As the world’s youngest continent, with a median age of 20 years and 60% of the population under the age of 25, Africa has the potential to shape world economics in the decades to come.
As part of his second tour of Africa since taking office, US Secretary of State, Antony Blinken, gave a speech to students at the University of Pretoria, South Africa, on 8th August 2022, in which he outlined the Biden administration’s foreign policy, declaring that “Africa is the future.”
The statement defines what the continent is looking forward to in the coming decades. With the aging population of most developed continents, Africa is in the spotlight as it has the 10 youngest countries in the world. The youngest is Niger which has a median age of just 15.4 – exactly half the global figure of 30 years. The 5 youngest countries in Africa are:
Young Population – How will it work in favor of Africa?
Touted as a major advantage for the continent, the increasing working-age population will drive the continent’s economy. The World Bank estimates that this demographic dividend could generate 11-15% GDP growth between 2011 and 2030.
Having a young population brings many opportunities for economic growth and innovation if these opportunities can be recognized and utilized. The youth are the future workforce of the region, with about 11 million young people expected to enter the job market each year for the next decade. While there has been growth in formal wage jobs in some countries, most of these young people are likely to work in informal jobs such as household enterprises or on family-run farms, often for very low wages.
However, most countries in Africa are seeing a sea of change as technology, startups, and investments are rapidly evolving thereby changing the employment landscape. Companies are generating jobs that demand a range of digital skills. If young Africans are to compete for high-tech, higher-paying jobs and take advantage of increasing opportunities for innovation and entrepreneurship, digital skills training must be at the core of continued education and training. Nonprofit organizations like Digital Skills Africa are igniting hope and addressing socio-economic transformation through digital empowerment.
Startups are the Key to Economic Growth
Startups are the solution to boosting economic growth in Africa. The World Economic Forum (WEF) believes that digital transformation can boost economic growth in Africa by connecting the region to the global digital economy. Investing in tech entrepreneurship is laying the foundation for a new future for Africa. What makes the continent so difficult is also what makes it the best place to be from a tech perspective, as it’s the fastest-growing young continent and home to an abundance of opportunities that innovation and technology can solve.
McKinsey reports that between 2020 and 2021, the number of tech start-ups in Africa tripled to around 5,200 companies. 50% of these are fintechs, which are making it their business to disrupt and augment traditional financial services. Paystack, the Nigerian-born fintech company which was acquired by Stripe, has revolutionized the online payment system and also has optimized the merchant experience for Kenyan businesses. Then you have tech start-ups such as online retail giant Jumia, Africa’s first unicorn, represent what the continent’s vibrant small business sector is capable of, and examples of exciting African start-ups keep coming.
Myntra, Flipkart, PayTM, Zomato, Ekar, Tamara, Starzplay, Kitopi like startups have changed the scene in the Asia subcontinent and Middle East by creating a school for upcoming founders. Africa with its young population is all set to follow the path. With the startup ecosystem of the continent booming with record investments, they are paving the way for new age founders and entrepreneurs.
Africa is the future. This is the right time for Startups to look at the enormous potential of this young continent and be a part of its socio and economic development.
Know about the “big four” of Africa. Read here
