Almost ten years after the adoption of the 2030 United Nations Agenda for Sustainable Development, 429 million people in Africa continue to live below the extreme poverty line—under $2.15 a day.
They are forced to make tough choices between basic needs like food, shelter, healthcare, and education, adversely affecting their well-being and hindering economic growth. African governments, private sector actors, and international partners should invest in a just and sustainable transition (JST), a development approach that integrates economic growth, social equity, and environmental sustainability.
By doing so, they can address the continent’s poverty problem through an inclusive and balanced framework that lifts people out of poverty while promoting long-term resilience.
Investment in JST holds strong promises for alleviating poverty in Africa. Many African economies heavily depend on mining and agriculture sectors, which tend to create economic disparities rather than bridge them. For instance, while Africa is home to some of the world’s richest natural resources, the wealth generated from these industries rarely benefits the poorest communities.
JST promotes fairer distribution of economic gains by encouraging inclusive business models, where profits are reinvested in local communities through improved wages and infrastructure. This helps break the cycle of poverty, particularly in rural areas, by ensuring that local populations benefit from the wealth generated in their regions.
For example, in Rwanda, a community-based cooperative model in agriculture has empowered farmers to become stakeholders in the profits from their crops, significantly improving their standard of living.
Read also: Just Energy Transition: The Way to Go for Africa
Africa’s poverty problem is also worsened by its lack of innovation. According to the 2023 Global Innovation Index, Africa ranks poorly in innovative-driven growth, which stifles its ability to develop competitive industries.
The continent’s lack of innovation is a key driver of poverty, as many African economies remain dependent on raw material exports without investing in value-added processes that could increase local incomes. Investing in a JST will unlock the continent’s potential for innovation, particularly in renewable energy, sustainable agriculture, and green manufacturing industries.
To achieve this, African governments should allocate at least 10-15 per cent of their annual national budgets towards JST initiatives, as seen in successful green economy countries like Norway and Costa Rica. A solid commitment to JST will see African economies shift from raw material dependence to innovation and sustainable development centres that hold the lifeline for long-term economic prosperity.
Youth unemployment also remains a major challenge to poverty reduction in Africa. Approximately 72 million young Africans, representing over 25% of the continent’s youth population, are neither working, studying, nor receiving training. The alarming scale of youth unemployment highlights the need for innovative solutions, implementing a JST imperative to address the crisis.
A JST creates high-quality jobs and promotes economic diversification by focusing on comprehensive strategies that efficiently combine economic, social, and environmental dimensions. Without targeted investments in youth employment through a JST, Africa risks deepening poverty and losing the productive potential of an entire generation.
A JST for Africa is not merely a vision statement but a roadmap to a new future where prosperity and sustainability are aligned and poverty is significantly reduced. By prioritising economic growth that includes the poor, protecting natural resources, and ensuring that no one is left behind, Africa can take bold steps toward a more equitable future. The stakes are high, but the rewards of a just and sustainable future, where poverty is addressed at its roots, are immeasurable if we act now.
Calvin Kahiigi is a writing fellow at African Liberty.
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