Why Job Creation Is The Number One Impact Metric In Africa
Africa is faced with social and cultural issues that have rendered it a 3rd world continent, mainly due to its economic growth. To address the numerous social and economic issues facing Africa, the need to focus on sustainable job creation is key. Africa has attracted support from numerous international fronts through efforts such as the UN Sustainable Development Goals (SDGs), the Silicon Valley community, which has named some countries in Africa, including Kenya, as the Silicon Savanna due to their capability in economic growth through innovative and tech-based ventures. Due to challenges in receiving adequate resources, mainly in funding and investing towards some of these lucrative ventures, the growth of businesses that would offer Africa economic backing is stagnated. The stagnation of such industries also affects the job creation market on the continent.
To ensure sustainability and growth both socially and economically in Africa, job creation is a key metric to focus on for this change. To effectively foster and develop job creation, the support of growth post-revenue ventures through acceleration activities, strategic advice and access to investments should be enhanced. Early-stage/startup businesses require further nurturing in shaping the growth of their businesses and development of products and services that have the potential to attract high yield or offer unique solutions to the market. Entrepreneurship is a vital component in innovation and the creation of a self-sustaining domestic economy (Forbes Insights). Job creation serves as a sustainable solution towards social ills such as crime and corruption, as it reduces levels of poverty, therefore reducing the percentage of marginalised communities and informal settlements in Africa, which have seen an increase in recent decades. Job creation also drives the desire and need for education to advance needed skills towards innovation and sustainability. This, in general, raises citizens' standards through education, which goes hand in hand with technological development. Availability of jobs creates opportunity for skilled candidates, which develops how they relate socially and their financial capabilities, which in turn translates into development of the community at large as a beneficiary through better housing, improved livelihood, access to health care and education for the younger ones.
It is young business leaders who will create African solutions to African challenges, creating jobs, driving social mobility and adding breadth to the regional economy (Forbes Insights). Africa’s population as of 2018 was reported to be 1.287 billion people, of which a majority is made up of youth aged below 35. This shows Africa’s high potential to deepen its economic status, which is only possible through access to learning and financial resources that allow youth to grow entrepreneurship ventures and create platforms for job creation to rope in other capable youth. The input of investors and donors towards job creation in Africa is greatly sought as it fosters the much-needed support and resources that enhance business growth. In partnership with governments or accelerator-based organisations supporting businesses in Africa or African-based agencies supporting the growth of local enterprises, donors and funders can contribute to the economic development and social impact in Africa. Collaborative efforts towards building successful local enterprises result in sustainable job creation.
With adequate African industry-based experience and insights from growth partner organisations such as GrowthAfrica, donors and funders are guaranteed the correct funnels to channel funds towards ventures that will give results in job creation and social transformation. Signature accelerator programmes designed by GrowthAfrica ensure business success and enable the funding partners to monitor venture growth and keep up with their development, as well as impact regarding job creation and community development. It is necessary for donors and funders to strategically partner with organisations that use guided approaches to ensure accurate use of funds.
