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Compulsions for expanding pension coverage to Africa’s non-salaried workforce

INITIAL CONDITIONS

Africa Demographics in Brief

As per the United Nations, Africa’s population by December 2022 was estimated at 1.42 billion, or nearly 17 percent of the global population, making Africa the second largest continent after Asia
by both size and population. UN projections also show that sub-Saharan Africa’s population is growing three times faster than the global average and, by 2070, it will surpass Asia (David C.,
Sangeeta R., and Abdo S. Y. and World Bank, 2015).

This rapid population growth is an indication of Africa’s demographic transition, where both mortality rates and birth rates are declining, even though the latter remains relatively high
by global standards (Fig. 1). Africa’s demographic transition can either become a dividend or disaster — depending on how the demographic transition is managed. Careful planning is desirable
and requires a detailed examination of labour market dynamics and financial inclusion on the continent, which may potentially curtail maximization of the benefits.