How Africa’s youth of today could transform our continent into a world power of tomorrow

"There are three kinds of lies", remarked Benjamin Disraeli: "Lies, damned lies and statistics." The 19th-century British Prime Minister opined that truth changes depending on how you view it.

However, the stats are irrefutable regarding Africa's prospects - whichever way you look at them. Our continent is brimming with opportunities!

Over the last few years, we have seen significant developments. Diplomatic efforts have resulted in countries removing excessive bureaucracy that hinders inter-African trade opportunities. In addition, legislative action and cross-national agreements have been forged that allow goods and services to move freely throughout the continent. 

The inspiring seeds sown in 2013 through the African Union's Agenda 2063 – the blueprint to achieve inclusive and sustainable socioeconomic development over the next half century - are beginning to take root.

Other statistics are also indicative of Africa's economic transformation. According to a report from Deloitte, seven of the ten countries with the fastest-growing economies in the world are African. 

The African Development Bank reported in 2019 that one-third of Africans were now considered middle class. It is a statistic representing a population exceeding 313 million people, which is on par with the middle classes of China and India.

According to a 2019 World Bank report, poverty rates in Africa decreased from 54% in 1990 to just over 41% in 2015, representing an improved quality of life for approximately 400 million people.

And the US-based think tank Brookings Institute established that consumer expenditure throughout Africa is anticipated to reach $2.1 trillion by 2025 and $2.5 trillion by 2030.

Massive challenges still exist throughout the continent: poverty, inequality, the lack of socioeconomic and infrastructure development, fragile economies, corruption, unemployment, and conflict-affected regions. However, there are indications from highly credible global players that Africa is making progress.  

But, if we remain on this trajectory, significant investment needs to be made in education, transport infrastructure, housing, agriculture, healthcare, and industries over the next few years to correct the many wrongs that still exist on the continent.

To grow enterprises, we must grow entrepreneurs.

One area that has the investment potential to provide healthy ROIs is Africa's emerging entrepreneurs. According to a survey conducted by Global Entrepreneurship Monitor, sub-Saharan Africa has the world's largest population of nascent entrepreneurs and social entrepreneurs. 

Some 60% of 18 to 34 years olds believe they have the skills, the knowledge, and the ideas to start a business. They also have the vitality, the energy, and the chutzpah of youth on their side. However, unsurprisingly, 90% of these potential start-ups need capital to get their ventures off the ground. 

Many of these would-be entrepreneurs are specialists in the world's digital tech revolution. 

According to GSMA, the number of active tech hubs across Africa – the incubators, accelerators, and co-working spaces that offer support and facilities to tech and digital entrepreneurs – has grown by over 40% since 2019. 

Currently, there are 618 tech hubs active on the continent that will develop new tech products, games, IoT applications, and new fibre developments that are guaranteed to transform virtually every business sector.

Significant foreign investment has been made in African tech start-ups, but they have focussed mainly on Africa's big four economies: Nigeria, Egypt, Kenya, and South Africa. So, a wider distribution of investment is sorely needed throughout the continent if these advanced ecosystems are to flourish. 

Africa's youth will drive 1st world economies.

Undoubtedly, an enormous opportunity for the African continent lies in a particular issue that will increasingly hamper economic growth throughout the developed world. The population of these industrialised, high-income countries is rapidly ageing.

For example, here are the current median ages from the G7 countries, including the EU:          

• Japan, 48.1 years

• Germany and Italy, 47.6 years

• EU, 44.1 years

• France 43.4 years

• Canada, 41.1 years

• UK 40.5 years 

• The USA, 38.1 years

And in case you're wondering, China is hardly a spring chicken, either; its median age of 38.4 years. 

As a stark reality for these advanced economies, it's projected that by 2050, the world's senior and geriatric population will reach 2.1 billion! 

Of course, these statistics beg the obvious question: how will developed countries find young, energetic innovators that societies need to drive and build their economies? 

With a current median age of just 19.7 years, the answer lies in Africa. 

Of the continent's almost 1.4 billion citizens, 800 million are below 24. And following closely behind this youthful population are another 200 million even younger Africans under five!

By 2030, one in three babies born worldwide will be African. And by 2050, half of Africa's population will be under 25. 

By the sheer numbers of our youthful population, Africa's potential is staggering. But add to that the copious energy, innovation, confidence, and passion of youth, and you have the high-octane fuel needed to drive these economies. 

But (and it's a huge but) far more investment is needed across the continent to empower our young entrepreneurs with the skills and capital they need to realise their potential fully.

It means meaningful impact investment is urgently needed in education, assisting tech start-ups, and training entrepreneurs across every sector, especially in manufacturing, IT, agriculture, fintech, energy, transport and public infrastructure.   

And, despite the world facing dire economic times, money does exist. For example, in 2021, Africa received $83 billion in foreign direct investment flows according to the annual World Investment Report published by the UN - a record amount! 

Furthermore, African institutional assets – pension funds, insurance companies and endowments - can also play a pivotal role in the continent's development. In South Africa alone, the pension fund industry's combined assets under management amounted to R4.6 trillion in 2022. 

As I say, money exists. And if our financial institutions channelled a minuscule fraction of those funds into impact investment opportunities, it would enable our young continent to realise the endless possibilities in the ageing developed world. With prudent impact investing, the ROI for every African man, woman, and child will be incalculable.