Africa DD Barcelona

EMERGING EVIDENCE ON THE DEMOGRAPHIC DIVIDEND OF AFRICA Adedoyin Soyibo University of Ibadan  NIgeria OUTLINE ‰Popula...

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EMERGING EVIDENCE ON THE DEMOGRAPHIC DIVIDEND OF AFRICA Adedoyin Soyibo University of Ibadan  NIgeria

OUTLINE ‰Population Age Structure ‰LCD Estimates and Components ‰Demographic Dividend Estimates ‰Implications ‰ Recommendations ‰Acknowledgements

Africa’s Population Structure, 19502100

‰In 1950 Africa was 183 million  with  dependency ratio of 82% ;  Working Age  Population (WAP)  ratio of just 18% ‰In 2010  Africa’s population became to 863  million with WAP ratio about 1.5 times  1950  value. ‰By 2050, Africa’s population is projected to  increase to 1,753 million.   ‰Over the thre periods, population structure  alters in favour of less Young Age Dependency;  with  greater Old Age Dependency observed  with increasing years

African population Growth by Regions, 1950‐2100  4.00

 3.50

 3.00

 2.50

 2.00

 1.50

 1.00

 0.50

 ‐

1950‐1955 1970‐1975 1990‐1995 2010‐2015 2030‐2035 2050‐2055 2070‐2075 2090‐2095  (0.50)

Sub Sahara Africa

Eastern Africa

Western

Southern

Northern

Central

Population Age structure, Mozambique 4.5 4 3.5

Percent

3 2.5 2 1.5 1 0.5 0 0

10

20

30

1950

40

2000

50

2050

60

70

80

90

Population age structure, Kenya 5

percent

4 3 2 1 0 0

10

20

30

40 1950

50 2000

60

70 2050

80

90

100

Population age structure, Nigeria

5

percent

4

3

2

1

0 0

10

20

30

40

1950

50

2000

60

70

2050

80

90

100

Population age structure, Senegal 5

percent

4

3

2

1

0 0

10

20

30

40 1950

50 2000

60

70 2050

80

90

100

Population age structure, South Africa

5

percent

4

3

2

1

0 0

10

20

30

40 1950

50 2000

60

70 2050

80

90

100

LCD Estimates and Components normalized by mean YL ages 30-49

Per Capita Consumption 1 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 0

Kenya, 2005

10

20

Nigeria, 2004

30

40

Senegal, 2005

50

60

South Africa, 2005

70

80

Mozambique, 2005

90+

normalized by mean YL ages 30-49

Per Capita Public Consumption 0.3

0.25

0.2

0.15

0.1

0.05

0 0

Kenya, 2005

10

20

Nigeria, 2004

30

Senegal, 2005

40

50

South Africa, 2005

60

70

Mozambique, 2005

80

90+

normalized by mean YL ages 30-49

Per Capita Private Consumption 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 0

Kenya, 2005

10

20

Nigeria, 2004

30

Senegal, 2005

40

50

South Africa, 2005

60

70

Mozambique, 2005

80

90+

normalized by mean YL ages 30-49

Per Capita Education Consumption 0.16 0.14 0.12 0.1 0.08 0.06 0.04 0.02 0 0

Kenya, 2005

10

Nigeria, 2004

20

30

Senegal, 2005

40

50

South Africa, 2005

60

70

Mozambique, 2005

80

90+

normalized by mean YL ages 30-49

Per Capita Health Consumption  (Public) 0.09 0.08 0.07 0.06 0.05 0.04 0.03 0.02 0.01 0 0

Kenya, 2005

10

Nigeria, 2004

20

30

Senegal, 2005

40

50

South Africa, 2005

60

70

Mozambique, 2005

80

90+

normalized by mean YL ages 30-49

Per Capita Private Education Consumption 0.12

0.1

0.08

0.06

0.04

0.02

0 0

Kenya, 2005

10

Nigeria, 2004

20

30

Senegal, 2005

40

50

South Africa, 2005

60

70

Mozambique, 2005

80

90+

normalized by mean YL ages 30-49

Per Capita Private Health Consumption 0.16 0.14 0.12 0.1 0.08 0.06 0.04 0.02 0 0

Kenya, 2005

10

20

Nigeria, 2004

30

40

Senegal, 2005

50

60

South Africa, 2005

70

80

Mozambique, 2005

90+

normalized by mean YL ages 30-49

Per Capita Labour Income 1.4 1.2 1 0.8 0.6 0.4 0.2 0 0

Kenya, 2005

10

20

Nigeria, 2004

30

40

Senegal, 2005

50

60

South Africa, 2005

70

80

Mozambique, 2005

90+

Per Capita Lifecycle Deficit Lifecycle Deficit

1 South Africa (2005) 0.5 Kenya (2005) Nigeria (2004) Senegal (2005)

-0.5

-1 Age

90+

85

80

75

70

65

60

55

50

45

40

35

30

25

20

15

10

5

0 0

Per average labor income ages 30-49

1.5

Economic Support Ratio

1.6

1.4

1.2

1

0.8 1950

1960

1970

1980

1990

KE

2000

NG

2010

SN

2020

ZA

2030

MZ

2040

2050

The First Demographic Dividend

1.5

Percent

1

0.5

0

-0.5

-1

-1.5 1950

1960

1970

1980

KE

1990

NG

2000

SN

2010

ZA

2020

MZ

2030

2040

2050

Currently, all countries are enjoying the  demographic dividend (with small pause in South  Africa) However, the dividend is expected to reach the peak  by 2030 and end soon after 2050

Implications •In Africa, the best opportunities can turn out to be the biggest challenges • Jobs creation • Education • Health – infant/child mortality, maternal health, unmet need for family planning • That, of course, raises the more difficult question of “How”. What are some of the main opportunities Africa can capitalize on to realize its demographic dividend?

Recommendations

‰Improve access to labor markets for the youth domestically and regionally ‰Working hard to promote fertility decline ‰Strengthening and enhancing the financial sector to promote the conditions of promoting investments that will ensure the realization of the second DD

Acknowledgements ƒ Bill and Melinda Gates Foundation provided the grants for the research ƒ Global NTA Network, led by Ronal Lee and Andrew Mason ƒ The Country Africa NTA teams for the data and analysis

THANKS