Africa is becoming a new hub for business process outsourcing, competing with traditional leaders India and the Philippines.
Date: 2025-07-02 Author: Henry Casey Categories: IN WORLD
This can also partially solve the problem of high youth unemployment: according to data, about 75% of young people on the continent remain unemployed.
A significant difference in salaries plays a key role. In Kenya, the average income of a BPO worker is about $233 per month, while in the Philippines it is $284. In addition, the cost of doing business in African countries is 60-70% lower than in the US or Europe. Countries such as Kenya, Nigeria, and South Africa are actively stimulating the development of the industry by providing tax breaks and subsidies.
The BPO sector in Africa is expected to grow at around 14% annually, almost double the global average. Kenya is expected to grow particularly fast, at around 19% per year. As an example, CCI Global recently opened a 5,000-person call center in the country, reflecting the growing demand for outsourcing services.
Despite the positive outlook, the industry faces challenges. Employees often complain about poor working conditions, especially for content moderators. In Kenya, former employees filed a lawsuit against Meta and its contractor Sama, which led to the company moving part of its operations to Ghana. This example highlights the vulnerability of the industry due to the possibility of quick changes in jurisdiction.
The main risk for African BPO remains automation through artificial intelligence. According to analysts at Genesis Analytics, over 40% of tasks in the sector are at risk of being replaced by robots and algorithms. Simple functions, such as image labeling, are gradually disappearing, giving way to more complex ones: checking texts generated by AI or processing queries with an emotional component.
To remain competitive, African countries need to focus on training specialists capable of performing highly qualified work. In particular, investment in education in the fields of computer science and artificial intelligence is important.
Interestingly, Africa is already actively using blockchain to solve real-world problems. In February, Altvest became the first African company to include Bitcoin in its assets, which underlines the region's desire for innovation.
Thus, the future of African outsourcing depends on the ability to adapt to technological changes and develop personnel for new, more complex challenges in the global market.
