By Ifeoma Malo
Africa is often referred to as the youngest continent because it has the youngest population in the world which gives it some unique demographic characteristics that warrants attention. In a report by Statista on Population Growth Rate in Africa (2000 to 2030), it found that in 2023, roughly 40% of the African population was aged 15 years and younger, compared to a global average of 25%, while its median age corresponded to 18.8 years. But while the median age has increased in recent years, the continent remains the youngest worldwide.
Little wonder youth entrepreneurs are a significant part of the MSME sector which accounts for 95% of all firms and 80% of jobs in the continent, according to a report by African Development Bank (AfDB).
In its African Economic Outlook 2024, the AfDB highlighted that African economies have shown resilience despite multiple shocks, with an average growth rate of 4.1%. The World Bank however, was more cautious in predicting a 3.4% growth for Sub-Saharan Africa in 2024.
So, what have these projections got to do with green growth in Africa? According to the Organisation for Economic Co-operation and Development (OECD), green growth is a sustainable approach to economic development that aims to reconcile economic growth with environmental protection and social inclusion.
This is in recognition that traditional models of economic growth is often at the expense of natural resources, ecosystem services, and social equity, and seeks to decouple economic growth from environmental degradation. Green growth encompasses renewable energy, sustainable transportation, environmental design, sustainable production, agriculture, natural resource management, circular economy, eco-innovation, green finance, education, and capacity building.
Africa is undergoing a significant transformation towards green economic growth, a crucial step towards sustainable development that balances economic prosperity with environmental stewardship. Green Growth focuses on building sustainable and climate-friendly economies by reevaluating sectors like agriculture, energy, and technology.
According to the International Energy Agency, Africa’s energy demand which is the fastest-growing globally at 3% annually, is hindering economic development due to a struggle to meet the increasing demand. Renewable energy sources showed promise with a 21% annual growth rate between 2010 and 2020, but their overall contribution remains modest.
If Africa is to make significant progress in achieving growth rates that address its development challenges and be all-encompassing, sustainable, and far-reaching, leveraging the potential of its young population and examining the impact of climate change should serve as important factors driving growth in renewable energy sources.
Africa’s rapidly growing youth population is creating a new asset class, but with similar growth projections, it also presents a burden.
The United Nations estimates Africa’s population at 1.4 billion, accounting for 17.89% of the global population, and it is projected to reach 2.09 billion by 2040, and 2.5 billion by 2050, which would account for 25 percent of the world’s population, up from the current 17.89%. So if properly harnessed, this young and growing working-age population could drive Africa’s economic transformation and inclusive, green, and sustainable economic growth.
According to the Mo Ibrahim Foundation, despite 10-12 million African young people entering the job market annually, only three million new jobs are created annually. The unemployment crisis underscores the urgent need for innovative economic development strategies that prioritize sustainability and inclusivity. This is because despite the potential demographic dividends, Africa faces challenges in ensuring its youth are employed and equipped with necessary skills for the rapidly evolving job market in Africa and globally. This is where the need to explore alternative models of economic growth becomes imperative.
Thus, harnessing the youth’s energy, skills, intellect, knowledge innovations, and solutions are crucial for promoting green, inclusive growth, and sustainable development in Africa.
The green transition will also require both large-scale investments and capital allocation, as well as labour. It also calls for adaptation and mitigation actions that offer job creation opportunities, ranging from building forward better programs after climate shocks to enhancing the adaptation and resilience of communities and societies.
Ifeoma Malo is the co-founder and CEO of Clean Technology Hub (www.cleantechnologyhub.com).