Labor in Africa.

Labor is a bit like Africa’s superpower! Versatile, resilient, and resourceful, she transforms challenges into opportunities. With her creative spirit and her ability to adapt to all situations, she makes incredible ideas flourish even in the heart of the desert. The African workforce is the MacGyver of the continents: give it a safety pin, and it will build you a city!

Labor in Africa: a key lever for development.

In Africa, labor represents a key lever for development, but it faces major challenges. In 2024, 23.6 million young Africans representing more than 5% are unemployed, a figure which could reach 27 million by the end of 2030. At the same time, 111.6 million young people (21.2%) remain inactive, a proportion expected to be stable until 2030, reaching 129.8 million. The proportion of inactive young people varies from 3.8% to 40.5% depending on the country. Additionally, 40% of young employees live in extreme or moderate poverty. Young people living on less than around 2.00 euros per day are extremely poor, while those on around 2.00 to 3.40 euros per day classify themselves as moderately poor. Attracting investment could transform this abundant, young workforce into a powerful asset for the continent’s economic growth.

Reforming Africa: transforming labor into an engine of economic growth.

The Africa Investment Forum has raised $34.82 billion in investment interest, but this amount is not enough to meet the needs of the continent. In 2024, only $3.5 billion was recorded in private equity, a 53% drop from the previous year. Africa requires colossal investments, but the authorities are struggling to establish attractive policies to encourage these financial flows. For the African workforce to find its place and highlight its competitiveness, it remains essential to attract massive investments. Current policies are not enough to develop the continent and exploit the potential of its active population. Political and economic reform seems necessary to transform this abundant and young workforce into a real engine of growth for Africa.

Growing workforce dynamics in Africa.

To understand labor dynamics in Africa, it seems essential to examine its availability, cost and productivity. Availability concerns the size of the active population which can be estimated at half of the population or approximately 747,497 and the unemployment rate which exceeds more than 32.79%. A large labor force with a low unemployment rate indicates an easily accessible workforce. The cost includes salaries, social charges and training costs. In the African sample, the average labor cost is around 5,500 euros per year. Competitive wages and reasonable payroll taxes, combined with effective training programs, make the workforce more attractive to employers. Productivity is measured by work efficiency and output. A productive workforce is capable of generating high output with limited resources, thereby increasing competitiveness and economic growth.

A well-exploited African workforce could turn safety pins into skyscrapers.