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The Business Process Outsourcing (BPO) and IT-Enabled Services (ITES) sectors in Africa are experiencing rapid growth, particularly in countries like Kenya. However, a new report by Caribou and Genesis Analytics, in partnership with the Mastercard Foundation, reveals that the rise of Artificial Intelligence (AI) and automation could significantly impact the workforce.
The study projects that 40% of tasks in Africa’s tech outsourcing sector could be automated by 2030, presenting both challenges and opportunities for the industry and its employees.
Kenya’s BPO Boom and the AI Disruption:
Kenya’s BPO market is projected to reach $272.10 million in 2025, with an impressive annual growth rate of 5.96%. This growth is expected to continue, reaching a market volume of $343.00 million by 2029. The Kenyan government aims to create 1 million BPO/ITES jobs in the next five years through supportive policies and incentives.
However, the report highlights that automation could slow down this trajectory. Specifically, Customer Experience roles, which constitute 44% of current employment in the African BPO sector, are particularly vulnerable, with half of the tasks at risk of automation.
Key Findings of the Report:
- 40% of tasks in Africa’s BPO and ITES sectors could be automated by 2030.
- Only 10% of tasks are fully resilient to automation.
- Customer Experience roles are most vulnerable, with 50% of tasks automatable.
- Entry-level jobs, comprising 68% of the workforce, are significantly affected.
- Tasks performed by women are 10% more susceptible to automation than those performed by men.
Opportunities for Upskilling and Growth:
Despite the potential for job displacement, the report emphasizes that AI also creates opportunities for workers to transition into higher-skilled, higher-paying roles. Strategic investment in widespread AI upskilling and training is crucial to unlocking Africa’s $35 billion BPO potential by 2028.
Rodwell Mangisi, Director of Digital Economy Pan African Programs at the Mastercard Foundation, stated, “Africa’s tech outsourcing industry is expanding rapidly, adding new jobs and opportunities each year.
“As AI transforms global business processes, Africa can lead by ensuring its workforce is AI-ready. By investing in targeted upskilling programs, especially for women and young professionals, we can ensure this 6% annual growth translates into sustainable, high-value employment that benefits all demographics.”
AI Integration and the Changing Role of Workers:
AI is already integrated into Africa’s BPO and ITES sectors, driving efficiency and innovation. Workers are using tools like ChatGPT, Microsoft Copilot, and in-house chatbots to enhance productivity, creativity, and accuracy. This allows employees to focus on strategic problem-solving, decision-making, and higher-value tasks, leading to opportunities for career advancement.
Addressing the Challenges and Ensuring Equitable Growth:
The report acknowledges that AI’s rapid rise could disproportionately impact certain roles, particularly entry-level positions held by women and youth. To mitigate these risks, AI-driven upskilling programs are needed to enable workers to shift into higher-skilled roles in areas like cybersecurity, AI management, and data services.
Charlene Migwe, Program Director at Caribou, emphasized, “Africa’s tech outsourcing sector is at a pivotal moment. With the right investments in skills development, ethical AI, and inclusive policies, we can transform the risks of automation into new opportunities for innovation and resilience.
The future of Africa’s BPO and ITES sectors hinges on proactive measures to address the challenges and capitalize on the opportunities presented by AI automation.
By investing in equitable AI upskilling and reskilling efforts, the industry can ensure that all demographics, particularly women and young professionals, can transition into future-proof roles and contribute to sustainable economic growth. The key is to embrace AI as a tool for empowerment and innovation, rather than a threat to employment.
