By Jean Narcisse Djaha
Today, everybody confesses easily that Africa is the future of the world. Better still, the future of the world is going to be played in Africa. By 2030, young Africans are expected to make up 42 percent of the world’s youth and account for 75 percent of those under age 35 in Africa. With such a drastic surge in population growth, there is so much hope about the role that young people could play to lift up the continent.
On October 20, 2023, while speaking at the Pre-Launch of the African Council on Foreign Relations, Dr. Paul Samson, President of the Canadian Think Tank Center of International Governance Innovation indicated that Africa is a demographic superpower.
The fundamental question is how this youth population’s growth will benefit the continent. How does Africa’s demographic superpower translate into opportunities for economic growth and transformation?
Africa’s Youth and the Growing Start-up Entrepreneurial Diversification Challenges?
The distribution of start-up financing is not equal on the continent. In other words, investors pour a lot of capital funding into a few countries, creating an enormous void elsewhere on the continent. The World Economic Forum reports that
- 92% of Africa’s investment in tech is won by just four countries: Nigeria, Egypt, Kenya and South Africa.
- According to Disrupt Africa this is because their sizeable populations and large GDPs make them attractive destinations for investment.
Other countries can follow suit by introducing innovation-positive regulations, reducing political and socio-economic restraints, and capitalizing on the African Continental Free Trade Area agreement.
Known as Africa’s ‘’Big 4’’, Nigeria, Egypt, South Africa, and Kenya continue to attract the importance of foreign investment in terms of venture capital funding. The African Development Bank’s (AfDB) 2021 report states that these four countries account for about a third of the continent’s start-up incubators and accelerators and receive 80% of foreign direct investment (FDI) into Africa.
Despite significant efforts to reverse this imbalance, African governments are still struggling to promote and organize economic summits that would pour more venture capital into their economies. However, thanks to the hard work of leaders, there is an ongoing effort to move this gigantic project ahead.
Africa’s Youth: A Unique Human Development Capital?
Africa’s greatest asset is its abundant human resources. Gone are the days and years when Africa called for foreign youths from America, Europe, and Asia to build roads, bridges, airports, and many more. Like every other world nation, African youths are among the most educated and skilled workforces in the world. They have attended prestigious universities such as Harvard, Stanford, Oxford, Massachusetts Institute of Technology, Georgetown University, and great educational institutions in Africa. Africa has talented young leaders across the world. They include Jean Narcisse Djaha, Professor Landry Signe, Anne-Marie Borges, etc. Thankfully, there is a growing policy cadre to develop more youths across Africa and in almost every country.
In a highly read article, Chido Mpemba, African Union Chairperson’s Youth Envoy, African Union Commission and Chido Munyati, Head of Regional Agenda, Africa, World Economic Forum, state that Africa’s youthful and untapped potential energy will play a significant role in achieving economic growth and transformation.
Africa’s Youth and the Promises of the AfCTA?
African youth believe that the African Continental Free Trade Area will a panacea to their growing challenges in terms of access to private and venture capital, market expansion, free movement of people and goods, etc. The AfCFTA is expected to expand the size of Africa’s economy to US$29 trillion by 2050.
The African Continental Free Trade Area (AfCFTA) is the world’s largest free trade area, bringing together the 55 countries of the African Union (AU) and eight (8) Regional Economic Communities (RECs) to create a single market for the continent. The aim is to enable the free flow of goods and services across the continent and boost the trading position of Africa in the global market.
The focus of the AfCFTA on youth entrepreneurship makes it one of the most salutary projects in the history of African trade. Young people believe in the positive transformation of their business ecosystem in Africa. They believe that AfCFTA will provide them with more space for innovation and entrepreneurship, funding for scaling their businesses, and contributing to the prosperity of their national economies.
The African Continental Free Trade Area (AfCFTA), if fully implemented, could raise incomes by 9 percent by 2035 and lift 50 million people out of extreme poverty.
The new report also models what would happen if the agreement is expanded, as planned, to harmonize policies on investment, competition, e-commerce, and intellectual property rights. Deeper integration in these areas will help build fair and efficient markets, improve competitiveness, and attract even more FDI by reducing the risks of shifting regulations and policies. This scenario would bring income gains of 9 percent by 2035 and reduce extreme poverty by 50 million.
Africa’s Youth: Looking Forward
For young people to constitute a true and dynamic workforce, governments will need to change how they see the contribution of these youth to the economy. This should begin by giving them the opportunity and required funding to express their talents to the fullest. The recent adoption of the Nigerian Start-up Bill into law must inspire other nations across Africa. To take full advantage of the youth workforce, governments, business leaders, and young leaders must help drive more blended funding to their countries. For example, venture capital investment must go beyond the Big 4: Nigeria, Egypt, South Africa, and Kenya.
Times ahead of us will be radically different. Youth expectations from their governments and leaders continue to grow exponentially. And the stakes are becoming also very high. What is Africa’s youth looking for in the 21st century? The answer to this existential query might be well-known by everybody. Young people look for investment opportunities to innovate and express their huge potential to the fullest. Is it not good to see Africa’s youth become highly competitive in the global economy tomorrow? What are we waiting for to make this happen?
Author The Author
Jean Narcisse Djaha, PhD, Founding President and Chairman of the African Council on Foreign Relations. He is guided by Romans 8:30 ‘’And those he predestined, he also called; those he called, he also justified; those he justified, he also glorified”.
