A recent May 2025 SAP Africa research report, conducted in 2022/2023, which focuses on digital jobs for a progressive economy, paints a vivid picture of a continent embracing technology to drive growth, innovation, and opportunity.

The study, which surveyed 100 public and private sector organisations with over 100 employees across Kenya, Nigeria, and South Africa, highlights the scale of this transformation, the challenges ahead, and the immense potential for the future.

Combined with projections from a McKinsey & Company report, the data reveals a region poised to unlock billions in economic value through technology, particularly generative AI (gen AI), while grappling with the urgent need for digital skills to sustain this momentum.

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The scale of Africa’s digital boom

Africa’s digital economy is expanding rapidly. In 2019, it accounted for 5.2% of the continent’s GDP, a figure projected to rise to 8.5% by 2025.

In South Africa, the digital economy is expected to contribute 15–20% of the country’s GDP by the same year, reflecting the nation’s advanced infrastructure and high mobile penetration rate of 187%.

Across the continent, internet usage has surged, with a 115% increase in users between 2019 and 2021 and 160 million people gaining broadband access from 2019 to 2022.

Digital payments are also on the rise, with 191 million Africans adopting digital payment systems between 2014 and 2022.

This digital surge is fuelled by a young, growing population. Africa is set to account for 50% of global population growth between 2020 and 2050.

Nigeria, with a population of 228 million in 2023, is projected to reach 377 million by 2050, while Kenya’s 55 million is expected to grow to 91.6 million, and South Africa’s 60 million to 68 million.

This demographic boom presents both opportunities and challenges, as the continent must create jobs and infrastructure to support its expanding workforce.

The SAP report estimates that 230 million new digital jobs will be created in Africa by 2030, and 650 million citizens will need to be trained or retrained in digital skills in the coming years to meet this demand.

Regional dynamics between Nigeria, Kenya and South Africa

The SAP report focuses on three key markets (Nigeria, Kenya, and South Africa), each with distinct economic profiles and digital landscapes.

Nigeria, with a GDP of $364 billion in 2023, relies on agriculture (23%), services (43%), and industry (33%). Its mobile penetration stands at 87%, but internet penetration lags at 43%, and unemployment is low at 3.1%, with a high labour force participation rate of 83%.

Kenya’s $108 billion economy leans heavily on agriculture (33%) and services (50%), with industry at 17%. Its mobile penetration is notably high at 133%, though internet penetration is only 32.7%, and unemployment is 5.6%, with a 67% labour force participation rate.

230 million digital jobs to be created by 2030230 million digital jobs to be created by 2030
IMG: SAP Research Report

South Africa, with a $380.7 billion GDP, has a services-dominated economy (63%), followed by industry (25%) and agriculture (2.6%). It faces a stark unemployment rate of 32.1%, despite a 60% labour force participation rate, but boasts the highest internet penetration at 72.3%.

These disparities highlight the uneven pace of digital adoption across the continent. South Africa’s advanced digital infrastructure contrasts with Nigeria’s and Kenya’s lower internet penetration, underscoring the need for targeted interventions to bridge connectivity gaps and ensure equitable growth.

Strategic initiatives driving change

The African Union’s Digital Transformation Strategy for Africa sets a continent-wide framework for digital growth, while the World Bank’s Digital Economy for Africa (DE4A) initiative focuses on expanding access to broadband and digital services.

In Kenya, the DigiKen Initiative, in partnership with the UN, aims to foster digital innovation, while Nigeria’s Three Million Technical Talent (3MTT) programme seeks to train millions in tech skills. South Africa’s Department of Communications & Digital Technologies Broadband & Digital Skills Programme is working to enhance connectivity and digital literacy, particularly in underserved areas.

These initiatives are critical to addressing the digital divide and preparing Africa’s workforce for the future. With 650 million citizens needing digital skills training, partnerships between governments, educational institutions, and the private sector will be essential to scale these efforts and ensure inclusivity.

In regions where AI skills are scarce and upskilling opportunities are limited, many African companies are turning to automation to bridge the AI skills gap.

According to the SAP report, 66% of respondents across all regions utilise automation to augment AI skills within their organisations, with the highest rates observed among South African (68%) and Nigerian (67%) organisations.

Despite this reliance on technology, none of the surveyed organisations had yet taken steps to fill the AI skills gap, underscoring the critical importance of these skills to the success of African businesses. This highlights a pressing need for strategic interventions to develop human capital alongside technological advancements.

230 million digital jobs to be created by 2030230 million digital jobs to be created by 2030

The skills gap

Africa’s digital economy is growing, and so is the demand for tech skills. The SAP report reveals that 100% of surveyed organisations have seen an increased need for tech skills in 2025.

The most in-demand roles include cybersecurity experts (86%), AI developers (85%), and generative AI specialists (83%). Other critical skills include cloud computing (79%), AI integration (71%), data analytics (66%), and digital transformation specialists (64%). Encouragingly, 94% of organisations are offering employee training at least monthly, and three in five are interested in partnering with educational or training providers to meet their needs.

This skills gap poses a significant challenge. Without a skilled workforce, Africa risks falling behind in the global digital race. The emphasis on cybersecurity, AI, and cloud skills reflects the continent’s growing reliance on technology to drive innovation, secure data, and improve operational efficiency. However, the high demand for these skills also highlights a critical shortage that must be addressed through education, training, and investment.

The rise of gen AI

Generative AI (gen AI) is already looking like a transformative force for Africa’s economy.

According to a McKinsey & Company report, gen AI could add $2.6 trillion to $4.4 trillion to the global economy annually across 63 use cases.

In Africa, at-scale deployment of gen AI could unlock $61 billion to $103 billion in economic value across sectors, with traditional AI contributing at least 60% of this value. Combined, traditional AI and gen AI could generate up to $100 billion in annual economic value for African economies.

SAP research report

The banking sector stands to gain significantly, with gen AI potentially unlocking $4.7 billion to $7.9 billion in value for African banks. However, most banks have yet to move beyond the proof-of-concept stage, indicating a need for greater investment and adoption.

In retail, gen AI could unlock $6.6 billion to $10.4 billion, giving digital disruptors and incumbent retailers a competitive edge through enhanced personalisation and efficiency.

The telecommunications sector could see $6.0 billion to $9.6 billion in value, with gen AI improving marketing, sales, network issue resolution, and customer service.

All the details about how the 50% telecom tariff hike will affect NigeriansAll the details about how the 50% telecom tariff hike will affect Nigerians

Challenges to unlocking digital jobs

Africa’s digital transformation is in full swing, but challenges remain ahead of the creation of these digital jobs. Connectivity gaps, skills shortages, and uneven economic development across countries must be addressed to ensure inclusive growth.

The continent’s young population and rapid digital adoption provide a strong foundation for progress, but sustained investment in infrastructure, education, and innovation will be crucial to unlocking the full potential of this revolution.



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