Poverty and unemployment are two challenges that are disproportionately affecting Sub-Saharan Africa. Although the poverty rate – the percentage of the population living on $1.90 a day or less – globally was 10.9% in 2013, it was 42.3% in sub-Saharan Africa and 18.9% in South Africa (2014). This is according to a World Bank report on poverty.
Sub-Saharan Africa is one of the most highly affected regions by unemployment. According to the International Labour Organisation, the global unemployment rate was expected to reach 5.6%, the rate in sub-Saharan Africa would remain at 7.2%. The South African unemployment rate is far worse than the global and sub-Saharan average; it went from 23.2% in 2008 to 27.7% in 2017, with those without a high school diploma making up the bulk of unemployed. There is a significant positive correlation between the national level of entrepreneurial activity and national economic growth as well as job growth. ….more