AI Skills Gap Threatens Innovation and Competitiveness in Kenya, Nigeria, and South Africa

Critical AI Skills Gap Across South Africa, Kenya, and Nigeria

As generative AI adoption grows and the push for artificial general intelligence intensifies, major African markets are facing a significant shortage of AI skills. New research shows that 61% of mid-size and enterprise companies in Kenya, Nigeria, and South Africa consider AI skills to be extremely important, while 38% rate them as very important. This means nearly 99% agree that AI skills are essential for business success.

These insights come from the report Africa’s AI Skills Readiness Revealed, commissioned by SAP and conducted at the end of 2024. It highlights how companies across these countries are working to develop the necessary skills to keep pace with AI technologies.

Impact of the Skills Shortage

Nazia Pillay, interim MD for South Africa at SAP, pointed out that 90% of companies have already felt the negative effects of insufficient AI skills. These include project delays, failed innovation, and missed opportunities for new work. The gap is affecting performance, competitiveness, and innovation.

Compared to the previous report conducted post-pandemic, the business environment has changed dramatically. The rise of AI technologies has shifted the focus towards finding and growing AI talent alongside adapting to remote and hybrid work models.

Growing Demand and Persistent Gaps

• All respondents expect AI skills demand to grow in 2025, with nearly half predicting a significant increase.
• Every company surveyed anticipates some level of AI skills shortage this year.

This signals an urgent need for businesses to build stronger AI capabilities to stay competitive and successfully deliver AI-driven projects.

Priorities in AI Skills Development

According to Pillay, 85% of companies prioritize AI development skills, and 83% focus on generative AI skills. To close the gap, about two-thirds of organisations are rolling out career development programs specializing in AI to upskill or reskill staff.

Companies are also adopting various strategies to address the shortage:

• Automating IT processes (66%)
• Upskilling current employees (58%)
• Hiring new talent with AI expertise (52%)
• Engaging external specialists (45%)

Cybersecurity skills are in high demand too, with 86% of companies rating them important — a sharp rise from 63% in previous research. This reflects the expansion of Africa's digital economy and increased digital engagement.

Focus on Training and Skills Development

Companies are intensifying IT training efforts. The frequency of training offered has increased, with 94% providing training at least monthly, up from 74% previously. More companies also offer on-demand training opportunities (37% vs. 28%).

Yet, the budget allocated to skills development has dropped since 2023. This trend calls for a strategic reassessment because insufficient investment in skills risks leaving companies behind in adopting new technologies and innovations.

Reskilling and upskilling remain top challenges. While 98% of organisations consider AI training a priority, only 37% provide continuous access to training resources. Without sustained funding, efforts to equip teams with AI expertise may fall short.

Shifting Workplace Expectations

Workplace dynamics are changing alongside technology adoption. Beyond technical skills, companies now emphasize adaptability and affordability in hiring decisions.

Remote and hybrid work models have become key factors:

• 80% of organisations identify enabling hybrid and remote work as their biggest tech-related skills challenge, up from 32% previously.
• 58% offer fully remote options, and 56% provide hybrid arrangements to attract and retain talent.

Employee preferences align with these trends, with 83% globally favoring hybrid work environments.

Affordability has become the number one attribute sought in candidates, followed closely by adaptability. Reskilling is a priority for 38% of companies, and upskilling for 48%. However, two-thirds report difficulty in helping employees understand the need for reskilling.

Final Takeaways for IT and Development Professionals

AI skills are now a critical factor for business success in key African markets. Organisations are aware of the widening gap and are actively seeking ways to build and retain AI talent. IT and development professionals should focus on continuous learning, especially in AI development and generative AI.

Upskilling and reskilling are essential to keep pace with changing tech demands and workplace models. Investing time in relevant AI courses and certifications can provide a competitive edge.

For those looking to enhance their AI expertise, exploring structured programs and training available through platforms like Complete AI Training can be a practical step toward closing the skills gap.