Africa’s BPO sector to create 1.5Mn jobs by 2030

DURBAN, SOUTH AFRICA — The business process outsourcing (BPO) sector in Africa is on the brink of a significant expansion, with a recent report by CCI Global projecting the continent’s BPO workforce to more than double by 2030.
Currently employing 1.2 million full-time equivalents across over 400 contact centers, Africa’s BPO industry is set to create 1.5 million new jobs within the next six years.
Key players and emerging BPO hubs in Africa
South Africa, Kenya, and Egypt are identified as the primary beneficiaries of this growth while emerging hubs like Ghana, Ethiopia, and Rwanda are also expected to see substantial development.
The report, conducted in collaboration with Everest Group, attributes this surge to several factors, including significant cost advantages and proactive government policies.
Cost advantages and government support
Africa offers labor costs up to 80% lower than Western markets, making it an attractive outsourcing destination.
Additionally, nearly 45% of companies surveyed noted that African governments are fostering a business-friendly environment through tax incentives, infrastructure development, and workforce training programs.
Access to Africa’s young, multilingual talent pool
CCI Global CEO Martin Roe highlighted the continent’s high youth unemployment as a key driver for the BPO sector’s growth.
“Our view as a company is that talent is actually quite well distributed globally, but opportunities are not,” Roe stated.
CCI Global, which has about 15,000 employees across several African countries, benefits from this motivated talent pool to deliver superior customer service outcomes.
Language proficiency is another crucial factor. While CCI Global primarily serves anglophone markets, the company is expanding its multilingual capabilities to cater to diverse linguistic needs.
“It’s about more than just speaking English,” Roe explained. “It’s understanding the nuances of English, like sarcasm and irony, and having a connection with a customer.”
Kenya’s strategic position in BPO
Kenya stands out as a key player in this expansion. CCI Global recently unveiled a $50 million call center in Tatu City, a Special Economic Zone near Nairobi. This facility, the largest of its kind in East Africa, underscores CCI Global’s confidence in Kenya’s BPO industry.
The company now employs around 5,000 people in Kenya, a testament to the country’s abundant raw talent.
Brenda Mbathi, CEO of Two Rivers International Finance and Innovation Centre (TRIFIC), emphasized the role of Special Economic Zones (SEZs) in boosting investor confidence.
SEZs offer tax breaks, streamlined regulations, and high-quality infrastructure, making them attractive to businesses. TRIFIC recently secured a $47.5 million investment from Vantage Capital to expand its facilities and service offerings.
Challenges and future outlook for African BPO
Despite the optimistic outlook, challenges such as unreliable infrastructure and currency instability persist. However, ongoing investments in digital infrastructure and supportive government policies are gradually addressing these issues.
Roe sees a “huge opportunity” for Africa to become a major global BPO player, provided the continent adequately prepares for the expected wave of investment.
Africa’s young, multilingual population, combined with cost advantages and supportive government policies, positions the continent as a burgeoning hub for BPO services.
As global companies continue to seek efficient and effective outsourcing solutions, Africa’s BPO sector is poised for unprecedented growth, creating millions of jobs and transforming the economic landscape.