sap skills for africa

1
Largest & youngest workforce 122 million people will be added to the workforce by 2020 16 out of 26 fastest growing economies are in Africa 2-3% Expected GDP growth in South Africa by 2020 6-7% Expected GDP growth in Sub Saharan Africa by 2020 Exponential middle class growth expected 150 million 2010 210 million 2020 490 million 2040 1.03 billion people 40% live in cities 50% are under 20 Fastest growing population Fastest growing workforce workforce by 2020 million 504 By 2100 40% of the world’s population will be Africans Fastest growing digital consumer market 600 million Internet users in 2025 360 million smart phone users in 2025 Fastest growing digital consumer market 600 million Internet users in 2025 31% of all Africans live within 25 km of fiber node 360 million smart phone users in 2025 60% of the total population of Africa is below the age of 35 years 60% of total unemployment in Africa is young people 3 out of 4 people in Africa will be on average 20 years old by 2020 About 10 million young African youth arrive each year on the labor market >200 million youth in Africa comprising over 20% of the continent’s population. 40 million young African people are estimated to be out of work and many more in poor employment Results not evident Large share of Africa’s GDP spent on education vs Asia/Latin America but results are not bearing fruit. Digital divide Only 16% Internet penetration – three-quarters remain unconnected to worldwide web >500M Africans of working age More than 500 million Africans of working age. Projected to exceed 1.1 billion by 2040 – more than in China or India SOURCES: McKinsey: Lions go global: Deepening Africa’s ties to the United States (August 2014) Lions go digital: The internet‘s transformative potential in Africa ( November 2003) McKinsey Report ( November 2012) Africa at Work: Job creation and inclusive growth, The Rise of the African Consumer (October 2012) Youth and African Union Commission - http://www.africa-youth.org/ UNICEF Generation 2030 - http://data.unicef.org/gen2030/ UN - http://www.un.org/africarenewal/magazine/may-2013 The Guardian - http://www.theguardian.com/global-development-professionals-network/2014/mar/21/job-crisis-in-africa African Economic Outlook - http://www.africaneconomicoutlook.org/en/in-depth/youth_employment/ A f r i c a ´ s C h a l l e n g e 1 Mismatch of skills 2 Technical fields less problematic 3 Africa trails other regions 4 Expansion is not enough In a survey among experts on 36 African countries about the major challenges youth face in labour markets, 54% found a mismatch of skills between what job seekers have to offer and what employers require to be a major obstacle Graduates in technical fields such as engineering and information technology (IT) have less problems finding employment than those from the social sciences or humanities. Africa trails other regions of the world in the proportion of enterprises offering training to their employees. Expansion is not enough. Quality and relevance of education must be improved to reduce the skills mismatch. African countries should strengthen partnerships with the private sector at all levels of education. Run Simple The Africa Opportunity 10 000 by 2020 Through its Skills for Africa programme, SAP aims to provide 10,000 trained ICT consultants by 2020 focused on growth industries. ICT fuels the economy ICT sector has been and will continue to be the major economic driver in Sub-Saharan Africa. Downstream mulitplying effects Every $ spent on ICT puts $1.25 back into the African economy. Africa is a hot growth market, full of economic promise, vitality and innovation Africa is the fastest growing market worldwide Africa has the youngest population of any continent. A population explosion is expected this century, and the number of young Africans will grow exponentially. But the mismatch of skills to jobs will deepen the unemployment crisis for young people. Africa has the youngest population in the world For Africa’s growth to be sustainable, young people must have the right skills for employment. Collaboration amongst private organizations, the government and NGOs will make this happen, and prepare the next generation to embrace the opportunities and challenges ahead. Investing in skills for sustainable growth

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Largest & youngest workforce

122 million peoplewill be added to the workforce by 2020

16 out of 26fastest growing economies are in Africa

2-3% Expected GDP growth in South Africa

by 2020

6-7%Expected GDP growth in Sub Saharan Africa by 2020

Exponential middle class growth expected

150 million 2010210 million 2020490 million 2040

1.03 billion people40%

live in cities

50%are under 20

Fastest growing population Fastest growing workforce

workforce by 2020million504

By 2100 40%of the world’s

population will be Africans

Fastest growing digital consumer market

600 million Internet users in 2025

360 million smart phone users in 2025

Fastest growing digital consumer market

600 million Internet users in 2025

31% of all Africans live within 25 km of fiber node

360 million smart phone users in 2025

60%of the total

population of Africa is below the age of 35

years

60%of total

unemployment in Africa is young

people

3 out of 4 people

in Africa will be on average 20 years old by 2020

About 10 million

young African youth arrive

each year on the labor

market

>200 million youth in Africa

comprising over 20% of the continent’s population.

40 million young African people are estimated to be out of work and many more in poor employment

Results not evident

Large share of Africa’s GDP spent on education

vs Asia/Latin America but results are not

bearing fruit.

Digital divide

Only 16% Internet penetration

– three-quarters remain unconnected

to worldwide web

>500M Africansof working age

More than 500 million Africans of working age.

Projected to exceed 1.1 billion by 2040 – more

than in China or India

SOURCES: McKinsey: Lions go global: Deepening Africa’s ties to the United States (August 2014) Lions go digital: The internet‘s transformative potential in Africa ( November 2003) McKinsey Report ( November 2012) Africa at Work: Job creation and inclusive growth, The Rise of the African Consumer (October 2012)Youth and African Union Commission - http://www.africa-youth.org/UNICEF Generation 2030 - http://data.unicef.org/gen2030/UN - http://www.un.org/africarenewal/magazine/may-2013The Guardian - http://www.theguardian.com/global-development-professionals-network/2014/mar/21/job-crisis-in-africaAfrican Economic Outlook - http://www.africaneconomicoutlook.org/en/in-depth/youth_employment/

Africa´s Challenge

1 Mismatch of skills

2 Technical fields less problematic

3Africa trails

other regions

4 Expansion is not enough

In a survey among experts on 36 African countries about the major challenges youth face in labour markets, 54% found a mismatch of skills between what job seekers have to o�er and what employers require to be a major obstacle

�Graduates in technical fields such as engineering and information technology (IT) have less problems finding employment than those from the social sciences or humanities.

Africa trails other regions of the world in the proportion of enterprises o�ering training to their employees.

Expansion is not enough. Quality and relevance of education must be improved to reduce the skills mismatch. African countries should strengthen partnerships with the private sector at all levels of education.

Run Simple

The Africa Opportunity

10 000 by 2020

Through its Skills for Africa programme, SAP aims to

provide 10,000 trained ICT consultants by 2020 focused

on growth industries.

ICT fuels theeconomy

ICT sector has been and will continue

to be the major economic driver in

Sub-Saharan Africa.

Downstream mulitplying

e�ectsEvery $ spent

on ICT puts $1.25 back into

the African economy.

Africa is a hot growth market, full of economic promise, vitality and innovation

Africa is the fastest growing market worldwide

Africa has the youngest population of any continent. A population explosion is expected this century, and the number of young Africans will grow exponentially. But the mismatch of skills to jobs will deepenthe unemployment crisis for young people.

Africa has the youngest population in the world

For Africa’s growth to be sustainable, young people must have the right skills for employment. Collaboration amongst private organizations, the government and NGOs will make this happen, and prepare the next generation to embrace the opportunities and challenges ahead.

Investing in skills for sustainable growth