New Research Outlines Pathways for Prosperity for Africa’s Booming Working Population
A growth in Sub-Saharan Africa’s workforce should encourage productivity, which could make the region a potential economic and political powerhouse.
A group photo of Bridgewater CEO Nir Bar Dea, Global Citizen CEO Hugh Evans and World Bank President Ajay Banga with Heads of State from across Africa in April 2024.
In the coming decades, Sub-Saharan Africa’s share of the global working-age population is projected to grow from 10 percent to 25 percent. This could be a key driver in the region becoming a pivotal player in global economic growth, if the right environment for progress is fostered.
This optimistic stance is the culmination of new research published by hedge fund and macroeconomic research firm Bridgewater Associates, in partnership with Global Citizen and pan-African investors Harith General Partners. The new research outlines how Sub-Saharan Africa’s demographic boom in workforce numbers can be harnessed to great effect, while taking note of the current economic, social and political conditions that generally apply to countries in the region.
While the growth in the workforce should encourage productivity, which would in turn make the region a potential economic and political powerhouse, the situation is “currently closer to one of anemic economic development,” the research says. This could lead to stagnation and widen the gap between better-developed parts of the world and an increased unproductive population, which may result in negative global effects.
The research spotlights the fact that because there are many countries that make up the region, forward-thinking solutions and policies have to be tailored according to the nuances of every one of them. It also underlines the need to address infrastructure and human capital gaps by raising the level of economic investment in the region and creating a virtuous cycle that generates returns in excess of cost.
To accomplish this, there are sections that harp on the importance of attracting increased private capital and the huge role Multilateral Development Banks (MDBs) have to play in achieving these goals. For the former, there’s analysis of how government debt, policies and other social factors can scare away risk-averse private investors, and the need for a better enabling environment for these potential investments to thrive.
MDBs, whose lending pool is reliant on donor countries, have the capacity to fund more foundational projects that may be considered too risky by private investors, and can take on others that don’t generate reliable cash. The research argues in favor of the expansion of MDBs, “including a strong replenishment of the International Development Association (IDA) this year.”
Bridgewater’s partnership with Global Citizen and Harith General was launched in support of the World Bank’s IDA21 Replenishment efforts. The research is part of efforts to drive collective action from the world’s richest nations, the global private sector and local governments in Sub-Saharan Africa.
Between October 9 and 10, the Economic Development Assembly will take place in Abidjan, Côte D’Ivoire, and will serve as a platform to further discuss the outlined strategies in the research report.
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