Green Economy Projected to Create 3.3 Million Jobs in Africa by 2030, Report Finds

A transition to a greener economy could create millions of jobs in some of Africa’s largest countries, according to a recent report.

Research conducted by the development agency FSD Africa and impact advisory firm Shortlist suggests that 3.3 million jobs could be generated across the continent by 2030.

The report, titled “Forecasting Green Jobs in Africa,” predicts that 60% of these jobs, primarily in the renewable energy sector, will be skilled or white-collar positions. These roles have the potential to “spur the growth of the middle class in countries with high-growth sectors” such as renewable energy, e-mobility, construction, and manufacturing.

The study focuses on five countries – the Democratic Republic of the Congo, Ethiopia, Kenya, Nigeria, and South Africa – which are projected to account for more than a fifth of the jobs expected from the green transition over the next six years.

Approximately 10% of the jobs created will require university degrees, 30% will involve “specialised” work needing certification or vocational training, and 20% will be administrative roles. The report predicts stability for unskilled labor positions, with opportunities for upward mobility.

“This is the first public report that seriously considers human capital and talent as vital inputs to green economic growth and as a positive outcome in the form of millions of new, direct jobs,” says Paul Breloff, CEO of Shortlist.

The renewable energy sector is projected to generate approximately 70% of the new jobs, with about 1.7 million in solar power. The Democratic Republic of the Congo and Ethiopia, which have Africa’s largest and second-largest hydropower potential, will see significant job growth in that sector. Agriculture is also expected to employ hundreds of thousands, with more than half of these jobs in climate-smart technology.

The researchers urge policymakers, funders, and educational institutions to invest in training a workforce for green industries, emphasizing that this could “contribute to the formalization of African economies and the inclusion of entire populations in stable systems of remuneration, social security, and taxation.”

“Policymakers, funders, and workforce developers need to step up to meet this near-term demand with effective training, apprenticeships, and job/skill matching to achieve Africa’s green promise,” said Breloff.

With its young workforce and abundant renewable energy resources, Africa has the potential to “leapfrog” into renewables, bypassing the carbon-intensive pathways taken by industrialized countries. However, the report’s authors note that this will require “supportive policies, infrastructure, and significant financial investments, estimated at over $100 billion annually.”

African countries have faced challenges in attracting renewable energy investments due to investor perceptions of risk and concerns over commercial viability. Currently, the continent receives only 3% of global clean energy funding. To meet climate and energy access development goals, investments need to more than double to over £155 billion annually by 2030, according to the International Energy Agency (IEA) and the African Development Bank.

“You need a base level of good skills in the country to get investors comfortable putting their money into green investments. Those jobs de-risk investments, allowing finance to flow into or within the country. If finance flows, projects get realized, creating even more new jobs,” said Kevin Munjal, director of development impact at FSD Africa.

Some African countries, particularly those with oil and gas reserves, continue to resist calls to prioritize carbon reduction goals over domestic priorities such as economic growth through fossil fuels and providing domestic energy, given that 600 million Africans still lack access to electricity.

Kevin Munjal highlights that while it is important to consider a just transition, green growth offers substantial potential for job creation and economic development. “There is a significant opportunity here to address what is quickly turning into a demographic crisis,” Munjal said. “Africa has the youngest, fastest-growing workforce, but the youth need jobs.”

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