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The Nairobian

Africa must channel energy of its youth to grow economically

Opinion

By Dr Julius Kipng’etich | Aug 08, 2024

**Business or economic growth concept.** [Getty Images]

Africa is overflowing with untapped potential and a wealth of youthful energy, standing at the cusp of an entrepreneurial revolution. With over 60 per cent of its population under the age of 25 years, Africa holds the distinction of being the youngest continent on Earth. This demographic advantage is not just a statistic; it is a dynamic force poised to reshape the continent’s future.

The young people of Africa are brimming with creativity, ambition and innovative ideas that, if harnessed effectively, could transform Africa into a global entrepreneurship powerhouse. Yet, realising this vision requires overcoming significant challenges and implementing strategic initiatives to empower the continent’s young innovators. The critical question is: How can Africa channel the energy of its youth to drive economic growth and social change? The answer lies in empowering young entrepreneurs to unlock their potential and reshape the continent’s economic landscape.

To begin with, youth entrepreneurship is a powerful catalyst for economic growth, social change and innovation. Young entrepreneurs have the potential to drive economic development by creating jobs, fostering innovation, and enhancing productivity. As the future workforce, these young individuals are essential to tackling pressing societal issues such as unemployment, poverty and inequality. Furthermore, young entrepreneurs often bring fresh perspectives and creative solutions to problems, driving technological advancements and social progress.

Despite the numerous benefits that youth entrepreneurship can bring to Africa, they often face significant obstacles, including limited access to finance and a lack of business experience and mentorship. Traditional financial institutions are hesitant to provide loans to young entrepreneurs due to perceived risks, a lack of collateral and insufficient financial history. In response to these challenges, various initiatives and strategies have been developed to empower these young innovators. Access to finance is crucial for enabling youth entrepreneurship, and many organisations have stepped in to provide financial support. For instance, in Kenya, crowdfunding platforms have democratised access to finance by allowing young entrepreneurs to raise capital from a wide base of small investors. This approach provides an alternative to traditional financing methods, allowing young entrepreneurs to develop their ideas and grow their businesses.

In addition to financial support, entrepreneurship education and training are also vital components of empowering young entrepreneurs. Across Africa, entrepreneurship hubs and innovation centres have been established to provide co-working spaces, mentorship and training programmes. These hubs foster a collaborative environment where young entrepreneurs can learn and grow. They offer workshops, networking opportunities and access to industry experts, equipping young entrepreneurs with the skills needed to succeed in the business world. Additionally, universities across Africa are increasingly offering entrepreneurship courses and degree programmes, preparing students with the necessary skills to start and manage successful businesses.

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Furthermore, mentorship and networking are essential elements in the journey of supporting young entrepreneurs. Effective mentorship programmes link young entrepreneurs with seasoned mentors who offer invaluable guidance, support and industry connections. These mentors help young entrepreneurs navigate the complexities of starting and growing a business, providing insights that can make a significant difference in their success. Additionally, networking events create platforms for young entrepreneurs to connect, share ideas and collaborate on projects. Such events foster a strong sense of community among young innovators, encouraging collaboration and the exchange of ideas, which are essential for driving growth and innovation.

Moreover, policy and regulatory support are essential for creating a conducive environment for youth entrepreneurship. Several African governments are implementing policies to support young entrepreneurs by offering tax incentives and reducing bureaucratic hurdles. For example, some countries prioritise youth entrepreneurship, providing a framework for support and development. Public-private partnerships combine resources and expertise from both sectors to provide training, mentorship and financial support to young entrepreneurs. These initiatives create a supportive ecosystem that encourages entrepreneurship and innovation.

Additionally, enhancing digital skills is another crucial strategy for empowering young entrepreneurs. With the rapid expansion of the digital economy, equipping young entrepreneurs with digital skills is essential. Training in areas such as digital marketing, e-commerce and coding can help them leverage technology to innovate and scale their businesses. By embracing digital tools and platforms, young entrepreneurs can reach broader markets, optimise their operations and compete globally.

Equally important is promoting inclusive entrepreneurship to ensure that opportunities are accessible to all young people, including women and marginalised communities. Efforts should be made to break down barriers and foster inclusive economic growth. Programmes that target these groups can provide tailored support, mentorship and resources, enabling them to participate fully in the entrepreneurial ecosystem.

In conclusion, youth entrepreneurship in Africa holds immense potential to drive economic growth, foster innovation and address societal challenges. By implementing targeted initiatives and strategies, stakeholders can empower young entrepreneurs to unleash their full potential. As Africa’s young innovators rise to the challenge, they will play a pivotal role in shaping a prosperous and sustainable future.

Dr Julius Kipng’etich is the group CEO Jubilee Holdings Limited