Canal+, which recently spun off from its parent company Vivendi in December 2024, made a firm offer last year of R125 [KES 97.43] in cash per MultiChoice share it doesn’t already own. This translates to a staggering R35 billion [KES 27.27 billion] in total.

The Competition Commission’s decision is a positive sign, as they’ve indicated the transaction is “unlikely to substantially lessen or prevent competition.” However, given MultiChoice’s critical role in South Africa’s vibrant entertainment industry, the approval comes with a crucial set of conditions designed to address public interest concerns.

These conditions, which aim to safeguard local content, employment, and broader participation, are projected to amount to about R26 billion [KES 20.19 billion] in public interest commitments from the merged parties over the next three years.

What Does This Mean for the Future of African Entertainment?

MultiChoice, known for its DStv and GOtv platforms, plays a pivotal role in delivering diverse entertainment, news, and sports to millions of households across sub-Saharan Africa. Its extensive reach and investment in local content creation have made it a cornerstone of the regional audiovisual ecosystem.

Canal+’s acquisition signifies a strategic move to further expand its global footprint, with a particular focus on the high-growth African market. The company has expressed a strong commitment to fostering local talent and content, which is a key aspect of the conditions set by the Competition Commission. These conditions reportedly include commitments to:

• Local Content Investment: Significant funding for the production of South African general entertainment and sports content, and support for local content creators.
• Employment Security: A moratorium on retrenchments for a period of three years post-merger.
• Increased Local Ownership: A new entity, LicenceCo, will be created to hold MultiChoice’s South African broadcasting licence. This entity will be majority-owned by historically disadvantaged persons (HDPs) and workers, ensuring compliance with South African laws on foreign ownership in broadcasting.
• Supplier Development: Commitments to procuring from small and black-owned companies.
• Continued Operation from South Africa: Ensuring that the merged entity remains incorporated and headquartered in South Africa.
• Promoting South African Content: Efforts to export and promote South African audiovisual content in new markets.

This conditional approval is a significant step, but the deal isn’t finalized yet. It now moves to the Competition Tribunal for final approval, where these conditions will be thoroughly reviewed and potentially formalized. The anticipation is high as stakeholders await the final decision on what promises to be a transformative deal for the African media landscape.

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Powering the Future of AI and Cloud in Kenya

This strategic partnership enables enterprise and government clients to access high power density infrastructure built specifically for AI and other compute-intensive workloads. Think AI training models, real-time data analytics, edge computing, cloud services, disaster recovery, and scalable bandwidth—all hosted locally with world-class standards.

“This collaboration represents a major milestone in our mission to become Africa’s leading purpose-led tech company by 2030,” said Dr. Peter Ndegwa, CEO of Safaricom PLC. “Businesses need robust, secure, and scalable digital infrastructure to keep up with the AI revolution. Partnering with iXAfrica enables us to deliver exactly that—while also supporting sustainability and local innovation.”

Inside the Infrastructure: AI at Scale

At the heart of this transformation is iXAfrica’s NBOX1 Nairobi Campus, designed with a massive 22.5MW capacity, making it the largest data centre project in Greater East Africa. It’s engineered to handle today’s most demanding computing tasks with advanced cooling, energy efficiency, and redundant connectivity. Its location—intersecting key fiber routes and tapping into Kenya’s renewable energy grid—provides low-latency, high-reliability infrastructure with a light environmental footprint.

The offering includes:

• Dedicated enterprise and cloud suites starting at 350kW, scaling up to over 1MW

• Integrated connectivity and managed services through Safaricom’s enterprise network

• Colocation options (starting at 2U), hybrid cloud support, cybersecurity, and business continuity services

• AI compliance and data sovereignty support to meet local and international standards

For industries like financial services, this means faster fraud detection and smarter credit risk models. In manufacturing and retail, companies can now run localized AI workloads to drive IoT analytics, forecast demand, and streamline supply chains—without shipping data across borders.

A Unified Vision for a Digital Africa

According to Guy Willner, Chairman of iXAfrica, the partnership “represents a perfect synergy between technological excellence and market leadership.” By combining iXAfrica’s world-class infrastructure with Safaricom’s extensive market reach, the two companies are creating a new digital backbone for Kenya and the wider region.

This partnership isn’t just about speed or scale—it’s about enabling enterprise agility, innovation, and growth. Whether you’re a startup exploring generative AI or a bank scaling its digital transformation strategy, this AI-ready ecosystem provides the tools to execute bold ideas—locally and securely.

Why It Matters

With over 49 million Safaricom subscribers, deep expertise in fintech, enterprise connectivity, and mobile innovation, and now access to AI-ready infrastructure, Kenyan businesses are better positioned than ever to lead Africa’s digital future.

As AI reshapes every sector, local access to compliant, high-performance computing will become a necessity—not a luxury. And with this new chapter, Safaricom and iXAfrica are laying the groundwork for a tech-driven, inclusive, and intelligent East Africa.

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But this M&A-driven agenda isn’t the only transformational move on Safaricom’s radar. In a separate interview on Citizen TV, Ndegwa provided more context about the company’s wider ambitions—including its critical role in digitizing Kenya’s healthcare system through the Social Health Authority (SHA) initiative.

From Telco to Tech Giant

Safaricom’s shift to M&A is aligned with its long-term vision of becoming a fully-fledged technology company. The focus areas for potential acquisitions include cybersecurity, ICT services, broadband infrastructure, and fintech—sectors that complement its existing enterprise and consumer offerings. Ndegwa noted that such acquisitions would help Safaricom enhance its service delivery, especially for corporate clients, and help it scale new products faster.

The strategy marks a departure from traditional telecom growth, with the company now prioritizing partnerships and investments that can deliver both scale and agility. With eyes also set on regional markets, Safaricom is evaluating opportunities to deepen its presence in East Africa and beyond.

Clarifying the Company’s Role in SHA

In the Citizen TV interview, Ndegwa addressed growing public interest in Safaricom’s involvement with SHA—a nationwide initiative intended to digitize healthcare services and ensure universal health access. He was clear: Safaricom is not managing funds or delivering health services. Instead, the telco is supplying digital infrastructure, such as tablets for community health workers, and enhancing network connectivity to support seamless healthcare delivery.

Importantly, Safaricom has not yet been paid for this work. Ndegwa explained that compensation will only be provided after successful implementation and verification of project milestones, reinforcing the company’s commitment to accountability and value delivery.

Tech with Purpose

These two interviews collectively paint a picture of a company doubling down on innovation, social impact, and strategic expansion. Whether it’s acquiring high-potential startups or enabling a digitally connected healthcare system, Safaricom is positioning itself as a purpose-led tech leader in the region.

As Safaricom turns the page into this new chapter, industry watchers will be paying close attention to how these bold strategies shape not just the company’s future, but also Kenya’s evolving digital ecosystem.

Watch the full interviews for more insight:

• Kenyan Wall Street Interview – Peter Ndegwa on M&A Strategy

• Citizen TV Power Talk – Peter Ndegwa on SHA and Safaricom’s Tech Vision

The post Safaricom Eyes Mergers, Acquisitions, and Digital Health in Its Next Growth Chapter appeared first on Biz Post Daily.

So, What’s the Deal with the Proposed Crypto Tax Change in Kenya?

Right now, if you transfer or exchange digital assets, there’s a 3% tax slapped on the transaction value. But, the draft Finance Bill, 2025 Kenya wants to shake things up.

The bill proposes tweaking the Income Tax Act to lower this rate. Specifically, it suggests changing the relevant part to read “one point five per cent” instead of the current “three per cent”. If this goes through, the crypto tax in Kenya on transactions would be halved to just 1.5%!  

What Counts as a Digital Asset? (Crypto & NFT Tax Kenya)

This Kenya digital asset tax covers those digital things of value that aren’t physical. Think:

• Cryptocurrencies: Like Bitcoin, Ethereum, and others you might be trading or holding.
• NFTs (Non-Fungible Tokens): Those unique digital tokens proving you own digital art, collectibles, etc. Yes, the NFT tax Kenya rules apply here too.

Why This Potential Tax Cut Matters for You and Kenya

Lowering the digital asset tax Kenya could mean a few positive things:

• More Affordable Transactions: Simply put, trading or sending cryptocurrency in Kenya could cost you less in taxes.
• Growth Spurt? A friendlier tax rate might encourage more Kenyans (maybe even you!) to explore digital assets. We’re already seeing growth, with projections hitting over 730,000 users soon.
• Market Buzz: This could give Kenya’s digital asset scene an extra boost.

Keeping Things Safe: The Bigger Picture of Digital Asset Regulation Kenya

While this potential tax cut is great news, it’s happening alongside efforts to make the digital asset space safer. You might have heard about the digital asset regulation Kenya discussions, like the Virtual Assets Service Providers (VASP) Bill. This aims to bring more transparency, asking exchanges to know who owns the assets, which helps tackle crime. It’s all part of balancing growth with security, especially since many Kenyans use crypto for savings, sending money, or even business imports.

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What are APIs and Why are They Important?

Think of APIs as digital bridges. They allow different software systems to communicate and exchange information seamlessly. This communication is crucial for a variety of functions, including:

• Bill Payments: Enabling businesses and individuals to pay bills directly through various platforms.
• Fund Transfers: Facilitating secure and efficient money transfers between different accounts and mobile wallets.
• Customer Verification: Streamlining the process of verifying customer identities for regulatory compliance and fraud prevention.
• Account Management: Providing real-time access to account information, such as balances and transaction history.

The Challenge for Businesses

Imagine Zawadi, a Kenyan entrepreneur running a thriving e-commerce business. She accepts payments through various channels, needs to verify customer identities, and manages utility bill payments for her suppliers. Without a cohesive solution, Zawadi faces the daunting task of managing multiple systems and providers, leading to inefficiencies and potential errors.

APIs: A Streamlined Solution

APIs offer a powerful solution by enabling businesses to integrate essential financial services directly into their existing systems. This integration eliminates the need for manual processes and reduces the complexity of managing multiple providers.

Benefits of API Integration:

• Increased Efficiency: Automate tasks and streamline workflows, saving time and resources.
• Enhanced Security: Implement robust security measures to protect sensitive financial data.
• Improved Customer Experience: Offer convenient and seamless payment options to customers.
• Reduced Costs: Eliminate the need for multiple systems and providers, reducing operational costs.
• Scalability: Easily adapt to changing business needs and scale operations as required.

Beyond Payments: A Holistic Approach

APIs are not just about payments. They can also be used for a wide range of other financial services, including:

• Know Your Customer (KYC) Verification: Ensure compliance with regulatory requirements and prevent fraud.
• Account Services: Provide real-time access to account information and transaction history.
• Airtime Sales: Offer convenient airtime top-up options to customers.

Choosing the Right API Solution

When selecting an API solution, consider factors such as:

• Security: Ensure the platform offers robust security measures to protect sensitive data.
• Reliability: Choose a provider with a proven track record of uptime and performance.
• Scalability: Select a solution that can adapt to your growing business needs.
• Ease of Integration: Look for a platform with clear documentation and developer-friendly tools.
• Support: Ensure access to reliable technical support for assistance with integration and troubleshooting.

The Future of Finance in Kenya

As Kenya’s digital economy continues to expand, APIs will play an increasingly vital role in driving innovation and efficiency. By embracing API integration, businesses can streamline their operations, enhance customer experiences, and unlock new opportunities for growth. Some platforms, like Jenga API offered by Finserve Africa, provide a comprehensive suite of APIs designed to simplify financial transactions, offering services ranging from fund transfers to customer verification.

The post APIs: Fueling Growth in Kenya’s Digital Economy appeared first on Biz Post Daily.

What’s on the Table?

The core of the proposed changes lies in the removal of several items from the zero-rated VAT schedule. This means these items, currently taxed at 0%, would now be subject to the standard 16% VAT. Key areas affected include:

• Pharmaceuticals and Animal Feed: Inputs and raw materials used in the manufacture of drugs and animal feed are slated to lose their zero-rated status. This could lead to higher costs for both healthcare providers and farmers, ultimately impacting consumers.
• Sugarcane Transportation: The cost of transporting sugarcane, a crucial component of the sugar industry, is also targeted for the 16% VAT.
• E-Mobility and Green Energy: The government’s commitment to green initiatives appears to be wavering. The Bill proposes a 16% VAT on electric buses, solar batteries, lithium batteries, and electric bicycles. This could significantly hinder the adoption of these environmentally friendly alternatives.
• Mobile Phone Manufacturing: The manufacture and assembly of mobile phones are also being removed from the zero-rating schedule.
• Mobile Phone Manufacturing: The supply of locally assembled and manufactured mobile phones are also being removed from the zero-rating schedule.
• Bioethanol Vapor Stoves: The supply of bioethanol vapor stoves classified under HS Code 7321.12.00 (cooking appliances and plate warmers for liquid fuel) will also be subject to VAT.
• Motorcycles: The supply of motorcycles of tariff heading 8711.60.00 will also be subject to VAT.
• Packaging Materials: Packaging materials for tea and coffee upon recommendation by the Cabinet Secretary for matters relating to agriculture will also be subject to VAT.

Other Notable Changes:

Beyond the VAT changes, the Finance Bill proposes several other significant amendments to various tax laws:

• Income Tax Act Amendments: The bill proposes several amendments to the Income Tax Act, including changes to the definition of “related person,” increases to the minimum amount for certain tax deductions, and modifications to the treatment of fringe benefits (See sections 2, 3, 5, 9, 29 of the Bill).
• Excise Duty Act Amendments: The bill proposes changes to the Excise Duty Act, including a new definition of “digital marketplace” and changes to the excise duty rates on certain imported goods (See sections 38, 42 of the Bill).
• Tax Procedures Act Amendments: The bill proposes changes to the Tax Procedures Act, including changes to the process for amending assessments and for settling tax liabilities (See sections 44, 46 of the Bill).

Why the Change?

The government argues that these changes are necessary to streamline tax administration, reduce tax refunds, and seal loopholes that delay revenue collection. The Cabinet claims the Bill aims to enhance tax efficiency rather than solely focusing on raising taxes.

The Potential Impact:

While the government emphasizes efficiency, critics fear the proposed changes will disproportionately impact ordinary Kenyans.

• Increased Cost of Living: Essential items like food and healthcare could become more expensive, exacerbating the already challenging cost of living crisis.
• Strain on Farmers: The agricultural sector, already grappling with rising input costs due to previous VAT introductions on pesticides and fertilizers, will face further pressure. This could impact food production and affordability.
• Setback for Green Initiatives: The VAT on electric vehicles and renewable energy components could stifle the growth of the green economy and hinder efforts to combat climate change.

The Bottom Line:

The Finance Bill 2025 presents a complex trade-off between revenue generation and the potential impact on key sectors and the cost of living. Businesses and consumers alike need to understand the proposed changes and their potential consequences. It’s crucial for stakeholders to engage in informed discussions and advocate for policies that promote both economic growth and the well-being of all Kenyans.

What are your thoughts on the proposed changes? Share your comments below.

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Whether you’re an agriculture graduate, an aspiring agripreneur, or an urban professional seeking a side hustle, farming in Kenya offers immense potential to diversify income and build wealth. The sector is ripe with opportunities for those willing to embrace modern techniques and innovative approaches.

Young Farmers: Pooling Resources and Embracing Innovation

Across the country, young farmers are forming chamas (informal savings groups) and investment groups to pool resources, lease idle land, and implement modern farming techniques. This collaborative approach allows them to overcome financial barriers and access larger plots of land.

To stay competitive in today’s market, these young agripreneurs are adopting innovation and technology at an impressive rate. From hydroponics and vertical farming to precision agriculture and digital marketing, they are leveraging technology to ensure sustainability, increase yields, and reach wider markets. This embrace of modern methods is transforming the landscape of Kenyan agriculture.

Challenges Young Farmers Face in Kenya

Despite the abundant opportunities, young farmers in Kenya face significant hurdles that can hinder their progress:

• Limited access to finance: Traditional loans often demand substantial collateral, come with high interest rates, and involve cumbersome paperwork, making them inaccessible to many young farmers.
• High input costs: The cost of quality seeds, fertilizers, and essential equipment can significantly eat into profits, reducing the financial viability of farming ventures.
• Land scarcity: Expansion is often difficult due to the high cost of farmland, particularly in prime agricultural areas.
• Climate change and water scarcity: Erratic rainfall patterns and prolonged droughts threaten crop yields, while the investment required for irrigation systems and boreholes can be prohibitive.
• Pests and diseases: The cost of effective pesticides can be high, and crop losses due to pests and diseases can further reduce income and jeopardize investments.
• Unforeseen risks: Natural disasters such as droughts, fires, and floods can wipe out entire investments, leaving farmers with significant losses and debt.

Tailored Financial Solutions for Kenyan Farmers

Recognizing these challenges, financial institutions like Equity Bank are stepping up to provide tailored solutions. The Equity Bank’s Kilimo Maendeleo Loan offers flexible financing designed specifically for farmers at every stage of their journey, whether they’re planting, scaling, or diversifying their operations.

Here’s how the Kilimo Maendeleo Loan works:

• Insurance-backed security: Your investment is protected against the devastating effects of droughts, floods, and other natural disasters, with negotiable premiums designed to keep costs manageable.
• Repayment tailored to your harvests: Enjoy flexible repayment terms of up to 10 years, with repayments aligned to your crop cycles or income streams, ensuring you can manage your finances effectively.
• Hassle-free access: Apply conveniently via Equitel, the Equity Mobile App, USSD 2476#, or by visiting any Equity branch across the country.

Take the Next Step in Your Farming Journey

Don’t let financial constraints hold you back from realizing your agricultural dreams. Explore the opportunities available through the Equity Bank Kilimo Maendeleo Loan and unlock the potential of your farming venture.

Call 0763 000 000 or log on to: https://equitygroupholdings.com/ke/borrow/agri-business/kilimo-maendeleo-loan/ to get started today.

The post How Accessible Loans and Rains are Fueling Youth Participation in Farming appeared first on Biz Post Daily.

This comes hot on the heels of their impressive victory at the East Africa Regional Finals held right here in Nairobi, proving that Kenyan innovation is ready to compete on a global stage.

Jenga AI’s story began with a simple question: Why should inefficiency be an accepted cost of doing business for subcontractors in commercial construction?

Founders Shayne and Nym, drawing on Nym’s experience as a large specialty contractor in New York City, recognized the immense waste of time and resources associated with manual bidding processes. With win rates typically hovering around 20%, estimators were spending 80% of their time on projects that never materialized.

This realization sparked the creation of JENGAI, an analytical CRM designed to empower subcontractors to focus on the right projects, avoid wasted time, and maximize their efforts.

So, what’s the Datamellon AI Ignite all about? It’s a program designed to supercharge promising AI startups. Think of it as a launchpad, offering a powerful combination of resources:

• Ksh 13 Million in Seed Funding (Equity-Free!): That’s a serious boost to get things moving.
• Ksh 260 Million Investment Fund Access: Top performers get a shot at even more funding to scale their operations.
• Silicon Valley Exposure: The chance to pitch to the big leagues – investors and tech gurus in the heart of Silicon Valley.
• Expert Mentorship: Eight weeks of guidance from industry veterans to refine their strategy and execution.
• Cutting-Edge Infrastructure: Access to Datamellon’s AI and cloud resources, essential for building and scaling their solutions.

Jenga AI’s win in Nairobi wasn’t just luck. It showcased the ingenuity and problem-solving skills that are becoming hallmarks of Kenyan startups.

Their innovative approach caught the judges’ attention, demonstrating the potential to create real impact and disrupt traditional industries. Now, as they prepare for Marrakech, they’re carrying the hopes of Kenya’s tech community with them.

This victory is a testament to the growing strength of Kenya’s tech ecosystem. We’re seeing a surge in talented developers, a supportive community of investors and mentors, and increasing access to the resources needed to build world-class companies.

Jenga AI’s success is a sign that Kenya is becoming a force to be reckoned with in the global AI landscape.

Programs like Datamellon AI Ignite are crucial for fueling this growth. They provide the capital, mentorship, and exposure that startups need to overcome challenges and reach their full potential.

By connecting Kenyan innovators with global networks, they’re helping to build a vibrant and competitive tech sector that can drive economic growth and create opportunities for Kenyans.

This is a chance to showcase Kenyan ingenuity to the world and attract even more investment and opportunities to our growing tech ecosystem.

Datamellon, with its strong presence across Africa, is a key partner in this journey. As an AWS Advanced Consulting Partner, they’re providing the essential infrastructure, expertise, and support needed to help Kenyan startups thrive.

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While the Kenyan government attempts to spin these policies as opportunities, the reality on the ground is one of economic hardship and uncertainty, compounded by questions about the validity of the tariff calculations themselves.

The False Promise of “Reciprocal Tariffs” – And Questionable Math

The U.S. government claims that its “reciprocal tariffs” are designed to level the playing field and promote fair trade. However, for Kenya, the imposition of a 10% tariff on exports to the U.S. represents a significant barrier to trade.

While the Kenyan Ministry of Investments, Trade and Industry (MITI) attempts to portray this rate as comparatively advantageous to tariffs imposed on other nations, the fact remains that Kenyan businesses now face increased costs, reducing their competitiveness in the U.S. market.

 

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Adding insult to injury, questions are being raised about the very formula used to arrive at these “reciprocal” tariff rates.

Bloomberg Opinion Columnist John Authers pokes holes in the Trump administration’s explanation in the above reel, suggesting inconsistencies and potential manipulation of the data. If the very basis for these tariffs is flawed, it casts further doubt on the fairness and legitimacy of the policy.

The government’s argument that Kenya can leverage this situation to attract investment in local textile production and manufacturing is a desperate attempt to find a silver lining in a dark cloud.

The reality is that Kenya lacks the infrastructure, technology, and skilled workforce necessary to compete effectively with established textile-exporting nations.

Moreover, the time and investment required to develop these capabilities are significant, leaving Kenya vulnerable in the short to medium term.

The Crushing Impact of Aid Cuts

The tariff changes are only part of the problem. The Trump administration’s decision to slash U.S. aid programs, driven by a narrow focus on cost-cutting, has dealt a devastating blow to Kenya’s development efforts. The cancellation of two recent contracts exemplifies this trend:

• Aviation Advisors Consulting Contract: The termination of a $3.4 million U.S. Department of State contract for aviation advisors will hinder efforts to improve Kenya’s aviation infrastructure and safety standards.
• Primary Literacy Program Contract: The cancellation of a $79 million contract intended to support primary literacy initiatives is a particularly egregious blow, undermining efforts to improve education outcomes for Kenyan children.

These cancellations are just the tip of the iceberg. President Trump’s freeze on temporary aid has halted the vast majority of USAID projects in Kenya, leaving only a handful active.

This drastic reduction in U.S. support will have far-reaching consequences, impacting sectors such as healthcare, agriculture, and infrastructure development.

A Government in Denial?

The Kenyan government’s attempts to downplay the negative impact of these policies and portray them as opportunities are disingenuous.

While the MITI claims to be working on strategies to enhance Kenya’s exports and encourage investment, these efforts are unlikely to offset the significant losses resulting from the tariff changes and aid cuts.

The government’s rhetoric about strengthening partnerships and promoting sustainable trade growth rings hollow in the face of the Trump administration’s protectionist policies and disregard for international development.

The reality is that Kenya is being forced to navigate a hostile economic environment, with limited resources and a government that seems unwilling to acknowledge the severity of the situation.

The Trump administration’s “reciprocal tariffs” and aid cuts represent a major setback for Kenya’s development. These policies will exacerbate existing economic challenges, undermine critical sectors, and jeopardize the well-being of millions of Kenyans.

The questionable basis for the tariff calculations only adds to the sense of injustice. While the government attempts to put a positive spin on these developments, the truth is that Kenya is facing a difficult and uncertain future.

The long-term consequences of these policies will be felt for years to come, potentially reversing decades of progress and hindering Kenya’s ability to achieve its development goals.

The post Trump’s “Reciprocal Tariffs” and Aid Cuts: A Devastating Blow to Kenya’s Development – Are the Numbers Even Real? appeared first on Biz Post Daily.

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.

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