{"id":144654,"date":"2023-05-29T09:16:30","date_gmt":"2023-05-29T09:16:30","guid":{"rendered":"https:\/\/news.sap.com\/africa\/?p=144654"},"modified":"2023-09-28T12:51:28","modified_gmt":"2023-09-28T12:51:28","slug":"digging-for-digital-gold-how-africa-can-build-a-prosperous-economy","status":"publish","type":"post","link":"https:\/\/news.sap.com\/africa\/2023\/05\/digging-for-digital-gold-how-africa-can-build-a-prosperous-economy\/","title":{"rendered":"Digging for Digital Gold: How Africa can Build a Prosperous Economy"},"content":{"rendered":"

Continent on cusp of a new era, and it will be defined not by mineral wealth but by its talent and innovation<\/h1>\n

\"\"Africa\u2019s immense wealth in mineral and natural resources has powered its economy for generations. But the world is moving rapidly to a more sustainable, less resource-intense future.<\/p>\n

As we celebrate Africa Month the question is: can African economies adapt to ensure the continent can thrive and prosper well into the next century?<\/p>\n

\n
Africa\u2019s mineral wealth is unmatched. UN data suggests Africa is home to 30% of global mineral deposits, 12% of all oil reserves and 8% of the gas reserves. As much as 40% of global gold deposits \u2014 and 90% of platinum and chromium \u2014 can be found under African soil.<\/div>\n<\/div>\n

Africa produced\u00a0more than half the world\u2019s diamonds in 2020, with countries such as Botswana and SA continuing their leading role in the global diamond market. In the 1970s SA alone produced two-thirds of the world\u2019s gold, a legacy that continues, though the country has been overtaken by China, Australia and, closer to home, Ghana.<\/p>\n

The continent isn\u2019t endowed only with abundant legacy resources such as diamonds and gold. Many of the minerals needed to power next-generation technologies are also abundant in Africa.<\/p>\n

The Democratic Republic of Congo alone accounted for nearly two-thirds (63%) of the world\u2019s cobalt in 2019. Its production of lithium \u2014 a crucial manufacturing component of smartphones, laptops and electric vehicles \u2014 is expected to grow from 40,000 tonnes in 2023\u00a0to nearly half a million tonnes by the end of the decade.\u00a0However, Africa\u2019s resources are finite. African countries will eventually have to move away from their reliance on resource extraction to power their economies.<\/p>\n

Some experts\u00a0already suggest the world has reached peak gold production and that the volume of gold produced per year will decline from now.\u00a0This is bad news for a continent that heavily relies on the revenue generated by its natural resources.\u00a0A UN report says\u00a0Africa\u2019s mining sector contributed nearly 7% of the continent\u2019s GDP in 2017. Minerals represented 62% of exports in 2019.<\/p>\n

But what if Africa was already endowed with a natural resource to beat all others, one that can end the continent\u2019s reliance on digging for wealth and power its economy through innovation, ingenuity and productivity?<\/p>\n

What if the continent’s abundance of youthful talent could be mobilised?\u00a0Africa\u2019s population will grow with astonishing speed throughout this century. While populations in more developed regions stagnate and decline, Africa\u2019s youthful population thrives. From 2020 and 2050 1.2-billion people are expected to be added to Africa\u2019s population. By 2100, UN data predicts that the continent\u2019s population will reach 4.3-billion,\u00a0more than three times more than now.<\/p>\n

\n
Most of this growth will be in younger age groups. Africa\u2019s working-age population is set to rise by two-thirds, reaching more than 600-million by 2030. As millions of increasingly well-educated young Africans join the workforce every year, global organisations are likely to rely on African talent to fill critical skills shortages. In fact, the World Economic Forum estimates that up to 85-million jobs will remain unfilled by 2030, creating an $8.5-trillion gap between possible and actual revenues.<\/div>\n<\/div>\n

Bear in mind that the revenue gap is not due to technical limitations on realising the effect of the next wave of technological innovation \u2014 artificial intelligence, connected devices, intelligent enterprises \u2014 but rather a lack of skilled talent to implement and manage these technologies.\u00a0It’s therefore not a stretch to say Africa\u2019s greatest natural resource is its talented, youthful workforce.\u00a0A study by Gallup found that digital\u00a0skills generate $18.5-trillion in annual economic value, or 12% of global GDP. The same study found that advanced digital workers have higher rates of job satisfaction and feel more secure in their jobs than less digitally-able workers.<\/p>\n

Mobilising the youthful workforce through rapid and extensive digital skills development holds the key to unlocking the continent’s vast economic potential.\u00a0African countries should invest some of the revenue generated from their natural resources in building digital skills capacity. Infrastructure such as 5G internet and extensive mobile coverage is essential, especially in countries where legacy fixed-line infrastructure is lacking.<\/p>\n

A government-led national digital skills strategy should be a priority for every education department all over the continent.\u00a0Public-private partnerships that enable collaboration between governments and the corporate sector can help focus efforts, ensuring that any digital skills development initiatives meet real-world business needs and produce talent that can easily be absorbed into the formal economy.<\/p>\n

Private sector organisations can partner with social enterprises and non-profit organisations that build or enhance digital skills. SAP\u2019s partnership with the Siyafunda Community Technology Centres, for example, has benefited 30-million youth and adults through digital programmes at 240 centres.<\/p>\n

Organisations should also champion their own digital skills development efforts to ensure they have access to work-ready digital skills. The 51风流Skills for Africa training programme delivered nearly 2,000 work-ready graduates in 22 African countries, with a 95% employment rate post-graduation.<\/p>\n

Efforts at expanding access to digital learning opportunities should also continue. For example, Africa Code Week has provided basic coding training to 14.6-million African youth in 48 countries. And with a girl participation rate of 47%, the initiative has also made great strides in enabling digital learning opportunities for all who can benefit.<\/p>\n

\n
The African continent stands on the cusp of a new era, one not defined by its mineral wealth but by its extraordinary talent and innovation. Preparing and mobilising the continent\u2019s youthful workforce should be a top priority for every public and private sector organisation in every African country. Smart investments in digital skills now will pay dividends for generations to come, and help the continent build a prosperous life for all.<\/div>\n<\/div>\n

This article first appeared on BusinessLive<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Continent on cusp of a new era, and it will be defined not by mineral wealth but by its talent and innovation Africa\u2019s immense wealth…<\/p>\n","protected":false},"author":2835,"featured_media":144666,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"related_posts":[],"footnotes":"","_links_to":"","_links_to_target":""},"categories":[19013],"tags":[5597667,5587836],"series":[],"sapn-display":[5598742,5598740,45149,279685],"sapn-type":[45018],"class_list":["post-144654","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-corporate","tag-africa-month","tag-cathy-smith","sapn-display-feature-hero","sapn-display-feature-spotlight","sapn-display-homepage-hero","sapn-display-hero","sapn-type-feature"],"yoast_head":"\nDigging for Digital Gold: How Africa can Build a Prosperous Economy - 51风流Africa News Center<\/title>\n<meta name=\"description\" content=\"Africa\u2019s immense wealth in mineral and natural resources has powered its economy for generations. 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