Africa’s Workforce and Clean Energy Surge

Africa, a continent often overshadowed in global talent discussions, is emerging as a hub of both challenges and opportunities in the human capital sector. 

In the latest episode of Emerging Markets Today, I interviewed Paul Breloff, co-founder of Shortlist, about the pivotal role of human capital in Africa’s economic trajectory. Here are some interesting insights about our conversation.

Lack of data and standardized skill system

One of the primary challenges in harnessing talent in Africa is the lack of reliable data on potential candidates. Many African nations lack standardized systems for assessing skills and qualifications, making it challenging for employers to gauge a candidate’s suitability based on traditional metrics like educational background. This data deficit often leads companies into a quagmire, struggling to identify and attract the right talent.

Paul Breloff notes, “We’ve seen a lot of companies struggle with the basics of just finding who’s out there, understanding what the market looks like, and getting in front of the right people.”

Africa’s youth population is burgeoning, with a vast number of young individuals entering the workforce annually. Yet, there’s a palpable disconnect between the skills these young job seekers possess and what employers demand. This mismatch not only hinders the hiring process but also stymies potential economic growth.

Infrastructure and resources for talent development are also in short supply in many African regions. Especially in rural areas, access to quality education and training programs is limited, leaving a vast portion of Africa’s talent pool untapped and underutilized.

Opportunities Amidst Challenges to Find African Talent

However, it’s not all gloom. Africa’s startup and innovation sectors are booming. A surge in entrepreneurial activity has been observed, with many young Africans launching businesses and spearheading innovation. This entrepreneurial spirit presents a golden opportunity to tap into a reservoir of talented individuals eager to contribute to their nations’ growth.

Breloff emphasizes the potential, stating, “There’s a lot of excitement around the startup and innovation economy in Africa.”

Furthermore, Africa’s youthful demographic can be viewed as a potential economic boon. With more young people entering the workforce in Sub-Saharan Africa in the coming decade than the rest of the world combined, the potential for economic growth is immense. This young workforce, armed with fresh ideas and energy, can revolutionize various industries, enhancing productivity and global competitiveness.

The Rise of Flexible Executive Services in Africa

In the evolving business landscape, there’s a growing demand for flexible executive services, especially for CFO roles. Many companies, while recognizing the need for seasoned CFOs, might not have the resources for a full-time position or only require their expertise temporarily. This is where flexible CFO services are gaining traction.

Breloff highlights this trend, noting, “We’re seeing a lot of demand for CFOs who have ‘been there, done that’, who have real expertise and skills.”

He also mentioned that Shortlist built an extensive database of senior executives and young professionals in Africa, and is at the forefront of this trend. They facilitate companies in accessing the CFO expertise they need, precisely when they need it. This model not only benefits businesses but also aligns with the shifting preferences of modern professionals who increasingly value flexibility and autonomy.

Africa’s Clean Energy Promise

Another sector where Africa is making waves is clean energy. Countries like Kenya are uniquely positioned to bypass traditional energy infrastructures and adopt clean energy sources. A significant portion of Kenya’s energy grid is already powered by renewables like solar, geothermal, and wind energy. With the majority of the population off-grid, many households are investing in distributed energy solutions, from solar lights to comprehensive solar home systems.

Breloff touches on this potential, asserting, “The extent of clean energy development in a country depends on its historical dependence on fossil fuels. In Kenya’s case, there’s a unique opportunity to leapfrog the legacy infrastructure.”

The potential for renewable energy in Africa is staggering. Projections suggest that by 2040, Africa’s renewable energy could cater to global energy demands multiple times over. This vast potential, coupled with Africa’s rich natural resources, positions the continent as a pivotal player in the global transition to sustainable energy.

In the grand tapestry of global talent and innovation, Africa is a goldmine waiting to be explored. While challenges persist, the opportunities far outweigh them. The continent’s startup ecosystem, coupled with its youthful demographic and untapped clean energy potential, makes it an attractive proposition for global investors and businesses.

As organizations like Shortlist continue to innovate in the human capital space, and as more companies recognize the value of flexible executive services, Africa is poised to redefine its position in the global economic order. The narrative is shifting from one of challenges to one of immense potential and promise.

Main photo: By Lydur Skulason - Flickr: Worker in Olkaria Kenya, CC BY 2.0, https://commons.wikimedia.org/w/index.php?curid=15413125

The episode is available in all podcast platforms https://podfollow.com/emerging-markets-today

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