Tbilisi International Solidarity and Innovative Financing Forum Tbilisi, Georgia, December 2015 By: Mr. Imlak Lemma Eshetu Africa Business & Investment Group Africa Investment Plan for Demographic Dividend Meeting the Resource Requirements for Africa's accelerated investment in Youth development and empowerment

Outline What is the Demographic Dividend (DD)? Why does Africa Need a DD Investment Plan/What results are expected? What are proposed milestones? What opportunities exist for non-state actor engagements

What is the Africa Investment Plan for Demographic Dividend? Africa’s population grew at an average annual rate of 2.6 percent between 1950 and 2014, much faster than the global average of 1.7 percent as estimated from UN population projection data. Over the past decade, countries throughout Africa have experienced sustained economic growth. Despite this growth, almost two of every three people (or 660 million) are still living on less than $2 per day. The opportunity for Africa to reap a demographic dividend from 2030 (although not a guarantee) is based on current trends that suggest a coming demographic transition in Africa, which will result in significant changes in the age structure of the continents population. Since it is not a given, Countries plan for and make the necessary investments in young people during the demographic transition, in the areas of education and skills development, human capital and economic productivity, human rights and freedom amongst others. Lessons learnt from this is the path out of poverty that the Asian Tigers and later many Latin American countries took. Studies have shown that no country has developed socioeconomically without a parallel decline in birth rates, the increase in the number of people in the productive workforce and reduced dependents.

A demographic dividend is a complex process Demographic Dividend Governance Education Health Population Structure Economic

Why does Africa need a DD Investment Plan and what results are expected? The Opportunity therefore to Plan for the potential of a Demographic Dividend and has been presented in the call by the Heads of State and Governments during the January 2014 Assembly of the African Union The opportunities are as follows The demographic dividend could account for 11 to 15 percent of gross domestic product volume growth by 2030 Africa’s poverty rate was about 42.7% measured at the $1.90 a day poverty line (2012, World Bank). By 2030, this rate could reduce to 17.1 to 36.7 percent (210 to 451 million poor) The boost in growth from demographic change could account for 40 to 60 million less poor. The impact of demographic change could be even greater when combined with investments; Africa’s poverty rate could be as low as 13 % and account 22% growth in GDP

Some immediate areas of investment needed? Implementation of policies that improve human resource capacity building and entrepreneurship acceleration Youth participation in Intra-Africa Trade zones Fast Track Interventions on Financial Inclusion Roll-out support for Blended finance strategies, for example Mechanisms for the setting-up of an African Finance Club with a portfolio of USD $500m Strengthened accountability for results at all levels with increased transparency

Where are we in that journey now? Applying a Youths lens to the SDGs and AU Agenda 2063 Implementation and Accountability including partners mobilization Development of an Africa Youth Database and supporting member states to establish National Youth Information Systems Plan to convene in November 2016, an International Conference on Africa’ Youth Development to launch the process Setting up a Continental Task Force of Stakeholders under the leadership of the African Union Commission to advise the process Organize technical thematic roundtable of experts

What are proposed milestones ? Launch of AIPDD and setting platforms for continental discussion; Draft mechanisms for the establishment of the Africa Youth Development Bank in place; Guidance for development of National response plans in response to the AIPDD Pledging Conference for the roll out phase of the AIPDD

Links to the Tbilisi Conference AIPDD is considered an instrument for support to Africa’s response on the SDGs implementation from a youth lens; Position the process of the AIPDD on the global agenda of Post 2015 implementation and finance discourse;

Who are the drivers of the concept? The African Union Commission – Department for Economic Affairs serves as convener The Africa Business and Investment Group serves as the private sector lead The Africa Observatory for Policy Practice serves as civil society lead Ongoing talks underway with UNDP, UNECA, Ford Foundation, EUC on their involvement