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Nigeria’s GBS Market at $286.8m, S/Africa at $4.7bn, Egypt at $4bn

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Africa GBS Market Report global business services

By Modupe Gbadeyanka

There are strong indications that in 2023, the global business services (GBS) market in Africa will worth $19.8 billion, higher than the current value, $15.1 billion.

According to the 2021 Africa GBS Benchmarking and Market Report by Knowledge Executive, the African continent will play a major part in the sector in the future because of its vast labour.

In the report, it was stated that business process outsourcing (BPO) and information technology outsourcing (ITO) are at the forefront of Africa’s rapid growth rates.

This growth, it said, is bolstered by multiple factors, including improved economic governance, relative political stability, an abundance of educated youth within the continent’s labour pool, comparatively lower salary and labour costs, in addition to focused efforts from African policymakers to support this crucial sector.

The report stated that the past year has accelerated outsourcing adoption to reduce costs and maintain revenue across the globe – and Africa has emerged as a significant beneficiary.

It was disclosed that the continent was in the developing stage of the GBS lifecycle, but already showing signs of global competitiveness and rapid maturity.

According to the report, South Africa is the continent’s largest GBS player by market share (domestic and international), valued at an estimated $4.7 billion.

The local sector employs over 261,082 domestic and international service workers from the country’s sizeable English-speaking workforce with competencies across most outsourcing services, including digitally-enabled contact centres 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.

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.

Africa’s largest economy by GDP ($448 billion), Nigeria, boasts a well-established ICT sector – the largest on the continent.

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

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).

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.

Botswana is another emerging GBS location. The country boasts macroeconomic stability and offers attractive investment incentives and a growing pool of educated, English-speaking workers.

Senegal has become a popular French alternative market for BPO services. Ghana boasts 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.

Investing and buying on the continent continues to be a venture filled with potential and undiscovered returns. And as more international businesses look to do so, insights such as those gleaned from the Africa GBS Benchmarking and Market Report will be invaluable in making informed decisions on outsourcing, co-sourcing or expansion.

The report said it got its findings from interviews with over 140 global enterprise executives from North America and European organisations that outsource, or plan to outsource, to Africa.

In addition, profiling surveys were conducted on over 500 GBS service providers and delivery centres across 19 African countries. These markets represent a mix of mature, emerging and nascent GBS locations in Africa that now serve as key locations for global and local investors and buyers.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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Nigeria Steps up AI Surveillance, Anti-Drone Systems for National Security

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Anti-Drone Systems

By Adedapo Adesanya

Nigeria is set to strengthen its defence architecture by deploying artificial intelligence-powered surveillance systems and advanced anti-drone technology as part of efforts to modernise the country’s military capabilities, according to the Minister of Defence, Mr Christopher Musa.

He disclosed this during a high-level visit to Monaco, where he led a Nigerian delegation to conclude discussions on the multi-domain Hybrid Intelligence Shield (HIS) project.

According to Mr Musa, the initiative is designed to enhance border security, protect urban centres and improve the country’s response to emerging security threats.

The project is expected to introduce AI-driven surveillance systems capable of identifying threats rapidly through smart algorithms, while anti-drone technology will be deployed to intercept and neutralise unmanned aerial threats.

The government also plans to establish national and regional command-and-control centres to improve real-time coordination and response to security incidents across the country.

Mr Musa said the initiative would place strong emphasis on technology transfer and local capacity development through the establishment of a military Centre of Excellence in Nigeria.

He added that the federal government would leverage partnerships with international firms, including Marss UK Ltd, while simultaneously building indigenous capabilities to address insurgency, illegal mining, piracy and other security threats.

Nigeria has continued to battle multiple security challenges in recent years, including insurgency in the North-East, banditry and kidnappings in the North-West, farmer-herder clashes in the North-Central region, crude oil theft in the Niger Delta and piracy in the Gulf of Guinea.

Nigeria is stepping up its defence as the border region of Nigeria, Benin and Niger on the southern edge of the Sahel region is becoming a new stronghold for jihadists, as militants turn forests and pastoral networks in West Africa into bases for recruitment and international attacks.

Attacks in Nigeria have also risen, with data from the website of the Armed Conflict Location & Event Data (ACLED), a conflict-monitoring group, affirming that the number of suicide bombings in Nigeria by March already matched the annual average over the past six years.

The Nigerian military has also been dealt a blow to its military bases and senior figures targeted. In April, Brigadier-General Oseni Omoh Braimah was killed when Islamist fighters attacked a base in Borno State.

To also meet the defence goal, Nigeria is stepping up efforts to build domestic arms-manufacturing capacity.

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Nigeria, Morocco to Seal Atlantic Gas Pipeline Deal by Q4 2026

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nigeria morocco

By Adedapo Adesanya

Nigeria and Morocco are set to sign a major intergovernmental agreement later this year to push forward the long-delayed Nigeria-Morocco Gas Pipeline project, a multi-billion-dollar energy corridor expected to reshape gas trade across West Africa and Europe.

The agreement, expected to be signed in the fourth quarter of 2026 by President Bola Tinubu and King Mohammed VI of Morocco, follows the completion of preliminary technical studies for the ambitious project, according to officials from both countries.

The pipeline, also known as the African Atlantic Gas Pipeline, is projected to stretch about 6,900 kilometres along offshore and onshore routes across West Africa, making it one of the largest gas infrastructure projects on the continent.

With an estimated cost of $25 billion, the pipeline is designed to transport up to 30 billion cubic metres of gas annually once completed.

Discussions on the project gained fresh momentum during a telephone conversation between Nigeria’s Minister of Foreign Affairs, Mr Bianca Odumegwu-Ojukwu, and her Moroccan counterpart, Mr Nasser Bourita.

The project would not only strengthen energy cooperation between the two countries but also improve regional economic integration and expand Africa’s access to European energy markets.

According to Morocco’s hydrocarbons and mining agency, ONHYM, part of the gas supply will support Morocco’s domestic energy demand, while large export volumes will be directed to Europe.

The project, first proposed about a decade ago, is seen as a strategic alternative gas supply route amid rising global energy security concerns and Europe’s search for more diversified energy sources.

Beyond the pipeline, Nigeria and Morocco are also exploring broader economic partnerships, particularly in fertiliser production and distribution to support food security across Africa.

Both countries also agreed on the need to revive the Nigeria-Morocco Business Council to strengthen trade and investment relations under the African Continental Free Trade Area framework.

Analysts noted that the project could significantly boost gas monetisation opportunities for Nigeria, expand regional infrastructure development, and deepen economic ties between West African nations and Europe if successfully executed.

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Impact Investors Foundation Launches GESI Baseline Report

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GESI Baseline Report

The Impact Investors Foundation (IIF), Nigeria’s leading platform for unlocking impact capital, today hosted the 4th Gender Impact Investment Summit (GIIS). The landmark event featured the historic unveiling of the Inclusive Capital Scorecard, a Gender Equity and Social Inclusion Baseline report, which establishes a foundation and clear understanding for GESI integration practices in impact investment.

The summit, themed “From Commitment to Action: Strengthening Inclusive Gender Lens Investment for Nigeria’s Growth,” convened at a critical juncture for deepening Nigeria’s National Women Economic Empowerment policy. Building on the momentum of previous years, where over 50 organisations pledged support for inclusive capital, the 4th GIIS serves as the definitive platform to translate high-level pledges into tangible, measurable results for women, youth, and the over 35 million Nigerians living with disabilities.

The centrepiece of this year’s summit was the GESI baseline survey, which serves as a reference point for tracking progress, informing interventions, and strengthening accountability toward achieving the national inclusive capital roadmap. It also features a policy roundtable, where regulators, ministries and government agencies made actionable commitments to strengthen cross-sector collaboration, and accelerate policy implementation for women, youths and persons with disabilities (PwD) in key economic sectors, including climate resilient industries.  “The GESI Baseline Report is more than a document; it is the data-driven foundation required to fix structural barriers in our financial system,” stated Etemore Glover, CEO of the Impact Investors Foundation. “While women own nearly 40% of Nigerian businesses, they receive a disproportionately small share of formal credit. This report empowers stakeholders to identify acute gaps and benchmark progress as we move toward a truly inclusive economy.”

Ibukun Awosika, Chair of GSG Nigeria Partner and Vice Chair of GSG Impact, emphasised the significance of this milestone at the 4th GIIS: “By providing the data-driven foundation needed to benchmark progress, it demands that stakeholders not only mobilise inclusive capital at scale but also embed GESI and gender lens investment principles into every investment decision and policy. This summit is the definitive platform to close investment gaps, unlocking Nigeria’s full economic potential and ensuring our growth is truly equitable and transformative.”

The 4th Gender Impact Investment Summit (GIIS) acts as a vehicle to dismantle obstacles for women, serving as a catalyst for growth by actively driving impact to accommodate women, including those in the informal labour market. It moves beyond rhetoric to institutionalise accountability by encouraging organisations to not only track how capital is raised, but also the type of capital deployed, jobs created, enterprise growth, geographic reach, and measurable inclusion outcomes.

Gender Equality and Social Inclusion (GESI) are increasingly recognised as critical leverage points; by addressing the institutional gaps that leave women, youths and persons with disabilities-led businesses under-resourced, Nigeria can catalyse a new wave of data-driven investment and productivity.

The keynote address, ‘Turning Gender Equity into Economic Advantage,’ presented by His Highness Khalifa Muhammad Sanusi II CON, Sarkin Kano, stressed the need for the intentional dismantling of structural barriers that hinder women’s financial inclusion, noting that gender equality is not merely a social imperative but a critical economic lever for national prosperity.

To facilitate immediate economic impact, the 4th GIIS introduced enhanced Deal Rooms, operating both virtually and in-person. These rooms are specifically designed to provide a direct matchmaking pipeline, connecting investors with ready-to-scale, women-led enterprises, leading to a soft commitment of about $250,000 from investors.

In addition, the summit featured technical sessions which emphasised institutional capacity building, equipping both public and private sector actors with the GESI diagnostic tools, investment readiness tools and data capturing frameworks necessary to mainstream GESI and gender lens investing (GLI) into their core operations.

The economic urgency of this intervention is underscored by current data showing a stark inclusion gap: only 23% of Nigerian women have bank accounts, compared to 77% of men. By providing credible, first-of-its-kind data, the IIF is positioning the GESI Roadmap as a strategic necessity for sustainable national growth.

The summit featured high-level participation from financial institutions, Development Finance Institutions (DFIs), and policymakers. Through interactive panels and policy conversations, leaders were invited to move beyond discourse and lead in GESI integration, utilising the new report to influence future policy and investment strategies.

The 4th Gender Impact Investment Summit reaffirms IIF’s role as a strategic architect in the Nigerian investment market, dedicated to establishing actionable interventions that ensure no one is left behind in the pursuit of prosperity.

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