We Are Making Strides; More is Needed

The African Continental Free Trade Area (AfCFTA) is a solution to a long-standing need to find a mechanism to increase international trade and integrate Africa’s trade into the global economy. Championed as a path to sustained growth and a way to make a permanent dent in poverty that has affected the continent, the AfCFTA seeks to lift over 30 million people out of extreme poverty and provide a $450 billion income boost by 2035, signifying a 7% increase. Currently, only 15% of African exports go to other African nations, which seeks to question the structure of intra-African Trade. However, the AfCFTA’s promise paints a promising picture for the continent.

The human resource remains a critical element in achieving the promise of the AfCFTA. This is against a significant skill gap the continent is currently crumpling with. The continent has the majority of its youth unable to access high-skilled, formal sector, and full-time employment. With 60% of the population of Africa being below 25 years and the youth expected to constitute 42% of global youth by 2030, policymakers are concerned about bridging the skills gap. However, the African education system has been criticized for its inability to equip the next generation of human resources with the skills and capabilities needed to compete internationally and consequently drive success under the AfCFTA. Contrary to popular belief, the current low unemployment in skilled jobs in Africa is partly driven by a supply-side problem in addition to employers offering few jobs.

Importing skilled labor due to challenges in the local labor market is not attractive for the AfCFTA in effectively driving change and enhancing development. Governments and the private sector across Africa continue changing the education sector. Kenya, for instance, is implementing a competency-based curriculum to fix failures in the previous 8.4.4 system by including dynamic values, virtues, innovation, critical thinking, and creativity in learners. Marred with many challenges and opposition by various stakeholder groups, politics notwithstanding, the new Kenyan system raises questions on the nature of human resources desirable for economic development. Therefore, policymakers ought to be concerned about the nature of desirable workers to drive the development agenda underlined by the AfCFTA agreement. An agile workforce for Africa under the AfCFTA would be flexible, adaptable, and capable of responding quickly to changing market demands and opportunities. Here is a look into what an ideal African workforce should look like for the AfCFTA to gain tracking and transform the continent according to the African Union Agenda 2063.

A skilled, Diversified Workforce

Having a skilled and diverse workforce, in skills and expertise,” is important for the success of the African Continental Free Trade Area (AfCFTA). A skilled and diverse workforce is equipped to meet the diverse capabilities needed to enable businesses to meet the diverse market demands of the AfCFTA. For instance, the elaborate and complex African supply chain would require different skills and expertise to bridge the current challenges and inefficiencies. A diverse workforce would bring various perspectives and ideas, leading to increased innovation and creativity and helping businesses stay competitive and adapt to changing market conditions. A diverse workforce in skills suggests an Africa that has bridged its current skill gaps, including technical requirements, towards reducing labor import while a significant portion of local youth remains unemployed. The AfCFTA is meant to benefit all Africans, so the workforce must reflect the diversity of the continent’s population. Diversity in age, gender, ethnicity, and nationality, among other factors, would enhance the equitable distribution of opportunities and resources under the AfCFTA.

“Contrary to popular belief, the current low unemployment in skilled jobs in Africa is partly driven by a supply-side problem in addition to employers offering few jobs.”

Mobile and Cross Border

One of the key objectives of the African Continental Free Trade Area (AfCFTA) is to promote the free movement of goods, services, and people across borders within the African continent. This objective includes a free movement of people and labor across the continent, allowing businesses to hire workers from other countries within the AfCFTA. To achieve this, a mobile workforce available across-border is required with the need for labor laws and regulations to harmonize and create a common framework for labor practices. Wage laws, working hours, employment contracts, and dispute-resolution mechanisms should be harmonized to enhance African youth to work anywhere across the continent. Further, a common approach to recognizing skills and qualifications would be necessary to facilitate the mobility of workers across borders. The question is whether the AfCFTA will warrant a framework for recognizing qualifications and skills acquired in different countries within the agreement. This addresses skill shortages, creates new opportunities, and helps spread the benefits of the free trade area more evenly across the region.

Digital-Savvy

The Fourth Industrial Revolution – including the evolution of robotics, artificial intelligence additive manufacturing, and the Internet of things is here with us and will populate the youth agenda under the AfCFTA. It is increasingly important for the next generation of workers to be comfortable with digital technologies and able to work remotely and collaboratively using digital platforms. This fits into the success of the AfCFTA, which aims to promote digital integration and innovation within the region. A digital-savvy agile workforce could take advantage of new digital technologies to work more efficiently and collaboratively. This would include training in areas such as using digital collaboration tools, data analytics, and cybersecurity. As nations invest in digital infrastructure, such as high-speed internet connections and reliable digital platforms, the future workforce must possess the skill set to fit into the new dispensation. Workers who lack digital skills may find it difficult to find employment or may be limited in the types of jobs as the AfCFTA takes shape, with digital skills becoming increasingly critical in finance, healthcare, and education, among other industries.

Entrepreneurial

An agile, entrepreneurial workforce is characterized by a mindset open to new ideas and willing to take risks to pursue opportunities. A highly entrepreneurial workforce is critical to driving innovation, creating new businesses, and generating economic growth under the AfCFTA agreement. The next generation needs to be trained and equipped with an entrepreneurial culture and skills necessary to start and grow their businesses, reducing their dependence on employment. With the AfCFTA urging nations to create an environment conducive to innovation and business creation, an entrepreneurial culture is necessary. This will create jobs, promote innovation, increase productivity, and help diversify the African economy by creating new businesses in different sectors.

Resilient and Adaptable

As businesses and industries continue to evolve under the AfCFTA, workers must be able to adapt quickly to new technologies and market conditions and withstand economic shocks and disruptions. This equips the continent with a human resource that can succeed in a changing economy, and governments and businesses can help to promote economic growth and stability. Education systems must therefore focus on equipping learners with new skills and knowledge that are in demand in the marketplace and capabilities to mitigate against market dynamics.

These are the writer’s own opinions and do not necessarily reflect the viewpoints of Liberty Sparks. Do you want to publish in this space? Contact our editors at info@libertysparks.org for further clarification.