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Tuesday 17 September 2024

Achieving Gender Parity Could Unlock $287B for Africa’s Economy by 2030, Mastercard Foundation Report Reveals


Addressing systemic barriers to young women’s participation in Africa’s workforce could inject an estimated $287 billion into the continent's economy by 2030, boosting GDP by 5%, according to a new report by the Mastercard Foundation. Conducted in partnership with McKinsey & Company, the study emphasizes the pivotal role of women's economic empowerment in driving Africa's transformational growth.

Titled Young Women in Africa: Agents of Economic Growth and Transformation by 2030, the report outlines immediate, actionable strategies for governments, the private sector, and civil society to reverse the sharp decline in young women’s contribution to Africa’s GDP, which dropped from 18% in 2000 to 11% in 2022. Key areas identified for improvement include reducing care burdens that hinder women's labour market access, improving education completion rates, fostering skills in high-demand sectors, promoting gender-inclusive employment policies, and increasing access to financial services.

The report highlights private-sector-led and government-backed initiatives, such as expanding childcare services and offering employer-provided childcare, which could create over 11 million jobs for women by 2030. With agriculture, education, food services, trade, and retail being major employers of young women in Africa, the report advocates for apprenticeships and training programs to enhance women’s participation in these high-growth sectors. The ICT sector, in particular, offers high potential, with women in countries like Nigeria, Ghana, and Uganda earning higher wages than men.

Namibia is highlighted as a model for other African nations, having increased women's economic participation from 40% to 42% in just five years. Countries such as Egypt, the Democratic Republic of Congo, Ethiopia, Kenya, Mali, Nigeria, Rwanda, Senegal, Tanzania, and Uganda are poised for rapid growth if they replicate Namibia’s approach.

Speaking on the launch of the report, Marieme Esther Dassanou, Director, Gender Programs at the Mastercard Foundation, said: “Empowering young women in Africa is both an economic imperative and a transformative opportunity for the continent. By addressing systemic barriers, enhancing skills, and fostering gender-inclusive policies, we can unlock $287 billion in additional GDP by 2030. We need to create environments where women can succeed as employees and entrepreneurs, ensuring Africa's growth will be inclusive, sustainable, and driven by the full potential of its young women's population.”

Women’s unemployment rates have historically been higher than those of men, a disparity further exacerbated by the COVID-19 pandemic. Only 26 percent of girls complete secondary school, and the high burden of unpaid care work keeps 35-to-40 percent of women out of the workforce. Furthermore, financial inclusion remains a significant challenge, with 63 percent of African women being unbanked compared to 52 percent of men.

The Foundation also plans to expand successful programs aimed at transforming the educational landscape for women and girls. Over the next seven years, the Foundation will scale its long-standing partnerships with Campaign for Female Education (CAMFED) and Forum for African Women Educationalists (FAWE) with $360 million to support more than 70,400 young women and girls in completing their education journeys, starting their own businesses, or accessing employment opportunities.

The report findings inform the Mastercard Foundation’s sideline event Invincible: Empowering Women, Transforming Africa at the 79th Session of the United Nations General Assembly (UNGA 79) on September 22, 2024, at the Millenium Hilton New York, One UN Plaza Hotel. Held in collaboration with ALADI - African Leadership and Dialogue Institute, the event will spotlight the unrivalled impact of young African women in driving economic transformation and propose bold strategies to bolster their access to critical and affordable finance.

To download the full report, please click here.

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