OPINION & ANALYSIS: FOR AFRICA TO THRIVE, TOTAL INVESTMENT IN ITS PEOPLE IS CRITICAL

Elsie Kanza, Senior Director, Head of Africa, World Economic Forum.

April 23, 2015 - THE negative connotations usually generated by the word migration never cease to amaze me. In the past week, Africans have suffered in tragedies at opposite ends of the continent; in the streets of SA and in the seas of the Mediterranean.

That these are horrifying and terrible hardly needs repeating. That they could be prevented by a complete re-think of how we address their underlying causes and the mindset we adopt when we consider the issue of migration, I believe, does.

First, some facts. Africa is not alone in going through an unprecedented demographic shock. With a population already larger than 1-billion people and growing strongly, by 2040 it will have a workforce larger than China’s. This surge is causing massive challenges in the form of unemployment and social stability, which are showing no signs of letting up, unlike in other countries in Asia and elsewhere that have followed similar growth patterns.

That this huge spike in population is happening at the same time as a similarly unprecedented expansion of urban populations only makes the pressure facing leaders to find gainful, rewarding employment for people more intensive. When you consider that up to 60% of Africa’s youth are unemployed according to the International Labour Organisation, you can get a sense of the size of the challenge.

Here is one further fact to consider: Africa’s economic development, fragile and exciting in equal measure, will increasingly depend on how well it is able to exploit its greatest natural asset. I’m not referring to diamonds, gold or oil, but rather, Africa’s people.

I am by nature, but also by data, an Afro-optimist and I believe the 21st century holds great promise for our region and our people. Our young, vibrant workforce will drive a dynamic consumer industries sector, creating middle-class jobs and opportunities for social mobility.

This will be helped along by government balance sheets that are, on the whole, in better shape than most of Western Europe’s and political environments more stable – despite the best efforts of extremists – than at any point in recent history.

These are the factors that have contributed to African countries making up six of the top 10 fastest-growing economies in the world this year and enable us to look forward to better times ahead. It is momentum that has been hard won but could be easily lost.

The fact that sub-Saharan Africa’s share of world trade is still only about 3% of total volumes is far too small, but arguably worse still is the fact that just 12% of our trade is within Africa itself. Compare that to Europe and Asia, where the figure is 60% and 40% respectively, and you can see the scale of the handicap that we have given ourselves in clawing up the economic ladder.

So, let us consider the following for a manifesto for Africa: let us educate and train our people so that they have the skills necessary to become an asset, not a burden, when they travel in our region. Let us have the roads, rail and air links (and visa regimes) that our people deserve so they can generate the wealth and jobs we so badly need.

Let us have labour laws fit for the 21st century, that ensure living wages and allow our businesses to compete with other emerging markets. Let us allow our greatest natural assets to move within the continent as we allow our natural resources to exit it, where human rights and our shared culture are respected and businesses can invest abroad, knowing that success depends on their acumen, not their nationality.

Nobody said this would be easy. But I believe Africa’s 2,000 languages and 3,000 ethnicities should be seen as a source not only of great pride but also great potential. Think of what we could achieve if we worked together.

• Kanza is head of Africa at the World Economic Forum. The 25th World Economic Forum on Africa takes place in Cape Town, from June 3-5.