Research from Shortlist and FSD Africa underscores the need for investment in skills development and workforce mobilisation as the continent makes strides in green energy.
By Maggie Mancini
Shortlist and FSD Africa, with analysis from Boston Consulting Group, has published a report that forecasts the new direct job creation of 12 “green” sub-sectors by 2030. The report predicts the creation of up to 3.3 million new direct green jobs across the continent by 2030, with the majority in the renewable energy sector, particularly solar. The study, an in-depth analysis of workforce needs within major green value chains over the next five years, provides detailed forecasts for five countries: Democratic Republic of Congo (DRC), Ethiopia, Kenya, Nigeria, and South Africa. Together, these countries account for more than one fifth (22%) of new jobs in key sectors like renewable energy, e-mobility, agriculture, construction, and manufacturing.
The report underscores the importance of a skilled workforce as an input accelerating African green industries, emphasising the need for substantial investment in skills development and workforce mobilisation. Moreover, millions of jobs created will also contribute to the formalisation of African economies, and the inclusion of whole populations in systems of remuneration, social security, and taxation for the first time.
Based on the findings, the report outlines key strategies required to cultivate Africa’s green jobs ecosystem: from targeted investments in high-potential sectors and value chains, the fostering of cross-sector collaboration among governments, private sector, educational institutions, and investors, to the development of comprehensive support policies for green sectors.
The report also calls for further analysis to identify Africa’s current skilled labour supply and any potential gaps.
While some experts have suggested that up to 100 million green jobs may be created by 2050, this report takes a near-term and realistic look at the job creation potential of just 12 sub-sectors through 2030. This more conservative analysis is intended to guide near-term investments and policy decisions among universities, workforce development actors, and government to ensure the mobilisation of the right skills to meet demand.
The study predicts that 60% of the employment generated by the green economy over the next six years will be skilled or white collar in nature. Within this, 10% constitute “advanced jobs” while a further 30% are projected to be “specialised” and 20% will be administrative. Crucially, these job types tend to attract higher salaries and will, therefore, play a central role in spurring the growth of the middle class in countries hosting these high-growth sectors.
Other key findings include the following.
- South Africa, Nigeria, and Kenya represent the highest job creation potential (16%) due to population, gross domestic product, and industry maturity.
- The renewable energy sector alone is expected to generate up to 2 million jobs (70% of the total), of which 1.7 million will be in solar energy.
- Solar is the most important contributor to green jobs in South Africa (140,000) and Kenya (111,000).
- Hydroelectric is forecasted to be the leading employer in both DRC (16,000) and Ethiopia (33,000).
- Agriculture and nature are forecasted to produce up to 700,000 jobs (25% of the total), of which more than half (337,000) will come from climate smart agriculture technology.
