Experts at the intergenerational dialogue on youth employment have raised concerns about job stability in Africa’s digital economy, urging stronger policies to improve job security, social protection and working conditions.
The dialogue, organised by the African Centre for Economic Transformation (ACET) in partnership with the Mastercard Foundation, examined the quality of jobs available to young Africans, particularly within the fast-growing digital and informal sectors.
Mr. Kekeli Yaw Dorkenoo, Founder and Chief Executive Officer of Keldork Global Innovation, said although the digital economy was expanding employment opportunities, many of the jobs remained short-term or supplementary income sources.
“The digital economy has provided many jobs directly and indirectly… but the youth are navigating more of a gig economy and not considering these as stable sources of income,” he said.
He noted that opportunities had expanded in e-commerce, ride-hailing services, software development and graphic design, but lack of insurance, allowances and employment protection continued to limit their attractiveness as full-time careers.
“All this is happening because of the lack of social protection and certain benefits like insurance and allowances,” he added.
Contributing to the discussion, Mr Atu Msiska, Principal Architect and Director of TectArch Limited South Africa, said many young workers valued job security over high salaries because stability allowed long-term planning.
“A lot more people would be okay with having a comfortable paying job… and have the knowledge that they will be employed for a long period of time, because it makes it easier for them to plan long term,” he said.
He added that flexibility also remained important as it allowed young people to combine formal employment with gig work or passion projects.
“The flexibility aspect also allows people the opportunity… to do a side gig or to enter the gig economy, because that’s actually quite important,” he said.
Mr Samuel Obiri, Deputy Director of Labour and Employment at the Ministry, said government policy should balance formalisation efforts with improving productivity and conditions within the informal sector.
“Full formalisation remains a long-term national goal… but efforts should also focus on making informal work more productive and dignified,” he said.
He said gradual formalisation through basic business registration, tax incentives and expanded social protection schemes could help improve conditions without undermining livelihoods.
Mr Amadou Sako, Senior Advisor at the International Organization of Employers, noted that informality continued to dominate employment across Africa, with between 80 and 90 per cent of jobs in the informal sector.
He said the key challenge was not whether digital platforms created opportunities, but whether they helped young people transition into more stable economic activities.
“The real question… is whether platforms are creating a new kind of informality, or they’re genuinely moving people up,” he said.
Mr Sako called for digital platforms to function as economic infrastructure by enabling young entrepreneurs to build credible financial histories that could improve access to finance.
He also stressed the need for stronger implementation of existing employment policies.
“We mostly know what needs to be done… but at the end of the day, the main responsibility for implementation lies on government,” he said, urging young people to demand accountability.
On practical solutions, participants highlighted the need for innovative labour systems such as multiple work shifts to expand employment opportunities and proposals similar to Ghana’s 24-hour economy initiative.
Mr Obiri further encouraged workers in both the formal and informal sectors to form associations to strengthen their bargaining power.
“Collective voice is much stronger… so that our views and our plight can be heard,” he said.
Participants agreed that while the digital economy remained critical to Africa’s employment future, improving job quality, strengthening labour protections and ensuring effective policy implementation would be essential to achieving sustainable and decent work for young people.