- Africa is currently experiencing significant demographic changes that will have a major impact on shaping geopolitical and international economic affairs.
- Addressing unemployment among the younger population is a key priority to ensure they contribute to growth rather than become a potential source of instability.
- The Africa Continental Free Trade Area presents an opportunity to create avenues for skilled workers, with commitments being made under it at Davos 2024, the Annual Meeting in Switzerland.
Africa is undergoing seismic changes, with sub-Saharan Africa projected to account for over half of the world’s population growth between 2022 and 2050. By 2050, a quarter of the global population and more than a third of the world’s youth are expected to be African. Nigeria is set to surpass the United States as the third most populous country during this period.
This demographic shift in Africa is expected to drive global economic growth, with Sub-Saharan Africa projected to contribute 90% of the growth in the world’s working-age population. The region’s working-age population is expected to surpass that of India and China, while other parts of the world, including China, Germany, and Japan, are projected to experience population declines.
As a result, Africa is poised to play a more significant role in shaping geopolitical and economic affairs. In September 2023, the African Union joined the Group of 20, becoming a key player in international economic cooperation alongside countries like the UK, Russia, and the United States.
The challenge ahead for Africa is how to create sufficient jobs to accommodate the population growth.
Growth and jobs for a new era
Unemployment is a top concern for young Africans, with many calling for government action to address this issue. With millions of youth entering the labor market annually, there is a significant gap between job creation and the growing working-age population. Investment in education and skills development is crucial to tap into the potential of the young workforce.
While the education levels of young Africans are improving, there is a need to focus on digital skills to leverage advancements in technology. Initiatives like the World Economic Forum’s Closing the Skills Gap Accelerators aim to bridge this gap and support future education and training.
Failure to create enough jobs for the growing population could lead to social instability, as seen in the rise of coups and terrorism in the region. The Africa Continental Free Trade Area presents an opportunity for structural transformation and industrialization, offering avenues for skilled workers to contribute to the economy.
Security and cooperation in a fractured world
Social fragility in Africa is exacerbated by factors like poor governance, economic challenges, and insufficient economic opportunities for the youth. The Africa Continental Free Trade Area, as the world’s largest free trade area by population, presents opportunities for increased competition, investment, and economic diversification.
At Davos 2024, global business leaders will announce their investments and commitments under the AfCFTA, highlighting the importance of capitalizing on Africa’s youth and potential for economic growth.
This article was published as part of the World Economic Forum Annual Meeting 2024 discussions and originally appeared in the Daily Maverick.
This article was originally sourced from World Economic Forum