Opportunities for Youth Employment and Entrepreneurship
The International Trade Centre report, Opportunities for Youth Employment and Entrepreneurship, published last month, suggests that Africa’s youthful population may prove to be one of the continent’s greatest assets as the awaited African Continental Free Trade Area (AfCTFA) swings into effect. The nascent capacity of young people to beget economic growth is rooted in the myriad of barriers historically faced by the demographic, such as lack of employment and quality career pathways, and access to finance and digital infrastructure. Each of the tenets of the AfCTFA seek to dismantle such barriers through the establishment of a single market. As the youngest continent in the world (60% of persons under the age of 25), the success of the AfCTFA is irrefutably in the hands of the youth.
The report identifies small and medium-sized enterprises, the manufacturing and agricultural sectors and entrepreneurs as both the foundations of the continent’s economy, and the largest employers of young people. However all three have routinely struggled to grow in the cumbersome regulatory environment prior to the AfCTFA, which was often devoid of adequately skilled labour and importantly, finance. The region’s nascent digital economy, and the related fintech sector, is another crucial piece of the puzzle of AfCTFA success. A single market is set to bring a suite of benefits that will impact youth-led commercial operations the most. Bigger markets for African producers, simplified and more efficient value chains, removal of the “spaghetti bowl” of bilateral trade agreements and tax frameworks, and tech innovation via the wider availability of resources will permit the much needed value-add processes that bring greater revenue.
By fostering greater regional economic integration under the AfCTFA, young Africans are less likely to search abroad for employment opportunities after attaining sought after qualifications. With geographic diversity that surpasses even the European Union’s formidable achievements, Africa’s youth asset is set to pay great dividends.