This transformation, powered by artificial intelligence (AI) and generative AI (Gen AI), presents huge possibilities for both local economies and international businesses. Beyond the tech revolution, there's another often-overlooked advantage: Africa's rapidly growing pool of tech talent.
Countries like South Africa, Nigeria, Ghana and Kenya are emerging as prime sources of highly skilled workers, especially in tech. This growth is driven by strong infrastructure, supportive government policies, increasing private- and venture capital funding, and a vibrant startup culture.
The CBRE Global Tech Talent Guidebook 2024 highlights that tech companies are increasingly attracted to African markets because of the continent’s strengthening economic and demographic fundamentals. Rising entrepreneurship, expanding funding networks, and proactive government policies have all contributed to the expansion of Africa's tech talent pool in both quality and scale.
The demographic advantage is clear: Africa’s population is expected to grow by nearly 2.3% annually over the next decade, compared to much lower rates in the Americas and Europe. This expanding working-age population, coupled with more tech graduates, creates a perfect environment for industries hungry for talent. Large, fast-growing cities like Lagos, Nairobi, Kampala, Addis Ababa and Cape Town are developing deep pools of tech talent with vast potential.
The global shortage of AI and Gen AI talent has forced many companies to further rethink their talent sourcing strategies. Africa offers a unique combination of available talent, compatible time zones, lower wage costs, and affordable living expenses. For international companies needing tech expertise, especially in AI, Africa's emerging tech hubs are a largely untapped resource.
For African companies, there’s a big opportunity too. Many already have strong, highly skilled, in-house tech capabilities. By using these skills beyond their internal needs, they could diversify and grow new revenue streams. This could be done by setting up subsidiaries offering tech and AI services globally or by creating new divisions that act as international talent pools. This is especially relevant for professional services firms, including law firms. African law firms could expand their services by combining legal expertise with AI, or by offering legal-focused AI and Gen AI tech services to their global peers, opening new markets and boosting revenue.
The CBRE report also highlighted the key factors driving Africa’s tech growth. Data centre development, expanded fibre-optic networks, better internet access, smartphone adoption, and the rise of e-banking are all strengthening the tech ecosystem.
Governments across Africa are increasingly focused on developing tech talent as part of broader economic strategies. Nigeria, for example, is seeing a surge in private capital investment, particularly in tech and financial services, which is driving growth in the local startup ecosystem. Nine companies across the continent have already reached unicorn status, underscoring Africa’s tech momentum, and the pace of this development is only increasing.
Globally, competition for AI and Gen AI talent is fierce as the technologies become more mainstream and industries adopt it to improve their operations. Regions like the San Francisco Bay Area, Beijing and Oxford are becoming clusters for AI companies due to their proximity to talent and funding. Africa has the potential to be a major player in this global talent race, with an advantage based not just on numbers, but also on cost-effectiveness and adaptability.
Some African AI-focused companies are already leading in their sectors. These include:
Africa's ability to produce, retain, and harness tech talent offers not just a local economic boost, but a global opportunity as well. Now is the time for African and international companies offering professional services, and AI-focused enterprises, to take note of this potential and move quickly to make the most of it.