• Rising wages in Asia shift investor interest to Africa’s young workforce

• Education, health gaps threaten Africa’s future productivity and competitiveness
  

Africa’s working-age population stood at an estimated 576 million in 2023, a figure projected to nearly double by 2043, according to the Institute for Security Studies (ISS) report, "Work/Jobs – Thematic Futures." This rapid expansion means Africa's labor force is on track to surpass China's around 2034, positioning the continent at the center of future global labor markets.

This large, youthful demographic potential is increasingly attracting investors and labor-intensive industries. As wages continue to rise in China and India, many economic players are beginning to view Africa as a competitive emerging destination, driven by relatively moderate production costs and a gradually improving business environment across several nations.

However, the report cautions that the sheer size of the workforce alone will not guarantee an economic advantage. The quality of human capital remains a critical concern. In 2023, the average African adult had 6.8 years of schooling, lagging behind India at 7.6 years and China at 8.9 years. Projections for 2043 show this gap persisting, with African adults expected to reach 7.8 years of schooling, compared to 9.2 in India and 10.4 in China.

Authors Jakkie Cilliers and Blessing Chipanda emphasize that without significant investments in education and health, productivity could remain lower than in other major economies. This deficit, they argue, would limit the continent's competitive potential in the age of digitalization and automation.

Félicien Houindo Lokossou