Why Africa Needs Labor-Intensive Investments to Thrive Without Technology

The continent of Africa, which boasts the planet’s most youthful demographic, is advised to focus on labor-intensive initiatives as a vital approach toward achieving long-term economic prosperity. This recommendation arises against a backdrop of worldwide worries over how advancements in technology might disrupt job markets. Nonetheless, since Africa has been adopting new technologies at a slower rate, it holds a special chance to merge conventional employment practices with the steady incorporation of cutting-edge tech solutions.

The African Development Bank (AfDB) reports that the adoption of automation and artificial intelligence (AI) in Africa is still minimal. A significant portion of economic activities continues to depend on conventional techniques, with the continent’s AI sector making up fewer than 3 percent of worldwide figures—a notable disparity when compared to areas with greater technological advancement.

Even though Africa boasts almost 18 million college students—a figure similar to those in Europe and North America—the continent still grapples with high youth unemployment rates. According to data from the African Development Bank (AfDB), one-third of individuals between the ages of 15 and 35 do not have steady jobs, and approximately 90% of young employees receive either modest or mid-level incomes. This information underscores an urgent requirement for focused investments aimed at generating more opportunities and enhancing skill levels among youths.

Several African countries along with their development partners have been formulating strategic plans to tackle the increasing employment challenge.

Mensah Emanuel Kwame, who leads the ILO Ghana initiative in Ghana, stresses the significance of providing the workforce with competitive abilities.

He emphasizes the creation of a national task force made up of participants from various crucial economic areas. This group aims to pinpoint specific skill needs within different industries and secure long-term financing for educational initiatives.

This collaborative model reflects a broader understanding that economic transformation requires a workforce trained not just for today’s demands, but also for tomorrow’s industries.

At the 20th ILO Conference for Labour Practitioners, Harrington Chibanda, the CEO of the Zambia Federation of Employers, also highlighted the importance of robust collaborations between the public sector, private enterprises, and academic institutions. He stressed that addressing skill gaps and imbalances necessitates collaborative initiatives aimed at synchronizing vocational training programs with industrial requirements—thus ensuring that graduating students are well-prepared for employment opportunities.

On a continent-wide scale, the African Development Bank (AfDB) remains a pivotal player. As noted by Anwar Wudrargho, the bank’s Lead Capital Development Economist, fostering skill development in agriculture and other critical areas is essential for driving Africa’s socioeconomic progress. To address growing skill shortages, the AfDB is undertaking studies and promoting employment strategies as well as entrepreneurial initiatives specifically aimed at supporting young people across the continent.

Anwar further emphasized the Bank’s strategic blueprint for 2024-2033, positioning youth as central to Africa’s developmental priorities. To achieve this, the AfDB has launched an “Action Plan for Skills Development and Employment in Africa,” expanding upon the achievements of the “Job Creation Initiative for African Youth” from 2016. This earlier effort was designed to facilitate the generation of 25 million job opportunities and provide relevant vocational training to 50 million young people across Africa.

Anwar pointed out that the effectiveness of these initiatives hinges on incorporating technology, fostering entrepreneurship, and enhancing private sector engagement to ready young people for today’s job market.

From Nigeria’s viewpoint, technical and vocational training is considered vital for fostering inclusive growth. During the conference, the Nigerian delegate highlighted the importance of integrating STEM fields—comprising Science, Technology, Engineering, and Mathematics—and digital competencies into educational frameworks.

In this effort, Nigeria has initiated approximately 50 initiatives aimed at enhancing technical and vocational training, supported by a financial allocation of $2.5 billion. The purpose of these endeavors is to ensure that both TVET (Technical and Vocational Education and Training) and tertiary education curricula align with the requirements of today’s job market.

Even with optimistic outlooks and strategic planning, substantial hurdles persist. A number of African nations do not have strong labor market information systems, which complicates the collection of precise employment statistics and makes it challenging to match educational outcomes with industry demands. This lack of data continues to impede attempts to resolve skill shortages.

Ultimately, the future of decent work in Africa hinges on the policy decisions, investments, and partnerships forged today. Insights from the 20th ILO Conference reveal a growing consensus among governments, international institutions, private sector leaders, and educators: addressing Africa’s employment challenge requires a coordinated, labor-focused, and inclusive development strategy.

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