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Transforming Education for Inclusive Growth

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Policy Responses

The report highlights the urgency to address the education and skills gaps, among other investment and policy priorities, which could help accelerate growth to end poverty in Sub-Saharan Africa. Currently, seven in 10 children in Sub-Saharan Africa are not benefiting from pre-primary education. And fewer than 1.5% of 15-to-24-year-olds are enrolled in formal vocational education programs, compared to roughly 10% in high-income countries.

Central banks will need to maintain a firm grip on inflation to enhance monetary policy credibility and allow more accommodation over the next two years. Fiscal policy makers will need to consolidate public sector accounts while finding space to fund priority and viable public investment and social programs. They also need to address the high cost of debt service and ensure debt sustainability. Debt management practices that put an emphasis on transparency and more concessional sources of financing are critical. 

Addressing fiscal and debt sustainability risks through domestic resource mobilization and greater spending efficiency requires careful attention to the quality of public services and investments. This starts with transparent and accountable spending decisions, including independent reviews to ensure that public projects have met their targets.

Accelerating inclusive growth and creating high-quality jobs will require a transformation of the region’s education system, with a focus on two interrelated pillars that support skills development: providing a solid foundation of basic skills for all children, and equipping the workforce, including the youth, with skills relevant to an evolving global economy, including in nascent digital and green economic sectors.  

This will require focusing on pre-primary education and paying close attention to literacy and numeracy targets. Investments in early childhood development are among the most cost-effective interventions for achieving targets later in a student’s life, with earlier investments yielding higher returns. These should complement investments in nutrition, health, and social protection, to create a robust foundation for lifelong development and avoid developmental delays.

Integrate education strategies with wider private sector development plans. Supporting entrepreneurship and new startups, allowing small businesses to grow, and attracting larger and established firms is essential so that skilled graduates find meaningful job opportunities when they try to enter and advance in the workforce. Efforts should also include internships and job placement support, with particular attention to adolescent girls and women who may face gender-specific barriers.

Make better use of the teaching force, as teacher salaries make up over 90 percent of the recurrent costs of education provision. In many countries, weak teacher deployment systems are the main cause of wide spending inequalities, given that teacher absenteeism and low overall motivation are highly prevalent.

Report Launch at University of Pretoria

Key Findings

Economic Recovery: Sub-Saharan Africa's economy is projected to grow by 3% in 2024, driven by increased private consumption and investment. However, this growth is insufficient to reduce poverty and reach pre-pandemic levels.
 

Inflation Slowdown: Inflation is expected to decline significantly in 2024, with most countries experiencing lower rates compared to the previous year. However, inflation rates remain higher than pre-pandemic levels for many countries.
 

Monetary Policy Divergence: Monetary policy responses are diverging across countries, with low-inflation countries considering rate cuts while high-inflation countries maintain tighter policies.


Growth and Debt: The global economy is stabilizing, but growth in China is projected to slow. Global inflation is declining but at a slower pace than initially expected. Fiscal balances are improving, but high debt service costs are limiting fiscal space for growth-enhancing investments.


Conflict and Climate Change: Political violence, climate change, and extreme weather events continue to hinder growth prospects.


Education as a Catalyst: The report highlights the crucial role of education in boosting productivity, creating jobs, and achieving inclusive growth.


Investing in Education: Sub-Saharan Africa needs to significantly increase investment in education to meet national and global goals. This includes addressing teacher management challenges and ensuring that skills development programs are relevant to local economic needs.

Data

Higher Living Standards Are Correlated with Higher Levels of Learning in Africa

There is a positive correlation between learning and GDP per capita, as better learning leads to a more productive workforce, which in turn contributes to GDP growth. However, learning alone is not sufficient: if there is weak demand for well-educated workers, individuals may struggle to translate their human capital into better, higher-paying jobs.