Summary
- The African Continental Free Trade Area (AfCFTA) holds the potential to drive green technology (greentech) adoption, equitable job creation and sustainable industrialisation across the continent.
- Notable barriers to wider adoption include the low integration of Indigenous knowledge and digital technologies in the greentech sector, as well as regulatory challenges, particularly when it comes to green service-trade. Overcoming these challenges will require a concerted and collaborative effort from all relevant parties to leverage the avenues presented by the AfCFTA.
- For governments, this includes establishing greentech tax incentive zones, facilitating mutual recognition agreements for professional qualifications, formulating youth-centric trade policies, and integrating Indigenous knowledge into those policies.
- For NGOs, providing greentech-relevant digital skills training, engaging in environmental advocacy, supporting Indigenous greentech projects and championing policies for youth employment will be key.
- For the private sector, investing in digital greentech startups, establishing partnerships for skill development, founding greentech incubators and platforms that facilitate cross-border service-trade should be on the agenda.
Executive summary
This policy paper addresses youth unemployment in Africa against the backdrop of the global shift towards renewable energy and the anticipated decline of carbon-intensive industries. It highlights the AfCFTA as a key driver of the adoption of greentech, fostering job creation and sustainable industrialisation across the continent. The paper underscores the significance of integrating Indigenous environmental practices into modern greentech development strategies, aligning with the African Union's Agenda 2063 and contributing to sustainable development. Also discussed are the challenges of integrating digital technologies in the greentech sector, the underutilisation of Indigenous technologies, and regulatory barriers in green service-trade. Mitigation strategies are suggested for each challenge, emphasising the role of collaborative efforts among the different stakeholders.
Urgent, collaborative action from all relevant parties is needed to leverage the opportunities presented by the AfCFTA, foster the growth of greentech, and create sustainable employment opportunities for Africa's youth. For governments, it advocates establishing greentech zones with tax incentives, formulating youth-centric trade policies under the AfCFTA, and facilitating mutual recognition agreements for professional qualifications in greentech and integrating Indigenous technologies for sustainability. NGOs are urged to provide digital skills training relevant to greentech, engage in environmental advocacy, support Indigenous greentech projects, and champion policies for youth employment in greentech sectors. The private sector is encouraged to invest in digital greentech startups, develop partnerships for skill development, establish greentech incubators, and invest in platforms that facilitate cross-border green service-trade. These recommendations are designed to catalyse sustainable job creation and empower African youth through the AfCFTA framework.
Introduction
African economies are at a critical juncture: youth unemployment is at a crisis level, with over 72 million young people out of work, two-thirds of whom are young women (ILO, 2023). Meanwhile, the global transition to green economies presents a unique opportunity for Africa to harness its abundant resources and create sustainable jobs. The window to act is narrow, as delayed action risks entrenching economic inequalities and increasing dependence on external imports.
African countries are now tasked with reconfiguring their production and consumption patterns and practices to make them more resilient in response to the climate crisis. While these changes pose risks for Africa’s development agenda, they also present opportunities, including the chance to define sustainability within the African context. This definition can draw on lost and extant Indigenous practices which take better consideration of the environment (Duruigbo, C. I., Ibeawuchi, I. I., Aja, O. O. & Ejiogu-Okereke, E. N., 2011). With this knowledge, the African Union (AU) can chart a more sustainable path towards achieving its Agenda 2063.
One of the flagship projects of the AU’s Agenda 2063 is the African Continental Free Trade Area (AfCFTA) agreement. Launched in January 2021, the agreement seeks to boost intra-African trade and drive industrialisation and advancement on the continent. The AfCFTA will be implemented within the context of a global green imperative, necessitating the adoption of greentech1 for sustainable production, consumption and exchange. It also presents an opportunity for the exchange of these technologies in the form of green goods and services2, creating jobs for African youth.
This policy paper examines the intersection between greentech development, intra-African trade and job creation for young Africans. Although the paper discusses greentech in general, it skews towards renewable energy due to the wealth of data from this particular sub-sector. To start, it provides an overview of the greentech industry, highlighting the various sub-sectors, economic value, trade volumes and selected participating youth-led firms in Africa. Within this context, the paper goes on to discuss the opportunities the AfCFTA presents for ramping up intra-African trade volumes. Showcasing potential greentech goods and services that can be traded within the continent, we show where policy interventions may be most useful. To localise the discussion, an overview of extant Indigenous greentech that may complement more modern solutions is provided. Following this, greentech job opportunities available via the AfCFTA are discussed, starting with the estimated job losses and gains attributed to the shift to more sustainable approaches. This balances out the discussion in the previous section by acknowledging that the embrace of greentech presents both risks and opportunities. A non-exhaustive list of green-tech-driven jobs is also provided to emphasise the potential of the industry to boost employment. Policy recommendations are then provided first according to the thematic areas of investment promotion, skills development, trade facilitation, infrastructure investment and finance; and second according to stakeholders, including government actors, the private sector and civil society. The paper concludes with a call to action to strengthen the link between growing intra-African trade and green livelihoods for Africa’s youth in the form of jobs and entrepreneurship.
Industry snapshot
Africa's sustainable development is driven by the greentech industry. A 2023 scoping report by the Africa Policy Research Institute (APRI), as illustrated in Figure 1, categorised greentech in Africa into three main clusters: technologies that benefit biodiversity, those that reduce or remove pollution, and climate technologies for both mitigation and adaptation. Each of the clusters holds potential not only to drive the continent’s shift towards a low-carbon economy3 but also to create employment opportunities. The clusters highlight sectors where the AfCFTA can reduce barriers, enabling African firms to trade green goods, such as climate adaptation technologies, which can in turn create jobs in engineering, production and installation. For example, it has been estimated that decarbonisation4, an activity that sits at the intersection of the three clusters, presents a USD 3 trillion investment potential (UNEP, 2023). Similarly, Africa has the world’s largest renewable energy potential, though according to the International Renewable Energy Agency (IRENA), it has yet to unlock this value (IRENA, 2022).
Clusters of greentech
Figure 2 shows four categories of greentech identified by the scoping report, all of which are relevant to the African context. For example, monitoring and assessment technologies can support Africa’s natural resource management initiatives, while remediation technologies present export opportunities in addressing oil spills or mining restoration within the AfCFTA framework.
Categories of greentech
In 2020, global exports for environmentally sound technologies (ESTs)5 reached USD 1.17 trillion. However, only USD 6.07 billion worth of EST finance flowed into Africa in the same year (UNEP, 2023). Similar dynamics exist in the trade of environmentally related goods and services.According to the 2023 Technology and Innovation Report by the United Nations Conference on Trade and Development (UNCTAD, 2023), the total exports of greentech by developed countries grew by 160% from USD 60 billion in 2018 to USD 156 billion in 2021 (UNCTAD, 2023). During the same period, developing countries saw a 31.6% increase in greentech exports, from USD 57 billion to USD 75 billion (UNCTAD, 2023). Due to varying definitions, it is difficult to retrieve recent trade data for greentech in Africa.
However, Figure 3 below shows Africa’s high trade deficit in green goods in 2010, 2013 and 2016 (van der Ven & Signé, 2021). The substantial trade deficit in green goods underscores the untapped potential for intra-African trade under the AfCFTA. By encouraging local production and reducing external imports, this deficit can be transformed into a driver of job creation and regional economic integration. .
Trade in environmentally related goods in Africa
SOURCE: This figure is based on data from the OECD
A similar gap in the adoption of frontier technologies 6 (of which greentech is a part) is observed between developed and developing countries (UNCTAD, 2023). There are concerns that another layer of technological disadvantage is emerging for developing economies such as African countries, and that this is deepening their dependence on developed economies for critical green inputs. Firms from developed countries are already leading the charge in knowledge production, innovation, adoption and export of greentech. This can translate to a larger share of jobs in this industry being situated in developed countries. For this reason, an instrument such as the AfCFTA needs to be strategically leveraged to improve Africa’s competitiveness in global green advancement and secure jobs for its young people. A key element of this is harnessing the larger addressable market as an incentive for increased local manufacturing.
Despite the challenging performance highlighted in the preceding section, there are already a number of African startups and established firms operating in the green and clean technology space, including innovators, designers and users. Some of these companies are youth-led and adopt Indigenous greentech in the solutions they provide. These solutions can be leveraged to increase intra-African trade and youth employment. Figure 4 shows some of these startups distributed into different sectors, while Appendix 2 profiles selected youth-led greentech startups on the continent. African greentech startups demonstrate a wide range of innovations, from waste recycling (e.g. Ecobarter, Nigeria) to renewable energy solutions (e.g. Jirogasy, Madagascar). Many of these firms are youth-led, showcasing the entrepreneurial potential of the continent’s young population to lead the green transition.
Selected greentech startups in Africa
The diversity of greentech startups illustrates the entrepreneurial potential within Africa. If the AfCFTA reduces market entry barriers, these firms can expand beyond their national borders, creating jobs across the continent. Although a number of these firms have operations limited to their domestic markets, some of them are already exporting goods and services within Africa.
The opportunity through the AfCFTA
The combination of Indigenous greentech, advancements in green innovation and the growing appetite for green investment presents an opportunity to create livelihood opportunities for young people through the AfCFTA. This is because the AfCFTA removes traditional market barriers, allowing greentech enterprises to access a larger market. Table 1 below lists some such tradeable green goods. Since most of these goods are currently being imported into African countries, an opportunity exists to manufacture and trade them domestically, consequently creating jobs for young people.
Opportunities in Africa for tradeable greentech goods
|
CATEGORY |
GOODS |
|
Renewable energy generation equipment |
Solar panels, wind turbines, hydroelectric power systems, geothermal energy equipment, biomass energy systems |
|
Energy storage and battery technologies |
Lithium-ion batteries, flow batteries, hydrogen fuel cells, thermal energy storage systems |
|
Energy efficiency technologies |
LED Lighting systems, energy-efficient appliances, insulation materials |
|
Smart grid and energy management systems |
Smart meters, grid management software, energy management systems for buildings |
|
Electric and hybrid vehicles |
Electric cars and buses, hybrid vehicles, electric |
|
Waste management and recycling technologies |
Waste-to-energy systems, advanced recycling equipment, composting technology |
|
Waste conservation and management |
Water-efficient appliances, irrigation technology, wastewater treatment systems |
|
Air and environmental quality management |
Air purification systems, carbon capture and storage technologies, environmental monitoring equipment |
|
Sustainable agriculture technologies |
Precision agriculture equipment, organic farming supplies, aquaponics and hydroponics systems |
|
Sustainable building materials |
Green roofing materials, sustainable insulation materials, energy-efficient windows and doors |
Note: Compiled by author using data from various sources. (2024)
As depicted in Figure 5, the trade of select green goods in Africa reveals a persistent trade deficit with the rest of the world. In 2023, intra-African exports accounted for only 2.04% of the USD 2.931 billion worth of these goods imported by African countries. This trend continued into 2024, with intra-African exports comprising only 3.47% of the USD 2.278 billion imported by African countries from the world. These figures underscore the vast potential for greater regional economic integration and collaboration in the green goods sector.
Trade in select green goods in Africa
Africa imports a large proportion of its greentech, including solar panels, energy-efficient appliances and battery storage systems. Under the AfCFTA, there is an opportunity to localise the production of these goods. For instance, manufacturing solar panels domestically could not only reduce dependency on international suppliers but also create thousands of jobs in assembly, quality assurance and distribution. Additionally, sectors such as waste management technologies, currently dominated by imports, can leverage local expertise in recycling and composting systems to meet regional demand. With strategic investment, this shift could catalyse the establishment of industrial hubs, driving employment and economic growth in countries with abundant raw materials such as cobalt in the DRC for batteries or silicon in Egypt for solar panels.
This shift would also stimulate ancillary industries. For example, the local production of renewable energy systems could drive demand for skilled labour in component production (e.g. glass and aluminium for solar panels), logistics and installation services. By replacing imports with intra-African manufacturing, the continent can retain value within its borders, develop resilience against global supply chain disruptions and create sustainable livelihoods for its growing youth population.
Opportunities also exist in the trade of services in the greentech space, including design, engineering, manufacturing services, transportation, consulting, finance, research and software development, among others. These services can be traded using different modes of service delivery: cross-border supply, consumption abroad, foreign commercial presence and movement of natural persons. This expansion could increase the demand for greentech, leading to job creation for young people.
The single African market created by the AfCFTA can help improve the case for investment in goods and services production enabled by greentech. The AfCFTA’s Protocol on Investment emphasises sustainability, with obligations placed on investors to ensure that their operations meet minimum standards. At the level of the World Trade Organization, the Investment Facilitation7 for Development agreement also seeks to facilitate foreign investment for sustainable development. In 2022, the top 5 sectors globally by capital investment were renewable energy, fossil fuels such as coal, oil and gas, semiconductors, electronic components, and software and IT services (fDi Markets, 2023). The renewables sector saw a 158% increase in capital investment, and remained above coal, oil and gas for the fourth year in a row.
An initial list of four priority value chains has been identified for the AfCFTA: processing, automotive, pharmaceuticals and transportation and logistics (World Economic Forum, 2023). Scaling up production and supply in these sectors in a sustainable manner will require the adoption of greentech, which will then open up more job opportunities in the space. An economic activity that cuts across all the sectors mentioned above is electricity generation. As shown in Figure 6, in 2022, African countries imported USD 1.93 billion worth of electrical energy from each other. The leading importers were Mozambique, South Africa and Namibia8. Electricity generation is a foundational enabler for virtually all sectors of the economy. In manufacturing, stable and affordable electricity is crucial for operating machinery, powering assembly lines and ensuring efficient production cycles. For instance, agroprocessing—one of the AfCFTA’s priority value chains—requires consistent electricity for refrigeration, drying and packaging. Without reliable electricity, African manufacturers cannot compete globally or regionally in producing value-added goods, such as processed foods or textiles, which limits both job creation and economic development.
Top intra-African electrical energy exporters in 2022
In agriculture, electricity supports irrigation systems, mechanised farming equipment and the cold storage necessary to reduce post-harvest losses. This is particularly important on a continent where post-harvest losses can account for up to 30% of total agricultural output. Furthermore, the services sector, including healthcare, education and financial services, relies heavily on electricity for digital infrastructure, lighting and technology systems. By prioritising investments in renewable energy generation under the AfCFTA framework, African countries can unlock the full potential of these interlinked sectors, fostering both job creation and economic resilience.
The acceleration of investments in renewable energy production, including that of green hydrogen, has the potential to create a spillover effect for energy exports within Africa. Figure 7 shows the distribution of some of these renewable energy projects as compiled in a report by Baldessin, Tschopp and Maio (2022).
Green hydrogen projects and renewable power plants in Africa
Green hydrogen presents opportunities for job creation across its value chain (from producing it to building and maintaining the equipment needed for its use). The production phase involves constructing and operating electrolysers, which requires engineers, technicians and machine operators. Infrastructure development, such as pipelines and storage facilities, creates additional employment in construction, maintenance and logistics. Furthermore, green hydrogen can serve as a feedstock for industries like fertiliser production and steelmaking, both of which could expand with regional market access under the AfCFTA. The export potential of green hydrogen also promises to generate foreign exchange revenues, further driving economic development.
While countries like South Africa, Namibia and Morocco are positioning themselves as green hydrogen hubs and as such are poised to take advantage of these opportunities, the green hydrogen industry faces significant barriers. High production costs, primarily due to the expense of electrolysers and renewable energy inputs, make green hydrogen less competitive compared to fossil fuels. Infrastructure gaps, including the lack of pipelines, storage facilities and refuelling stations, further hinder its scalability, as do skills shortages in specialised areas such as hydrogen engineering and project management.
Additionally, the regulatory environment for green hydrogen remains nascent in many African countries, pointing to the need for clear policy frameworks and incentives to attract private sector investment. Meanwhile, competing land use priorities—such as agriculture versus solar farms for hydrogen production—can create social and environmental tensions. To address these constraints, governments must focus on reducing production costs through subsidies or grants, investing in training programmes to upskill workers, and fostering public-private partnerships for infrastructure development.
The AfCFTA and Indigenous greentech
The integration of Indigenous greentech in contemporary sustainable development strategies is more than just a nod to traditional practices; it represents a fusion of time-tested wisdom with modern environmental management. These technologies, deeply rooted in the local cultures and environments of various African countries, not only offer sustainable solutions to pressing ecological challenges but also embody a holistic approach to living in harmony with nature. By embracing and revitalising these practices, there is an opportunity to harness their potential for sustainable livelihoods, particularly in rural and underserved communities. This also aligns with global sustainability goals by promoting diverse, culturally rich and environmentally sound practices. Furthermore, recognising and elevating these technologies can inspire innovative approaches to greentech development, drawing on a deep well of Indigenous knowledge and practices. This underscores the need for policies and initiatives that protect, support and integrate these Indigenous technologies into broader environmental and economic planning, ensuring that Africa's journey towards sustainability is inclusive and respectful of its rich heritage.
The implementation of the AfCFTA presents a unique opportunity to facilitate the trade of Indigenous greentech within the continent. With cultural proximity and shared environmental challenges across African nations, these technologies have a greater likelihood of acceptance and integration within the continent than outside. The AfCFTA can act as a catalyst, not only in preserving and promoting these sustainable practices but also in creating a market for them, thereby contributing to regional economic growth. This potential for intra-African trade in Indigenous greentech could be a game-changer in Africa's sustainable development journey, leveraging shared heritage and knowledge for collective progress.
Table 2 compiles some key Indigenous greentech that could benefit from increased market access under the AfCFTA.
Some Indigenous green technologies
|
CATEGORY |
INDIGENOUS GREEN TECHNOLOGIES |
DESCRIPTION |
COMMON COUNTRIES OF ORIGIN |
|
Agriculture and irrigation |
Za pit farming |
A method to combat desertification by digging pits to concentrate water and nutrients for crops |
BURKINA FASO, NIGER |
|
Stone lines of bunds |
Used for soil conservation and water harvesting in semi-arid areas |
BURKINA FASO, GHANA |
|
|
Tassa or half-moon techniques |
Traditional water harvesting in arid regions |
BURKINA FASO, NIGER |
|
|
Natural Resource Management |
Indigenous forest management practises |
Techniques used by local communities for sustainable forest management |
Various countries across Africa |
|
Community-based wildlife management |
Traditional approaches to protect and sustain wildlife through community reserves |
Kenya, Tanzania |
|
|
Energy and building |
Biogas from animal manure |
Using animal waste to produce biogas for cooking and heating |
Ethiopia, Kenya |
|
Mud and thatch houses |
Traditional building methods using mud and thatch for natural insulation |
Mali, Nigeria |
|
|
Water conservation and management |
Sand dams |
Traditional methods(capturing rainwater) for water conservation in arid regions |
Ethiopia, Kenya |
|
Fog and dew collection |
Indigenous techniques for collecting water from fog or dew in coastal and mountainous regions |
Ethiopia, South Africa |
|
|
Food preservation and processing |
Traditional grain storage pits |
Methods for storing grains that protect against pests and spoilage |
Various countries across Africa |
|
Sun drying of foods |
Preserving foods like fruits, vegetable and fish using solar energy |
Various countries across Africa |
|
|
Medicine and health |
Traditional herbal medicines |
Use of indigenous plants and herbs for medicinal purposes |
Various countries across Africa |
|
Indigenous health practises |
Traditional practises for health and wellness, often intertwined with local beliefs |
Various countries across Africa |
|
|
Crafts and textiles |
Natural dye and fibres |
Making dyes and textiles from local plants and materials |
Ghana, Nigeria |
|
Recycled art and craft |
Indigenous practises of using recycled or natural materials for art and craftwork |
Ghana, South Africa |
Note: Compiled by author from various sources. (2024)
By providing livelihood opportunities for young people in rural areas, the promotion and trade of Indigenous greentech under the AfCFTA framework holds potential for addressing spatial inequalities. Since these technologies are often more prevalent and accessible in rural settings, the AfCFTA can play a pivotal role in engaging rural youth in sustainable economic activities by integrating these Indigenous solutions into value chains. This approach not only helps in preserving local ecosystems and cultural heritage, but it also ensures that the benefits of trade and technological advancements are equitably distributed. Consequently, the AfCFTA can serve as a crucial link in bringing rural youth into the fold of Africa’s growing green economy, thereby fostering inclusive and balanced development across the continent.
Greentech, the AfCFTA and jobs for young Africans
As Africa embarks on this sustainable transformation, a shift in the job market is inevitable. The transition to sustainable practices is not merely about environmental conservation; it also concerns economic transformation and job creation. This is particularly evident in the renewable energy sector, which is poised to become a major employer on the continent. While it has been estimated that carbon-intensive sectors such as the fossil fuel industry may shed up to 2.1 million jobs by 2030 and 4.2 million jobs by 2050 in Africa alone, the energy transition has the potential to create up to 9 million jobs by 2030 and another 3 million jobs by 2050.
The renewable energy sector is leading the change: It is estimated that this sector alone will create 4 million jobs by 2030 (up from 0.35 million in 2020) and 8 million jobs by 2050. The leading sub-sectors include solar, bioenergy, wind and hydropower. These estimates relate to a scenario created by the International Renewable Energy Agency (IRENA), which requires that policies and outcomes conform with the Paris Agreement 1.5-S (Ferroukhi, Reiner & El-Katiri, 2022). The outcomes under this scenario outpace those under a second scenario, where only current policies are implemented (PES). Figure 8 below shows job creation under the different scenarios.
Overview of energy sector jobs in Africa under >1.5-S and PES, by sector, 2019-2050
Beyond the energy sector, jobs can be created as African countries embrace the production and trade of greentech. Table 3 categorises a variety of greentech jobs linked to the AfCFTA’s priority value chains. With the right policy framework, these jobs could be targeted and tailored for young Africans.
Potential greentech jobs
|
CATEGORY |
SOME JOB TITLES |
|
Renewable energy |
Solar panel installer, wind turbine technician, renewable energy consultant, hydroelectric plant technician, geothermal energy engineer, biomass paint technician |
|
Energy efficiency |
Energy auditor, green building architect, sustainability specialist, energy efficiency engineer, HVAC systems designer, lighting systems designer |
|
Energy protection |
Environmental scientist, wildlife conversationist, water quality inspector ecologist, environmental lawyer |
|
Sustainable transportation |
Electric vehicle engineer, public transportation planner, bicycle urbanism advocate, sustainable mobility coordinator, hydrogen fuel cell technician |
|
Sustainable fashion |
Sustainable fashion designer, sustainable textiles expert, circular economy expert(clothing), textiles recycling specialist, sustainable fashion marketer |
|
Wellness and beauty |
Cosmetics designer, wellness expert |
|
Green construction and design |
LEED12 certified architect, green roofing specialist, sustainable interior designer, landscape architect, urban planner |
|
Waste management and recycling |
Recycling coordinator, waste reduction specialist, composting manager, hazardous waste technician, landfill gas management operator |
|
Agriculture and food systems |
Organic farmer, aquaponics specialist, permaculture designer, sustainable fisheries manager, food waste analyst |
|
Water resources |
Water resource engineer, watershed coordinator, stormwater management specialist, food risk assessor, irrigation technology developer |
|
Climate change and carbon management |
Climate change analyst, carbon footprint auditor, emissions trading specialist, greenhouse gas inventory manager, climate policy advisor |
|
Research and development |
Clean technology researcher, renewable energy scientist, environmental chemist, green nanotechnology specialist, biofuel research scientist |
|
Education and advocacy |
Environmental educator, corporate sustainability officer, environmental policy analyst, environmental NGO worker, environmental journalist |
Note: Compiled by author using a large language model. (2024)
Spotlight on sustainable fashion in Africa
The tricky balance between the move towards sustainability and the preservation and expansion of livelihood opportunities for young Africans is demonstrated in the sustainable fashion industry. One of the many faces of industrialisation is the growth in the clothing and textiles value chain, notably garment factories that can provide jobs for a large number of low- to semi-skilled young people. However, some of these garment factories are associated with ‘fast fashion’, which is considered unsustainable. More sustainable fashion will mean reducing the volume of the production of clothes, which could mean fewer jobs. On the other hand, it may create opportunities in the recycling of clothing and textiles, and in the design and sourcing of local sustainable materials. Sustainable fashion is also an avenue for incorporating Indigenous greentech in the weaving and production of textiles. This is already being done by sustainable fashion firms such as Nkwo (Nigeria), Ecobarter (Nigeria), Mafi Mafi (Ethiopia), Suave (Kenya), Olooh (Cote d’Ivoire) and Studio 189 (Ghana).
In a nutshell, the AfCFTA can do the following for greentech jobs in Africa:
- Expand market access for greentech firms, facilitating economies of scale and job creation.
- Incentivise the inflow of investment into existing greentech firms and facilitate the establishment of new firms in response to the opportunity created by the single markett.
- Facilitate the export of greentech services provided by young people in Africa.
- Facilitate the upskilling of young Africans in the greentech space through the export of training and the incentive of AfCFTA-enabled jobs for the acquisition of relevant skill.
- Contribute to green industrialisation by facilitating the trade of renewable energy within the continent.
- Allow for knowledge transfer by facilitating the exchange of Indigenous greentech either through the trade of related goods, the linkages of firms through regional value chains or the export of knowledge services through research, consulting or engineering services.
- Promote the culture, diversity and inclusion of Indigenous knowledge in Africa’s economic and business transformation.
What needs to be done
For the AfCFTA to catalyse greentech jobs for Africa’s young people, some measures will need to be put in place.
Investment promotion and facilitation
To capitalise on the potential of the greentech space, it is crucial to create an investment-friendly atmosphere. This involves policy reforms, incentives and showcasing the market potential of greentech. Campaigns and forums to connect investors with greentech opportunities in Africa can also be instrumental, so long as they are targeted and results-oriented. They must also dispel investors' negative perceptions of African economies, which, at 11.7%, have had the highest return rate on FDI globally between 2006 and 2011, compared to the global average of 7.1% (Odusola, 2022).
African economies must therefore:
- Highlight success stories: To improve attitudes towards greentech investment in Africa, there is a need to showcase the potential of the sector using examples of successful initiatives. Many investment forums can serve as platforms for disseminating these narratives.
-
Attract and facilitate global and regional investment: African countries need clear strategies to bring in investment from both local and international sources. This includes establishing greentech investment hubs and offering tax incentives. Specific opportunities must be compiled alongside key investment facilitation measures drawing from the AfCFTA’s investment protocol and the WTO’s investment facilitation for development (IFD).
Figure 9 shows opportunity levels for green manufacturing in key African markets as compiled by Sustainable Energy for All (2023). These assessments were the result of expert interviews where industry players were asked to rank the opportunity level of renewables manufacturing on the continent.
Opportunity level of renewable manufacturing in Africa
Countries with high opportunity levels, such as South Africa and Kenya, can lead regional supply chains under the AfCFTA, creating cross-border job opportunities in renewable manufacturing. There is, however, a need for governments to increase their investment in green infrastructure, highlight ongoing projects and promote new projects for private investment. According to a UNEP (2023) report, as of 2022, there was a pipeline of around 360 sustainable infrastructure projects with a value of USD 100 billion, with another USD 257 billion worth of tentative projects. These projects are in sectors such as energy, information and communications technology (ICT), logistics, mining and construction. They present a positive development for potential greentech investments, as well as a positive narrative for promoting private sector participation in green infrastructure investments.
Skills development
There is a need to distinguish between education and skills, with measures targeted at shaping both for improved participation in the greentech industry. Considering the variety of jobs listed in Table 3, formal education curricula and skill development programmes need to be aligned with market demand. Partnerships between educational and training institutions and industry players can ensure the relevance and quality of these programmes. It is also important to educate and train young Africans on broader frontier technologies, given their complementarity with the innovation, adoption, production and trade of greentech. Some measures have been outlined below:
- Tailored educational programmes: Given the pervasive nature of greentech, there is a need for early educational curricula to adequately reflect sustainability as an approach. This will then make it easier for these principles to be applied to different sectors and activities.
- Skill gaps analysis: It will be important to conduct research in collaboration with entities like the International Renewable Energy Agency (IRENA) to identify skills gaps in the greentech sector and develop targeted training programmes. Given the fast-moving nature of the sector, these assessments cannot be one-off; they will need to happen at intervals.
Solar academy
Lagos, Nigeria
Gennex Technologies, a Nigeria-based renewable energy firm, runs a solar academy that trains candidates on solar installation. This service is delivered through the ‘consumption abroad’ mode, as participants often come from other parts of West Africa to join the training. Success stories include the establishment of distribution networks for solar products across West Africa through non-Nigerian participants in the training, thus creating livelihood channels. The AfCFTA can help scale up such initiatives by facilitating intra-African export of educational services.
Trade facilitation
This refers to strategies targeted at making it easier for goods and services to move across borders by simplifying customs processes and reducing trade barriers. Building on existing infrastructure and trade networks, the focus should shift to developing greentech corridors that facilitate the swift movement of goods and services. Upgrading customs processes and harmonising standards across countries will be key. Key measures will include:
- Infrastructure development: Given the significant trade infrastructure gap in Africa, it will be important to rank and prioritise projects according to their more immediate impact. These rankings should, however, include their potential to facilitate the trade of greentech as well as their sustainability..
- Definition of African green goods and services: There are various methodologies for categorising green goods and services, but they may not be ideal for the African context. Clearly defining sustainability in the African context (while including Indigenous greentech) will make it easier to design specific trade facilitation measures for the relevant goods and services.
- Streamlining trade processes: The AfCFTA provides a platform for increased cooperation and coordination among African customs and border officials to facilitate the movement of green goods and services within the continent.
- Facilitation of cross-border green services: There is a need for mechanisms to ease the cross-border provision of green services, such as environmental consulting, sustainable engineering and renewable energy project management. This could include mutual recognition agreements for professional qualifications and simplified visa processes for experts and technicians working in the green sector. Establishing digital platforms for service trade can also enhance accessibility and visibility for green service providers in different African markets.
Greentech products may require some specific trade facilitation measures, including the following:
- Standardisation of greentech products: Developing and harmonising standards for greentech products across countries to ensure quality and compatibility.
- Specialised handling and storage: Greentech products, especially those involving new or sensitive technologies, may require specialised handling and storage facilities during transportation.
- Expedited clearance processes: Implementing expedited customs clearance processes for greentech goods, recognising their importance in promoting sustainable development.
- Technical regulations and compliance: Providing clear guidelines on technical regulations and compliance requirements specific to greentech products to facilitate smooth cross-border movement.
- Support for intellectual property rights: Ensuring robust protection of intellectual property rights to encourage innovation and investment in the greentech sector.
Figure 10 below summarises some further general recommendations for ‘greening’ trade agreements that will be relevant to the AfCFTA (Van Der Ven & Signé 2021).
Measures for greening trade agreements
Finance
To support the startups and firms mentioned earlier, financial instruments tailored for greentech are needed. This includes grants, low-interest loans and green bonds. Collaborations with financial institutions to develop these products will be crucial for the sector's growth.
- Innovative financial instruments: There is a need to develop green bonds and climate finance instruments in collaboration with the African Development Bank and World Bank. Encourage private sector participation through public-private partnerships.
- Support for small and medium-sized enterprises (SMEs) and startups: There is a need to create funding pools specifically for SMEs and startups in the greentech space. The African Export-Import Bank (Afreximbank) has a major role to play in facilitating trade finance for greentech exports.
Policy recommendations
In addition to the points in the previous section, the following policy recommendations have been put forward for governments, NGOs and the private sector.
Why Act Now?
- Youth unemployment in Africa has reached over 30% in some regions, posing severe economic and social risks.
- The global green economy is projected to grow to USD 10 trillion by 2030, but Africa risks being left behind without immediate action.
- The AfCFTA can drive sustainable industrialisation, creating over 1 million green jobs by 2030—but only with targeted policies and immediate investment.
These recommendations are aimed at leveraging the AfCFTA to create job opportunities for young Africans, especially in the greentech sector. They address key areas such as the digital economy, Indigenous technology integration and trade facilitation, ensuring a comprehensive approach to sustainable development and trade integration in Africa.
For governments
- Green tech innovation zones: Develop zones with tax incentives for young entrepreneurs focusing on green tech and digital economy solutions.
- Youth-centric trade policies for services: Targeting youth-led initiatives, create policies to boost trade in services, including digital services, under the AfCFTA.
- Mutual Recognition Agreements (MRAs): Facilitate MRAs for professional qualifications in green tech sectors to support service mobility across borders. MRA’s are formal arrangements between countries to mutually accept each other's professional standards and certifications.
- Indigenous technology integration: Support local innovation and sustainability by encouraging the use of Indigenous technologies in green tech initiatives.
- Reform intellectual property legislation: Protecting innovation can act as an incentive for stakeholders to invest and participate in research and development activities.
For NGOs
NGOs can act as intermediaries, bridging gaps between governments, private sector players and communities to ensure inclusive green growth.
- Digital skills training: Collaborate with tech firms to provide training in digital skills relevant to greentech.
- Climate and environmental advocacy: Focus on climate change education, linking it to practical greentech solutions which can then spur market demand for these goods and services.
- Support for Indigenous greentech projects: Promote projects that integrate Indigenous greentech in definitions of sustainable technologies.
- Policy advocacy: Advocate for policies that support youth employment in the green and digital economy sectors.
- Support rural youth by expanding funding for micro-enterprises that produce sustainable building materials like mud bricks and solar roofing.
Timbuktu Initiative Launch
In 2022, the United Nations Development Programme launched its Timbuktoo initiative, targeted at providing public and private finance to African startups. It is being implemented via country hubs, one of which will be focused on green technologies. This is a positive development, including an emphasis that all other hubs focused on various issues should also seek to ‘green’ their activities and operations.
For the private sector
- Investment in digital greentech startups: Prioritise funding (venture capital and grants) for startups that merge greentech with digital solutions.
- Skill-development partnerships: Partner with educational and vocational bodies to develop curricula focused on greentech, the digital economy and Indigenous practices, e.g. designing and delivering training for high-demand green jobs like wind turbine technicians and sustainable architects.
- Greentech and digital economy incubators: Establish incubators that foster innovation in green tech and digital services.
- Trade facilitation for green services: Invest in platforms and initiatives that facilitate cross-border trade in green services, leveraging digital technologies, e.g. funding e-commerce platforms that connect African greentech startups with regional buyers.
Challenges, limitations and mitigation
In the pursuit of leveraging the AfCFTA for greentech job creation among Africa's youth, several challenges may arise. This section identifies these potential hurdles and offers mitigation strategies, closely tied to the policy recommendations above, to ensure a practical and effective approach towards sustainable development and trade integration.
a. Insufficient integration of the digital economy in greentech. The digital economy's potential is yet to be fully harnessed in the greentech sector. This gap limits the reach and efficiency of greentech solutions, especially in rural and underdeveloped areas where digital infrastructure is lacking.
Mitigation: A collaborative effort by governments and the private sector can enhance digital infrastructure. Investment in training programmes to merge digital skills with greentech knowledge is crucial.
b. Underutilisation of Indigenous technologies. Despite their sustainability and adaptability to local environments, Indigenous technologies are often overlooked in modern greentech solutions. This oversight results in a missed opportunity for innovative, context-specific sustainable development.
Mitigation: Policy support for research and development in Indigenous technologies is needed. Integrating these practices into contemporary greentech solutions can be achieved through governmental initiatives and NGO advocacy.
c. Regulatory barriers in the trade of green services. The trade in green services across African borders faces regulatory hurdles, hindering the growth of the greentech sector.
Mitigation: Efforts should focus on establishing MRAs and simplifying cross-border trade regulations. This approach will facilitate the free movement of green services and professionals across the continent.
d. Limited access to funding for greentech startups. Many startups in the green and digital tech sectors struggle to access the capital needed for development and scaling.
Mitigation: Creating specific funding mechanisms, such as green-tech focused venture capital funds, can provide the necessary capital injection for these startups.
References
Africa Policy Research Institute. (2023). Green technology and youth employment potential in Africa: A continental scoping report.
Baldessin, E., Tschopp, J. & Maio, L. (2022). Will Africa become the new green hydrogen ‘El Dorado’? S&P Global Insights. Retrieved from https://www.spglobal.com/commodityinsights/en/ci/research-analysis/africa-green-hydrogen.html
Duruigbo, C. I., Ibeawuchi, I. I., Aja, O. O. & Ejiogu-Okereke, E. N. (2011). Indigenous technologies for adaptation and mitigation of climate change in sub-Saharan Africa. International Journal of Agriculture and Rural Development, 4(2).
Ferroukhi, R., Reiner, M. & El-Katiri, L. (2022). Could the energy transition benefit Africa's economies? International Renewable Energy Agency. Retrieved from https://www.irena.org/News/expertinsights/2022/Nov/Could-the-Energy-Transition-Benefit-Africas-Economies
IRENA (2022). Geopolitics of the energy transformation: The hydrogen factor. International Renewable Energy Agency. Abu Dhabi.
International Labor Organisation. (2023). African youth face pressing challenges in the transition from school to work. Retrieved from https://ilostat.ilo.org/african-youth-face-pressing-challenges-in-the-transition-from-school-to-work/
Odusola, A. (2022). Investing in Africa is sound business and a sustainable corporate strategy. Africa Renewal. Retrieved from https://www.un.org/africarenewal/web-features/Investing-africa-sound-business-and-sustainable-corporate-strategy
Raconteur (2022). The green tech startups fighting for Africa’s future. Retrieved from https://www.raconteur.net/climate-crisis/climate-clean-tech-startups-africa-cop27
Sustainable Energy for All (2023). Africa renewable energy manufacturing: Opportunity and advancement. Retrieved from https://www.seforall.org/system/files/2023-01/%5BFINAL%5D%2020220115_ZOD_SEForAll_AfricanManufacturingReport.pdf
United Nations Conference on Trade and Development (2023). Opening green windows: Technological opportunities for a low-carbon world. Technology Innovation Report.
United Nations Environment Programme (2023). Africa environment outlook for business: Our environment our wealth. Retrieved from https://www.unep.org/resources/report/africa-environment-outlook-business
World Economic Forum (2023). AfCFTA: A new era for global business and investment in Africa. Retrieved from https://www3.weforum.org/docs/WEF_Friends_of_the_Africa_Continental_Free_Trade_Area_2023.pdf
Endnotes
[1] According to APRI (2023), green technologies are those that seek to reduce the environmental impacts of consumption and production through means such as more efficient resource use.
[2] In this report, the term ‘green goods and services’ is used interchangeably with ‘environmental goods and services’, ‘environmentally friendly goods and services’, ‘environment-related goods and services’ and ‘climate-friendly goods and services’. However, in the context of trade and investment flows and volumes, these different terms can sometimes refer to distinct categories.
[3] An economy that produces fewer greenhouse gases, like carbon dioxide.
[4] Decarbonisation refers to efforts to lower the amount of carbon dioxide released into the atmosphere, particularly from industries and energy production.
[5] According to UNEP, ‘Environmentally Sound Technologies (ESTs) are technologies that have the potential for significantly improved environmental performance relative to other technologies’.
[6] These are emerging technologies that are driving innovation and include machine learning, artificial intelligence, the internet of things, renewable energy and other green technologies.
[7] Investment facilitation refers to the host of strategies aimed at encouraging investment by creating policies and processes that make it easier for investors to fund projects.
[8] Retrieved from TradeMap.org.
Appendix 1:
Select green goods
Appendix 2:
Youth-led green tech firms in Africa
About the Author
Teniola Tayo
Teniola Tayo is a Trade and Investment Advisor, and former Trade Policy Fellow at APRI.
This paper was produced in the context of the Green Technology for Green Growth: Barriers and Drivers Project (2023 - November 2025) in partnership with the Mastercard Foundation. The views expressed do not necessarily represent those of the Foundation, its staff, or its Board of Directors.
