Young people are not just the leaders of tomorrow; they are today’s co-creators. Africa is no different. By 2035, more young Africans will join the workforce annually than the rest of the world combined. Being home to the world’s youngest population is an opportunity – a vast pool of energy, creativity and ambition.
We face substantial job creation challenges, like digitalisation, environmental crisis, and demographic shifts. Unless we act decisively to shape these trends, our most valuable asset could become our biggest liability. Creating more inclusive opportunities and better employment outcomes may require updating outdated policies.
Millions of young people in Africa are leaving school or university without a clear pathway to work. In South Africa, youth unemployment is a national crisis, with over 60% of young people jobless. Meanwhile, many developed economies face the opposite challenge: ageing populations and a shrinking workforce. There’s no shortage of jobs – there’s a shortage of people to fill them. In Africa, we have an abundance of young people but not enough growth to absorb that labour. If we can bridge these global labour market imbalances – matching Africa’s surplus of talent with worldwide demand – the result would be transformative. But this won’t happen without tackling the fundamentals.
Leadership and governance
With good leadership and governance, we can move toward sustainable economic growth policies. We recognise governments are facing tight fiscal constraints, dealing with deregulation, seeking infrastructure investment and developing necessary skills. Collaborating to refine policies can collectively build the bedrock for other interventions.
Over the course of the last few months as we’ve developed our policy recommendations for consideration by the G20, the B20 Employment and Education Task Force has focused on collaborative interventions, including aligning skills development with labour market needs by creating demand-driven training models that connect qualifications to job opportunities. This means improving youth access to employment and income-generating opportunities through education and job placement initiatives by supporting entrepreneurship or creating jobs by aiding micro, small and medium enterprises (MSMEs) to access finance and capacity-building resources that drive meaningful economic growth.
Education is key
Today’s world is changing at a breathless pace, particularly thanks to technological innovations, meaning our current education systems aren’t preparing young people for future jobs. Local and international research shows data-enabled platforms can connect youth with earning opportunities. We’ve explored strategies for lifelong learning, identified by G20 and B20 as effective for re-skilling and up-skilling adults to address labour market changes, ensuring inclusion for all. This starts with foundational skills picked up in infancy through to bridging from learning to earning, so we believe early childhood education is a priority. We believe lifelong learning investment, involving collaboration among governments, private sector and labour stakeholders would yield significant dividends.
Alongside youth employment, economic growth depends not just on a large working-age population, but on ensuring they are actually working. As a society, we have a responsibility to use the levers that enable access to employment opportunities to ensure that women and members of underrepresented groups are not only represented, but empowered to take their rightful role in the jobs market.
Investment in productive capital – from energy and transport infrastructure to schools and hospitals – must keep pace with population growth. Without sufficient investment, we risk bottlenecks that stifle growth and perpetuate inequality.
Digital inclusion
Digital inclusion enables opportunity. We’re in the midst of the biggest technological revolution ever. Affordable data and accessible online learning connect young people to education, job markets and skills development. The gig economy, driven by digital platforms linking freelancers with clients for short-term work or asset-sharing, has grown rapidly and boosted productivity and job opportunities. In 2024, the global gig economy was worth $556.7 billion and is expected to reach $1,847 billion by 2032.
Digital access alone isn’t enough. It must be paired with education systems and policies that prepare young people for tomorrow’s jobs. Technical and vocational education (TVET) can unlock Africa’s potential in renewable energy, fintech and agritech, while fostering a culture of lifelong learning will help workers adapt to fast-changing economies and technologies. Our objective is to collaborate with policymakers to enhance policy flexibility, support the evolution of digital platforms and ensure equitable opportunities.
Africa’s vast informal economy, sustaining millions of livelihoods, cannot be overlooked. Instead of suffocating it with bureaucracy, we need to nurture small businesses and micro-entrepreneurs, providing access to finance, digital tools and mentorship. By coordinating finance, education, digital and gender ministries with government, cohesive strategies can be developed to help these informal ventures grow into thriving enterprises, creating jobs and building resilience across communities.
Building Africa’s youth of the future is the key to the continent’s and the world’s future prosperity. Young people are not waiting for change. They are creating apps, starting businesses and teaching themselves coding under tough conditions. Initiatives like Harambee Youth Employment Accelerator, which connected 3.8 million excluded youth with jobs by focusing on potential rather than grades, show what is possible when innovation meets inclusion.
At Sanlam, we’ve backed youth engagement programmes, financial literacy initiatives and regional incubators to support entrepreneurship. But no single organisation can do this alone. Growth is systemic; it requires leadership, governance, infrastructure investment and education.
Africa has the world’s largest pool of young talent. By 2050, one in four global workers will by African. Let’s support our entrepreneurs with the capital, digital infrastructure and regulatory backing to grow. If we fail them, the consequences will be global. If we succeed, Africa’s skills dividend can power inclusive growth for generations.
Paul Hanratty is the Group CEO of Sanlam and chairperson of the B20’s Employment and Education Taskforce.