Creating well-paying jobs for youth vital to boosting African economic growth

28th January 2014 By: Leandi Kolver - Creamer Media Deputy Editor

Creating well-paying jobs for youth vital to boosting African economic growth

With as many as 11-million young Africans expected to join the labour market every year for the next decade, creating millions of productive, well-paying jobs would be vital to boost economic growth, significantly cut poverty and create shared prosperity in Africa, the World Bank said in its 'Youth Employment in sub-Saharan Africa' report released on Monday.

The report noted that close to 80% of the subcontinent’s workforce would continue to work on small farms and in household businesses in the near future and, while the modern wage sector was growing fast in some countries, it could not create enough jobs to meet the youth employment challenge now preoccupying governments in every corner of the continent.

“Attracting investment into large enterprises that create wage[-related] jobs in the mainstream ‘formal’ economy is critical, but it is only part of the solution to Africa’s youth employment challenge, for the millions of young people who are just surviving in the hidden ‘informal’ sector will [also] need greater access to land, skills training and credit to thrive.

“This will be a game-changer for small farmers and entrepreneurs who will prosper as African economies grow in close cooperation with the private sector,” World Bank VP for Africa Makhtar Diop said.

He added that making high-quality science and technology education more accessible to young people and shaping higher education courses to fit the skills needed by the modern jobs market was increasingly a high priority for many African countries, with new development partners – such as China, India and Brazil – actively working with the World Bank to develop these skills among Africa’s youth.

The report further noted that the manufacturing, services and agricultural sectors were traditionally labour-intensive and could generate productive work for young people.

“As working populations age in other parts of the world, young Africans could find their labour and skills increasingly in high demand internationally if their governments pursue policies that improve education and job training for their youth,” the report stated. 

It further noted that research showed young people who received cash grants from the Northern Uganda Social Action Fund to pay for their vocational training and assets needed to start a business later earned 41% more than others who did not receive this support.

Meanwhile, in Liberia, a programme that offered a combination of technical, behavioural skills and business skills to adolescent girls and young women was highly effective in increasing their levels of employment and income. The business and professional-behavioural skills training allowed them to raise their monthly incomes by an average of $75 – a 115% increase, the World Bank said.

“Governments can approach the youth employment challenge in two important ways – by helping to improve the business environment to spark more private investment, as well as by investing more in young people’s education and other skills to create brighter life prospects for them,” World Bank lead economist and co-author of the report Deon Filmer said.