By Chiedza Juru
The 2024 African Youth Survey showcased that most Africans have an entrepreneurial spirit and a clear vision for achieving their goals, but obstacles such as corruption and unemployment stand in their way. Chiedza Juru offers solutions and policy suggestions to help young Africans overcome these barriers to create strong futures for themselves and the continent that will be home to 42% of the world’s youth by 2030.
The 2024 Africa Youth Survey revealed confidence among African youth about their future. Notably, 78% of youth have a clear vision for their life goals, with exceptionally high confidence in Chad, Rwanda, Kenya, and Zambia. This optimism extends to entrepreneurial ambitions, reflecting a generation eager to shape its destiny. However, challenges such as unemployment, corruption, and limited access to capital continue to impede progress.
The survey highlights the urgent issue of youth unemployment, with 73% of respondents struggling to find jobs. 40% also consider corruption to be a significant barrier to gainful employment. Meanwhile, 27% report inadequate government support, while 29% say there is a dearth of well-paying jobs.
These findings reveal a gap between African youth’s aspirations and their governments’ actions. While youth are eager to shape their futures, systemic obstacles hinder their progress. This calls for innovative solutions to bridge this gap and foster an environment where young people can thrive.
As the Founder and President of Annot Inc., I am dedicated to addressing these barriers through education, youth empowerment, and by leveraging the African diaspora’s support.
So, where do we begin? Enhancing access to capital is crucial for addressing youth unemployment. The World Economic Forum notes that Small and Medium Enterprises (SMEs) contribute about 50% of GDP in Sub-Saharan Africa and provide over 80% of the continent’s jobs.
Therefore, Youth entrepreneurship is critical to economic development, yet the survey indicates that 52% of youth view a lack of capital as the main barrier to starting a business. In fact, 45% of survey respondents said they would start a business if they had the funds.
This issue can be tackled by promoting venture capital led by Africans locally and in the diaspora. The Venture Capital Africa Report (March 2024) reveals a significant downturn in Africa’s venture capital ecosystem in 2023 due to a global decrease in startup funding. This shortfall forced many early-stage companies to cut back or close.
The exit of North American investors, accounting for half of the investment drop, underscores the cyclical nature of foreign investment in Africa. This highlights the urgent need for committed local investors who can support African entrepreneurs long-term. By investing in young entrepreneurs, Africans and the diaspora can spark job creation and economic growth.
We harness the power of the African diaspora to drive meaningful change. Annot’s initiatives connect African youth with resources and mentorship from diaspora professionals, who offer financial support and valuable expertise. The diaspora plays a crucial role in fostering youth entrepreneurship on the continent. By leveraging their skills, networks, and resources, diaspora members can contribute significantly to job creation and economic development.
Initiatives such as diaspora bonds and investment funds can channel resources into impactful projects benefiting local communities. Additionally, diaspora professionals can serve as mentors and role models, sharing their experiences to inspire and guide the next generation of African business leaders. This investment and mentorship from the diaspora are essential for building a robust entrepreneurial ecosystem capable of sustaining long-term growth.
African governments can implement several key policies to boost youth entrepreneurship further and enhance diaspora participation in economic development. Firstly, governments should create incentives for diaspora investment, such as tax breaks and streamlined regulations for diaspora-led businesses. Secondly, establishing dedicated entrepreneurship funds and grants for young people can ease financial barriers. Additionally, governments can foster public-private partnerships to develop incubation centers and innovation hubs that support young entrepreneurs. Finally, enhancing transparency and eliminating corruption in funding allocation will ensure that resources are used effectively to support and grow local businesses.
The African Continental Free Trade Area (AfCFTA) is a game-changer for African youth. Opening up borders and promoting intra-African trade creates new opportunities for businesses and entrepreneurs. Youth can now access larger markets, diversify their products, and scale their operations across the continent. This not only boosts job creation but also fosters economic integration and collaboration. There is a need to fast-track the implementation of the AfCFTA.
Consideration to emigrate is increasingly at the forefront of African youth aspirations, with nearly three-in-five (58%) saying they are likely to consider relocating to another country in the next three years. The “brain drain” phenomenon has long been a concern for Africa, with talented individuals leaving the continent to search for better opportunities. We must turn this challenge into an advantage by promoting “brain gain.” By encouraging collaboration with diaspora professionals and creating conducive environments for their contributions, we can harness their expertise for the continent’s development.
The Africa Youth Survey paints a picture of a generation ready to take control of their future, but systemic challenges hinder them. By addressing these barriers through innovative solutions and leveraging the power of the African diaspora, we can create a brighter future for African youth.
About the Author
Chiedza Juru is the Founder and President of Annot Inc., a non-profit 501(c)(3) dedicated to unlocking the potential of young people through education, youth empowerment, and diaspora engagement. With over a decade of experience as an education and youth development specialist, she has spearheaded innovative programs that have benefited thousands of students in East and Southern Africa.
