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Africa: Unemployment, Sport Participation and Social Change

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Timi Olubiyi business strategy

By Timi Olubiyi, Ph.D

Africa’s youth unemployment problem has been the subject of so many debates in recent years because youth unemployment is prevalent.

The youth unemployment rate refers to the percentage of the unemployed in the age group of 18 to 35 years as compared to the total labour force.

In Nigeria, for instance, the unemployment rate is often higher than overall Africa’s average due to the country’s total population.

According to reliable data, by demographics, over 60% of the population of Nigeria are youths. However, the majority of these youths are without gainful employment, many of them vulnerable and out of any significant social welfare system. This situation also exists in many African countries such as Namibia, Angola, South Africa, and Mozambique, to mention a few.

With the novel coronavirus (COVID-19) outbreak economic outlook of countries has been dampened, and there are an economic recession and the higher unemployment rates in many countries. Because the numbers of cases continue to escalate through community transmission, the uncertainty of the situation keeps increasing within the populace, particularly in Africa.

Therefore, in addition to the life-threatening and health risks of the pandemic, the socio-economic impact is real, most importantly with many workers likely to face a looming job loss, job cuts, job loss, salary cuts, low-income or no-income and redundancy.

In fact, the actual rate of unemployment could be another massive shock if the COVID-19 outbreak persists beyond the year 2020. The projected combined consequences of COVID-19 and youth unemployment is severe and damaging to any nation.

For instance, before now, unemployment has been a rising phenomenon in Nigeria, as many of the youths are jobless, to the extent that the Government itself may not know the rate of youth unemployment precisely.

Therefore, with the global risk COVID-19 outbreak portends, now in the year 2020, it is inevitable that the unemployment rate as well as the poverty rate will go further up and might be on a steady path of growth. However, the eventual scale of growth or outcome will depend on how fast the Government contains the widespread of the virus in Africa.

Grippingly opportunities for jobs for these youths are hardly available due to the high population, inadequate qualifications, and economic recession, which are some of the factors that have prevented these young people from finding gainful employment. With the COVID-19 outbreak, this unemployment rate is expected to increase exponentially.

This is also likely to escalate the already staggering unemployment data on the continent. It may even lead to social exclusion, lack of confidence, poorer health, and a rise in depression amongst the youths. These are but a few of the negative aspects associated with young people being out of work.

This is a huge concern and a precarious situation for the countries in Africa and their Governments because the pandemic is already triggering an economic crisis, and it would compound the already high unemployment rate on the continent.

It is recognized that there have been many initiatives by governments and heads of nations in Africa to address the increased youth unemployment.

However, to avoid the impacts of unemployment coupled with COVID -19 consequences, which include a surge in the prevalence rate of crimes and criminality, it is recommended that sports participation be encouraged by African Governments and policymakers. The participation of young people in economic and social areas will have a great significance for the countries development and improvement.

Africa needs to see sport as a business and also a way to promote healthy and promising citizens. Sports, more importantly, is one of the easiest avenues for young men to quit the poverty lane and unemployment.

It’s important to note that with sports, the teeming youths can become athletes and be gainfully employed. Besides, there will be more job opportunities and commercialization on the continent for companies, investors, talent scouts, agents, coaches, referees, trainers, sports analysts, media companies, facilities management companies, sport wears companies, and merchandisers.

A pleasant sports environment will equally encourage partnerships between businesses and sporting entities such as what is visible with stadia bearing the names of companies and sponsorships deals with company logos appearing on athletes’ clothing and equipment and so on in the developed countries around the world.

Studies have shown that sports can provide a reduced risk from alcohol use, smoking, terrorism, criminality, and illicit drug use amongst young people versus those who do not indulge in sports.

That said, in the world today, it is quite challenging to estimate the exact number of sports or games around the world. However, a reliable report has shown that there are more than 8000 sports in the world. Yet, there are roughly 200 sports that have international recognition through a reliable international governing body.

Nonetheless, the Olympics, which is the pinnacle of sports, has only validated 28 sports as of 2016. To give a general idea of some of the most participated sports using available data from the Olympics, we have adventure Sports (kayaking, canoeing), aquatic sports (swimming, bodyboarding), strength, and agility sports. (aerobics, gymnastics), ball sports (baseball, basketball, football), mountain sports (climbing, cross-country cycling),and motorised sports (formula racing).

Most of these sporting events are seen as lucrative career options, and in most developed countries, so much effort and resources are channelled into it. From a European perspective, sports-related employment represents a significant percentage of total employment on the continent.

The amount of investment and cash that several sports stars earn around the world is mind-blowing. From football to tennis, basketball, motorsport, and boxing, to name a few.

Excellent examples from Nigeria are Anthony Oluwafemi Joshua Nigerian-born British boxer (world heavyweight boxing champion), who commands more than £30 million for every fight. This is apart from several endorsements he enjoys.

Another athlete is Divine Oduduru, the second-fastest African athlete earning around N180 million yearly. Nigeria’s top table tennis player, Aruna Quadri, has started the year 2020 as the 18th best player in the world and doing well with the sport. Likewise, John Obi Mikel, Odion Jude Ighalo, Victor Moses, Wilfred Ndidi, Victor Osimhen who are earners to reckon with in football.

In ultimate fighting championship (UFC) and kickboxing career, the following Nigerian born individuals Kamoru Usman, Isreal Adesanya, Sodiq Yusuff, and Kennedy Nzechukwu are active and dominance in the sport.

According to the National Basketball Association (NBA) four of the players have Nigerian origin, and they are Al-Farouq Aminu, Giannis Antetokounmpo, Chimezie Metu, and Josh Okogie.

Interestingly, these sportsmen get additional income from endorsements and sponsorships all over, which leads to additional millions of dollars in earnings. This situation is not only applicable to Nigerians but to other well-meaning African nationals. The point is that money will always flow to where the attention of the masses is, such as sports, particularly football, basketball, and boxing.

In the same vein, according to compiled data by Forbes magazine, some of the wealthiest athletes globally, are as follows: Floyd Mayweather (boxing), Tiger Woods (Golf), Lionel Messi (football), Cristiano Ronaldo (football), Conor McGregor (kickboxing), Neymar (football). It is imperative to state categorically that most of these athletes probably never registered any startup businesses to gain prominence, but they are undeniably talented in what they do because of consistency and dedication. While talents are essential, a lot of seriousness, concentration, and motivation need to go into it to become a great successful athlete.

Therefore, for millions of African youths, particularly Nigerian youths, energies can be channelled into mastering and pursuing careers in several sports, just like we have seen in the entertainment and music industry. Without a doubt, it could lead to a strong sports culture and competitiveness in both domestic and foreign markets.

Admittedly, sport is a veritable outlet that can offer a pro-active solution to youth unemployment in Africa. This is because sport skills can be learned, developed, and made a professional career, and it can provide a considerable positive impact.

Nonetheless, for these to come into fusion, policymakers, sports associations, and the Government need to make decisive and responsive policies to encourage aggressive youth participation in sports and learning programmes. This will give the needed encouragement and guidance to sports interest and development in Africa.

Besides, if a more professional approach is adopted in the sports industry, the government, too, will benefit and generate consistent income. It can even provide a new source of national economic growth, and reduce sports tourism in developed countries.

Supportably, the various sports associations should be designed to run professionally, with a competent governing board just like any major global corporation. This will ensure adequate structure to guarantee adequate followership, which eventually will lead to huge sponsorship, great athletes, and substantial marketing revenues, among others.

Many to stakeholders -fans, advertisers, TV stations, investors, collaborators can equally benefit. Many of the functions within the sports industries are service-based, which means it will be a labour-intensive industry.

In conclusion, sports can make a positive contribution in helping to increase Africa’s labour numbers, eventually leading to the creation of sports that can provide a cost-effective tool to address political agendas such as unemployment and health. It can also be an avenue to promote a healthier lifestyle amongst the teeming youths.

Governments can develop sport policies and situate community hubs across cities to bridge the unemployment gap, where young people could come and improve their sports skills and become professional athletes.

Therefore, I see a tremendous opportunity for African countries and the citizens if they can adopt these principles and begin to design systems around sport and create well-paying jobs for millions of young people to strive.  Good Luck!

How may you obtain advice or further information on the article?

Dr Timi Olubiyi is an Entrepreneurship and Small Business Management expert. He is a prolific investment coach, business engineer, Chartered Member of the Chartered Institute for Securities & Investment (CISI), and a financial literacy specialist. He can be reached on the twitter handle @drtimiolubiyi and via email: [email protected], for any questions, reactions, and comments.

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The Future of Payments: Key Trends to Watch in 2025

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Luke Kyohere

By Luke Kyohere

The global payments landscape is undergoing a rapid transformation. New technologies coupled with the rising demand for seamless, secure, and efficient transactions has spurred on an exciting new era of innovation and growth. With 2025 fast approaching, here are important trends that will shape the future of payments:

1. The rise of real-time payments

Until recently, real-time payments have been used in Africa for cross-border mobile money payments, but less so for traditional payments. We are seeing companies like Mastercard investing in this area, as well as central banks in Africa putting focus on this. 

2. Cashless payments will increase

In 2025, we will see the continued acceleration of cashless payments across Africa. B2B payments in particular will also increase. Digital payments began between individuals but are now becoming commonplace for larger corporate transactions. 

3. Digital currency will hit mainstream

In the cryptocurrency space, we will see an increase in the use of stablecoins like United States Digital Currency (USDC) and Tether (USDT) which are linked to US dollars. These will come to replace traditional cryptocurrencies as their price point is more stable. This year, many countries will begin preparing for Central Bank Digital Currencies (CBDCs), government-backed digital currencies which use blockchain. 

The increased uptake of digital currencies reflects the maturity of distributed ledger technology and improved API availability. 

4. Increased government oversight

As adoption of digital currencies will increase, governments will also put more focus into monitoring these flows. In particular, this will centre on companies and banks rather than individuals. The goal of this will be to control and occasionally curb runaway foreign exchange (FX) rates.

5. Business leaders buy into AI technology

In 2025, we will see many business leaders buying into AI through respected providers relying on well-researched platforms and huge data sets. Most companies don’t have the budget to invest in their own research and development in AI, so many are now opting to ‘buy’ into the technology rather than ‘build’ it themselves. Moreover, many businesses are concerned about the risks associated with data ownership and accuracy so buying software is another way to avoid this risk. 

6. Continued AI Adoption in Payments

In payments, the proliferation of AI will continue to improve user experience and increase security.  To detect fraud, AI is used to track patterns and payment flows in real-time. If unusual activity is detected, the technology can be used to flag or even block payments which may be fraudulent. 

When it comes to user experience, we will also see AI being used to improve the interface design of payment platforms. The technology will also increasingly be used for translation for international payment platforms.

7. Rise of Super Apps

To get more from their platforms, mobile network operators are building comprehensive service platforms, integrating multiple payment experiences into a single app. This reflects the shift of many users moving from text-based services to mobile apps. Rather than offering a single service, super apps are packing many other services into a single app. For example, apps which may have previously been used primarily for lending, now have options for saving and paying bills. 

8. Business strategy shift

Recent major technological changes will force business leaders to focus on much shorter prediction and reaction cycles. Because the rate of change has been unprecedented in the past year, this will force decision-makers to adapt quickly, be decisive and nimble. 

As the payments space evolves,  businesses, banks, and governments must continually embrace innovation, collaboration, and prioritise customer needs. These efforts build a more inclusive, secure, and efficient payment system that supports local to global economic growth – enabling true financial inclusion across borders.

Luke Kyohere is the Group Chief Product and Innovation Officer at Onafriq

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Ghana’s Democratic Triumph: A Call to Action for Nigeria’s 2027 Elections

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In a heartfelt statement released today, the Conference of Nigeria Political Parties (CNPP) has extended its warmest congratulations to Ghana’s President-Elect, emphasizing the importance of learning from Ghana’s recent electoral success as Nigeria gears up for its 2027 general elections.

In a statement signed by its Deputy National Publicity Secretary, Comrade James Ezema, the CNPP highlighted the need for Nigeria to reclaim its status as a leader in democratic governance in Africa.

“The recent victory of Ghana’s President-Elect is a testament to the maturity and resilience of Ghana’s democracy,” the CNPP stated. “As we celebrate this achievement, we must reflect on the lessons that Nigeria can learn from our West African neighbour.”

The CNPP’s message underscored the significance of free, fair, and credible elections, a standard that Ghana has set and one that Nigeria has previously achieved under former President Goodluck Jonathan in 2015. “It is high time for Nigeria to reclaim its position as a beacon of democracy in Africa,” the CNPP asserted, calling for a renewed commitment to the electoral process.

Central to CNPP’s message is the insistence that “the will of the people must be supreme in Nigeria’s electoral processes.” The umbrella body of all registered political parties and political associations in Nigeria CNPP emphasized the necessity of an electoral system that genuinely reflects the wishes of the Nigerian populace. “We must strive to create an environment where elections are free from manipulation, violence, and intimidation,” the CNPP urged, calling on the Independent National Electoral Commission (INEC) to take decisive action to ensure the integrity of the electoral process.

The CNPP also expressed concern over premature declarations regarding the 2027 elections, stating, “It is disheartening to note that some individuals are already announcing that there is no vacancy in Aso Rock in 2027. This kind of statement not only undermines the democratic principles that our nation holds dear but also distracts from the pressing need for the current administration to earn the trust of the electorate.”

The CNPP viewed the upcoming elections as a pivotal moment for Nigeria. “The 2027 general elections present a unique opportunity for Nigeria to reclaim its position as a leader in democratic governance in Africa,” it remarked. The body called on all stakeholders — including the executive, legislature, judiciary, the Independent National Electoral Commission (INEC), and civil society organisations — to collaborate in ensuring that elections are transparent, credible, and reflective of the will of the Nigerian people.

As the most populous African country prepares for the 2027 elections, the CNPP urged all Nigerians to remain vigilant and committed to democratic principles. “We must work together to ensure that our elections are free from violence, intimidation, and manipulation,” the statement stated, reaffirming the CNPP’s commitment to promoting a peaceful and credible electoral process.

In conclusion, the CNPP congratulated the President-Elect of Ghana and the Ghanaian people on their remarkable achievements.

“We look forward to learning from their experience and working together to strengthen democracy in our region,” the CNPP concluded.

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The Need to Promote Equality, Equity and Fairness in Nigeria’s Proposed Tax Reforms

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By Kenechukwu Aguolu

The proposed tax reform, involving four tax bills introduced by the Federal Government, has received significant criticism. Notably, it was rejected by the Governors’ Forum but was still forwarded to the National Assembly. Unlike the various bold economic decisions made by this government, concessions will likely need to be made on these tax reforms, which involve legislative amendments and therefore cannot be imposed by the executive. This article highlights the purposes of taxation, the qualities of a good tax system, and some of the implications of the proposed tax reforms.

One of the major purposes of taxation is to generate revenue for the government to finance its activities. A good tax system should raise sufficient revenue for the government to fund its operations, and support economic and infrastructural development. For any country to achieve meaningful progress, its tax-to-GDP ratio should be at least 15%. Currently, Nigeria’s tax-to-GDP ratio is less than 11%. The proposed tax reforms aim to increase this ratio to 18% within the next three years.

A good tax system should also promote income redistribution and equality by implementing progressive tax policies. In line with this, the proposed tax reforms favour low-income earners. For example, individuals earning less than one million naira annually are exempted from personal income tax. Additionally, essential goods and services such as food, accommodation, and transportation, which constitute a significant portion of household consumption for low- and middle-income groups, are to be exempted from VAT.

In addition to equality, a good tax system should ensure equity and fairness, a key area of contention surrounding the proposed reforms. If implemented, the amendments to the Value Added Tax could lead to a significant reduction in the federal allocation for some states; impairing their ability to finance government operations and development projects. The VAT amendments should be holistically revisited to promote fairness and national unity.

The establishment of a single agency to collect government taxes, the Nigeria Revenue Service, could reduce loopholes that have previously resulted in revenue losses, provided proper controls are put in place. It is logically easier to monitor revenue collection by one agency than by multiple agencies. However, this is not a magical solution. With automation, revenue collection can be seamless whether it is managed by one agency or several, as long as monitoring and accountability measures are implemented effectively.

The proposed tax reforms by the Federal Government are well-intentioned. However, all concerns raised by Nigerians should be looked into, and concessions should be made where necessary. Policies are more effective when they are adapted to suit the unique characteristics of a nation, rather than adopted wholesale. A good tax system should aim to raise sufficient revenue, ensure equitable income distribution, and promote equality, equity, and fairness.

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