In 2024, Africa is projected to reach an average GDP growth of 3.5%, and account for five of the world’s ten fastest growing economies. Africa’s growth rate will be well above the projected global growth of 3.1% and reach 4.0% in 2025, compared to projected global growth of 3.2%. Growth prospects can be further boosted by the demographic dividend of growth in the continent’s working age population which is expected to double by 2050 and account for 86% of the total global increase. As Africa’s growing population is getting better educated, African countries are developing an unprecedented pool of talent. The African Union is committed to boosting the educational and professional prospects for Africa’s young labour force. Skills development lies at the heart of its Agenda 2063; education is the African Union theme for 2024.
Improving access to, and the quality of, skills development that matches employment opportunities, will be key to driving the productive transformation of Africa’s economies. In 2022, over one in four African youth were not in employment, education, or training (NEET). Africa’s GDP could increase by about USD 154 trillion before the end of the century – more than 22-fold, a greater increase than for any other world region – if all African children attained foundational skill levels. In 2021, public education spending averaged 3.7% of GDP and accounted for 14.5% of total public expenditure, both slightly below the international benchmarks of at least 4% and 15% respectively. Prioritisation can help African governments achieve better results under constrained budgets. Collaboration with the private sector is instrumental in bridging the perceived skills mismatch to address issues of unemployment, poverty and inequality.
Addressing employment informality through skills development and opportunities for decent jobs will improve productivity, access to social protection, job security and working conditions. Africa overall has a higher share of informal employment than any other world region. An estimated 82% of all workers in Africa are in informal occupations, compared to 56% in Latin America and the Caribbean and 73% in developing Asia. A dedicated policy focus would help informal workers overcome barriers faced to skills development such as high opportunity costs, limited resources, lack of pre-requisites and greater vulnerability to shocks. This should include a particular focus on women. The proportion of women in informal employment with no formal education was 14 percentage points higher than the corresponding proportion among men.
The Africa’s Development Dynamics 2024 report assesses skill shortages and gaps, including changing skills demand across African countries, in light of the specifics of African labour markets. It proposes skills strategies that combine inclusive education and training with excellence in the technical skills required in the most productive parts of the economy. We suggest three priorities:
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Devise country-specific strategies to identify and address specific skill needs in dynamic, productive sectors.
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Improve access to quality education, skills development and technical and vocational education and training, especially for informal workers, women and people in rural areas.
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Strengthen the regional integration of skills development policies to provide more efficient labour flows and skills allocation.
The partnership between the African Union Commission and the OECD, including through the OECD Development Centre, continues to deepen. In October 2023, we renewed our Memorandum of Understanding, setting out a concrete plan of action: a hands-on approach of generating new data together, and expanding a direct dialogue between decision makers. It is in that framework, considering the mandate entrusted by African Union Policy Organs, that we started the operationalisation of the African virtual Investment Platform. This initiative will support investment in the continent in support of the implementation of the vision and aspirations of Agenda 2063 towards an integrated peaceful and prosperous Africa. This sixth edition of our flagship report is a key part of our work together to inform international dialogue and collaboration in line with Agenda 2063.
Moussa Faki Mahamat
Chairperson
African Union Commission
Mathias Cormann
Secretary-General
Organisation for Economic Co-operation and Development