By : Lloyd Mahachi
A recent report by Mastercard Foundation and McKinsey reveals that young women in Africa can contribute significantly to the continent’s economy, adding $287 billion (a 5% GDP increase) and 23 million jobs by 2030. However, this requires addressing the gender gap in the labor market through education, skills development, and access to financial services.
Africa’s collective GDP was $3.1 trillion in 2022, with young women contributing just 11% ($340 billion), a decline from 18% in 2000. The unemployment rate is higher for young women than men, exacerbated by the COVID-19 pandemic and lack of education and training.
To empower young women, several strategies are necessary. Firstly, ensuring young women complete their education cycle is crucial, addressing issues like menstrual health, child marriage, and adolescent pregnancy. Secondly, enhancing young women’s digital skills will enable them to access digital platforms, financing, and tech industry opportunities.
Additionally, accelerating access to financial services is vital, addressing the 63% of unbanked women and 66% underbanked. Enhancing skills in productive sectors like manufacturing, agriculture, and trade will also boost employment opportunities. Finally, creating inclusive policies addressing young women’s realities, as seen in Namibia’s successful property and asset rights reforms, is essential.
Reaching the 2030 goal requires a multi-stakeholder approach, involving governments, the private sector, civil society, and young women. Reshaping gender norms and creating an enabling environment will boost productivity. The report emphasizes that empowering young women is crucial for Africa’s economic growth.
With collective action, the continent can unlock its full potential, driving economic growth and increased productivity. Key statistics highlight the potential impact: $287 billion potential GDP increase by 2030, 23 million jobs created, and 11% contribution to Africa’s GDP by young women in 2022.
However, challenges persist, including 63% of unbanked women in 2020, 66% underbanked women in 2021, and only 10% of women-owned SMEs with adequate funding. Addressing these disparities will be critical to unlocking Africa’s economic potential.
Editor : Josephine Mahachi
