Africa: Harnessing the demographic dividend

AFRICA has the fastest-growing and most youthful population in the world. Over 40 percent are under the age of 15 and 20 percent are between the ages of 15 and 24 which corresponds to the African Development Bank’s (AfDB’s) youth definition. According to the 2017 revisions of the United Nations World Population prospects, Africa’s population is predicted to have increased from 1,2 billion in 2016, to 1,3 billion in 2017 creating new challenges and opportunities for the economy.

Nevertheless, the continent has not yet achieved the magical demographic transition and dividend where the dependency ratio falls far enough for incomes and savings to begin to rise (the dependency ratio of the younger population not in labour versus the active population). This crucial demographic transition, which yields the demographic dividend, can only be achieved through investment in small and mid-sized enterprises (SMEs ), creative hubs, education and health, as well broader family planning strategies.

In September 2017, the 72nd UN General Assembly (UNGA), GBC Health, World Bank and UNFPA convened to discuss the private sector’s role in supporting Africa’s demographic change. The demographic dividend has been acknowledged by African leaders and decision-makers as a strategic basis for focusing and prioritising investments. Investments into Africa’s youth will contribute towards sustainable development, inclusive economic growth and to build an integrated, prosperous and peaceful Africa.

Job creation is not keeping pace with population growth. Many African countries are struggling to create jobs for the increasing numbers entering the job market: The International Labour Office’s Global Employment Trends for Youth 2015 reported that youth comprised 48,1 percent of the long-term unemployed in sub-Saharan Africa.

This high unemployment figure represents a significant lost potential to realise Africa’s demographic dividend. Among the factors challenging the employment of Africa’s youth are deindustrialisation occurring in many sectors as production becomes increasingly automated; a higher demand for design skills than for manufacturing skills; the mismatch between the skills on offer and the requirements of employers; and the drain on skilled talent suited for the needs of industry across Africa.

According to a report by Brookings on Increasing Employment Opportunities in Africa’s complex job market, even some of Africa’s largest economies such as Nigeria, Kenya and South Africa struggle with high unemployment. This is a challenge that may continue to grow as more youth begin to enter the workforce if not more investments are made into education and skills creation. The report by Brookings noted that investments into “human capital” more generally will help African countries to fulfil their broader development missions.

Education systems are slow to reform and have not kept up with the demands for the skill sets industry players need to drive growth. Food security continues to be a challenge, though this could be overcome through the effective use of scientific and business management skills. Skills usually found in mature career professionals rather than youth, and to boost agricultural productivity both ends of the workforce must be engaged. Also, rather than prepare for industrial and agricultural careers, the high levels of youth involvement in small- and medium-sized enterprises as well the innovation space continue to dominate the African landscape.

Young people coming into the workforce require mentoring and coaching, creative hubs and workshops, training and vocational skills which can be effectively provided by those close to or already in retirement. This places a premium on the effective use of existing skills to connect Africa’s young generation with the highly skilled and experienced.

Current initiatives such as the International Youth Foundation, who together with corporate, research and education institutions, aims to solve this challenge by intervening in sectors where capacity needs are as big as the potential for youth engagement. - New African