AU, OECD report shows Africa’s growth hinges on educated working age population

A recent report by the African Union Commission and the OECD Development Centre has shed light on Africa's potential for growth and development, emphasizing the critical role that education and skill development play in unlocking the continent's economic opportunities. The report projects that Africa could achieve a 3.5 per cent GDP growth in 2024, with five of the world's ten fastest-growing economies located in Africa. However, the report also highlights the need for a better-educated workforce to fully leverage this growth potential. Federico Bonaglia, the Deputy Director at the OECD Development Centre, provided insights into the key challenges and recommendations outlined in the report during an interview with CNBC Africa. Bonaglia pointed out that while Africa is experiencing economic growth, it is not translating into sufficient and quality job creation, particularly for the youth. Over 80% of workers in Africa are engaged in informal employment, which often lacks job security and adequate compensation. The continent is facing a significant mismatch between the skills produced by the education system and the demands of the labor market. He underscored the importance of investing in education and aligning it with the current and future needs of the job market. The report highlighted that 80% of African youth aspire to secure high-quality and high-skilled jobs, yet only 8% are able to attain such positions. The private sector has also reported skill shortages in key sectors such as agri-food, renewable energies, and digital industries. This mismatch underscores the urgency for investment in transforming African economies to generate higher value-added products and create more opportunities for skilled employment. One of the key recommendations from the report is the need for African countries to focus on regional integration of skills development. Bonaglia emphasized the importance of aligning policies across African nations to foster labor mobility and reduce barriers to trade. This approach could create more opportunities for high-quality jobs within the continent and help retain skilled workers who often seek better opportunities abroad. The challenge lies in addressing the talent export or brain drain phenomenon, where skilled professionals leave the continent in search of higher salaries and better working conditions. To combat talent export and enhance growth prospects, African countries must invest in education and skill development tailored to meet the demands of emerging industries, particularly in the digital sector. The report also emphasizes the critical role of public-private partnerships in driving innovation, job creation, and sustainable economic growth. By equipping African youth with the necessary skills and fostering a conducive environment for job creation, the continent can capitalize on its demographic dividend and propel itself towards a more prosperous future. In conclusion, the pathway to sustainable growth and development in Africa hinges on prioritizing education, skills development, and creating an enabling environment for productive employment. By addressing the challenges outlined in the report and implementing targeted interventions, African nations can harness the potential of their youthful population and chart a course towards inclusive and sustainable economic advancement.