South Africa has the potential to create up to 275,000 green jobs by 2030, with the majority expected to come from the solar sector, according to a new study by Boston Consulting Group (BCG).
The study, published by FSD Africa and Shortlist with analysis from BCG, predicts that South Africa will create between 85,000 and 275,000 new green jobs in the next five years, primarily in energy and power production, as well as agriculture.
The report, 'Forecasting Green Jobs in Africa,' also reveals that an estimated 3.3 million new direct jobs could be generated across 12 green subsectors in Africa by 2030.
This finding comes from staffing specialist Shortlist and development agency FSD Africa, with analysis from BCG.
The majority of these new jobs are anticipated to be in the renewable energy sector, particularly the solar industry.
The study provides an in-depth analysis of workforce needs within major green value chains over the next five years.
It highlights that the Democratic Republic of Congo (DRC), Ethiopia, Kenya, Nigeria, and South Africa together will account for more than a fifth (22%) of new jobs in key sectors, including renewable energy, e-mobility, agriculture, construction, and manufacturing.
“Additionally, the millions of jobs created in the green revolution will also contribute to the formalisation of African economies, and the inclusion of whole populations in stable systems of remuneration, social security and taxation for the first time,” BCG said in a statement.
The report outlines essential strategies to cultivate Africa's green jobs ecosystem. These strategies include:
Targeted investments in high-potential sectors and value chains.
Fostering cross-sector collaboration among governments, the private sector, educational institutions, and investors.
Developing comprehensive support policies for green sectors.
Additionally, the report calls for more detailed analysis of labour demand in key value chains to assess Africa's current skilled labour supply and identify any potential gaps.
Significantly, 60% of the employment generated by the green economy over the coming six years will be skilled or white-collar in nature, the report states.
Within this, 10% constitute advanced jobs, which are highly skilled, requiring university degrees to fulfil, while a further 30% are projected to be specialised jobs requiring certification or vocational training, and 20% will be administrative.
“Crucially, these job types tend to attract higher salaries and will, therefore, play a central role in spurring the growth of the middle class in countries hosting these high-growth sectors.
“Also important is the stability of the unskilled jobs created, which will offer ladders up the employment scale for candidates whose employability will be enhanced by access to training and experience,” the report says.
Meanwhile, Kenya, Nigeria and South Africa represent the highest job creation potential, at 16%, owing to population, GDP and industry maturity.
The renewable-energy sector alone is expected to generate up to 2-million jobs, or 70% of the total, of which 1.7-million will be in solar. The report forecasts 140 000 green jobs in solar in South Africa by 2030.
For South Africa, between 85 000 to 275 000 new green jobs are forecast by 2030, mainly in energy and power production, and agriculture and nature.
Additionally, agriculture and nature are forecast to produce up to 700 000 jobs, or 25% of the total, of which more than half, or 377 000, will come from climate-smart agriculture technology in the five countries, the report notes.
The report is a near-term, conservative analysis of the job creation potential of only 12 specific subsectors or value chains and only until 2030.
The renewable energy sector alone is expected to generate up to 2 million jobs, accounting for 70% of the total, with 1.7 million of these jobs in the solar industry. The report forecasts 140,000 green jobs in solar for South Africa by 2030.
Further, it predicts between 85,000 and 275,000 new green jobs by 2030, primarily in energy and power production, as well as agriculture and nature.
Additionally, agriculture and nature are expected to create up to 700,000 jobs, or 25% of the total, with more than half, or 377,000, coming from climate-smart agriculture technology in the five highlighted countries.
The report provides a near-term, conservative analysis of the job creation potential in only 12 specific subsectors or value chains, projecting figures up to 2030.
“Human capital and talent are important as an input to green economic growth and as a positive outcome in the form of millions of new, direct jobs. Policymakers, funders and workforce developers need to meet this near-term demand with effective training, apprenticeships and job or skill matching in hopes of achieving Africa’s green promise,” said Shortlist CEO Paul Breloff.
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