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Analysis | Growth-Sector Reforms Hold the Key to Africa’s Youth Employment Crisis

Analysis | Growth-Sector Reforms Hold the Key to Africa’s Youth Employment Crisis
Friday, 12 December 2025 03:52
  • Africa’s youth face high informal employment; decent jobs seen as vital for stability

  • Key sectors with job potential include agriculture, construction, health, and digital economy

  • Skills mismatch, limited credit, and weak support hinder youth employment and entrepreneurship

Africa stands at a pivotal moment. The continent has one of the world’s youngest populations, with the potential to become a major economic force, yet recent data show that too many young people remain stuck in informal, insecure and low-paid work. With more than 60 percent of Africans under 25, according to News Ghana, helping this generation access decent jobs is critical for social stability and long-term growth.

There are, however, significant opportunities. Several sectors are emerging as strong job creators capable of absorbing a large and growing youth workforce. Agriculture, which employs nearly 60 percent of young Africans, still suffers from low productivity and limited industrialisation. Yet with investment, modernised agrifood systems could generate millions more jobs. The International Labour Organization’s “Global Employment Trends for Youth 2024” report identifies agro-industry as one of the sectors with the highest potential, provided capital flows increase.

Infrastructure also offers a major avenue for employment, supported by rapid urbanisation and large unmet needs in housing, transport and public facilities. A 2023 analysis by think tank MATSH Africa found that construction remains one of the most dynamic sectors for providing stable job prospects to young workers seeking economic security.

Other areas show similar promise. Health and social services are expanding as populations grow. Manufacturing and crafts could create formal jobs if financing becomes more accessible. Meanwhile, the digital economy is attracting thousands of young workers trained in technology and is becoming an increasingly powerful driver of youth employment.

The central challenge is skills. Many education systems are struggling to keep up with fast-changing labour-market needs. Research published in the Journal of African Development finds that too many young people are trained for jobs that no longer reflect economic realities. Updating curricula, building closer ties between schools and employers, expanding vocational training, promoting apprenticeships and creating flexible certification pathways would significantly improve young people’s chances of entering high-growth sectors.

Entrepreneurship is another vital channel for employment, but young Africans who want to start a business face steep barriers. A report by Global Development Incubator highlights limited access to credit, weak technical support and heavy tax burdens as major obstacles. The ILO adds that stronger labour markets depend on better wages, basic social protection and wider business formalisation. In a more predictable and supportive environment, young people would be more willing to launch ventures, invest and create jobs.

Félicien Houindo Lokossou

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