00:00How can businesses finance the sustainable transformation of the African job market and fuel innovation?
00:06Our correspondent Tom Canetti met with Sanda Ojiambo, Assistant Secretary General and CEO of the UN's Global Compact System,
00:15the world's largest corporate sustainability initiative that pushes businesses to follow the UN's sustainable development goals
00:22to discuss the future of Africa's workforce and the economy.
00:26Sanda Ojiambo, thank you for joining us.
00:29Thank you for having me.
00:29One of the recurring themes over the summit has been working with Africa rather than in Africa.
00:37Can you elaborate on that for us, please?
00:39So let me take a couple of issues.
00:41If you looked at energy and renewables, which is a huge business investment opportunity,
00:46African continent has an abundance of solar energy, strong hydro and geothermal opportunities.
00:51So really those looking to invest in energy need to see how to work with Africa to be able to
00:57build
00:57both capacity as well as, you know, products that are, you know, that will drive forward renewable energy investments.
01:04Of course, a critical topic is the question of critical minerals, because they're so important both for the digital transformation
01:12as well as for their innate value.
01:14And, you know, you know, every other piece of equipment that uses some of these materials and metals.
01:19But of course, here, the bigger question is not simply the investment, but, you know, value addition,
01:24beneficiation and more quality, you know, of African economies and countries in this whole trade and business around critical minerals.
01:32As so many other areas, you know, Africa has the largest consumer market.
01:36It has a growing labor market.
01:38It has a demographic dividend in its young people.
01:41So it's truly, as we say, the moment to do business with Africa.
01:44Make sure that African business and political leaders are at the table.
01:47We're looking at value addition.
01:49We're looking at building skills.
01:51So Africa has the youngest population of any continent in the world.
01:55Can you explain to us how this young population can be utilized for economic growth?
02:01Absolutely.
02:01I mean, the first is, as you said, it's a population to be utilized.
02:06You know, it's often seen as a liability.
02:07I think it's one of Africa's greatest assets.
02:10You have a youthful population at a time when around the world, population growth is declining.
02:15You also have a population that, by and large, at least for urban youth, are very digitally savvy.
02:20You know, the mobile phone is so ubiquitous here.
02:23People are on their mobiles.
02:24They're driving e-commerce.
02:26They're using mobile money.
02:27You know, the young people are highly engaged in, you know, small and micro business areas, etc.
02:33And so, you know, for me, the youth population is one that is ready to work, can fill in lots
02:39of gaps.
02:39Mobility, I think, is absolutely important.
02:41We're working a lot with the AFCFTA.
02:43And I think the question is, how do we create an African continent where there is mobility of goods, services
02:49and people so they can find jobs as and where, you know, things are possible?
02:53So I think it's more about looking at young people, looking at mobility as an asset for what we need
02:59to do.
02:59Finally, de-risking Africa has been another popular theme over the weekend.
03:06Can you explain to us what investors mean by de-risking the continent?
03:11There is a perception that Africa is, first of all, a risky population to invest in.
03:17And, you know, I think a lot of entities and institutions, including the ECA with whom, you know, we are
03:23working with, has spent a lot of time making sure that we can challenge that perception.
03:27You know, we can't necessarily change what credit rating agencies say, but there's a couple of things that are really
03:32important.
03:32One is using available African capital to invest in the continent and to demonstrate that the continent is investable.
03:40So I attended the launch of a liquidity facility being put together by Aude Nepad, part of the African Union,
03:46as well as the Association of African Multilateral Development Banks.
03:50And it was impressive to see them come together, leverage finance to demonstrate that, you know, we should be investing
03:57in Africa and it is not a risk.
03:59There have been lots of discussions around leveraging philanthropic capital to go in and also help de-risk.
04:04But the other part was just, you know, really focusing on how Africa itself, business leaders, political leaders, African capital
04:11can go in and kick off projects and project financing.
04:15Lots has been said about pension funds.
04:17There's massive pension funds, you know, around the African continent from some of the larger economies.
04:22How do we put those to use in terms of, you know, development, sustainable development, sustainable business related investments?
04:28Thanks very much for your time.
04:29Thank you. Thank you for having me.
Comments