Africa’s rapidly expanding digital economy is fueling an unprecedented demand for artificial intelligence and cybersecurity expertise, yet companies are struggling to keep up, according to a new report released by SAP on Thursday.

Titled Africa’s AI Skills Readiness Revealed, the study highlights how a growing shortage of skilled professionals is already hindering project execution and slowing down innovation across the continent.

The research, conducted in late 2024, surveyed mid-sized and large companies in Kenya, Nigeria, and South Africa to assess how businesses are responding to the technological demands of 2025.

SAP’s Interim Managing Director for South Africa, Nazia Pillay, emphasized the urgent need to close the skills gap.

“The data is clear: African companies expect the demand for AI skills to increase this year, with six in ten saying AI skills are ‘extremely important’ to their success,” Pillay said.

The report revealed that 90 per cent of surveyed companies are already experiencing adverse effects due to the lack of AI talent, such as project delays, hindered innovation, and missed business opportunities.

It also highlighted a widespread anticipation of heightened demand for AI expertise across African organisations in 2025, with 85 per cent prioritising AI development skills and 83 per cent placing emphasis on generative AI capabilities.

To bridge this gap, two-thirds of companies are rolling out career development programs to upskill or reskill employees in AI specialties.

Cybersecurity skills top the list of technical priorities, with 86 per cent of companies emphasizing their importance, a sharp rise from 63 per cent in SAP’s 2023 tech skills report.

“The rapid growth of Africa’s digital economy, coupled with millions of citizens joining the digital ecosystem, is driving the critical need for cybersecurity expertise,” Pillay explained.

Compared to SAP’s 2023 findings, which highlighted post-pandemic challenges in attracting tech talent, the 2024 report revealed evolving workplace dynamics. Supporting hybrid and remote work has become the top skills-related challenge for 80 per cent of organizations, up from 32 per cent previously.

Hiring criteria have also shifted, with affordability now the primary attribute sought in candidates, followed by adaptability, a key trait for navigating

Reskilling and upskilling are priorities for 38 per cent and 48 per cent of companies, respectively, though 66 per cent report difficulties in conveying the importance of these initiatives to employees.

“The pace of technological change demands adaptable workforces ready to embrace new skills,” Pillay noted.