There is no doubt that the most important factors in alleviating poverty are increasing access to safe drinking water, food security and healthcare. But there is another important piece to the puzzle: digital technology. Technology has the power to disrupt and transform a country’s economy while having a positive impact on citizens’ lives. One of the most important facets of the broad world of technology is the mobile economy. The mobile industry in sub-Saharan Africa is creating millions of jobs for the expanding workforce.

Barriers to Employment

Although Africa has experienced robust economic growth, it still faces a daunting challenge: creating enough decent jobs for a rapidly growing workforce. In sub-Saharan Africa, 60 percent of the jobs available are farming. With climate change intensifying and putting a strain on the agricultural sector, there is a desperate need for more secure jobs. The workforce is experiencing a “double burden.” Although more young people are completing tertiary education, the education system’s disconnect with the economic industries and requirements have created a skill gap. This has left young workers underqualified for positions that may open up but require them to invest in additional training. Additional training can be expensive and it doesn’t guarantee a job offer. The lack of available jobs also leaves the youth with little incentive to invest more in their education.

The Mobile Industry

Technology, particularly mobile devices, is rapidly transforming the world. It facilitates connectivity, allows easier access to emergency services and provides economic opportunities. The mobile industry in Sub-Saharan Africa continues to grow at an explosive rate. In 2012, only 32% of the population had a mobile subscription service. By 2018, 456 million people had a subscription, a 12% increase. It is expected that by 2025, half of the population will have a mobile subscription. Not only is the industry-transforming millions of people’s lives, but it has also positively affected sub-Saharan Africa’s economy. In 2018, the mobile economy and services contributed to $144 billion, or 8.6%, of the country’s GDP. It has also created millions of jobs. The mobile industry directly employed 1.9 million people and over 2.4 million people indirectly in 2018. The industry is on an upward trajectory and projects that in 2025 an additional 500,000 jobs will be available.

The Solution

Although the mobile industry in sub-Saharan Africa has generated millions of jobs and will continue to do so in the future, there are still major obstacles remaining. There still aren’t enough jobs to go around and there is a major skill gap in the workforce.

To continue the growth, it is critical that governments play an active role to support the mobile economy. Tax incentives can facilitate the adoption of technology among its citizens. It is also important that governments pass regulations to protect market competition. Increased competition in the market can lower the prices of the technology and lead to the creation of more jobs. The government also needs to ensure there is a reliable and affordable digital infrastructure in rural areas and invest in human capital through skills training.

– Jasmine Daniel
Photo: Flickr