector: A Powerhouse on the brink of change
South Africa has the most established BPO/ITES market in Africa, valued at $5.2 billion. The South African Government’s Global Business Services Masterplan emphasises impact sourcing as a cornerstone for inclusive hiring, aimed at creating employment opportunities for both disadvantaged youth and women in the BPO/ITES sector. Between 2018 and 2022, 65% of new export jobs went to women and 89% to youth. South Africa also leads the continent in generative AI usage, with over 60% of workers using AI tools regularly. However, the rise of automation could slow down this growth. The report identifies Customer Experience roles – 44% of current employment in the BPO sector – as particularly vulnerable, with half of the tasks at risk of automation.
AI as a tool for workplace empowerment
AI has firmly established its place into Africa’s BPO and ITES sectors, driving efficiency and innovation. Workers are using tools like ChatGPT, Microsoft Copilot, and in-house chatbots to enhance productivity, creativity, and accuracy. These AI-powered technologies assist with coding, debugging, content generation, and customer service, enabling employees to focus on strategic problem-solving, decision-making, and higher-value tasks. Thus, they see opportunities for career advancement and transitioning into higher-level roles. Despite these opportunities, AI’s rapid rise could impact certain roles in the BPO sector. Entry-level jobs – comprising 68% of the workforce – are particularly affected, with more than half of tasks being automatable. To futureproof the sector, AI-driven upskilling programs are needed to enable workers to shift into higher-skilled, better-paying roles in cybersecurity, AI management, and data services.
Jon Beardsley, Program Director: Digital Livelihoods at Genesis said:
“The question isn’t whether Africa will participate in the AI revolution, but whether we’ll invest now to ensure it leads it. With 125 million workers entering the market by 2030, strategic time zone advantages, and strong English proficiency, Africa offers a compelling value proposition to lead in AI-augmented business services”
Widening divides
While AI presents significant opportunities, it also poses challenges, particularly for women and youth who predominantly occupy entry-level roles. The report highlights tasks performed by women are on average 10% more susceptible to automation than those by men in the sector. This disparity risks exacerbating gender-based inequalities in the sector’s workforce if not proactively addressed. Customer Experience roles, which account for 44% of employment in the BPO sector, are among the most affected, with half of tasks in these roles being automatable. Finance and Accounting positions in the BPO sector face similar challenges, with nearly two-thirds of junior-level tasks at risk. Without intervention, these shifts could disproportionately impact the livelihoods of young workers and women in the sector. To mitigate these risks, the report stresses the urgency of equitable AI upskilling and reskilling efforts to ensure all demographics can transition into future-proof roles. Charlene Migwe, Program Director at Caribou said:
“Africa’s tech outsourcing sector is at a pivotal moment. With the right investments in skills development, ethical AI, and inclusive policies, we can transform the risks of automation into new opportunities for innovation and resilience.”
Building a future-proof workforce
To harness AI’s potential and mitigate risks, the report outlines strategic recommendations to accelerate workforce upskilling and ensure inclusive AI adoption. While automation may replace routine tasks, it also offers the potential to enhance productivity, create higher-skilled jobs, and position Africa as a global leader in outsourcing.
1. Upskilling and Reskilling Workers
- AI-focused upskilling: Introducing AI training into BPO company upskilling programs to help workers transition into higher-value roles. This includes AI and cybersecurity training for workers in data annotation, IT support, and customer service, as these roles are at the highest risk of automation. Examples of specific skills to build on include AI literacy and machine learning, foundational AI models, and business applications.
- Targeted training for women: Prioritizing AI literacy programs specifically for women and mentorship initiatives to mitigate gender disparities in AI-driven job markets.
2. Standards and Governance
- Ethical AI and labor rights protections: Protecting workers in high-risk roles through a global AI labor framework that integrates fair wages, job security, mental health protections, and clear job descriptions outlining AI’s role in augmentation.
3. Expanding Access to Digital Infrastructure
- Tech infrastructure for rural and peri-urban youth: Launching a tech-equipment lending program that provides zero-interest laptop loans for youth in remote areas, enabling them to work in AI-integrated roles. CloudFactory and Shortlist, both located in Nairobi, have tested similar impact sourcing models
