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Africa now Outsourcing Sector Destination of Choice

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The salary ranges of African contact centre agents are anything between $546 and $175 per month. Meanwhile, a contact centre manager can earn up to $2 200, to a minimum of $406 per month.

These findings emerged in a new report that plots the growth of global business services (GBS), also known as business process outsourcing (BPO), on the African continent.

The “2021 Africa Global Business Services (GBS) Benchmarking and Market Report” was conducted by Knowledge Executive between February and July.

It is based on profiling surveys of 504 GBS/BPO service providers, delivery centres, analysts and stakeholders across 19 African nations regarded as having mature and emerging GBS and BPO sectors.

Africa’s large youth population and its “competitive” salary and labour costs are among the drivers behind its rise as an industry powerhouse.

The continent has an abundance of educated youth within its labour pool, with many equipped with multilingual proficiency in Arabic, English, French, Portuguese, and some German, Chinese and Italian expertise in some instances, states the report.

This workforce also has high levels of empathy and emotional intelligence. There are also low attrition rates, and strong investor support and incentives.

Speaking during a webinar announcing the report’s findings, Mark Angus, CEO and managing editor of Knowledge Executive, a Pan-African research and media firm, said the African global business services sector is poised for exponential growth over the next three years.

Angus noted that a large population of African youth are entering the labour market. “Youth employees are more suited for GBS operations, as they have the energy, the tenacity to handle the high-paced environment of GBS and BPO operations, especially call centres.”

The salary ranges of African contact centre agents are highly competitive compared to those in the European Union, US and the UK, and range between $175 and $546 per month in terms of salary and labour costs, he stated.

A country-specific focus of the contact centre agents’ salaries shows Tunisia has the highest salary, with $546, followed by Kenya with $534, and $514 in Morocco. Ethiopia has the lowest at $175.

South Africa is number four on the list, with an average monthly salary of $465. At the mid-point are Egypt, Rwanda and Zimbabwe, ranging from $402 to $360 per month.

SA leads as the country with the highest contact centre manager monthly salary of $2 200, followed by Tunisia with $1 702, Kenya $1 616, and Namibia $1 444.

The report also highlights BPO and IT outsourcing as being at the forefront of Africa’s rapid growth rates, bolstered by improved economic governance, relative political stability, as well as focused efforts from African policymakers to support the sector.

Based on market projections, the report shows Africa’s total GBS offshoring market will reach $9.6 billion by 2023, from $7.8 billion in 2021.

Collectively, the domestic and international GBS markets across the continent generate about $15.1 billion in revenue, which is expected to rise to $19.8 billion in 2023.

According to the report, SA and Egypt are the two leading maturing markets.

While many industries have shed jobs during the COVID-19 pandemic, the global business services/BPO sector managed to create job opportunities during this challenging period, and has been identified as key for future employment prospects.

Within the South African context, the BPO sector has witnessed heightened growth. It is also toutedas one of the green shoots that will steer the country’s economic reconstruction and recovery.

The sector is targeting 100 000 new jobs by 2023 and 500 000 by 2030. SA also claimed top spot as the most favoured offshore location for call centres worldwide, based on the 2021 Front Office BPO Omnibus Survey.

In terms of the estimations of the GBS/BPO workforce sizes in each of the key locations, Angus highlighted that SA and Egypt are neck-and-neck, with 261 082 and 240 000 employees, respectively.

He noted that SA’s GBS/BPO industry consists much more of domestic outsourcing workers at over 200 000, and around 43 000 are international servicing workers.

Meanwhile, Egypt is the other way round, with over 198 000 international servicing workers, and just over 42 000 domestic outsourcing workers, he added.

SA is said to be the continent’s largest GBS player by market share (domestic and international), valued at an estimated $4.7 billion.

“The country has a sizeable English-speaking workforce, with competencies across most outsourcing services, including digitally-enabled contact centre and customer experience lifecycle management services.

“Surveyed enterprise executives rated the country best for contact centre voice, back-office processing and customer administration service delivery,” states the report.

Egypt has the second-largest domestic and international GBS market share on the continent, valued at $4 billion (excluding IT services).

“The country offers a highly-skilled, multilingual, diverse talent pool, with competitive labour costs and the second-largest youth population in Africa (36.3 million citizens aged between 18-35 years). The native Arabic language also opens Egypt to the Arabic market of 300 million consumers.”

Turning to Nigeria, Africa’s most populous nation, it boasts a well-established ICT sector – the largest on the continent.

“This feature serves as an excellent foundation for developing the country’s GBS industry, which is already valued at an estimated $286.8 million and employing approximately 16 540 workers,” notes the report.

“Coupled with a focus on sector-specific skills and education, the country stands poised to take advantage of the largest population of English speakers in Africa and the highest number of youths aged between 18-35 years in Africa (53 million).”

The report pointed out that smaller nations are also capitalising on this increasing international demand.

Rwanda is an emerging GBS market, with a large population of English- and French-speakers able to service English and Francophone countries. “It offers reliable and advanced communications infrastructure with 95% LTE network coverage.”

Southern African nation Botswana is another emerging GBS location, with the country said to boast macro-economic stability, attractive investment incentives and a growing pool of educated, English-speaking workers.

Senegal has become a popular French alternative market for BPO services. Ghana has a scalable pool of English-speaking and computer-literate talent and a growing youth population. Zimbabwe has bold GBS development plans based on its highly-educated talent pool for niche services.


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Paga Hits N14tri Transactions Value in 15 Years

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Paga, a payments and financial services provider for Africa has processed transactions value to the tune of N14trillion in the last 15 years of its existence.

Tayo Oviosu, chief executive officer, Pagatech, said at a media interaction to mark the company’s 15 anniversary that 80 percent of the amount was done in the last five years.

“When we celebrated 10 years of our business that was five years ago, we have grown our transactions values by 7 times, across the three business arms of our operation which includes; consumer payments, platform as-a-services and super App for retailers.

“This has translated into job creation as we have created over 1,000 direct jobs in Ethiopia and in Nigeria and indirect jobs through our agent network to about 100,000 jobs, this is economic empowerment of Nigerians.

“Our desire is giving people financial freedom and making life possible for them and impacting on our community. We are really proud of our economic achievements and we are making sure that our customers get the best experience.

“We are super excited about what the future holds for our business. Our vision is a world where cash does not exist anymore. We ensure that our customers’ money is safe by complying with the highest global security standards.

“Our focus is on helping both consumers and sellers pay, get paid, and access financial services. We do this directly; and through our Platform-as-a-Service, which enables other third parties to leverage the deep infrastructure we have built for endless possibilities.

Oviosu, further explained the three business lines Paga has transformed into from a mobile money operator from inception to a financial services provider includes; Consumer payment: where anyone can open a Paga account from any type of phone, by download Paga App from Apple or android store or dial *242# from any type of phone device.

“With Paga app, you can fund the account, make payments and also have a physical Visa card or a virtual Visa card on the account. This gives you significant convenience over other bank accounts we have in the market today.

You can send money into that account from any bank account or walk into any bank branch to fund the account. You can as well go to any agent and fund or make transactions from the account,” he said.

He added that when he started the business 15 years ago, there was no infrastructure, “we had to build the required infrastructure to support the business. Two years ago, we opened our infrastructure to allow other technology companies to use it for their own business. We called this Platform as a Service. With Platform as a service we are serving 150 businesses who are using our infrastructure to execute their own businesses.

“The third arm of our business is what we called Doroki this a different brand which is super App for retail business. If you are a supermarket you use it to manage your inventory among others. This is the youngest arm of our business” he noted.


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FG to Fnalise National Intellectual Property Policy  Soon– NCC Boss

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Dr John Asein, director-general, Nigerian Copyright Commission (NCC), has said that the federal government is taking steps to finalise its National Intellectual Property (IP) Policy and Strategy for the country.

FG to Fnalise National Intellectual Property Policy  Soon– NCC Boss

Asein disclosed this on Friday while commemorating the 2024 World Intellectual Property Day with the theme “IP and the SDGs: Building Our Common Future with Innovation and Creativity’’ in Abuja.

The that the Day is observed every April 26 to celebrate the importance of intellectual property (IP) rights to encourage innovation and creativity.

The director-general was represented by  Mr Emeka Ogbonna, director of Legal.

NCC boss said the policy would serve as a blueprint for a more efficient modern and responsive legal and administrative framework for the country to leverage on its creative and innovative potential.

He said that the day underscored the power of innovation and creativity in achieving the Sustainable Development Goals (SDGs) and shaping a sustainable and inclusive future for humanity.

According to him, the SDGs represent a universal call to action to end poverty, protect the planet, and ensure prosperity for all by the year 2030.

“IP rights play a pivotal role in fostering innovation, creativity, and technological advancements. They provide the framework that encourages men and women to develop new solutions that address global challenges.

“It is the lynchpin for incentivising the use of creative and innovative ideas to solve many of the challenges that confront humanity.

“This year’s World IP Day reminds us that intellectual property can be a powerful tool for social, economic, and environmental development.

“It encourages individuals, businesses, and governments to leverage IP rights to drive innovation, create jobs, and build resilient communities.

“By aligning our intellectual property policies and strategies with the objectives of the SDGs, we can accelerate their achievement,’’ NCC boss said.

He said in the spirit of the “Renewed Hope Agenda’’ of the present administration, government had also shown appreciable commitment to the creative industry as a major sector of the economy.

“As one of the agencies responsible for the wholesome development of the creative sector, the Nigerian Copyright Commission will continue to provide the needed institutional, legal and administrative support for the protection, promotion, regulation and enforcement of copyright.

“The commission will pay particular attention to using the copyright system to advance Goal 1 (No poverty); Goal 4 (Quality education); Goal 5 (Gender equality).

“And Goal 8 (Decent and economic growth); Goal 9 (Industry, innovation and infrastructure) and Goal 17 (Partnerships to achieve the goals).

“We are aware that the goals would have to be adapted to fit the peculiar needs of intellectual property which is an intangible asset.’ ’he added.

The director-general, who said that the commission focused on the 17 SDGs to address emerging challenges, called on authors, innovators, users, IP experts and other stakeholders to reflect on the vulnerability of the nation’s fragile knowledge and creative ecosystem.


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NITDA, ICF Train 100 Schoolgirls in ICT Skills

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The National Information Technology Development Agency (NITDA) and Illmi Children’s Fund (ICF) have trained 100 schoolgirls in digital and Information and Communication Technology skills training.

Mrs. Maryam Augie-Abdulmumin, ICF Executive Director, confirmed this in a statement on Thursday in Lagos.

The graduation followed the training of the schoolgirls in ICF and NITDA’s DIGITGALS 2.0 programme, a collaborative initiative aimed to equip adolescent girls in Abuja with critical digital and ICT skills.

Augie-Abdukmumin said the DIGITGALS 2.0 centred around essential digital literacy, programming fundamentals, digital marketing and communication skills, and cybersecurity awareness.

She added that the girls were equipped with the confidence to compete and excel in a globalised digital economy. The graduation was in commemoration of the 2024 International Girls in ICT Day celebration on April 25.

DIGITGALS 2.0 is in its second phase and empowered 100 senior secondary school girls selected from five government schools in the Federal Capital Territory.

The girls aged between 15 and 18 years were equipped with the knowledge and tools needed to thrive in the digital world and address the growing demand for ICT skills in the 21st century.

Augie-Abdulmumin reiterated the importance of bridging the digital gap in the country starting with the girl-child.

“This graduation ceremony on International Day of Girls in ICT is a powerful symbol of our commitment to closing the digital gender gap.

This programme made possible through our partnership with NITDA, and signifies a crucial step towards bridging the digital gender gap.

It also fostering a future where women are active leaders in the tech industry. This is also an opportunity for these girls to take charge of their own future,”.

Mr Kashifu  Abdullahi, the Director-General of NITDA, commended the collaborative efforts of ICF in making the DIGITGALS 2.0 a reality.

According to him, building a diverse and inclusive digital workforce is critical for Nigeria’s success.

“We are proud to collaborate with ICF on DIGITGALS 2.0 to empower these young women to become active participants in the tech industry. This programme showcases the importance of collaborative efforts in bridging the digital gender gap.

These girls have been equipped with essential digital skills, and ICF and NITDA are confident they will become active contributors to Nigeria’s thriving tech landscape,”.

ICF is a non-profit organisation dedicated to improving the lives of children, from underprivileged backgrounds, through education, healthcare, technology and entrepreneurship initiatives.

NITDA is a public service institution established in 2007. It functions as the ICT policy implementing arm of Nigeria’s Federal Ministry of Communication and Digital Economy.


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