Young Africans are about to become a major topic of conversation. For what ?
A booming demographic
Because this demographic is booming. Nearly 60% of Africans are under 25, compared to 27% of Europeans. The median age in Africa is 18, compared to 35 in North America. By 2050, sub-Saharan Africans will represent a third of all young people in the world.
Untapped potential
This growing group represents both potential customers and an affordable, untapped workforce. Here's how entrepreneurs can benefit from this African youth.
Young consumers
The first opportunity that presents itself is the sale of products and services aimed at young people. Not only are African youth growing, but households are consuming and spending more each year.
Consumer trends
Internet access is increasing, urbanization is growing rapidly, and many consumers are moving from informal retail (like local markets) to shopping malls, creating all sorts of new spending behaviors.
Here are some examples of this almost unlimited potential:
- 👰 The huge wedding industry in Nigeria,
- 👟 The booming sneaker market in South Africa,
- 📈 Growing demand for e-commerce.
Talent galore
By 2040, Africa will need 2 million new jobs per month to keep up with population growth. There are several reasons why global companies might want to capitalize on this trend.
From the opportunity comes the idea
For example, Europe's aging population could face a labor shortage. There are agencies, like the one founded by George Burgess: Modern Day Talent, a startup that seeks and facilitates the recruitment of talent in South Africa for European companies.
He says South African talent:
- 👉 Costs 50% less than British talent or two thirds of European talent,
- 👉 Is abundant, high quality, and English-speaking.
Additionally, like a number of African countries, South Africa is in the same time zone as Europe.
Three areas of opportunity
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Specialize. You could start an agency that matches French- or Arabic-speaking Africans with employers in wealthier nations, or focus on a specific skill in high demand, like occupational therapy.
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Employee support. Help meet the needs of remote professionals with coworking spaces, laptop financing, or specialized employee benefits solutions.
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Develop skills. Demand for higher education is booming but African universities cannot keep up. You could create a coding school, facilitate distance learning or create an online language school to equip Africans with the skills needed to enter the local, US or European job market.
A continent of start-ups
Africans are entrepreneurs and active users of technology. Before the pandemic, 22% of working-age people were entrepreneurs (compared to 16% in the United States). And funding for tech start-ups is increasing at six times the global average.
With a limited number of jobs available and the youth population growing, a new generation of entrepreneurs is likely on the horizon.
You could check out mentoring programs like One Day, events like Latitude59 or the Africa Entrepreneur Conference, communities like Trends, or SaaS tools tailored to African start-ups.
But of course, Africa is vast and varied, so no opportunity applies everywhere. You may have never thought about the young people of Rabat, Abidjan, and Gqeberha, let alone doing business in Africa. But as young Africans make up a growing share of the world's population, the world will have to stand up and take notice.
