Economy
Africa’s youth unemployment challenge needs a revolution in order to sustain global development
Opinion By Dr Dennis Rangi, Director General, Development at CABI based at its regional centre for Africa in Nairobi, Kenya. (Africa’s youth Image credit: CABI).
It’s a startling statistic but by 2050 Africa’s population is expected to double to around 2.6 billion. This creates greater pressure to feed so many mouths amid the challenges of economic, political and societal instability let alone the impacts of climate change.
When one considers that almost 60% of Africa’s population in 2019 was under the age of 25, making Africa the world’s youngest continent, it’s clear that Africa’s youth holds the key to the continent’s very survival and the burden to sustain wider global development
In 2019, more than a third of the population was aged between 15-34. By 2100, Africa’s youth population could be equivalent to twice Europe’s entire population.
According to the UN, the median age in Africa is 19.8 in 2020. On the continent, Mauritius is expected to have the highest median age, 37.4, and Niger is expected to have the lowest, 15.1.
However, in youthful Africa, just 56% of the population is of working age, which translates to about 1.3 people of working age supporting every dependent (mostly youth) – versus a global average of two workers to every dependent. This in essence is the ‘youth bulge’, and addressing it has never been more of an urgent task.
According to the World Bank, in 2020, 14.5% of 15 to 24-year olds in Sub-Saharan Africa were unemployed. This is among the lowest rates globally among young people in this age bracket. But the International Labor Organization says most of them work informally, are underemployed or stay in poverty because of low wages.
Quite simply, the growing youth unemployment and underemployment – especially in developing countries – is one of the greatest challenges of the 21st century.
Agriculture has long been the dominant sector in much of Africa in terms of output, employment and export earnings. Indeed, agriculture is arguably the most important business opportunity for our young people to embrace. As such, any meaningful change in the continent’s future must involve agriculture.
A ‘revolution’ in agribusiness involving Africa’s youth is therefore required so they can capitalise on the sector’s contribution to around 25% of the continent’s Gross Domestic Product (GDP) and 70% of its employment. They, with our support, need to meet these challenges head on so they can leave a lasting and sustainable legacy for their own children and their futures.
This is especially true when thinking of young people’s roles in agricultural value chains. We need to take a ‘two-pronged’ approach to enhancing their skills not only in producing safer foods free from crop pests and diseases but also in helping to involve them as village-based advisors – giving crucial information to help increase yields.
It may also be that they can combine both roles as part of a dual approach to the ever-increasing food crisis.
The time is ripe for Africa’s youth to lead the technological realisation of digital agriculture – recognising this a key driver for economic development within the agricultural sector.
This is particularly so in Kenya where digital innovations have eased trading barriers in certain value chains by providing trade platforms that directly connect farmers to traders enabling them to get competitive returns on their yields.
The African Centre for Women, Information and Communications Technology (ACWICT)-led Maudhui Digiti (Digital Content) project, for example, recently assessed the access and use of digital content.
This included evaluating opportunities for women and young people’s employment in the digital sphere for farmers, particularly the underserved agricultural communities and organizations in Laikipia County.
Youth play a pivotal role in agriculture and rural transformation. One of the findings in a book recently published by CABI titled ‘Youth and the Rural Economy in Africa,’ recommends a targeted technology promotion aimed at young people, most of whom are ‘digital natives’.
These youth can catalyse the realisation of digital agriculture in Sub-Saharan Africa due to their innovativeness and fast adoption of new technologies.
One example where CABI has extensively supported agricultural production, especially amongst smallholder farmers including the youth in Africa and beyond, is the Good Seed Initiative.
This ran in East Africa from 2013 to 2016 and sought to promote good production of quality African Indigenous Vegetable (AIVs) seeds and vegetables so as to improve the income of seed producers.
It also aimed to contribute to food and nutritional security of smallholder farmers and other actors in the seed and vegetable value chains of seeds.
The project enabled women and youth in Uganda and Tanzania to engage in market-driven profitable value chains that required minimum capital, capital and other factors of production.
This was achieved by empowering women and youth with requisite skills for seed entrepreneurship of indigenous vegetables which continued to be in high demand.
In research conducted by CABI – which focussed on Zambia and Vietnam – we sought to understand the nature of youth participation and identify barriers and opportunities for youth engagement in agriculture and agribusiness in Lusaka, Zambia and Vinh Phuc, Hung Yen, Dak Lak and Tien Giang in Vietnam.
We found that while a majority of youth were engaged in agriculture – primarily production – few were involved in input supply, trading, transportation and the provision of advisory services.
For instance, the study in Zambia found that almost all the youth (99%) were engaged in farm production, producing crops and animals for home consumption and local markets – yet hardly any were involved in valuable extension services.
This is where initiatives such as the CABI-led PlantwisePlus global programme can engage youth in non-formal extension services and help fill in the missing linkages within the agricultural value chain.
CABI in partnership has trained – through the preceding Plantwise programme – millions of professionals in 34 countries over 10 years. This includes extension staff, agro-dealers, quarantine officers to provide improved quality services to farmers.
In Uganda, where 70% of those unemployed are youths, CABI partnered with Zirobwe Agaliawamu Agri-business Training Association (ZAABTA) in Luwero district. This was to skill youth to enable them to provide various services in major agricultural and profitable value chains in the country.
Implemented under PlantwisePlus, the training sought to increase the supply of safer food through enterprises driven by women and youth to meet the growing demand by consumers in rural, urban and peri-urban markets.
We believe helping to enable youth to provide services as ‘village-based advisers’ in this way will be an attractive option to our youth and call for it wholeheartedly – even if they wish to engage in this activity alongside regular farming activities.
We simply cannot rely upon young people to be only producers of food. They may also need to be involved in the safe production of it in the first place and be part of a ‘knowledge exchange.’
In terms of open access learning, CABI’s ‘plant doctor’ training modules have been adopted by various academic institutions across the world. Plant doctors work at ‘plant clinics’ held in communities to help farmers diagnose their plant health problems and suggest remedies so their crops can grow more successfully.
In Uganda, for example, CABI’s practical hands-on course on field diagnostics and plant clinic operation is giving good recommendations to farmers to students at various years of study.
The course was first introduced in Makerere University in 2013 and is now offered by Uganda Christian University, Bukalasa Agricultural College, Busitema University and Gulu University.
We need to build our capacities and strengths in partnership to help address the ‘youth bulge’, and also the growing demand for youth and their role in agriculture to feed the rising population.
Meta recently hosted its first Youth Summit in Lagos, Nigeria, bringing together over 200 young professionals, students, recent graduates, creatives, tech enthusiasts and aspiring entrepreneurs.
Themed ‘Empowering Youth Through Technology, Innovation and Entrepreneurship’, the summit included a series of thought-provoking panel discussions, a mentoring session and an interactive workshop designed to equip young Nigerians with the skills, insights and networks needed to thrive in today’s tech-driven world.
Commenting about the event, Phil Oduor, Head of Policy Programs, Sub-Saharan Africa said, “At Meta, we believe that today’s youth are tomorrow’s change-makers. Through initiatives like the Youth Summit, we aim to foster innovation, promote digital literacy and empower young Nigerians with the tools and opportunities to realise their potential and contribute to Nigeria’s growing digital economy.”
Delivering the keynote address, Femi Aluko, CEO/Co-Founder, Chowdeck, shared his journey of breaking barriers to achieve success in tech. He encouraged attendees to embrace the limitless opportunities within today’s technology ecosystem.
A panel discussion, led by Chinny Francis, Public Policy Manager at Meta, featured panellists Nifemi Akinwamide, Head of Operations, Alt School; Adaora Mbelu, Co-Founder of Lumination Global and Obaloluwa Adeagbo, Marketing Lead at Talstack. They shared valuable insights about the future of work, emphasising the importance of storytelling to build a personal brand, practicing self-awareness, developing soft skills, lifelong learning and honing problem-solving skills to thrive in a digitally transformed world.
Francis Sani, Technical Adviser for Innovation, Entrepreneurship & Capital at the Federal Ministry of Communications, Innovation & Digital Economy, spoke at the event. He highlighted the 3 Million Technical Talent (3MTT) program, emphasising that the program aims to build Nigeria’s technical talent backbone to drive the digital economy and position Nigeria as a net talent exporter. He encouraged youth to take advantage of this opportunity.
Another panel of industry experts took the stage during the ‘Lunch and Learn: Navigating Entrepreneurship in a Rapidly Changing Landscape’ session, moderated by Sade Dada, Head of Public Policy for Anglophone West Africa at Meta. Seye Bandele, CEO of PaidHR and Damilola Teidi-Ayoola, Head of Platform and Networks at Ventures Platform Fund, shared their invaluable insights. Seye highlighted the importance of grit, curiosity and candour, while Damilola reinforced the need to understand one’s target audience, deliver value through their business and embrace data-driven decision-making in the dynamic entrepreneurial landscape.
The event also featured inspiring conversations with leading figures in the creative industry. Miss Techy, an award winning tech content creator and Salem King, a creator, storyteller, author and speaker, shared their experiences and advice on achieving long-term success. Attendees also benefited from an interactive workshop and a mentoring session, where industry experts shared practical advice and strategies for entrepreneurs and tech enthusiasts.
Meta’s Youth Summit 2024 highlights a commitment to driving positive change, championing youth empowerment and advancing economic opportunities in Nigeria. Through investments in key areas—such as the creative industry, digital literacy, economic impact and youth job training—Meta is dedicated to empowering young Nigerians to thrive in today’s tech-driven world.
Cross-section of some of the attendees at the Meta Youth Summit 2024 in Lagos
L-R: Chinny Francis, Public Policy Manager, Meta; Nifemi Akinwamide, Head of Operations, Alt School; Adaora Mbelu, Co-Founder of Lumination Global and Obaloluwa Adeagbo, Marketing Lead at Talstack.
L-R: Sade Dada, Head of Public Policy, Anglophone West Africa, Meta; Damilola Teidi-Ayoola, Head of Platform and Networks, Ventures Platform Fund, and Seye Bandele, Chief Executive Officer, PaidHR during the Lunch and Learn: Navigating Entrepreneurship in a Rapidly Changing Landscape panel session.
Salem King, a creator, storyteller, author and speaker and Miss Techy, an award winning tech content creator
During a mentoring session workshop
Femi Aluko, Chief Executive Officer and Co-founder, Chowdeck.
Francis Sani, Technical Adviser to the minister of communications and digital economy of Nigeria
Economy
Tosin Eniolorunda: Fighting fraud related issues in financial ecosystem requires collaboration
Nigeria’s financial system has come under renewed scrutiny against the backdrop of the increase in the value of electronic payment transactions in Q1 2023 and the challenges posed by bad faith actors who exploit gaps in the payment systems even as Nigerian financial institutions have reported ₦159 billion ($201.5 million) lost to fraud since 2020. There is a need for all players in the financial services sector to come together in tackling these challenges.
Group CEO, Moniepoint Inc., Tosin Eniolorunda during a courtesy visit to the Chief Executive Officer, Fidelity Bank, Nneka Onyeali-Ikpe in Lagos. Onyeali-Ikpe, who welcomed the Moniepoint boss, used the opportunity to reaffirm her bank’s appreciation for the patience and understanding demonstrated during its banking channel integration optimization which resulted in service disruptions and the inability of Moniepoint customers to receive financial inflow.
It will be recalled that Fidelity Bank had recently announced to its customers and the general public, the resumption of interbank transfers to all licensed financial institutions in the country. This was following speculative reports from various media publications that the bank had imposed transaction restrictions on some neo banks operating in the country.
During conversations around the growth of the digital payments segment and contributions of the financial services to Nigeria’s socio-economic development, Tosin Eniolorunda used the occasion to stress the point that Moniepoint as a responsible and compliant organization takes customer KYC very seriously. “KYC is not merely an acronym but indeed a cornerstone in establishing trust, ensuring security, and complying with regulatory standards. All accounts created on our platform have BVN verification and in addition to this we perform a liveliness check at the point of onboarding. This is a comparison of the account holder’s life picture and the BVN image as a way to reduce impersonation,” Eniolorunda maintained.
He continued, “we have zero tolerance for fraud and typically go all out to ensure that we track fraudsters and fraudulent transactions on our platforms. We have deployed and utilize robust fraud detection systems and technologies that can analyze patterns, identify anomalies, and detect suspicious activities in the system. As such we are better empowered to identify potential fraud incidents and trigger alerts for further investigations and remedial actions.”
As partners in deepening the CBN’s mandate of ensuring provision of adequate and convenient financial services to consumers and guaranteeing their protection as well as the various undercurrents in the financial services industry, Moniepoint and Fidelity agreed to work closely together to develop a tightly knit mechanism to stem the menace of fraudulent transactions and collaboratively push through in addressing payment challenges in the country.
The Republic of Angola has become the 21st African Member State and the 1st Lusophone Member State of pan-African insurer, Africa Trade Insurance Agency – ATI, after paying a capital subscription of USD25 million. The membership was funded the Angolan National Treasury resources and proceeds from the landmark BITA water project – a strategic public investment for the construction of infrastructure for the treatment, supply and storage of drinking water that will benefit 2.5 million people in Angola.
Welcoming Angola’s membership, ATI’s Chief Executive Officer, Manuel Moses, noted the country’s demonstration of its commitment to diversify its economy through ATI’s trade and investment risk mitigation solutions.
“We are happy to support Angola in its quest to economic diversification and becoming an agricultural powerhouse on the African continent. Angola’s membership is timely as ATI’s risk mitigation and credit enhancement services will act as a catalyst for strengthening and diversifying Angola’s economy, supporting both increased investment, exports and trade under Africa’s continental framework of the AfCFTA,” Mr. Manuel said.
Under this one of a kind blended finance and guarantee innovative structure, the Republic of Angola – along with the lenders covered by ATI under the transaction – agreed for the use of proceeds under the syndicated loan to also include the financing for the purpose of Angola becoming a member of ATI. ATI provided guarantee and insurance support for this World Bank’s partially guaranteed facility to the Government of Angola for the expansion and improvement of water supply service in the urban and peri-urban belts of Luanda.
Current exposure
ATI’s gross exposure in Angola, the largest country in Southern Africa Region, currently stands at USD467M mainly in construction, energy & gas, trade & transport, water supply and wholesale & retail sectors, with transactions valued at USD1.4B.
“This development was made possible because of ATI’s pan African mandate that allows the organization to cover transactions in Angola and beyond, despite ATI non-membership. Now that Angola is a fully-fledged shareholder of ATI, the country can fully access more of ATI’s guarantee solutions to attract more Foreign Direct Investments and boost its internal and external trade across the region,” Mr. Manual explained.
Angola’s economy is mainly driven by its oil sector but the country seeks to pursue new growth models for economic diversification through the agricultural sector and private sector development.
With ATI’s support, Angola is on the path to fiscal consolidation, manage their debt ceiling, increase in public and private investment, in order to resume the ascending curve of sustainable and inclusive economic growth as well as human development.
ATI has grown from a small African start-up in 2001 into a pan-African institution with presence across Africa and with a significant global reach. Besides Angola, other member countries include Benin, Burundi, Cameroon, Côte d’Ivoire, Democratic Republic of Congo, Ethiopia, Ghana, Kenya, Madagascar, Malawi, Niger, Nigeria, Rwanda, Senegal, South Sudan, Tanzania, Togo, Uganda, Zambia, and Zimbabwe.
Institutional members include African Development Bank, African Reinsurance Corporation, Atradius Group, Chubb, CESCE (Spanish ECA), Ministry of Finance India (represented by ECGC), SACE SIMEST, The Common Market of Eastern and Southern Africa (COMESA), Trade and Development Bank (TDB), Kenya-Re, The PTA Reinsurance Company (Zep-Re), and the UK Export Finance.
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