(Ecofin Agency) - The report emphasizes that gender equality is not just about fairness; it is also a crucial economic issue. If the gap between men and women were completely closed, the continent's GDP could increase by $513 billion by the end of this decade.

Africa has the potential to increase its gross domestic product (GDP) by $287 billion by 2030 if all countries follow Namibia's lead. Namibia raised the economic contribution of women under 35 by two percentage points in just five years by removing several barriers to their participation in the workforce. This information comes from a recent report published by the Mastercard Foundation.

The report, titled “Young Women in Africa: Agents of Economic Growth and Transformation by 2030” reveals that in 2022, the contribution of young women to the continent’s GDP was 11%, which equates to $340 billion out of a total GDP of $3,093 billion.

In Africa, women face higher unemployment rates than men, and the COVID-19 pandemic worsened the situation. Many young women are currently out of work and not pursuing education or training, falling into the NEET category (Not in Education, Employment, or Training).

To evaluate the impact of removing barriers to women's participation in the labor market, the report outlines three scenarios. The first is a "business as usual" scenario, where countries continue to progress at their current rates. The second scenario is one of full gender parity. The third, called "Best in Africa," would have each country increase women's contributions to GDP at a pace matching Namibia, the continent's leader in gender equality.

Namibia has achieved the fastest growth in the economic contribution of young women, rising from 40% in 2017 to 42% in 2022. This growth stemmed mainly from changes to property rights and inheritance laws. Namibia's national gender policy has also improved educational completion rates for girls and increased women's access to vocational training, science, and technology.

Modeling shows that in a scenario of full gender parity, the contribution of young women to the GDP of all African countries could reach $919 billion by 2030. This is a significant increase from nearly $405 billion in the business-as-usual scenario, representing a gain of over $513 billion. However, achieving full gender parity in Africa by the end of this decade is considered unlikely.

In the "Best in Africa" scenario, the contribution of young women to the continent's GDP could reach $692 billion by 2030. This would allow young women to significantly boost the continent's economy, adding $287 billion and creating 23 million jobs if Namibia's model were replicated across Africa. This scenario is seen as more achievable in the medium term than full gender parity.

Countries like the Democratic Republic of the Congo, Egypt, Ethiopia, Kenya, Mali, Nigeria, Rwanda, Senegal, Tanzania, and Uganda are expected to experience the fastest growth if they follow Namibia's example.

To improve young women's contributions to the economy, African countries should first ensure that they stay in school. This involves combating child marriage and early pregnancies while addressing girls' health and menstrual hygiene needs. Currently, only 26% of girls complete secondary school, and just 8% enroll in higher education. This lack of education greatly impacts their access to better-paying jobs and their overall contributions to GDP.

Other necessary actions include providing women with more time by easing their workload through public and private investments in childcare services, and improving access to financial services. In 2020, 63% of African women across all age groups were unbanked, compared to 52% of men.

Countries should also focus on enhancing young women's skills in sectors likely to increase their income, such as agriculture, manufacturing, wholesale and retail trade, education, hospitality, and developing digital skills. Programs that encourage STEM (science, technology, engineering, and mathematics) education for girls in urban and rural areas would help make them more competitive.

Furthermore, governments need to adopt laws that support young women as entrepreneurs, enabling them to create jobs for themselves and others. The private sector is encouraged to implement recruitment strategies targeting young women, create initiatives to address gender imbalances in certain roles or sectors, and offer flexible working conditions to help young women balance their professional and family responsibilities.

Finally, civil society should challenge cultural norms and stereotypes that prevent young women from accessing available opportunities.