Lessons for Growth: Why Schooling Africa's Youth Can Double GDP

Nelson Mandela said it best: “Education is the most powerful weapon which you can use to change the world.” And when it comes to battling poverty, especially in Sub-Saharan Africa, he was spot on. A closer look at recent reports shows how investing in education might just be the ultimate economic growth hack.

Let’s start with the numbers. According to the latest World Bank Report - Poverty, Prosperity and Planet Report 2024 - adults without formal education are significantly more likely to live in extreme poverty. Meanwhile, those with higher education see poverty rates drop to just 3%. This makes education not only a social equalizer but a powerful economic tool. Sub-Saharan Africa, however, faces a daunting educational crisis. A staggering 90% of children struggle to read by age 10. Picture a future where nearly half of a continent’s children are set up to fail. Not exactly a recipe for economic success.

Education isn’t just about reading and arithmetic, though those are the essential building blocks. Countries that have embraced universal basic education—ensuring that every child masters foundational literacy and numeracy—see productivity gains that can double GDP per capita by 2050. If you think that sounds like pie-in-the-sky economics, consider this: every additional year of schooling boosts income by 12.4% in Sub-Saharan Africa. For women, it’s even higher. Forget hedge funds—invest in more school desks!

Classrooms vs. Crisis

Yet despite the rosy possibilities, challenges abound. In Sub-Saharan Africa, many schools operate with bare-bones resources. Only $54 per student is spent annually in low-income countries, compared to $8,500 in high-income ones. It’s no surprise that classrooms often lack textbooks, teachers, and even roofs. Girls face the added hurdles of early marriage and economic pressures, forcing many out of school before they can properly learn.

Governments recognize the need for change. The latest Africa Pulse Report emphasizes that improving foundational learning, developing relevant vocational skills, and facilitating youth employment transitions is crucial. With the working-age population set to double by 2050, the clock is ticking to ensure these young people aren’t left jobless—or hopeless.

It’s easy to see the economic potential. An educated workforce isn’t just employable; it’s entrepreneurial. When students master skills relevant to their local economies, they can drive innovation, establish businesses, and attract foreign investment. Right now, only 1.5% of youth are in vocational training compared to 10% in high-income countries. Talk about missing the bus!

Debt, Doughnuts, and Decisions

Still, the economics of education is not just about spending more money but spending it wisely. High debt burdens mean that many governments have little left for schools after paying their bills. Yet, by focusing on smart investments—like expanding early childhood education or upgrading vocational training—there’s hope. With evidence-based planning, Africa’s education system can go from ‘chalk-and-talk’ to being a driver of economic resilience.

In the end, building more classrooms and hiring more teachers isn’t just a lofty dream; it’s an economic necessity. Turning Sub-Saharan Africa’s growing working-age population into a skilled workforce could add 11-15% to GDP by 2030 and lift millions out of poverty. Now, that’s a lesson worth learning.

Let’s start with the numbers. According to the latest World Bank Report - Poverty, Prosperity and Planet Report 2024 - adults without formal education are significantly more likely to live in extreme poverty. Meanwhile, those with higher education see poverty rates drop to just 3%. This makes education not only a social equalizer but a powerful economic tool. Sub-Saharan Africa, however, faces a daunting educational crisis. A staggering 90% of children struggle to read by age 10. Picture a future where nearly half of a continent’s children are set up to fail. Not exactly a recipe for economic success.

Education isn’t just about reading and arithmetic, though those are the essential building blocks. Countries that have embraced universal basic education—ensuring that every child masters foundational literacy and numeracy—see productivity gains that can double GDP per capita by 2050. If you think that sounds like pie-in-the-sky economics, consider this: every additional year of schooling boosts income by 12.4% in Sub-Saharan Africa. For women, it’s even higher. Forget hedge funds—invest in more school desks!

Classrooms vs. Crisis

Yet despite the rosy possibilities, challenges abound. In Sub-Saharan Africa, many schools operate with bare-bones resources. Only $54 per student is spent annually in low-income countries, compared to $8,500 in high-income ones. It’s no surprise that classrooms often lack textbooks, teachers, and even roofs. Girls face the added hurdles of early marriage and economic pressures, forcing many out of school before they can properly learn.

Governments recognize the need for change. The latest Africa Pulse Report emphasizes that improving foundational learning, developing relevant vocational skills, and facilitating youth employment transitions is crucial. With the working-age population set to double by 2050, the clock is ticking to ensure these young people aren’t left jobless—or hopeless.

It’s easy to see the economic potential. An educated workforce isn’t just employable; it’s entrepreneurial. When students master skills relevant to their local economies, they can drive innovation, establish businesses, and attract foreign investment. Right now, only 1.5% of youth are in vocational training compared to 10% in high-income countries. Talk about missing the bus!

Debt, Doughnuts, and Decisions

Still, the economics of education is not just about spending more money but spending it wisely. High debt burdens mean that many governments have little left for schools after paying their bills. Yet, by focusing on smart investments—like expanding early childhood education or upgrading vocational training—there’s hope. With evidence-based planning, Africa’s education system can go from ‘chalk-and-talk’ to being a driver of economic resilience.

In the end, building more classrooms and hiring more teachers isn’t just a lofty dream; it’s an economic necessity. Turning Sub-Saharan Africa’s growing working-age population into a skilled workforce could add 11-15% to GDP by 2030 and lift millions out of poverty. Now, that’s a lesson worth learning.

Glossary of Key Economics Terms

1. Economic Growth: The increase in the amount of goods and services produced by an economy over time.
2. Extreme Poverty: The condition characterised by severe deprivation of basic human needs, often measured as living on less than $2.15 per day (PPP)
3. Foundational Learning: Basic literacy and numeracy skills taught in early education, which form the basis for further learning.
4. Gross Domestic Product (GDP): The total value of all goods and services produced in a country in a given period.
5. Human Capital Index: A measure of the economic productivity potential of a population, based on education, health, and other factors.
6. Inclusive Growth: Economic growth that is distributed fairly across society and creates opportunities for all.
7. Monetary Policy: Actions taken by a central bank to control money supply and interest rates to achieve macroeconomic goals like controlling inflation.
8. Vocational Training: Education that equips people with specific trade skills relevant to the job market.

Glossary of Key Economics Terms

1. Economic Growth: The increase in the amount of goods and services produced by an economy over time.
2. Extreme Poverty: The condition characterised by severe deprivation of basic human needs, often measured as living on less than $2.15 per day (PPP)
3. Foundational Learning: Basic literacy and numeracy skills taught in early education, which form the basis for further learning.
4. Gross Domestic Product (GDP): The total value of all goods and services produced in a country in a given period.
5. Human Capital Index: A measure of the economic productivity potential of a population, based on education, health, and other factors.
6. Inclusive Growth: Economic growth that is distributed fairly across society and creates opportunities for all.
7. Monetary Policy: Actions taken by a central bank to control money supply and interest rates to achieve macroeconomic goals like controlling inflation.
8. Vocational Training: Education that equips people with specific trade skills relevant to the job market.

Retrieval Questions for A-Level Students

1. Explain how increasing education levels can impact poverty rates in Sub-Saharan Africa.
2. What is meant by ‘foundational learning,’ and why is it significant for economic growth?
3. Discuss the spending disparities on education between low-income and high-income countries.
4. How does vocational training contribute to economic resilience?
5. Why is it important for Sub-Saharan African countries to invest wisely in education despite their debt burdens?

Retrieval Questions for A-Level Students

1. Explain how increasing education levels can impact poverty rates in Sub-Saharan Africa.
2. What is meant by ‘foundational learning,’ and why is it significant for economic growth?
3. Discuss the spending disparities on education between low-income and high-income countries.
4. How does vocational training contribute to economic resilience?
5. Why is it important for Sub-Saharan African countries to invest wisely in education despite their debt burdens?

Key Data Summary from the Article:

1. Poverty and Education:
   • One-fifth of people aged 15+ without formal education live in extreme poverty.
   • Only 3% of people with higher education live in extreme poverty.
   • In Sub-Saharan Africa, 90% of children cannot read by age 10, higher than the 70% average in other low- and middle-income countries.
2. Economic Benefits of Education:
   • Universal basic education can double GDP per capita by 2050.
   • An additional year of education boosts income by 12.4% in Sub-Saharan Africa, with a 14.5% boost for women.
3. Educational Crisis in Sub-Saharan Africa:
   • 7 out of 10 children lack pre-primary education.
   • One-third of children drop out of primary school due to economic pressures and poor facilities.
   • Annual spending on education: $54 per student in low-income countries vs. $8,500 in high-income countries.
4. Population and Employment Potential:
   • The working-age population in Sub-Saharan Africa is expected to double by 2050.
   • Only 1.5% of youth (aged 15-24) are in vocational training compared to 10% in high-income countries.
5. Government Spending and Debt:
   • In 2024, 34% of government revenues in Sub-Saharan Africa are spent on debt servicing, limiting funds for education and health.
   • Investments in expanding access to education and vocational training can contribute 11-15% to GDP growth by 2030 and lift millions out of poverty.

Key Data Summary from the Article:

1. Poverty and Education:
   • One-fifth of people aged 15+ without formal education live in extreme poverty.
   • Only 3% of people with higher education live in extreme poverty.
   • In Sub-Saharan Africa, 90% of children cannot read by age 10, higher than the 70% average in other low- and middle-income countries.
2. Economic Benefits of Education:
   • Universal basic education can double GDP per capita by 2050.
   • An additional year of education boosts income by 12.4% in Sub-Saharan Africa, with a 14.5% boost for women.
3. Educational Crisis in Sub-Saharan Africa:
   • 7 out of 10 children lack pre-primary education.
   • One-third of children drop out of primary school due to economic pressures and poor facilities.
   • Annual spending on education: $54 per student in low-income countries vs. $8,500 in high-income countries.
4. Population and Employment Potential:
   • The working-age population in Sub-Saharan Africa is expected to double by 2050.
   • Only 1.5% of youth (aged 15-24) are in vocational training compared to 10% in high-income countries.
5. Government Spending and Debt:
   • In 2024, 34% of government revenues in Sub-Saharan Africa are spent on debt servicing, limiting funds for education and health.
   • Investments in expanding access to education and vocational training can contribute 11-15% to GDP growth by 2030 and lift millions out of poverty.