Over 60% of Africa's population is under the age of 25. By 2030, young Africans are anticipated to make up 42% of the global youth population. This youth demographic represents a substantial force that will have significant implications for the continent's development and growth. Dr. Lydia Kemunto Bosire, the founder and CEO of 8B Education Investments, has shared valuable insights regarding Africa's education systems, youth population, and the potential economic opportunities for the continent.

Challenges in African Education Systems  

Countries such as Seychelles, South Africa, Ghana, and Kenya are making significant progress in improving their education systems. However, Africa's education landscape still faces considerable challenges, including issues related to access, quality, gender disparities, and the digital divide. According to Dr. Bosire, two major obstacles confronting Africa’s education systems are the lack of access to educational funding and the misalignment between what students are taught and the skills required for future jobs. She emphasized that 8B Educational Financing serves as an effective solution to eliminate the financial barrier to education, thereby unlocking global educational and career opportunities for African students.

“Our solution is to open global classrooms to African students, and financing must be paired with market-driven training and employer partnerships. The good news is that we are bringing additional financing, rather than cannibalizing on already scarce public sector financing, to enable this access,” Dr. Bosire stated. Originally, 8B was established to support over 100,000 students. Recently, the company partnered with Africa House to connect more African talent with educational opportunities and the skills necessary to drive future innovation.

Dr. Bosire pointed out that, with public sector budgets under increasing strain, there is insufficient time to develop and enhance the capacity of African universities while also addressing the urgent demands of today’s global labour market. She has therefore urged more Africans to follow the example set by 8B Educational Financing to help build and transform human capital in Africa.

Education Programs and Evolving Job Needs

A major issue contributing to unemployment in Africa is the skills mismatch, which happens when the skills that workers possess do not align with the requirements of employers. The job market is undergoing rapid transformation due to technological advancements, sustainability demands, and demographic changes. As a result, there is a pressing need for educational programs that better equip students for the evolving job market and help them thrive in their chosen careers.

According to Dr. Lydia Bosire, employers are seeking candidates with skills in digital literacy, problem-solving, communication, and adaptability. She noted that some of the programs that align with this demand in the job market include Data and Analytics, Software Engineering, Climate Technology, Agriculture, Energy Technology, and Digital Infrastructure and Cybersecurity. "At 8B, we are developing programs that respond to where the economy is headed, not where it has been," she stated.

Dr. Bosire emphasized that educational programs can address the changing needs of the job market by adopting an agile approach. She recommended focusing less on theory and more on action, through apprenticeships, internships, mentorships, and real-world projects. Additionally, she highlighted that such educational opportunities should not be limited to young people in major cities; it is crucial to also include rural youth.

Youth Power, Innovation, and Growth 

Young Africans are at the forefront of entrepreneurship, with an impressive $2 billion in funding for start-ups recorded in 2021. Initiatives such as StartGate and Youth Connekt are providing platforms for young innovators to showcase their ideas while gaining access to funding and mentorship. Dr. Bosire emphasized, “Youth will power innovation by being the driving force behind new ideas that address significant issues. Despite having limited access to global opportunities, young people are already fuelling growth and innovation. Consider the rise of mobile money, health tech, and agritech across the continent. Just imagine the possibilities if we offered them structured access to world-class education in AI, engineering, and data science.”

With a large and growing youth population, Africa has the potential to benefit from a demographic dividend that could drive economic growth and development, provided that the right investments are made in education, skills training, and job creation. Dr. Lydia Bosire highlighted her company's launch of the '50 by 35 FutureForce Initiative' at the Africa House in Davos this January. She explained that this initiative aims to transform Africa's youth into the powerhouse of innovation and creativity for the 21st century by mobilizing $50 billion by 2035 for companies, organizations, and entities aligned with this goal. Dr. Bosire describes Africa’s youth population as “the world's biggest growth lever” and firmly believes that if Africa's youth are educated and financed to acquire future-ready skills, the continent will emerge as a leader in the global economy.

Involving the Youth to Solve Africa's Challenges

Dr. Lydia Kemunto Bosire believes that Africa's most significant challenges can be addressed by harnessing the potential of young African minds using global tools that have been effective in other regions. She views 8B Educational Investments as a key player in Africa's success story by providing loan financing, financial literacy training, and access to recruitment services to African students. The company's mission is to connect more African talent with the education and skills necessary to transform the global labour market.

Educational programs that emphasize practical skills and hands-on experience can empower young people to devise solutions to real-world problems. Moreover, creating opportunities for young individuals to participate in decision-making processes, policy development, and community initiatives fosters a sense of significance and encourages them to utilize their skills for the continent.

As Dr. Bosire stated, “Start with belief: trust them, invest in them, and unlock their potential. Provide them with in-demand skills, mentors, and networks to support their journey, along with the visibility they need.” By offering mentorship and training to the youth, we equip them with essential guidance in skills development, problem-solving, and navigating challenges.

Problems Faced by 8B

Since its establishment in 2017, 8B Educational Investments has been facilitating education financing in Africa by creating the necessary financial infrastructure for African talent to access global classrooms and ultimately join international corporations and boardrooms. However, 8B faces several challenges. According to Dr. Bosire, global banking systems are not designed to underwrite students who lack credit histories or predictable future incomes. “We've had to build our own scorecards, our own servicing logic, and our own tech stack to serve this market. But that's also our moat and our mission,” she noted.

Another challenge 8B encounters is the rise of populist movements worldwide, which raises concerns about the future of global talent mobility. As Dr. Bosire mentioned, “We believe that innovation requires such mobility, and so the current setbacks facing international students in several leading markets are temporary.” Dr. Lydia Kemunto Bosire acknowledges that the 8B team is learning a great deal about the level of financial literacy among its student borrowers. “We will be doing much more work to ensure that students understand how loans work and that their good credit behaviour enables us to finance the next generation of African students,” she said.

REFERENCE

Information from https://www.matsh.co/en/youth-employment-statistics-in-africa/ and https://www.weforum.org/stories/2022/09/why-africa-youth-key-development-potential/ was used in this story.