AI forecast to add $1,5 trillion to Africa by 20230

by MTHULISI SIBANDA
JOHANNESBURG – ARTIFICIAL intelligence (AI) is projected to contribute US$1,5 trillion (R27 trillion) to Africa’s economy by 2030, if the continent can capture 10 percent of the AI global market.

This is according to the newly-released Africa AI Skills Readiness Revealed report by System Applications and Products (SAP), the Germany multinational software company.

The report, released in Johannesburg after research SAP conducted in Kenya, Nigeria and South Africa, further forecast that 230 million new digital jobs could be created in Africa by 2030.

In addition, the report suggests more than 650 million African citizens will need training or retraining in digital skills in the next few years.

Africa’s digital economy is projected from 5,2 percent of gross domestic product (GDP) in 2025 to 8,5 percent in 2050.

SAP reports that it previously conducted research in 2022/23 and at the end of 2024, partnered with research company, Vanson Bourne, to better understand the state of AI skills in key African markets, mentioned above.

Research involved written responses from 100 respondents working in the private and public sector.

Nazia Pillay, SAP Southern Africa Managing Director (Acting), stated the first report, launched in 2023, revealed specific challenges and opportunities for African organisations seeking the availability of greater technology skills.

“In our latest report, we find a world transformed by powerful AI and cloud technologies,” the executive said.

Pillay stated organisations were rushing to attract, retain and cultivate AI skills.

“Our latest research reveals a universal need for more AI skills among African organisations this year.”

Responding to CAJ News Africa question what SAP was doing to upskill university students with rightful AI skills, Pillay said to help the African continent ready for AI integration, the German software giant was ready to support local universities to ensure they churnout approved professionals into the market.

Africa’s AI market is valued at about $4,92 billion in 2025, representing 2,5 percent of the global AI sector.

The research by SAP indicates there are around 2 400 companies in Africa specializing in AI, including 726 in South Africa, 456 in Nigeria and 204 in Kenya.

However, it mentions a lack of AI skills is nine in ten African organisations. Two-thirds of organisations have introduced career development initiatives with AI specialization to upskill or reskill employees.

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