By Prof. Oyewole O. Sarumi
The global economy is undergoing a radical transformation, one that is being driven by the forces of automation, artificial intelligence (AI), and the evolving dynamics of labour markets.
These changes are redefining the skills necessary for prosperity in the decades ahead. For Africa, a continent characterized by the world’s youngest and fastest-growing workforce, this shifting landscape presents both a significant opportunity and an urgent challenge. To truly harness its demographic dividend, Africa must ensure that its higher education systems move beyond outdated models and align with the demands of the next economy.
Each year, African universities produce millions of graduates. Yet, a large portion of these individuals struggle to find meaningful employment. According to a 2023 World Bank report, approximately 60% of African graduates are either underemployed or working in fields unrelated to their academic training.
This statistic reveals a deep disconnect between higher education outputs and labor market demands. At the same time, sectors such as fintech, renewable energy, and digital content creation are experiencing rapid growth. However, most university curricula remain stagnant and unresponsive to these economic shifts.
To remain relevant, higher education in Africa must transition from a degree-centric model to a system rooted in skills, adaptability, and real-world application. This transformation must include new pedagogical approaches, stronger partnerships with industry, and greater use of technology to widen access.
The cost of inaction is high. If Africa fails to reform its educational infrastructure, it risks turning its youth bulge into a liability. But if it succeeds, it can reposition itself as a global innovation and talent hub.
The Skills Gap: Why Current Systems Are Falling Short
Africa’s higher education infrastructure is still largely designed for the economies of the 20th century. These systems prioritize theoretical knowledge while overlooking the practical, adaptable skills needed in today’s rapidly evolving labor markets. While traditional academic disciplines remain foundational, they are insufficient on their own. The digital age demands more agile, interdisciplinary, and future-proof skillsets.
A 2024 report by the African Development Bank (AfDB) revealed that fewer than 15% of African universities currently offer programs in emerging sectors like AI, blockchain, and green energy. Meanwhile, employers across the continent report critical shortages in areas such as data analytics, cybersecurity, and advanced manufacturing—all of which are essential to Africa’s participation in the Fourth Industrial Revolution (4IR).
The implications are sobering. Youth unemployment continues to climb, with rates exceeding 30% in countries like South Africa and Nigeria. As a result of the skills gap, many companies either outsource key roles or rely on foreign talent. The informal economy continues to absorb most graduates, which contributes to low productivity and stunted economic growth.
To close this gap, universities must integrate alternative credentials, such as micro-degrees and industry certifications, into their formal offerings. Collaborations with companies like Google and Microsoft, both of which already offer digital skills programs across Africa, can accelerate this transformation and bring practical learning into academic spaces.
The Rise of the Digital and Green Economies: Africa’s Twin Engines of Growth
Two sectors are poised to lead Africa’s future economic trajectory: the digital economy and the green economy. Each presents immense potential for job creation, innovation, and global competitiveness.
A. The Digital Economy: Beyond Coding
Africa’s digital revolution is already in motion. In 2023, African tech startups raised an impressive \$5.4 billion in venture capital, according to Partech Africa. This signals the growing maturity of the continent’s innovation ecosystem. Yet, despite this momentum, most university-level computer science programs remain focused on basic programming and software engineering. This stands in stark contrast to global trends, where demand is rising for specialists in cloud architecture, AI ethics, and quantum computing.
The skills required in this digital transformation are diverse and expanding. AI and machine learning professionals are increasingly vital across sectors like fintech, agriculture, and healthcare, where predictive analytics and automation are reshaping service delivery. Cybersecurity experts are urgently needed, especially in light of Africa losing an estimated \$4 billion annually to cybercrime, as reported by Interpol in 2023. Blockchain developers are also crucial, especially for applications in supply chain transparency and decentralized finance, while cloud solutions architects are in high demand as more businesses migrate to platforms like AWS, Azure, and Google Cloud.
To prepare students for this new reality, universities must offer nanodegree programs in high-growth fields such as DevOps, UX/UI design, and data engineering. Forming partnerships with organizations like Andela, Google Africa, and Microsoft’s African Development Centers will provide students with hands-on experience through real-world projects. It is equally essential that AI governance—covering issues like bias, privacy, and accountability—is embedded into every digital curriculum to cultivate responsible tech leadership.
Rwanda serves as a successful model in this domain. It has mandated coding instruction in primary education and established the African Leadership University’s School of AI. This proactive approach has contributed to a 300% increase in tech startups between 2020 and 2024, according to the GSMA.
B. The Green Economy: Sustainability as a Core Discipline
While digital innovation dominates headlines, the green economy is quietly becoming one of the most transformative sectors in Africa. Climate change continues to pose existential threats, from severe droughts to rising sea levels. At the same time, it opens the door to an economic opportunity projected to reach \$3 trillion by 2030, according to the International Monetary Fund (IMF).
The International Renewable Energy Agency (IRENA) estimates that Africa could generate up to 4.5 million green jobs by 2030. These roles will span areas such as solar and wind energy installation, green hydrogen production, climate-smart agriculture, sustainable manufacturing, marine conservation, and eco-tourism. Yet, the current academic offerings in these fields remain sparse.
To prepare for this future, universities must establish dedicated programs in green technologies, including solar engineering, carbon trading, and sustainable urban planning. They should transform campuses into “living labs” that showcase real-world applications of off-grid energy, water recycling, and agroecology. Funding partnerships with institutions like the Africa Green Infrastructure Investment Bank (AGIIB), set to launch in 2025, could support research hubs and pilot projects.
Kenya offers a powerful example. Its Geothermal Development Company works closely with Kenyatta University to train engineers in geothermal energy systems. This collaboration has helped the country power over 40% of its national grid with renewable energy, as noted by the World Bank in 2024.
The Student-Centered Revolution: Rethinking Learning for the Future
Across African campuses, a quiet revolution is gaining momentum. Students increasingly reject traditional, passive learning models in favor of education that is hands-on, adaptive, and economically relevant. This generational demand is prompting institutions to completely rethink how learning is structured.
A study by the Brookings Institution highlights a sharp disconnect: while 87% of students believe their academic content is outdated, 92% of employers report that graduates lack workplace readiness. This divergence represents both a failure and an opportunity.
Some institutions are responding with bold experiments. Competency-Based Education (CBE), a model pioneered by institutions in the United States, is gaining traction in Africa. Makerere University Business School in Uganda is piloting CBE programs where students advance based on demonstrated mastery in areas like digital marketing and agribusiness.
Micro-credentialing ecosystems are also emerging. The African Union’s Continental Education Strategy for Africa now endorses stackable credentials as a pathway to employability. In Johannesburg, ALX Tech Academy collaborates with over 200 companies to deliver nano-degrees in cloud computing and AI engineering, which students can complete in as little as six months.
At Ghana’s Ashesi University, the traditional internship model has been replaced by year-long immersive placements. Students work on actual industry problems while earning academic credit, resulting in a 94% employment rate within six months of graduation.
The Infrastructure Imperative: Building Campuses of the Future
None of these reforms are possible without infrastructure to support them. Africa’s universities face a \$100 billion infrastructure deficit, according to the African Development Bank in 2024. However, with the right strategy, they could bypass outdated models entirely and leapfrog into modern, future-ready campuses.
In Kenya, Riara University has launched the continent’s first 5G-enabled smart campus, complete with AI-powered energy management and VR engineering labs. In South Africa, Tshwane University of Technology now uses blockchain to verify academic credentials, reducing administrative costs and fraud.
Some institutions are embracing a distributed model. The African Leadership University (ALU) has created a pan-African network of micro-campuses, each tailored to regional industries. Mauritius hosts a campus focused on maritime studies, while Nigeria houses a fintech-oriented center. This model reduces costs while boosting local relevance.
Funding remains a major hurdle. UNESCO estimates that Africa’s higher education sector needs \$15 billion annually to meet demand. Innovative financing mechanisms are emerging. Rwanda’s Kepler University uses Income Share Agreements, allowing students to defer tuition until employed. These agreements carry a 60% lower default rate compared to traditional loans.
Nigeria’s Covenant University has entered into corporate learning partnerships, such as with Dangote Industries, to provide industry-sponsored degrees that include both academic training and guaranteed employment. Ghana has also introduced a \$500 million Higher Education Innovation Bond, leveraging diaspora funds to modernize campuses with returns tied to graduate employment outcomes.
The Way Forward: Integrating Digital and Green Skills
The future will belong to those who can integrate digital transformation with environmental sustainability. African universities must begin designing interdisciplinary programs that merge AI with climate modeling or blockchain with carbon offset tracking. Innovation clusters should be built around these dual priorities, co-locating tech hubs with green energy parks. At the policy level, governments must create enabling environments through tax incentives, subsidies, and investment in digital green bonds.
Graduates of tomorrow must not be forced to choose between climate action and tech leadership—they must lead in both arenas simultaneously.
Conclusion:
The transformation of African higher education is not a luxury, it is a necessity. With the continent set to supply 40% of the global workforce by 2050, the decisions made today will determine whether this demographic dividend results in shared prosperity or deepened inequality.
The path forward is clear. It involves revolutionizing curricula to focus on skills and adaptability, leveraging smart infrastructure to support learning, embracing innovative financing models, and promoting collaboration across borders and sectors.
The next economy will reward nations that educate, innovate, and adapt the fastest. For Africa, the classroom is no longer just a site of learning, it is the frontline of economic transformation. The time to act is now.
Prof. Sarumi is the Chief Strategic Officer, LMS DT Consulting, Faculty, Prowess University, US, and ICLED Business School, and writes from Lagos, Nigeria Tel. 234 803 304 1421, Email: leadershipmgtservice@gmail.com.
