Africa is Getting the Financial Investment, What about the Skillset?

Certainly, 2020 was not what we all thought it would be in terms of business and investment. However, 2021 is already changing the tide and turning a new leaf. The 2021 investment climate has, so far, been encouraging in Africa.

No other place has this been more evident than among African start-up companies. The month of March 2021 stands out in particular.

In March, we all woke up to the news that Flutterwave had become a billion-dollar company (Unicorn). In quick succession, Nigeria’s fintech company, Kuda, also raised investment capital worth $25 million. There was no single week in March 2021 where at least two African start-up firms did not raise substantial investment capital.

In April, Twitter also announced that Ghana will be home to its African headquarters. Without looking too far, Microsoft has also been pumping a lot of money into the Nigerian potentials.

These events, as expected, gave hope and renewed optimism to many African start-ups. Ever since it has become crystal clear that Africa’s tech sector is the new global gold rush.

All well and good.

Despite the huge optimism, something seems not right; this question revolves around Africa’s skill set and youths’ technical capabilities.

In other words, do African youths have the needed skill set that matches job requirements amidst the huge capital investments? The answer is a sad — NO.

You Should Read: Forget Oil! Africa’s Tech Industry is the New Gold Rush

African Development Bank Report on Job, Skills and Educational Mismatches.

The extent of Africa’s skill crisis is made clear in the 2019 African Development Bank report. The report shows a contrasting reality between the skills required on-the-job, and the skill set that many African youths possess.

From the report, a staggering 66.2% of African youths do not even meet the job demands of the 21st century. The problem then falls on recruiters and firms alike, who could only settle for workers with below-standard skills or hire from the foreign talent pool. As a result, overall firm productivity, profit margin, global competitiveness, and dynamism drops, while firms keep burning investment capital.

At the country level, skill shortage impedes national productivity and competitiveness. It is also a major contributor to exponential unemployment.

In another report by the AfDB, the root cause of this dilemma is a degraded educational system that is far out of touch with the job market reality. To back this up, the Brookings Institute also made a similar discovery.

Youths are handicapped by design and are left alone to sort things out on their own after years of turmoil in university. Many are rendered helpless and just have to settle on something to carry on.

Here are the stats — 3 million formal jobs for 12 million ill-equipped graduates annually. It is very evident that with the current trend, as investments continue to grow in Africa so also will employers’ problems and frustrations.

Desirable Skill Set of the 21st Century

According to the World Bank Group, succeeding in the 21st-century labour market typically requires much more than a college degree. Every employee is expected to possess a comprehensive skill set that is encompassing.

To be job-relevant, employees are expected to have a blend of cognitive skills, socio-emotional skills, technical skills, and digital skills.

Basically, an ideal candidate is expected to possess the ability to understand complex ideas, adapt easily, contribute within a team, and relate with their colleagues effectively.

Such people are also expected to have acquired specific knowledge that directly relates to the job, and at the same time, possess the digital skills that are needed to make work easier.

You should also read: How to Evolve with the 21st Century Workplace

The Ever-Increasing Youth Population

Africa’s youth population is currently estimated to be more than 250 million. The number is projected to grow up to 321 million in 2030, and to 840 million come 2050. In itself, a huge youth population would have been nothing short of a blessing. But with current reality, it looks more like a ticking time bomb.

In addition to population growth, the level of school enrolment has also increased. The percentage grew from 60%, 21%, 5% in 2000, to 78%, 35% and 10% respectively for primary, secondary, and tertiary institutions as at 2017. Based on projections, the numbers are predicted to grow considerably.

But the twist is not in the numbers, but in the quality of education that this population will be exposed to. If current educational woes are to persist, what is only thinkable is an imaginary army of highly educated, poorly skilled, and low productivity population who would be a burden on the continent.

Skill Acquisition is the Only Way Out

When we talk about skill acquisition in Africa, what readily comes to mind is vocational skills and blue-collar jobs. But in this present situation that Africa is in, the traditional conception of skill acquisition has proven to be largely inadequate to serve the needs of African youths, and to bridge the gap with the rest of the world.

The skills needed to meet Africa’s investment needs and business requirements typically comprise two important components — the soft skill and technical digital skillset. Without a perfect blend of these two, it will be difficult for the continent to maintain an encouraging business environment.

Soft skills typically include — effective communication skills, collaboration and teamwork competencies, emotional intelligence, time management, among other things.

For technical competencies, the 21st-century African workforce is expected to be in tune with current technological trends. It is expected that you possess in-demand skills around tech.

Skills like IT support, DevOps, Software development, software engineering, Data Science, User Interface and User Experience (UI/UX), software testing, and cloud engineering are in such high demand that employers even find it hard to fill up positions in their organizations.

Check out: Regress, Progress, or In-between? Answering the Tough Question of a Career Choice

A Gap Ydevacademy is Positioned to Fill

From the African Development Bank report, it is obvious that Africa’s current educational system is not capable of filling Africa’s skill gap.

To cushion this effect, Ydevacademy has taken up the mandate to upskill each and every African youth who is willing to level up and tap into Africa’s growing business investment.

With a special dedication to African youths, we have put in place effective structures that helps youths move from novice to job-ready within a short timeframe.

We also help employers achieve maximum productivity with their workforce. We do this by helping them train their workforce. We ensure that we equip employees with the relevant tech skills needed to achieve results on the job.

Additionally, as a result of the changing nature of technology, we adopt an upward approach that helps us stay ahead of the rest. Our curriculum is constantly reviewed to stay up to date, and relevant with technological trends.

We cannot afford to repeat the mistakes of the current educational system.

Concluding Words

With each passing day, the worries of many start-ups in Africa about business or investment capital seem to keep fading. In its place, a structural problem has come up — the problem of skill shortage. For businesses to thrive on the continent, it is important that this skill gap is bridged. If done on time, the benefit will not only bring in more investment, it will ultimately extend to the future yet unborn.

Finding solutions to Africa’s current skill crisis is not about the present alone, it is a fight for future generations.