Africa is the fastest growing market worldwide and will soon be the youngest continent too. However, lack of digital skills present the paradox of youth unemployment and employers in need of skilled workers. SAP has put several education programs in place to address the need of digital literacy. One of the programs is SAP Skills for Africa.
1. Largest &
youngest
workforce
122million people
will be added to the workforce by 2020
16 out of 26
fastest growing economies are in Africa
2-3% Expected
GDP growth in
South Africa
by 2020
6-7%
Expected GDP growth in
Sub-Saharan Africa by 2020
Exponential middle class
growth expected
150 million 2010
210 million 2020
490 million 2040
1.03billion
people
40%
live in cities
50%
are under 20
Fastest growing population
Fastest growing workforce
workforce by 2020million
504
By 2100 40%
of the world’s
population will be African
Fastest growing digital
consumer market
600 million
Internet users in 2025
360 million
smart phone
users in 2025
Fastest growing digital
consumer market
600 million
internet users in 2025
31%
of all Africans live within
25 km of internet connectivity
360 million
smart phone
users in 2025
60%
of Africans are
below the age of
35 years
60%
of total
unemployment in
Africa is young
people
3 out of
4 people
in Africa will be on average
20 years old by 2020
About 10 million
young African youth arrive
each year on the labor
market
>200 million
youth in Africa
comprising over 20% of
the continent’s population
40 millionyoung African people
are estimated to be out of
work and many moreare under employed
Results not
evident
Large share of Africa’s
GDP spent on education
versus Asia and Latin
America, but results are
not bearing fruit.
Digital
Divide
Only 16%
internet penetration
– three-quarters
remain
unconnected.
>500M Africans
of working age
More than 500 million
Africans of working age.
Projected to exceed
1.1 billion by 2040 – more
than in China or India.
SOURCES:
McKinsey: Lions go global: Deepening Africa’s ties to the United States (August 2014)
Lions go digital: The internet‘s transformative potential in Africa ( November 2003)
McKinsey Report ( November 2012) Africa at Work: Job creation and inclusive growth,
The Rise of the African Consumer (October 2012)
Youth and African Union Commission - http://www.africa-youth.org/
UNICEF Generation 2030 - http://data.unicef.org/gen2030/
UN - http://www.un.org/africarenewal/magazine/may-2013
The Guardian - http://www.theguardian.com/global-development-professionals-network/2014/mar/21/job-crisis-in-africa
African Economic Outlook - http://www.africaneconomicoutlook.org/en/in-depth/youth_employment/
Africa´s Challenge
1 Mismatch
of skills
2 Technicaleducationmeans jobs
3
Africa trails
other regions
4Expansion is
not enough
In a survey among experts on
36 African countries about the
major challenges youth face in
labour markets, 54% found a
mismatch of skills between
what job seekers have to offer
and what employers require to
be a major obstacle.
Graduates in technical fields
such as engineering and
information technology (IT)
have less problems finding
employment than those from
the social sciences or
humanities.
Africa trails other
regions of the world in the
proportion of enterprises
offering training to
their employees.
Expansion is not enough. Quality
and relevance of education must
be improved to reduce the skills
mismatch. African countries
should strengthen partnerships
with the private sector at all levels
of education.
Run Simple
The Africa
Opportunity
10,000
by 2020
Through its Skills for Africa
programme, SAP aims to
provide 10,000 trained ICT
consultants by 2020 focused
on growth industries.
ICT
fuels the
economy
ICT sector has
been and will continue
to be the major
economic driver in
Sub-Saharan Africa.
Downstream
mulitplying
effects
Every $ spent
on ICT puts
$1.25 back into
the African
economy.
Africa is a hot growth market, full of
economic promise, vitality and innovation.
Africa is the fastest growing market worldwide
Africa has the youngest population of any continent. A population
explosion is expected this century, and the number of young Africans
will grow exponentially. But the mismatch of skills to jobs will deepen
the unemployment crisis for young people.
Africa has the youngest population in the world
For Africa’s growth to be sustainable, young people must have the
right skills for employment. Collaboration amongst private organizations,
the government and NGOs will make this happen, and prepare the
next generation to embrace the opportunities and challenges ahead.
Investing in skills for sustainable growth