Jobs for Youth in Africa - African Development Bank

1 jobs for Youth in Africa Strategy for Creating 25 Million jobs and Equipping 50 Million Youth 2016-2025. 1 05/10/2016 09:12. Members of the task team Ms. L. BOURKANE, Senior Education Economist; Mr. I. BUDALI, Principal Socio-Economist; Mr. B. FOKO, Senior Education Economist; Ms. Rosemond OFFEI- AWUKU, Senior Poverty Economist; Mr. A. OUEDRAOGO, Consultant; Mr. J. BERNDT, Young Professional; Mr. A. Diallo, Senior Research Economist; Mr. D. BELAMINE, Senior Development Economist; Mr. R. BESONG, Senior Rural Infrastructure Engineer; Ms. M. CHIKOKO, Principal Social Protection Officer; Mr. M. TRAORE, Senior Social Development Officer; Ms. , Senior Education Analyst; Ms. R. TRAORE, Socio-Economist; Mrs. C. JEHU- APPIAH, Principal Health Economist; Mrs. M. MORENO. RUIZ, Chief Gender Officer; F. SERGENT, Chief Health Analyst; Mr. T MOLEKO, Intern. Bank wide task force Ms. A. ABOU-ZEID, Adviser; Mr. A. ADIGUN, Principal Capacity Building Officer; Mr.

2 J. AFRIKA, Senior Trade Expert; Mr. Z. ALEMU, Chief Country Economist; Ms. A. BA, Principal Technical Assistance Officer; Mr. Y. BALDEH, Division Manager ORTS1; Mr. V. CASTEL, Chief Country Economist; Mr. J. CHIANU, Principal Agricultural Economist; Mr. S. DRISSI, Chief Country Program Officer;. Ms. N. ELAHEEBOCUS Senior Cross-Sector Human Development Officer; Ms. D. ELHASSAN, Senior Gender Expert; Mr. N. KALUMIYA, Senior Country Economist; Mr. N. KANE, Senior Country Economist; Mr. A. KARANGA, Chief Transport Economist; Ms. N. KGOSIDINTSI, Investment Officer; Mr. R. LAKOUE DERANT, Senior Governance Officer; Mr. B. MUWELE, Senior Statistician;. Ms. M. NALUBEGA, Principal Water & Sanitation Engineer;. Mr. , Senior Social Protection Specialist; Mr. E. ODIOGO, Principal Investment Officer; M. N. OKOU, Chief Financial Inclusion, Mr. A. OUEDRAOGO, Social Development Specialist; Mr. E. SANTI, Lead Strategy Advisor; Ms. T. TRIKI Chief Country Economist; Ms.

3 M. TUTT, Senior Transport Engineer; Ms. M. YINUSA, Senior Financial Specialist; Mr. R. ZEGERS, Chief Private Sector Development Specialist; Mr. O. CHANDA, Division Manager OWAS 2. 2. 2 05/10/2016 09:12. Contents 1. Introduction and context 08. 2. The state of Youth employment in Africa 11. 3. Past efforts and lessons learned 15. 4. jobs for Youth in Africa strategic approach 20. Overview 20. Alignment with bank priorities 21. Intervention 1: integration 22. Intervention 2: innovation 25. Intervention 3: investment 38. 5. Implementation of the strategy 43. 6. Conclusion 49. Annex 51. Results measurement framework 51. Risks and mitigation measures 55. Consultations to inform the strategy 56. 3. 3 05/10/2016 09:12. Acronyms and abbreviations AFDB African Development Bank ADF African Development Fund AEO African Economic Outlook AGRA Alliance for a Green Revolution in Africa AUC African Union Commission BPO Business Process Outsourcing CSP Country Strategy Paper DFI Development Finance Institution GDP Gross Domestic Product EWI Employing Workers Indicators EYE Enabling Youth Employment Index FI Financial Institution ICT Information and Communications Technology ILO International Labour Organization JYEIA Joint Youth Employment Initiative for Africa LIC Low Income Country LMIC Lower Middle Income Country MOOC Massive Online Open Course M&E Monitoring and Evaluation MOU Memorandum of Understanding NEET Not in Employment, Education.

4 Or Training OITC Transport and ICT Department OSAN Agriculture and Agro-Industries Department OSHD Human and Social Development Department OSPD Private Sector Department PBOs Policy Based Operations REC Regional Economic Community RISP Regional Integration Strategy Paper RLF Results-based Logical Framework RMC Regional Member Country RMF Results Measurement Framework SME Small or Medium-sized Enterprise SPIREWORK Social Protection Plan for the Informal Economy and Rural Workers TVET Technical and Vocational Education and Training UMIC Upper Middle Income Country UNECA United Nations Economic Commission for Africa USD United States Dollar 4. 4 05/10/2016 09:12. Executive BANK-WIDE STRATEGY WHICH summary WILL CREATE. 25 MILLION. jobs AND POSITIVELY. IMPACT 50. MILLION Youth OVER THE. NEXT DECADE. Africa 'S Youth . TO OVER. POPULATION IS. RAPIDLY GROWING AND. EXPECTED TO DOUBLE 40%. OF PEOPLE WHO JOIN REBEL. 830 MILLION MOVEMENTS ARE MOTIVATED BY.

5 LACK OF ECONOMIC OPPORTUNITY2. BY 2050. ONLY 3 MILLION. FORMAL. 3,500. OVER. jobs ARE CREATED ANNUALLY1. DESPITE THE. DEATHS AMONG. MIGRANTS ATTEMPTING TO. 10-12 MILLION CROSS THE MEDITERRANEAN. SEA IN 2015. Youth THAT ENTER THE ALONE. WORKFORCE EACH YEAR. 5. 5 05/10/2016 09:12. Executive summary Youth are Africa 's greatest asset. While Africa 's economic growth is positive, there is an urgent need to promote inclusive economic transformation and jobs -induced growth to improve the quality of life for all Africa 's Youth population is rapidly growing and expected to double to over 830 million by If properly harnessed, this increase in the working age population could support increased productivity and stronger, more inclusive economic growth across the continent. However, this asset remains untapped due to jobs for Youth in Africa is a Bank-wide strategy unemployment and underemployment. The potential which will create 25 million jobs and positively benefits of Africa 's Youth population are unrealized as two- impact 50 million Youth over the next decade.

6 To thirds of non-student Youth are unemployed, discouraged, accomplish this goal, the jobs for Youth in Africa Strategy or only vulnerably Only three million formal 2016-2025 aims to increase inclusive employment and jobs are created annually4 despite the ten to twelve million entrepreneurship, strengthen human capital, and create Youth that enter the workforce each Even when jobs durable labor market linkages by making use of three are available, Youth often do not have the skills required strategic intervention areas: Integration, Innovation, and by employers despite gains in education access Investment. over the past several decades. Women are particularly Through Integration, the Bank will equip itself and impacted, often facing even greater barriers to accessing Regional Member Countries to become engines opportunities and earning equal of job creation for young Africans. First, Youth There are individual, national, and global benefits to employment considerations will be incorporated into Bank improving Youth employment.

7 Employment leads to projects, staff, and systems. This includes the provision increased incomes, higher standards of living, and better of financial and technical assistance to include a Youth health and education It also fuels inclusive growth employment component in the design of Bank projects for countries; lowering the Youth unemployment rate to that across sectors and the addition of Youth employment of adults would translate to a 10 to 20% increase in Africa 's indicators into monitoring and evaluation systems. Conversely, lack of action has consequences. Second, the Bank will provide technical and financial 40% of people who join rebel movements are motivated support to RMCs that enable them to pursue policies by lack of economic Unemployment also and plans that contribute to better Youth employment fuels outward migration both within and from outcomes. These efforts will build institutional capacity This leads to unspeakable tragedy, reflected by over and position RMCs to increase their employment effects 3,500 deaths among migrants attempting to cross the throughout the next decade.

8 Mediterranean Sea in 2015 alone,11 and increasing costs for host countries. 6. 6 05/10/2016 09:12. Through Innovation, the Bank will work with and direct investments, and develop challenge prizes in partners to incubate, implement, assess, and scale order to spur more investment into the Youth employment promising solutions. and entrepreneurship ecosystem. Together, these activities will reduce financing risks, expand access to Program models focused on developing Youth capital, and incentivize private sector investments in Youth entrepreneurs and enhancing the skills of Youth employment challenges. to meet private sector needs will be built based on best practices both within and outside the Bank. Dedicated financial and human resources will be These models will be tailored to country contexts, put in place to achieve the goals of the strategy. implemented in partnership with the private sector, The Bank will set up the jobs for Youth in Africa Facility, a evaluated, and then refined and scaled in a demand- Special Fund which will pool resources from the Bank and driven way.

9 Programs will initially focus on the Bank's like-minded donors and host a dedicated team focused high priority sectors of agriculture, industry, and ICT. on Youth employment. Other financial resources include Over time, additional programs will be designed and the establishment of the Boost Africa Investment Fund implemented for a variety of different sectors. which will significantly scale up impact by making equity investments in financial intermediaries, which will in turn An Enabling Youth Employment Index will invest in high-impact early stage businesses. The Bank will measure Youth employment outcomes and enabling also use existing facilities and programs such as the Africa policies at the country-level, and provide information SME program which will further support efforts to create on the evolution of labor market performance jobs and economic opportunities. over time. It can be used as a tool to incentivize policymakers to pursue agendas favorable to Youth The jobs for Youth in Africa Strategy 2016- employment.

10 2025 contributes to the achievement of the Sustainable Development Goals (SDGs) for Africa . An Innovation and Information Lab will support the It directly supports SDG8 on inclusive growth, productive Youth employment and entrepreneurship ecosystem employment and decent work for all, SDG4 on equitable by incubating promising new ideas and assessing education and skills Development , and SDG1 on ending best practices for existing interventions. The Lab poverty. The Bank's work is anchored in the Bank's Ten will be supported by a web-based platform that Year Strategy (2013-2022), informed by the Human will disseminate findings to an internal and external Capital Strategy (2014-2018), and supportive of the audience. Together, these activities will build the Bank's Five High-Priority Areas. It builds on insights from evidence base on Youth employment interventions. Bank-financed projects, lessons learned from the Joint Through Investment, the Bank will catalyze private Youth Employment Initiative for Africa , as well as the sector investments that fuel job creation and experiences and best practices of relevant initiatives led by employment for Youth .