• 27 million young people in Sub-Saharan Africa were unemployed in 2023, with 62 million classified as NEETs.
• Funded African startups employed 34,201 people in 2022, nearly double the previous year.
• Nigeria, Egypt, Kenya, and South Africa absorbed over 80% of tech venture funding in 2023, leaving emerging ecosystems behind.

African startups are multiplying and gradually reshaping the continent’s economic landscape. They open unexplored markets and new opportunities for youth but remain constrained by limited funding, inadequate skills, and weak infrastructure.

The International Labour Organization (ILO) reported that nearly 27 million young people in Sub-Saharan Africa were unemployed in 2023, representing an 8.9% rate. Another 62 million were NEETs—neither in employment, education, nor training—representing about one-quarter of the 15–24 age group. With over 30 million new entrants expected to join the labor market annually by 2030, pressure continues to rise.

Against this backdrop, technology startups are emerging as a promising lever to create jobs, drive innovation, and accelerate Africa’s digital transformation.

Employment Impact Starts to Show

Recent data confirm that startups are beginning to impact job creation. The “African Tech Startups Funding Report 2022” found that the 633 funded ventures on the continent employed 34,201 people at their first fundraising stage, almost double the 2021 level. On average, funded startups employed 54 staff in 2022 compared with 32 a year earlier, reflecting a stronger and more resilient ecosystem.

Nigeria leads the trend. Partech data show its startup ecosystem alone created more than 19,000 direct jobs in 2022, nearly half in fintech. Egypt followed with 11,153 jobs across 131 funded startups, while Kenya and South Africa also reported significant job creation. These figures suggest that in the most dynamic digital hubs, startups are already absorbing part of the young workforce left outside the formal economy.

Persistent Structural Challenges

Despite progress, obstacles remain. Partech’s “Africa Tech Venture Capital Report 2023” revealed that Nigeria, Egypt, Kenya, and South Africa captured more than 80% of all funding raised on the continent. This concentration sidelines entrepreneurs in emerging ecosystems.

Skill gaps also hinder growth. The World Bank noted that many African firms identify a shortage of digital skills as a constraint. Brookings Institution estimates that 230 million jobs in Africa will require digital skills by 2030, generating demand for 650 million training programs. Startup fragility remains another concern, as many depend heavily on funding and markets and struggle to sustain operations.

Inclusion is another challenge. Barriers tied to gender, geography, or access to finance prevent many young people from participating in entrepreneurial ecosystems. Post-training support, market linkages, and mentorship remain inadequate.

Calls for Stronger Strategies

Analysts stress that massive investments in training and entrepreneurship support are essential. Initiatives such as Orange Digital Centers, coding schools like 42, and Andela’s training programs aim to bridge the talent gap by providing practical, accessible learning paths aligned with business needs.

Inclusion also requires greater focus. Without deliberate policies to extend innovation opportunities beyond major urban hubs, the risk is to deepen inequality. Young women, rural populations, and those without financial backing remain at the margins of Africa’s startup boom.

This article was initially published in French by Samira Njoya

Adapted in English by Ange Jason Quenum

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