The Economist spotlights Africa as a BPO destination. The magazine argues that call centers could become a goldmine for Africa. 

The article, published in a Dutch translation by the FD, mentions the Kenyan company Adept, which was founded in 2006. However, Kenya is not yet comparable to countries like India or the Philippines, which act as the "back office of the world." However, the BPO sector is now starting to develop, which is good news for three-quarters of young Africans who say they cannot find suitable work.

Currently, approximately 1 million Africans are employed in outsourcing, and the sector is expected to grow by 2028% annually through 14. In some countries, this growth will be even higher. This is thanks to a young population that often has a good command of English. African countries are also conveniently located in terms of time zones. Furthermore, wages and other costs are 60% to 70% lower than in the US, Europe, and Australia—think amounts just below or above $250 per month. Governments offer incentive programs. South Africa even provides money for new jobs.

The Economist reports that critics are concerned about the quality of the new jobs, particularly in content moderation for social media and data annotation for AI. Some BPO service providers have already been taken to court over their working conditions. BPO work is also sensitive to price levels: if it can be done cheaper elsewhere, clients can easily leave.

Automation of typical BPO tasks using AI poses another threat. Experts believe the focus should be on more complex tasks that can only be performed by humans. Or, as The Economist concludes, investing in education may be the best way for countries to avoid falling behind.

Read the full article at the FD

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