Leveraging the Power of Africa’s Young Population

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A company’s financial strategy and cash flow often determine whether it pays dividends to its shareholders or reinvests profits to drive growth. Dividends serve as an indicator of a company’s financial health, drawing investor interest and impacting stock prices.

They represent a company’s future prospects and performance, with more established firms typically more likely to distribute dividends compared to those prioritizing growth.

According to World Data Lab (WDL), there are 532 million individuals aged 15 to 35 in Africa, a number expected to rise in the future.

The continent’s swiftly growing youth demographic is often termed the “youth or demographic dividend”.

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However, some critics assert that the continent has not yet fully capitalized on this potential dividend.

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WDL indicates that over 10 million young individuals enter the African job market each year, yet growth trends are expected to yield only around three million formal jobs.

This highlights a mismatch between ongoing economic growth and the availability of adequate decent employment.

By 2025, nearly 90% of working youth in Africa are projected to find themselves in informal jobs, earning outside established legal frameworks. The highest levels of informality are observed in central, western, and eastern Africa, whereas northern and southern Africa have lower rates.

In the latest episode of The Business of Africa, we delve into the plight of young people in South Africa as the nation commemorates Youth Month in June.

Tsakane Zibi, a young market analyst at Barloworld Equipment, reached out to discuss the ongoing unemployment challenges in the country and possible solutions for improving this situation.

For Africa to effectively tap into a ‘youth dividend’, continuous initiatives must be implemented to drive economic growth in sectors that provide meaningful and decent job opportunities.

Moreover, targeted efforts in education, training, and the integration of youth into the formal workforce should be prioritized. These initiatives, alongside various other significant investments in youth, promise considerable returns not only for the continent but arguably for the world at large.