- How Africa Can Improve It's Human Capital Investment
With a population bigger than any other continent in the world, Africa has a huge asset and a strong competitive advantage to another region in the world through its Human Capital.
What Is Human Captial
Human capital—the aggregate sum of a population’s health, skills, knowledge, and experience—accounts for the largest share of countries’ wealth globally.
Human capital is a collection of traits – all the knowledge, talents, skills, abilities, experience, intelligence, training, judgment, and wisdom possessed individually and collectively by individuals in a population.
These resources are the total capacity of the people that represents a form of wealth which can be directed to accomplish the goals of the nation or state or a portion thereof.
Also according to Investopedia based on organisational terms, Human capital is an intangible asset or quality not listed on a company’s balance sheet. It can be classified as the economic value of a worker’s experience and skills.
Education and health are key qualities that improve human capital and also directly contribute to economic growth.
Human Capital Investment’ The Future Of Africa
Investing in Africa’s people is central to ensuring the continent’s future prosperity and its full participation in global markets. Africa is the world’s most youthful continent, and its people are its greatest source of wealth.
According to the World Bank’s new Human Capital Index, which measures how human capital contributes to the productivity of the next generation of a country’s workers, including the components closely linked to the Sustainable Development Goals for health, education, and nutrition: Africa’s human capital investment indicators present a huge challenge and are not improving quickly enough, with population growth often outpacing progress.
Based on the new index, countries in Sub-Saharan Africa have seen major reductions in under-five mortality between 1990 and 2015, but the number of children who die under the age of five—mostly from avoidable causes, such as complications related to respiratory infections, diarrhea, or malaria—is still high at about 2.9 million every year.
Also, Africa has the largest return on education than any other continent, each additional year of education increases the of boys by 11% and girls by 14%. But issues of access to education and quality education arises yearly. About 50 million children are out of school, and some in school don’t have access to quality education.
Equipped with education, skills and jobs, its youth stand to be the most important driver of economic growth.
Inclusive economic growth ensures Africans can reach their full potential and are on a path to prosperity.
Harnessing individual potentials of Africa’s human capital is the most sustainable key to economic transformation and social progress.
Africa is also the only region in the world where the number of out-of-school adolescents & dropouts has risen in recent years, partly due to insurgency, early girl child marriage, lack of access to quality education, poor infrastructure, rapid population growth, religion & cultural norms.
Africa also faces significant challenges with its existing working age population, many of whom are unemployed or underemployed in low productivity work. Of Africa’s nearly 420 million youth aged 15 to 35 years, one third are
However, data shows that African countries can improve their human capital investment through interventions that have worked for some developed countries which includes the reorientation & reforming of our educational systems & the promotion of digital skills.
How Africa Can Improve It’s Human Capital Investment
For all countries, the key to its success is an increasingly globalized and digitalized economy. Also ensuring that it’s people have the skills and capacities to take advantage of economic opportunities and be productive.
In Africa, the vision for stronger human capital investment includes
An African Orientated Educational System
Standard Health Care
Africa is committed to the human capital agenda. More countries from Africa have joined the Human Capital Investment Project—a global effort to drive more and better investments in people— than from any other region of the world.