Insights

As the world grapples with an aging population and a growing skills gap, Africa stands out as a continent brimming with untapped potential. However, unlocking these potential hinges on a critical investment – human capital development. With over 60% of its population under the age of 25 (African Development Bank, 2021), Africa boasts a vast and youthful workforce that, if properly nurtured and empowered, can drive unprecedented economic growth and development.  Human capital, the collective knowledge, skills, and capabilities of a population, is widely recognized as a critical driver of economic growth and development. Numerous studies have demonstrated a strong correlation between investments in education, healthcare, and skill development programs and increased productivity, innovation, and competitiveness (World Bank, 2019).

This report explores the undeniable link between human capital and economic development, highlighting the case for Africa. It presents data on the continent's demographics and the current state of human capital, before outlining key investment areas and potential benefits. As Nobel Laureate Robert Lucas famously stated, "The main engine of growth is the accumulation of human capital – the knowledge and skill embodied in people." This sentiment is echoed by the United Nations Development Program (UNDP), which emphasizes that "human capital is the most important asset for countries to achieve sustainable development" (UNDP, 2022).