Africa: Why Technology-Deprived Africa Needs Labor-Intensive Investments

Africa, home to the world’s youngest population, is being urged to prioritize labor-intensive investments as a key strategy for sustainable economic growth. This call comes amid global concerns about the disruptive impact of technology on jobs. However, Africa’s relatively slow pace of technological adoption presents a unique opportunity to balance traditional employment models with gradual integration of emerging technologies.

According to the African Development Bank (AfDB), Africa’s uptake of automation and artificial intelligence (AI) remains limited. Many economic activities continue to rely on traditional methods, and the continent’s AI industry accounts for less than 3 percent of the global total–a stark contrast to more technologically advanced regions.

Despite having nearly 18 million university students–a number comparable to Europe and North America–Africa continues to struggle with youth unemployment. One-third of Africans aged 15 to 35 lack stable employment, and 90 percent of young workers earn low to middle-income wages, according to the AfDB. These statistics highlight a deep need for targeted investment in job creation and skills development.

In response, several African nations and development partners have been designing strategic frameworks to address the growing employment crisis.

Ghana’s ILO Ghana initiative leader Mensah Emanuel Kwame emphasizes the importance of equipping the workforce with competitive skills.

He highlights the establishment of a national task team, composed of stakeholders across key economic sectors, to identify industry-specific skills requirements and ensure sustainable funding for skills development programs.

This collaborative model reflects a broader understanding that economic transformation requires a workforce trained not just for today’s demands, but also for tomorrow’s industries.

Similarly, at the 20th ILO Conference for Labour Practitioners, the Zambia Federation of Employers CEO Harrington Chibanda echoed the need for effective public-private-academic partnerships. He emphasized that resolving skills mismatches and shortages requires coordinated efforts to align workforce training with industry needs–ensuring graduates are ready for the labor market.

At the continental level, the AfDB continues to be a key actor., the AfDB’s Chief Capital Development Economist Anwar Wudrargo, stated that skills creation in agriculture and other priority sectors is central to Africa’s socio-economic transformation. The AfDB is conducting research to identify widening skills gaps and is advocating for employment policies and entrepreneurship programs tailored to Africa’s youth.

Anwar also highlighted the Bank’s strategic framework for 2024-2033, which places youth at the heart of Africa’s development agenda. As part of this, the AfDB is implementing the “Skills for Employability and Productivity in Africa” action plan–building on the success of the 2016 “Jobs for Youth in Africa” program. That initiative aimed to support the creation of 25 million jobs and equip 50 million young Africans with market-relevant skills.

“The success of these programs,” Anwar noted, “relies on integrating technology, promoting entrepreneurship, and strengthening private sector involvement to prepare youth for the modern labor market.”

From Nigeria’s perspective, technical and vocational education is seen as a critical lever for inclusive development. The Nigerian representative at the conference stressed the need to embed STEM (Science, Technology, Engineering, and Mathematics) and digital skills into education systems.

To that end, Nigeria has launched around 50 projects supporting technical and vocational training, backed by a budget of 2.5 billion USD. These projects are designed to increase the relevance of TVET (Technical and Vocational Education and Training) and higher education programs to meet the demands of the 21st-century labor market.