Only 21% of South African Employers Optimistic About Africa’s Economic Growth: Survey

A new survey by the African Leadership University (ALU) reveals a stark lack of optimism among South African employers about Africa’s economic future. Only 21% of employers in South Africa feel positive about the continent’s economic growth, the lowest percentage among all countries surveyed. This pessimism is mirrored by South African students, who are also the least optimistic about their job prospects.

Key Findings from the ALU 2025 Africa Workforce Readiness Survey

The ALU 2025 Africa Workforce Readiness Survey, conducted by the Economic Policy Group, gathered insights from nearly 8,000 employers and school leavers across nine African countries, including 405 employers and 488 school leavers from South Africa. Here are the key findings:

Employer Pessimism

• Only 21% of South African employers are optimistic about Africa’s economic growth.
• 70% of employers are concerned about a potential “brain drain,” where skilled workers leave the continent for better opportunities abroad.
• Just 35% of employers believe the next generation of graduates can help their businesses grow, the lowest percentage among all surveyed countries.

Student Concerns

• Only 39% of South African students feel confident about finding a job after completing their education.
• Their top concerns include:
  • 62%: Not enough jobs available.
  • 60%: Lack of adequate work experience.
  • 50%: Insufficient skills and knowledge.

The Skills Gap and Higher Education

Despite the challenges, 99.6% of South African school leavers plan to pursue higher education, though only 66% intend to study within Africa. Employers, however, are skeptical about the readiness of graduates for the job market:

• 69% of employers prefer hiring graduates with practical work experience.
• The most sought-after skills include:
  • Communication (54%)
  • Innovation and creativity (50%)
  • Self-management (40%)

To bridge the skills gap, 81% of employers recommend that higher education institutions partner with businesses. Other recommendations include:

• Investing in career services (53%)
• Developing leadership skills (45%)

The Impact of Artificial Intelligence (AI)

The survey also explored the role of AI in shaping the future workforce:

• Only 36% of South African students see AI as an opportunity for their careers, the lowest among all countries surveyed.
• Employers are equally uncertain, with just 6% viewing AI as an opportunity for their businesses.
• However, 50% of employers plan to integrate AI into their operations, despite concerns that it could lead to fewer job opportunities (98%) and widen the wage gap (97%).

Recommendations for Higher Education Institutions

Based on the survey’s findings, ALU has proposed several recommendations for higher education institutions to better prepare students for the workforce:

1. Respond to Employer Needs: Prioritize teaching soft skills and technical abilities.
2. Align Curriculum with Career Aspirations: Expand academic offerings and career-focused experiences.
3. Enhance Work-Based Learning Opportunities: Partner with employers to provide hands-on experience.
4. Foster Public-Private Collaboration: Work with public and private sectors to fund new programs and infrastructure.
5. Assess Progress: Monitor efforts to close the higher education skills gap.

The ALU 2025 Africa Workforce Readiness Survey highlights the challenges facing South Africa’s workforce, from employer pessimism about economic growth to student concerns about job opportunities. By addressing the skills gap and fostering collaboration between education and industry, South Africa can unlock the potential of its next generation and drive meaningful change across the continent.

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