millionaireInvest: [New post] Sub-Saharan Africa youth population to revolutionize its economy

Sub-Saharan Africa youth population to revolutionize its economy – S&P Report

by The Exchange

The working-age population of sub-Saharan Africa is set to increase more than twofold by 2050 to become the largest in the world, offering an unprecedented opportunity for economic growth, according to S&P Global Ratings.

This burgeoning youth population is both an opportunity and a challenge for the continent. On the positive side, the population provides an opportunity for the continent to address Africa's sustainable development challenges. While the continent's natural resources are vital, the creativity and innovation of its youthful population can play a key role in the continent's economic transformation.

In a report published on Wednesday, the ratings agency estimated that growth in the working-age population would add up to three percentage points to the average annual GDP growth for the next 10 years across key economies in the subcontinent.

According to the Senior economist of the S&P Global ratings,countries in sub-Saharan Africa are now experiencing the "most significant demographic transition in their history."

"Unprecedented decreases in fertility rates, lower child mortality, and increases in life expectancy will have a crucial importance for the region's economic outlook for decades to come," Panday said.

Age composition in a country's population is critical for economic growth. For the region, which has experienced subdued economic growth during the last decade, a demographic transition may present a chance to take off but can also be a major source of instability and fragility.

The report highlighted that fertility rates have been in steady decline, falling to 4.6 children per woman over a lifetime in 2019 from 6.3 in 1990.

In its report United Nations projected that fertility rates will continue to fall, with some Sub Saharan Africa countries approaching a natural replacement rate of 2.1 by 2050.