Africa’s Growing Workforce: Challenges and Opportunities

A new report by the Organisation for Economic Co-operation and Development (OECD) highlights the potential of Africa’s growing and increasingly educated workforce. By 2050, Africa’s working-age population will nearly double, from 849 million in 2024 to 1.56 billion. Many young Africans will complete secondary or tertiary education, increasing from 103 million to 240 million between 2020 and 2040.

However, the report identifies significant challenges. Many African economies face a dual problem: workers often lack the specific skills required by existing jobs, and there are not enough quality jobs to encourage further skill development. Over 80% of African youths in school aspire to high-skilled jobs, but only 8% find such opportunities. This skill shortage, especially in sectors like agrifood, renewable energies, and mining, hampers private investment.

Currently, 82% of African workers are employed in informal, low-paid, and low-quality jobs. This is higher compared to 56% in Latin America and the Caribbean and 73% in developing Asia. The report also notes that African governments spend less on education compared to international benchmarks, with an average of 3.7% of GDP and 14.5% of total public expenditure.

Improving education and skills development is crucial for increasing productivity. Each additional year of education can boost African learners’ earnings by up to 11.4%, the highest return to education globally. The report highlights strategic areas where better skills can significantly increase productivity: mining in Central and Southern Africa, digital in East Africa, renewable energy in North Africa, and agri-food in West Africa.