Report indicates green economy could generate 3.3m jobs across Africa by 2030

 

Report indicates green economy could generate 3.3m jobs across Africa by 2030 

A new analysis suggests that some of the major African countries may gain millions of jobs from a greener economy.

 

According to research conducted by the impact consultancy firm Shortlist and the development organization FSD Africa, 3.3 million employment might be created on the continent by 2030.

 

According to Forecasting Green Jobs in Africa, skilled or white-collar jobs that can "spur the growth of the middle class in countries with high-growth sectors" including manufacturing, construction, e-mobility, and renewable energy will make up 60% of the jobs, most of which will be in the renewable energy sector.

 

The report was based on forecasts from five countries – the Democratic Republic of the Congo, Ethiopia, Kenya, Nigeria and South Africa – that the study says will see more than a fifth of the jobs expected from the green transition over the next six years.

 

About 10% of the jobs created will demand university degrees, 30% will be “specialised” work that requires certification or vocational training, and 20% administrative. Unskilled labour will be more stable, with opportunities for upward mobility, the study predicts.

 

“This is the first public report that takes seriously the notion that human capital and talent is important as an input to green economic growth, and as a positive outcome – in the form of millions of new, direct jobs,” says Paul Breloff, CEO of Shortlist.

 

About 70% of jobs will be in the renewable energy sector, with solar power accounting for about 1.7 million of those jobs. Due to their respective hydropower potentials—Africa's largest and second largest—the DRC and Ethiopia will witness employment growth in that area. Hundreds of thousands of people should be employed in agriculture, with over half of those positions in climate-smart technologies.

 

The researchers call on policymakers, funders and educational institutions to invest in training a workforce in green industries, saying it could “contribute to the formalisation of African economies, and the inclusion of whole populations in stable systems of remuneration, social security and taxation”.

 

“Policymakers and funders and workforce developers need to step up to meet this near-term demand with effective training, apprenticeships, and job/skill matching, in hopes of achieving Africa’s green promise,” said Breloff.

 

Africa can "leapfrog" into renewable energy, avoiding the carbon-intensive paths taken by industrialized countries, thanks to its youthful labor force and abundant renewable energy resources. However, the authors of the report contend that doing so will necessitate "supportive policies, infrastructure, and significant financial investments, estimated at over $100bn annually."

 

Due to investor views of risk and worries about the renewable energy's commercial feasibility, African nations have had difficulty attracting investments in this area. Only 3 percent of worldwide financing for clean energy goes to the continent. The International Energy Agency (IEA) and the African Development Bank estimate that by 2030, expenditures must more than quadruple to over £155 billion annually in order to satisfy development targets related to climate change and energy access.

 

“You need a base level of good skills in the country to get investors comfortable putting their money into green investments – those jobs de-risk investments, investments flow into or within the country. If finance flows, then projects get to be realised, and will create even more new jobs,” said Kevin Munjal, director of development impact at FSD Africa.

 

Some nations, particularly those possessing oil and gas reserves, are resisting calls to prioritize carbon reduction over domestic priorities, like the use of fossil fuels for economic growth or domestic energy, given that 600 million Africans lack access to electricity. Africa accounts for less than 4% of global carbon emissions.

 

According to Munjal, green growth offers vital potential for job creation and economic expansion even though "there is need to think about a just transition."

 

"This presents a huge chance to address the demographic crisis that is rapidly developing," Munjal stated. "Africa has the fastest-growing and youngest labor force, but the young people need jobs."