Overview: a continent brimming with opportunity
Across Africa, a wave of tech startups is reshaping economies and offering fresh employment paths for young people. Yet challenges like funding gaps, skill mismatches, and unreliable infrastructure slow momentum. According to the ILO, nearly 27 million youths in Sub-Saharan Africa were unemployed in 2023, an 8.9% rate. NEETs affect about 62 million youths, representing roughly a quarter of 15-24-year-olds. With over 30 million new entrants expected each year by 2030, the pressure is mounting.
Early signs: jobs created and ecosystem growth
The African Tech Startups Funding Report 2022 shows 633 funded startups employing 34,201 people at the time of their first funding, nearly double 2021 numbers. On average, funded startups grew to 54 employees in 2022 from 32 in 2021, signaling a strengthening ecosystem. In Nigeria alone, Partech reports more than 19,000 direct jobs in 2022, with fintechs contributing almost half. Egypt followed with 11,153 jobs in 2022 across 131 funded startups, while Kenya and South Africa also posted meaningful employment gains. These figures illustrate that startups, especially in vibrant digital hubs, are already absorbing a portion of the region’s youth into productive work.
Persistent hurdles even amid progress
Despite progress, four questions dominate: where is funding flowing, who is included, and how durable is the growth? Partech’s Africa Tech Venture Capital Report 2023 shows Nigeria, Egypt, Kenya and South Africa captured more than 80% of reported funding—leaving many aspiring founders on the sidelines. The skill gap is another bottleneck. The World Bank notes that many African firms cite digital skills deficits as a barrier to scale. Brookings estimates that 230 million jobs will require digital skills by 2030, implying a demand for around 650 million training opportunities.
Durability also matters. Startups often depend on external capital and market cycles, which can make them fragile and short-lived. Inclusion remains a crucial, under-addressed challenge. Women, rural residents, and youth lacking networks or collateral face substantial barriers to funding and markets. Post-formation support and market linkages are still too often missing.
Charting a path forward: stronger strategy and inclusive growth
Solutions center on investing in training, mentorship, and practical pathways to employment. Initiatives such as Orange Digital Centers, Campus 42, and Andela are designed to align skills training with employer needs by offering hands-on, accessible curricula. The aim is to shorten the distance between classroom and job for young Africans.
- Expand digital skills and coding bootcamps tailored to market needs
- Provide post-training support, internships, and direct connections to employers
- Prioritize inclusion: support women, rural youth, and those without networks or collateral
- Encourage policy measures to broaden access to innovation beyond major hubs
A hopeful outlook for inclusive growth
If training, mentorship, and capital are scaled with an inclusive lens, African startups can significantly boost youth employment while accelerating digital transformation across the continent. The path is challenging, but with targeted investments and proactive policies, the gap between potential and reality can narrow, unlocking opportunity for millions of young Africans.
