2023 Africa GBS Benchmarking & Market Data Report: Release of a Market Data Bank

Africa is rapidly emerging as a leading destination for global business services (GBS) and business process outsourcing (BPO). This is due to a combination of numerous factors, including increased government support, a well-educated youth population, increasing GBS/BPO investment and expansion, significant cost savings, multilingual talent, and a rapidly growing information and communication technology (ICT) market.

To gain a better understanding of the GBS capabilities and opportunities in Africa, GBS.World and Genesis GBS conducted in-depth research to profile 26 African countries. The research, which is outlined in the 2023 Abridged Africa GBS Benchmarking & Market Report, has been collated into a market data bank.

What is in the data bank?

The data bank profiles 26 African countries with regards to their GBS and BPO capabilities and opportunities for investors and buyers. Key data points covered include market trends, GBS/BPO market sizes, economic and demographic statistics, salary and fully loaded cost comparisons and key GBS/BPO service rankings, along with many more crucial points of information.

There are 26 countries that were profiled in-depth for this research:

SWOT Analysis

Overall, key insights can be drawn from the data regarding the continent’s strengths, weaknesses, opportunities, and threats.

• Strengths: Low operating costs, geographical proximity to European markets, predominantly anglophone and francophone-speaking populations, scalable pool of B2-level English speakers, large youth population eager for work, empathic and high-energy workforces, rapidly growing ICT sectors, increasing adherence to compliance and data protection laws

• Weaknesses: Underdevelopedcivic and transport infrastructure, shortage of experienced CX managers/supervisors, high communication and data costs, unreliable power supplies

• Opportunities: Region BPO/GBS opportunities in African and Middle Eastern markets, growing number of tech hubs, budding digital channel service delivery for younger populations, expanding crowdsourced workforce, increasing government support to drive socio-economic growth, participation in international and regional trade agreements

• Threats: Increasing competition, security concerns, high levels of government corruption, some countries with authoritarian regimes that make BPO investment difficult

Key Insights Country-By-Country

From the research, it is clear that African countries have an abundance to offer to the BPO sector. Various factors such as market and workforce size, the country’s youth population, and the population of B2 English-speaking addressable talent pool,[1] among others, were identified and analyzed across different African countries.

Below, insights are provided of eight sample countries that were profiled in the research.

Egypt

Due to its advanced ICT infrastructure and multilingual capabilities, Egypt is regarded as one of the largest BPO locations in Africa. With a youth population of 30.39 million and strong multilingual capabilities – including key languages such as English, Arabic, French, Egypt, Italian, German, Greek, and Russian – Egypt has a strong workforce to take on BPO/GBS opportunities.

Ethiopia

Ethiopia is the second-most populous country in Africa, with a youth population of 35.79 million. It has a rapidly growing BPO market – currently with an estimated market value of US$41 million – and there are over 131,000 individuals in the B2 English-speaking addressable talent pool.

Ghana

Ghana, with an estimated GBS/BPO market value of US$139 million, has a stable business and geo-political environment. The competitive GBS/BPO salaries make Ghana a key destination for businesses wishing to offshore. Ghana has a youth population of 8.7 million and an estimated 425,501 B2 English-speaking addressable talent pool.

Kenya

With a large pool of B2 English-speaking talent with neutral accents (approximately 597,000 people), Kenya has gained popularity as a BPO/GBS location of choice. Its domestic and international GBS/BPO/CX market has accomplished a value of approximately US$597 million, and it has a youth population of 14.98 million.

Nigeria

The country’s BPO/GBS market value is estimated at US$326 million. Although the addressable talent pool of B2 English-speaking individuals is largely untapped due to its exorbitant size – 3.8 million people – this means there are considerable opportunities for businesses wishing to outsource. Nigeria has a youth population of 62.62 million people, which is the largest of the 26 countries profiled. The country also has the largest ICT sector in Africa, which has significantly impacted the rapid and continuing development of its BPO/GBS/CX sector.

Rwanda

Rwanda is rapidly establishing itself as a ‘boutique’ services location, that provides contact center and tech support BPO operations for medium and mid-sized businesses. The current BPO market value is approximately US$87 million, and there are 62,000 people in the B2 English-speaking addressable talent pool.

South Africa

In 2022, South Africa tied with India as the most Favored CX Offshore Delivery Point, and its GBS/BPO/CX market is valued at US$5.2 billion – which is 28% of the total African GBS/BPO/CX market. The country has a substantial youth population of 18.6 million, and a B2 English-speaking addressable talent pool of approximately 761,000 people. Uniquely, the country has a competitive advantage in the form of a GBS incentive scheme which, when applied, can reduce apex costs by 8–10%.

Uganda

The country’s GBS/BPO/CX market has grown to US$131 million, with expected continuous growth due to its improving education structures and large youth population of 12.2 million (26% of its total population). Along with highly competitive labor costs, the country also has the advantage of a B2 English-speaking addressable talent pool of 144,000 people.

Unveiling Africa’s GBS Potential

In summary, the 2023 Africa GBS Benchmarking & Market Data Report illuminates Africa’s rapid ascent as a GBS and BPO hotspot, spotlighting its cost-effectiveness, multilingual talent, and ICT growth. Amid challenges lie substantial opportunities – from burgeoning markets to international trade participation. Country profiles spotlight promising destinations – such as Egypt, Ghana, Nigeria, South Africa, and others – aiding tailored decisions based on their development stages.

To leverage these insights and tap into Africa’s GBS potential, seize the opportunity to engage with the full report and its accompanying market data bank. Unlock a strategic roadmap for investment and growth in this dynamic landscape.

[1] The B2 English-speaking addressable talent pool refers to quantity of individuals available to work who can communicate at the B2 English level (i.e., confident enough to communicate effectively with international customers).