Africa Needs 25 Million Jobs Annually to 2050 to Absorb working-age population- World Bank and AFD

Africa will need to generate about 25 million jobs every year between now and 2050 to absorb its rapidly growing working-age population, but the bigger challenge lies in the quality of those jobs, according to a joint analysis by the World Bank and the French Development Agency (AFD).

In the report, World Bank Chief Economist for Africa, Andrew Dabalen, and AFD Chief Economist Thomas Melonio warn that more than 80 per cent of employment on the continent remains informal. This, they note, limits productivity, earnings, and economic security.

“Without a shift toward more structured, productive, and scalable enterprises, quality job creation will not happen at the pace required,” the economists stated.

The report argues that Africa’s growth challenge is deeply structural, rooted in insufficient investment, low productivity, and limited firm expansion. It calls for a pragmatic, ecosystem-based approach that aligns policy tools with country capabilities instead of applying one-size-fits-all models.

The authors identify several sectors with strong potential to create jobs at scale, including agriculture, mining, housing and construction, and services such as tourism, hospitality, and the digital economy.

They say these sectors can drive inclusive growth if investments in infrastructure and human capital are combined with reforms that allow private enterprises to expand, compete, and innovate.

Supporting anchor firms, fostering competition, and strengthening institutions will be key to unlocking that potential.

The report also links job creation to governance. It notes that across the continent, citizens are demanding better services, accountability, and economic opportunity, with political protests rising over the past decade on issues of unemployment, taxation, and public service quality.

“Restoring trust requires efficient public spending, transparent market regulation, capable institutions, and accountable governance,” Dabalen and Melonio wrote. “These are not only governance goals — they are also economic imperatives.”

On trade, the report says regional integration can amplify job gains by expanding markets and supporting industrialisation.

While Africa’s trade-to-GDP ratio matches that of East Asia, its exports remain concentrated in raw commodities.

Intra-African trade, which tends to be more diversified and manufacturing-intensive, still accounts for only 15 to 20 per cent of total trade.

Citing research from Integrating Africa: From Threads to Hubs, the authors argue that regional production networks can help countries specialise, connect supply chains, and access larger markets.

The African Continental Free Trade Area, they add, provides an opportunity to accelerate regionally integrated industries.

The report also reframes migration as an opportunity. Most African migrants move within the continent, driven by the search for economic opportunity, safety, and resilience.

With Africa’s workforce projected to grow by 600 million by 2050 while labour forces shrink in many high-income economies, the authors say stronger migration management, skills investment, and greater regional mobility can help migration contribute more to livelihoods and productivity.

“Private capital will remain abundant in most high-income countries. This double divergence creates an opportunity to better connect Africa to other continents,” the report concluded.

Click to read more: https://opemsuo.com/author/hajara-fuseini/