How African economies can turn youth bulge into wealth boom

• Africa’s youth bulge, with 15–24-year-olds making up 20% of the population is similar to the demographic changes that led to East Asia’s “economic miracle” in the late 20th century, when a similar ratio led to annual growth rates of 6–8%.
• A study by the Brookings Institution (2023) says that using this dividend (youth bulge) could add $500 billion to Africa’s GDP by 2030. However, current trends—jobless growth averaging 3.9%—could lead to social unrest, as seen in Kenya’s 2024 protests and Nigeria’s EndSARS movement.

With more than 60 per cent of Africa’s 1.5 billion people under 25, the continent has a once-in-a-generation chance to change its economy.  By 2035, more young Africans will be working than people in the rest of the world combined.

This means that there is a huge opportunity for a demographic dividend, which could lead to faster growth through a bigger, more productive workforce.  But if this bulge isn’t controlled, it could turn into a “demographic bomb” that causes unemployment, inequality, and instability.

The African Union’s Agenda 2063 and the UN’s 2030 Sustainable Development Goals frame this challenge as a call to action: invest in education, skills, and entrepreneurship to harness youth energy for wealth creation. The boom in Asia in the 1990s shows that strategic policies can lead to 1–2 per cent annual GDP growth, but Africa needs continent-led, customized solutions to unlock trillions of dollars in economic value.

The Youth Bulge: A Good or Bad Thing for the Population?

According to the United Nations’ 2024 World Population Prospects, Africa’s population will double to 2.5 billion by 2050, and by 2035, 600 million new workers will join the workforce.  This youth bulge, with 15–24-year-olds making up 20 per cent of the population, is similar to the demographic changes that led to East Asia’s “economic miracle” in the late 20th century, when a similar ratio led to annual growth rates of 6–8 per cent.

The International Labour Organization’s (ILO) 2025 Global Employment Trends for Youth report says that youth unemployment is still high in Africa, with 12.8 per cent of young people out of work across the continent and 20 per cent in sub-Saharan regions. A study by the Brookings Institution (2023) says that using this dividend could add $500 billion to Africa’s GDP by 2030. However, current trends—jobless growth averaging 3.9 per cent—could lead to social unrest, as seen in Kenya’s 2024 protests and Nigeria’s EndSARS movement.

Real-world evidence shows how important the stakes are.  The African Development Bank (AfDB) looked at 20 countries in 2024 and found that countries that spent 15 per cent of their GDP on youth education and skills had 1.5 per cent faster growth rates. On the other hand, countries with stagnant policies saw youth unemployment rise by 2 per cent every year.

Rwanda is a good example of success: its Vision 2020 strategy, which focused on ICT training, cut youth unemployment from 35 per cent in 2000 to 17 per cent in 2024, and raised GDP per capita by 7 per cent every year. On the other hand, South Africa’s 60 per cent youth unemployment rate is linked to a 1.2 per cent drop in GDP, according to a World Bank report from 2025. This shows how unaddressed bulges make inequality worse, with the Gini coefficient averaging 0.43 across the continent.

 Learning and Skills: The Base for Growth

To turn the bulge into a boom, Africa needs to put education and skills development first so that young people can become economic engines.  The AfDB’s Jobs for Youth Strategy for 2016–2025 aims to give 50 million young people skills that will help them find work. If successful, this will boost the economy by $1 trillion.

According to a 2024 ILO evaluation, Ethiopia’s Productive Safety Net Program (PSNP) helped 200,000 young people get jobs and increased household incomes by 15 per cent and jobs by 28 per cent in 2023. A 2025 McKinsey report on Africa’s digital economy says that scaling up these kinds of projects could create 12 million jobs by 2030. Just improving ICT skills could add $180 billion to GDP.

The problem is clear: only 10 per cent of young people in Africa can get a good college education, while 50 per cent of young people in Asia could during its peak. Kenya’s Ajira Digital program has made KES1.5 billion since 2016 by training 100,000 young people to work as freelancers. This shows how important ICT is.

But there are still gender gaps: women’s unemployment is 13.2 per cent higher. A UNESCO study from 2024 found that closing these gaps could raise GDP by 26 per cent in sub-Saharan Africa. To make sure the bulge grows instead of stops, policy needs to focus on inclusive curricula that mix technical skills with soft skills like entrepreneurship.

Young people as innovators in business and the digital wave

Young business owners in Africa are already starting a wealth boom by using the digital economy to get around old problems.  According to a 2024 Partech Africa report, the continent’s startup scene has drawn in $5 billion in funding since 2020, creating 3 million jobs in fintech and e-commerce. By 2025, there will be 600 million mobile users.

Flutterwave, a Nigerian company started by young developers, was worth $3 billion in 2022. It employed 1,000 people and inspired a wave of fintech unicorns.  Studies based on real life, like a 2023 Brookings report on 15 African countries, show that startups started by young people grow 20 per cent faster than those started by adults. In Kenya, for example, platforms like M-PESA contribute roughly 5 per cent to the country’s GDP.

The AfDB says that ICT could add $300 billion to Africa’s economy by 2025, with 70 per cent of that coming from young people. The digital wave makes this even bigger. Since 2018, Rwanda’s Kigali Innovation City has trained 50,000 young people and created 200 startups that have made $100 million and created 10,000 jobs.

A 2024 ITU report says that 40 per cent of young people don’t have access to digital tools, which is a problem that needs to be addressed with policies that include everyone.  McKinsey says that for every $1 invested in startups, $7 in economic returns are made. Incubators like CcHUB in Nigeria, which supports 500 youth-led businesses, show this.  Africa can turn its bulge into a $1 trillion digital dividend by supporting ecosystems with seed money and mentorship.

Policies that include everyone:  Bridging the Gap Between Cities and Rural Areas

To deal with the youth bulge, we need policies that include everyone and cross gender and geographic lines so that no one is left behind. According to a 2024 ILO study, women make up 52 per cent of Africa’s youth and have a 13 per cent higher unemployment rate because of problems like childcare and land rights.

Fixing these problems could lead to $300 billion in growth. The World Bank says that Ethiopia’s Women in Self-Employment program has trained 100,000 women since 2015 and increased female entrepreneurship by 25 per cent, which added 2 per cent to GDP.

There is more inequality between cities and rural areas. For example, 70 per cent of young people in rural areas are unemployed, while only 15 per cent of young people in cities are.  Since 2016, Tanzania’s National ICT Policy has included rural broadband. It has connected 5 million young people, led to the creation of 10,000 agribusiness startups, and brought in $200 million in revenue.

A report from the AfDB says that fair policies could create 12 million jobs by 2030, which would lift 100 million people out of poverty.  To make value chains that include everyone, governments need to focus on vocational training, microfinance, and AfCFTA integration. This will turn the bulge into a boom for everyone.

Read also: Opportunities for youth: Tech firms Gebeya and NVIDIA to train 50,000 developers in Africa

Examples of Cases:  What we can learn from Rwanda and Ethiopia

Rwanda’s success can be used as a model: its Vision 2050 strategy focuses on youth skills, lowering unemployment from 35 per cent in 2000 to 17 per cent in 2024, which drives 7 per cent annual GDP growth.  The Kigali Innovation City opened in 2018 and taught 50,000 young people about technology. It also helped start 200 businesses worth $500 million.

According to ILO 2024 data, Ethiopia’s Productive Safety Net Program (PSNP) created 200,000 jobs in 2023. This raised household incomes by 15 per cent and GDP by 1 per cent.  These examples show that targeted investments can pay off, but they need political will to fight corruption and inequality. For example, $1 in education can bring in $10.

Problems include unemployment, migration, and the threat of instability

Even though Africa’s youth bulge has a lot of potential, it also has problems:  According to the ILO, 60 million young people are out of work, which leads to migration (2.5 million a year) and unrest, like the protests in Kenya in 2024.

A study by Brookings in 2023 found that 20 per cent unemployment leads to a 1.2 per cent drop in GDP, and that inequality makes the gap even bigger.  Migration takes away skilled workers, costing $4 billion a year in lost remittances, and climate change makes rural unemployment worse.  The bulge could lead to violence, like in Nigeria’s EndSARS, if nothing is done.

Read also: AfDB’s $10Bn lifeline: Can smallholder farmers finally escape poverty?

Suggestions for Policy:  A Plan for a Wealth Boom

Africa needs to take strong action to start the boom.  According to the AfDB, 15 per cent of GDP should be spent on education, with an emphasis on STEM and vocational training. This will create 12 million jobs by 2030.  According to McKinsey 2025, $50 billion in broadband can add $300 billion to the GDP.

Rwanda’s model shows that $10 billion in microfinance can help young people start their own businesses.  Integrate AfCFTA to increase trade between African countries by 52 per cent and create 30 million jobs.  To make sure that the dividend benefits everyone, governments must put gender equality and rural inclusion at the top of their lists of things to do.

Turning Youth Bulge into a wealth boom

If Africa’s young people are educated, encouraged to be creative, and included, they can turn the continent’s youth bulge into a wealth boom.  The successes of Rwanda and Ethiopia show it:  For every dollar you put into young people, you get back $7 to $10.

According to Brookings, the continent could add $500 billion to its GDP by 2030 if it has 600 million young workers by 2035. This would lift millions out of poverty.  The time is now—Africa’s future is in the hands of its young people, who are ready to build a fair and prosperous time.

Read also: Empowering Africa’s youth to catalyse agricultural revolution