Until recently, fine-tuned BERT-like models provided state-of-the-art performance on text classification tasks. With the rise of instruction-tuned decoder-only models, commonly known as large language models (LLMs), the field has increasingly moved toward zero-shot and few-shot prompting. However, the performance of LLMs on text classification, particularly on less-resourced languages, remains under-explored. In this paper, we evaluate the performance of current language models on text classification tasks across several South Slavic languages. We compare openly available fine-tuned BERT-like models with a selection of open-source and closed-source LLMs across three tasks in three domains: sentiment classification in parliamentary speeches, topic classification in news articles and parliamentary speeches, and genre identification in web texts. Our results show that LLMs demonstrate strong zero-shot performance, often matching or surpassing fine-tuned BERT-like models. Moreover, when used in a zero-shot setup, LLMs perform comparably in South Slavic languages and English. However, we also point out key drawbacks of LLMs, including less predictable outputs, significantly slower inference, and higher computational costs. Due to these limitations, fine-tuned BERT-like models remain a more practical choice for large-scale automatic text annotation.

African languages are severely under-represented in NLP research due to lack of datasets covering several NLP tasks. While there are individual language specific datasets that are being expanded to different tasks, only a handful of NLP tasks (e.g. named entity recognition and machine translation) have standardized benchmark datasets covering several geographical and typologically-diverse African languages. In this paper, we develop MasakhaNEWS -- a new benchmark dataset for news topic classification covering 16 languages widely spoken in Africa. We provide an evaluation of baseline models by training classical machine learning models and fine-tuning several language models. Furthermore, we explore several alternatives to full fine-tuning of language models that are better suited for zero-shot and few-shot learning such as cross-lingual parameter-efficient fine-tuning (like MAD-X), pattern exploiting training (PET), prompting language models (like ChatGPT), and prompt-free sentence transformer fine-tuning (SetFit and Cohere Embedding API). Our evaluation in zero-shot setting shows the potential of prompting ChatGPT for news topic classification in low-resource African languages, achieving an average performance of 70 F1 points without leveraging additional supervision like MAD-X. In few-shot setting, we show that with as little as 10 examples per label, we achieved more than 90\% (i.e. 86.0 F1 points) of the performance of full supervised training (92.6 F1 points) leveraging the PET approach.