Similarly, it is challenging to boost formal employment generation for the many
millions occupied in informal sectors across the continent, and especially the youth
and women (UN 2019). Actually weak economic growth could cause the lower
availability of financial resources, attraction of investment opportunities and generation of employment, all of which could undermine the realization of all other SDGs
(Lange and Klasen 2017; SDG Centre for Africa 2019).
Catalyzing an economic diversification from primary economic sectors such as
agriculture and mining is a particularly difficult challenge for many SSA countries
(AfDB 2019b; Alobo Loison 2015) (Sect. 1.1). For example, the recent impressive
economic growth of Botswana allowed government investment in development
projects, but the acute price decline for its export commodities (e.g. diamonds) and
the growing income inequalities (UN-DESA 2018b) took a significant toll on
economic growth. Similarly, volatile international commodity markets and trade
barriers tend to affect substantially the economies of countries that overly depend on
commodity crops, such as Burkina Faso, Swaziland and Malawi (Vitale 2018; Terry
and Ogg 2017; Jarzebski et al., 2020a). Poor infrastructure, restrictive policies and
limited financial and technical capacity are some of the challenges facing local
industries, which put serious obstacles to economic diversification (Morris and
Fessehaie 2014) (Sect. 1.2.9). The increased spending for (and improved access
to) infrastructure such as electricity, roads and Information and Communication
Technologies (ICTs) could assist economic diversification, and eventually foster
economic growth in SSA (Kodongo and Ojah 2016; AfDB 2019b). Nevertheless, the
shortage of finance, policy constraints and poor infrastructure are some of the
challenges in the region that still need attention.
Combating acute youth unemployment is another major challenge in many SSA
countries, especially those that are highly dependent on agriculture and extractable
natural resources (Ackah-Baidoo 2016; ILO 2012). Restrictive land policies,
corruption, capital constraints and lack of entrepreneurial skills are some of the
challenges faced by young people attempting to open their own businesses (AckahBaidoo 2016; Gossel 2018). While a lack of skills is a common hurdle for many
young people seeking to enter the labour market, there is a pervasive mismatch
between the skills demanded for formal employment and the skills of many young
people in the continent (ILO 2012). There are concerns that the inability to effectively integrate youth in economic activities could contribute to conflicts, illegal
migration and early marriage (Ackah-Baidoo 2016), all of which can affect negatively progress for other SDGs.
Another major challenge to achieve sustained economic growth in many SSA
countries are the high trade imbalances, while often stem from their limited capacity
to compete in a globalized world, and reduces their ability to reap benefits from
international trade (Zahonogo 2016; Moussa 2016; UNCTAD 2018). For example,
many countries in the region heavily rely on imported consumable goods, which
they could have produced domestically to boost their manufacturing sector (Signé
2018; Mendes et al. 2014) (Sect. 1.2.9).
The sustained attraction of Foreign Direct Investment (FDI) and Overseas Development Assistance (ODA) could help address many of the above challenges and
1 Sustainability Challenges in Sub-Saharan Africa in the Context of the. . .
21
millions occupied in informal sectors across the continent, and especially the youth
and women (UN 2019). Actually weak economic growth could cause the lower
availability of financial resources, attraction of investment opportunities and generation of employment, all of which could undermine the realization of all other SDGs
(Lange and Klasen 2017; SDG Centre for Africa 2019).
Catalyzing an economic diversification from primary economic sectors such as
agriculture and mining is a particularly difficult challenge for many SSA countries
(AfDB 2019b; Alobo Loison 2015) (Sect. 1.1). For example, the recent impressive
economic growth of Botswana allowed government investment in development
projects, but the acute price decline for its export commodities (e.g. diamonds) and
the growing income inequalities (UN-DESA 2018b) took a significant toll on
economic growth. Similarly, volatile international commodity markets and trade
barriers tend to affect substantially the economies of countries that overly depend on
commodity crops, such as Burkina Faso, Swaziland and Malawi (Vitale 2018; Terry
and Ogg 2017; Jarzebski et al., 2020a). Poor infrastructure, restrictive policies and
limited financial and technical capacity are some of the challenges facing local
industries, which put serious obstacles to economic diversification (Morris and
Fessehaie 2014) (Sect. 1.2.9). The increased spending for (and improved access
to) infrastructure such as electricity, roads and Information and Communication
Technologies (ICTs) could assist economic diversification, and eventually foster
economic growth in SSA (Kodongo and Ojah 2016; AfDB 2019b). Nevertheless, the
shortage of finance, policy constraints and poor infrastructure are some of the
challenges in the region that still need attention.
Combating acute youth unemployment is another major challenge in many SSA
countries, especially those that are highly dependent on agriculture and extractable
natural resources (Ackah-Baidoo 2016; ILO 2012). Restrictive land policies,
corruption, capital constraints and lack of entrepreneurial skills are some of the
challenges faced by young people attempting to open their own businesses (AckahBaidoo 2016; Gossel 2018). While a lack of skills is a common hurdle for many
young people seeking to enter the labour market, there is a pervasive mismatch
between the skills demanded for formal employment and the skills of many young
people in the continent (ILO 2012). There are concerns that the inability to effectively integrate youth in economic activities could contribute to conflicts, illegal
migration and early marriage (Ackah-Baidoo 2016), all of which can affect negatively progress for other SDGs.
Another major challenge to achieve sustained economic growth in many SSA
countries are the high trade imbalances, while often stem from their limited capacity
to compete in a globalized world, and reduces their ability to reap benefits from
international trade (Zahonogo 2016; Moussa 2016; UNCTAD 2018). For example,
many countries in the region heavily rely on imported consumable goods, which
they could have produced domestically to boost their manufacturing sector (Signé
2018; Mendes et al. 2014) (Sect. 1.2.9).
The sustained attraction of Foreign Direct Investment (FDI) and Overseas Development Assistance (ODA) could help address many of the above challenges and
1 Sustainability Challenges in Sub-Saharan Africa in the Context of the. . .
21