With its burgeoning youth population, Africa holds the potential to address the global skills shortage, a predicament increasingly afflicting companies in the Global North.
A Bloomberg publication in Europe on June 23 highlighted that companies, despite having business opportunities, are at risk of closure due to a scarcity of skilled personnel.
In stark contrast, Africa grapples with a distinct challenge—a surplus of young people facing the harsh reality of unemployment and the absence of reliable income.
Globally, the youth demographic (aged 15-35) is expected to remain relatively stable at around 2.5 billion.
Africa, however, stands out with more than 500 million youth, constituting about 20 percent of the global youth workforce.
Projections indicate an additional 100 million African youth by 2030, while other regions are anticipated to witness a decline of around 100 million, elevating Africa’s share to nearly 25 percent of the global youth workforce.
An International Labour Organisation publication on October 23 revealed that the proportion of employed young Africans aligns with global trends. The core issue is unemployment, inactivity, and the pursuit of decent and fulfilling employment.
About half of the 512 million African youth are engaged in work, a quarter is pursuing education, and an additional quarter falls under the category of not in employment, education, or training (NEETs), a figure slightly higher than the global average of 23 percent.
Certain regions, such as the Arab Maghreb Union, report alarmingly high NEET rates of 36 percent. Eastern and southern Africa witness NEET rates surpassing 40 percent among those aged 20-24, with a notable gender gap—more than double the number of female NEETs compared to their male counterparts.
Between 2020 and 2030, Africa anticipates the entry of about 13 million youth into its labour market annually, presenting two key opportunities.
Firstly, Africa can harness agglomeration and skill development to fortify its domestic job market, contingent upon an improved business climate.
Secondly, the continent can capitalise on global shifts in employment without succumbing to brain drain by equipping its youth with relevant skills for active participation in the digital economy, facilitated by accessible and affordable internet.
Encouragingly, the number of students across all African regions is rising, accompanied by a declining percentage of uneducated individuals. Secondary education rates have risen positively, from 57 percent in 2015 to 65 percent in 2022.
The foundation is laid for transforming and upgrading Africa’s infrastructure, healthcare, and education services to align with the demands of a digitally-driven 21st century.
As digital services are tradable, Africans can work internationally from their home country. This also applies to the new service sectors, such as data science.
Following the lead by Microsoft, Google and other Tech companies, World Data Lab, in collaboration with the Mastercard Foundation, is already developing African data science clusters.
The dynamic nature of labour markets, coupled with a growing population, presents opportunities for economic transformation. Stable African countries that have consistently invested in education, digital infrastructure, and good governance are witnessing a changing job market.
With innovation and the cultivation of a thriving digital economy, Africa can overcome traditional barriers, providing an environment where youth with requisite skills are in high demand.
In African cities, the number of quality jobs is on the rise. The International Labour Organisation reported a decrease in the share of working poor young people in Africa from 42.1 percent in 2012 to 37.6 percent in 2020.
Educated youth, especially in stable countries, find dignified and fulfilling employment opportunities that were scarce two decades ago. Notable employers like Safaricom, Carrefour, Google, and Microsoft have become integral to Africa’s evolving job market.
As of the end of 2022, the continent boasts 1.9 million individuals with digital and digitally-enabled jobs, witnessing an annualised growth of 48 percent since 2019. Access to reliable and affordable Internet enables freelancers to connect with global digital supply chains, unlocking international employment opportunities.
However, challenges persist, with one-third of the youth population categorised as vulnerable and only one-sixth engaged in waged employment.
Despite advancements, a significant portion of African youth still work informally, and many face underemployment, unable to realise their full potential due to various constraints, including low wages, job insecurity, and inadequate social protection.
Notably, 61 percent of youth are engaged in agriculture, which is characterised by low productivity. Non-agricultural sectors fare better, but only northern Africa reports an equal distribution between formal and informal workers.
With suitable investments and a collaborative approach, Africa’s youth can secure dignified employment and become architects of a sustainable and prosperous future for the continent and beyond.
Additionally, almost 12% of employed youth experience underemployment, a threefold increase compared to the global average.
As Africa navigates its complex employment landscape, the continent holds the key to its destiny. The trajectory is promising but demands a sustained commitment to education, digital literacy, and inclusive policies that empower the youth.
The potential for Africa's youth to bridge the global skills gap and lead innovation and entrepreneurship is boundless. With suitable investments and a collaborative approach, Africa's youth can secure dignified employment and become architects of a sustainable and prosperous future for the continent and beyond.
The writer is Kenya’s Ambassador to Belgium, Mission to the European Union, Organization of African Caribbean and Pacific States and World Customs Organization.
