As Africa rises as a global hub for business process outsourcing (BPO) and IT-enabled services (ITES), a new report warns that artificial intelligence (AI) might automate up to 40% of tasks in the sector. The report by Caribou and Genesis Analytics, in partnership with the Mastercard Foundation, highlights a looming challenge and a unique opportunity to future-proof Africa’s digital workforce.
Only 10% of BPO functions are deemed fully resistant to automation. But the shift could spark a transition toward higher-skilled, better-paying roles rather than a net job loss—if supported by timely and inclusive upskilling in AI and digital technologies.
“As AI transforms global business processes, Africa can lead by ensuring its workforce is AI-ready,” said Rodwell Mangisi, director of Digital Economy Pan-African Programs at the Mastercard Foundation.
South Africa: leading the way but at risk
South Africa leads Africa’s BPO market. Its $5.2 billion industry created thousands of new jobs between 2018 and 2022. Sixty-five percent of these jobs were filled by women and 89% by youth, thanks to the inclusive Global Business Services Masterplan. The country also leads in AI integration, with over 60% of BPO workers already using chatbots and copilots.
But the report notes that customer experience (CX) roles, making up 44% of BPO jobs, are especially vulnerable. Nearly half of their tasks might be automated, increasing the urgency of large-scale reskilling initiatives.
External risks also loom ahead. Potential exclusion from the African Growth and Opportunity Act (AGOA) threatens U.S. market access, placing even more pressure on South Africa to adapt and diversify.
Kenya’s growth faces a similar test
Kenya’s BPO sector is on an upward trajectory, with revenues expected to reach $343 million by 2029. The government aims to create one million digital outsourcing jobs in five years. However, with entry-level roles comprising 68% of the workforce, automation could disrupt progress without strategic intervention.
In response, Kenya prioritizes youth training in AI and machine learning. Later this year, a presidential roundtable will outline national strategies for digital job creation and sustainable growth.
Turning automation risk into a catalyst
Despite the risks, AI is already boosting productivity in African BPO companies through tools such as ChatGPT and Microsoft Copilot. The report emphasizes that automation can shift human focus to higher-value tasks—but only if training is scaled.
Key recommendations include AI and cybersecurity education for at-risk roles, such as data annotation and customer service. Gender inclusion is also vital, with a call to prioritize AI literacy for women to reduce disparities in automation exposure.
“With the right investments in skills development, ethical AI, and inclusive policies, we can transform the risks of automation into new opportunities,” Caribou Program Director Charlene Migwe said.
Expanding digital access, such as zero-interest laptop loans for rural youth, will be essential in unlocking Africa’s full outsourcing potential.
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Herve. (2025, April 6). African BPO Industry: AI Threatens 40% Of Tasks By 2030. Capmad. April 6, 2025. Retrieved April 7, 2025, from https://www.capmad.com/others-en/african-bpo-industry-ai-threatens-40-of-tasks-by-2030/
Suroy Suroy, H. J. (2024, September 2). Kenya leads Africa in BPO growth, projecting $254Mn revenue this year. Outsource Accelerator. Retrieved April 7, 2025, from https://news.outsourceaccelerator.com/kenya-leads-africa-in-bpo-growth/
