AI disruption threatens jobs in Africa's outsourcing sector, with women and youth most at risk — Report

By Abdullah Ajibade

A report by Caribou and Genesis Analytics, in partnership with the Mastercard Foundation, has revealed that AI is threatening jobs in Africa's outsourcing sector, particularly for women and young workers in junior roles, with over half of tasks at risk of automation, and future job security requiring skills in AI and technology beyond basic digital literacy.

The African business process outsourcing (BPO) and information technology–enabled services (ITES) market, projected to expand to US$35 billion by 2028 with a 14.2% CAGR, faces over 40% of its tasks being susceptible to automation.

South Africa has the most established BPO/ITES market, valued at US$5.2 billion, followed by Egypt (US$4.3 billion), Morocco (US$2.9 billion), and Tunisia (US$2.4 billion). Meanwhile, BPO/ITES markets in Kenya, Rwanda, Senegal, Ghana, Uganda, and Nigeria are experiencing notable growth, offering vital employment opportunities, particularly for Africa’s youth and women.

Per the report, finance and accounting roles show significant risk, with 44% of tasks vulnerable. In the ITES sector, lower-level positions are more exposed to automation, while senior roles demonstrate greater resilience. The customer experience job family, representing a large part of the workforce, is also highly susceptible to automation.

To prepare for the sector’s future, the report recommends AI-based training programs for women and young professionals, helping workers move into higher-paying jobs in cybersecurity. It also advocates for proactive policies to reduce gender disparities, as women’s tasks in the sector are 10% more vulnerable to automation than men’s.

With the African Artificial Intelligence market projected to reach $4.51 billion by 2025 and an expected annual growth rate (CAGR 2025-2031) of 26.27%, bringing the market volume to $18.27 billion by 2031, the future of AI in Africa looks promising. However, as automation threatens jobs and future job security, requiring skills in AI and technology beyond basic digital literacy, especially for women and young workers in the BPO/ITES sector, it is important to focus on upskilling and AI training programs.

Through equipping the workforce with the necessary skills for the evolving tech-driven economy, as suggested by the report by Caribou and Genesis Analytics, African countries can ensure inclusive growth, enabling the benefits of AI to be shared across all demographics.