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YOUTH EMPLOYMENT in the AFRICAN PRIVATE SECTOR Survey Results

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YOUTH EMPLOYMENT in the AFRICAN PRIVATE SECTOR Survey Results YOUTH EMPLOYMENT IN THE AFRICAN PRIVATE SECTOR Survey Results May 2020 CONTENTS 01 02 03 04 Introduction Executive summary Deep dive Appendix Country level data © Oliver Wyman 2 1 INTRODUCTION THE SURVEY AIMS TO CAPTURE AFRICAN YOUTH PERCEPTION OF THE PRIVATE SECTOR Purpose Approach While Africa’s economic growth is strong, there is an In April 2020, Oliver Wyman and Junior Achievement Africa urgent need to maximize sustainable growth through surveyed 2,600+ youth across six countries in Africa, utilizing one of its greatest assets; its youth. following a four-step approach: Africa’s youth population is rapidly growing and is expected to reach 830 million by 2050. DESIGN A strong private sector is required to satisfy the large Design survey questions and growing demand of Africa’s youth population. It is critical to capture youth’s perspectives DEPLOY and understand their needs in order to shape Share survey link through distribution channels the private sector of the future. (Social media, JA Africa network, email, WhatsApp) The survey aims to derive insights upon which key ecosystem stakeholders and decision-makers ANALYZE (e.g. government, private sector, NGOs, education institutions) can act to best equip youth for the Analyze survey results and extract key insights ever-changing job market. VALIDATE Hold workshops with private sector and educational institution representatives 4 OLIVER WYMAN IS A GLOBAL MANAGEMENT CONSULTING FIRM WITH EXPERIENCE ACROSS 15+ MARKETS ON THE AFRICAN CONTINENT Industry knowledge Capabilities More than 30 years of Broad expertise in functional experience in consulting areas, with 400 partners Oliver Wyman Group is part Founded 1984 with leading companies worldwide of Marsh & McLennan Companies, the NYSE traded • Automotive • Sustainability Center $17 BN+ global professional • Aviation, Aerospace & Defense • Actuarial services firm 5,000+ • Business Services • Corporate Finance & Restructuring Colleagues • Communication, Media Oliver Wyman has a long-term & Technology • Digital commitment to Africa and has • Distribution & Wholesale • Operations • Educational • Oliver Wyman Labs worked across the continent • Energy • Organizational Effectiveness over the past 20 years, with US$2.1 BN • Financial Services • Pricing, Sales and Marketing an office in Johannesburg, Revenue (2019) • Health and Life Sciences • Risk Management South Africa • Industrial Products • Service Operations • Public Sector • Strategic Information • Retail & Consumer Products Technology Surface Transportation • Strategy countries • 30 • Travel & Leisure + Brand strategy and design 60 offices Economic advice on competition, + regulation and litigation 5 JUNIOR ACHIEVEMENT AFRICA PROVIDES YOUTH WITH TRAINING PROGRAMS TO BRIDGE THE GAP BETWEEN CLASSROOM EDUCATION AND THE WORLD OF WORK Junior Achievement Africa (JA Africa) is a non- profit organization which builds skills and access to employment for youth across Africa. 76 1,692 JA Africa’s mission is to foster social mobility Curricula Teachers and financial inclusion among African youth through financial literacy, improved employability and microenterprise creation. Since its inception in 1979, JA Africa has built offices in 15 countries and collectively reaches 4.1 MN+ more than 250,000 youth annually. 1,420 Contacts hours Schools Focus areas are entrepreneurship education, workforce readiness and financial literacy. 3,149 255,896 Volunteers Students 6 THE SURVEY REPRESENTS YOUTH’S OPINION ACROSS SIX AFRICAN COUNTRIES Survey overview Distributed to six countries Comprised of 20 questions Eswatini covering six topics: • Perception of the private sector Ghana • Future employment options • Industries driving the private sector Kenya • Key deterrents and challenges for youth Nigeria • Perceived skills gap • Workplace readiness South Africa Zimbabwe 7 MORE THAN 2,600 YOUTH AGED 16–35 PARTICIPATED, AND STUDENTS FORMED THE LARGEST GROUP OF RESPONDENTS Respondent overview 2,650 respondents Gender breakdown Female 57% Male 43% Age breakdown 16–20 41% 21–25 34% 26–30 17% 31–35 8% Occupation breakdown 55% 17% 11% 9% 4% 4% Student Unemployed Private sector Self-employed Public sector Non-profit employee employee sector employee 8 WE ALSO CONDUCTED THREE VIRTUAL FOCUS GROUPS TO CAPTURE THE REACTION OF THE SURVERY RESULTS Focus group participants (private sector and educational participants) • A-League Consult • Mahlubi’s Palette • African Business Centre for • Mombasa County Govt Developing Education • Masawara PLC • African Leadership Academy • Old Mutual Foundation • Agile Communication Group • Project Management Institute • Bantu African Boutique • Post Bank • Bank of America Merrill Lynch • Smiling Through Investment • Citibank • Safaricom Foundation • Cloud Smiths • Vuyis Deli Cakes • Eswatini Youth Enterprise Revolving Fund • Verraki • Eswatini Multi - Media • Venture Garden Group • Ernst and Young • First Capital Bank • FirstRand • Institute of Advanced Technology • Lagos Business School • Lulote BMEP • Lighthouse Projects • Lagos Business School 9 2 EXECUTIVE SUMMARY KEY 83% 91% 57% INSIGHTS of youth expect the private of youth aspire to start a believe youth typically lack sector to grow in the next business in their country the years of experience African youth have five years required by job opportunities a positive outlook and entrepreneurial aspirations despite facing a number 54% 66% 50% of challenges in of students believe that of employed youth find lack of youth believe there the private sector there is lack of desirable of job security as a key is a shortage of job opportunities for graduates deterrent to the private opportunities in the sector private sector 40% 93% of employed youth see of youth believe they need to update nepotism as a key challenge their current education and skills to in the private sector adapt to the labor market 11 KEY RECOMMENDATIONS FROM FOCUS GROUPS 01 02 03 Educational institutions Private sector Government Curricula needs to be Partner with education sector Partner with private sector and restructured to include: to provide: educational institutions to: • Entrepreneurial courses • Robust training programs • Upgrade public education with practical teaching specifically for graduates curriculum to enhance (e.g. business strategy, workplace readiness • Work experience financing) opportunities (e.g. job (e.g. business knowledge, • Career guidance shadowing, internships) critical thinking) on leveraging skills Provide tax breaks for • Mentoring programs • gained from non-work matching employees employers who support experience (e.g. extra to students education of workers curriculars) • Guidance on graduate roles • Training on job application to tackle misalignment of process (e.g. job search, expectations and reality CV workshops, interview preparation) • Workplace readiness programs integrated in curriculum (e.g. coaching on soft skills such as team building) 12 3 DEEP DIVE Young people are the most precious resource of the region; Africa can only thrive if the young people thrive Mabingue Ngom, United Nations Population Fund Regional Director 14 YOUTH HAVE POSITIVE ATTITUDE TOWARDS PRIVATE SECTOR CONTRIBUTION TO THE ECONOMY High Ghana 76% (92%) of Africa’s youth feel positively about the private sector’s All countries contribution to the (76%) economy Low South Africa (63%) 15 MOST YOUTH ARE OPTIMISTIC ABOUT THE PRIVATE SECTOR’S GROWTH IN THE FUTURE DESPITE COVID-19 83% 93% of African youth of these youth are expect the private concerned about the sector to grow in impact of COVID-19 on the next 5 years the private sector 16 THOSE WHO ARE NOT OPTIMISTIC STILL SEE THEMSELVES WORKING IN THE PRIVATE SECTOR IN THE FUTURE 57% of youth who are negative about the growth of the private sector, see themselves working in the private sector in the near future 17 THERE IS A STRONG ASPIRATION AMONGST AFRICAN YOUTH TO START A BUSINESS 91% of youth aspire to start a business in the future The increase in access to information, resources and funding over the last decade 1 in 5 has made entrepreneurship youth see self-employment as their sole job more appealing to youth option in the future Focus group participant 18 EVEN THOSE LESS POSITIVE ABOUT THE FUTURE SHOW STRONG ENTREPENEURIAL DRIVE Of youth who are not positive about the growth of the private sector in the next five years.. Most young people see 85% themselves as self-employed in the future and this is aspire to start because of the independence, a business in the future control and idea of being in charge Focus group participant 19 YOUTH PREFER SELF-EMPLOYMENT, MULTINATIONAL COMPANIES AND PUBLIC SECTOR WORK Which type of employer(s) do you see yourself working for in the near future in your country? 46% Deep dives to follow Being self-employed is 37% perceived as the easiest thing to do after graduation 28% as no one has to assess one’s individual skills and 20% potential; social media also 15% 11% plays a role in making this 8% perception of ease stronger Focus group participant Self-employed Multinational Government / Medium - Non-profit Start-ups Family companies Public sector large local sector businesses companies >=50% >=25% <25% Note: Results do not sum to 100 as respondents can choose more than one option 20 SOME YOUTH, PARTICULARLY IN NIGERIA, HOPE TO WORK FOR MULTINATIONAL COMPANIES High Nigeria (58%) 37% While working for an of African youth international company is aspire to work for seen very attractive (stability, multinational good income, growth companies All countries opportunities),
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