As such, Alexander Forbes has released BenefitsALL Barometer Africa, which tackles 11 themes, relevant for multinational companies operating in Africa, says Anne Cabot-Alletzhauser, head of Alexander Forbes Research Institute.
She points out that we can’t presume that Africa’s youth bulge in population growth will translate into a “youth dividend” for economic growth. Without proper support around education, skills training and health, that “youth dividend” could turn out to be a “youth demerit”. At this time, African countries rank lowest in terms of focus on human capital development. Employers can play a critical role here in helping to fill the gap where governments are hampered by constraints on the fiscus. More importantly, it’s in their financial interests as employers.
In many respects, this failure to translate a country’s economic growth into financial wellness and financial stability for its citizens is a function of failed institutions and failed governance. “We need to pay close attention to how the trends on overall governance are playing out for different countries on the continent,” explains Cabot-Alletzhauser.
If African countries are going to meet their long-term ambitions and sustainable development goals (SDG) imperatives, all stakeholders – governments, employers, multinationals, foreign investors and individuals – will have to rethink exactly how funds will need to be redeployed to get the greatest multiplier impact on their investments. This applies to pension fund savings, foreign direct investment, social security programmes and corporate spending in equal measure, and will have to be a collaborative consideration.