This week the World Bank announced that it will launch the Human Capital Plan, which will aim to help African countries strengthen their human capital and enable young people to grow up with optimal health, as well as equipping them with the right skills to compete in the digitized global economy.
According to IOL News, the plan comes after the World Bank Human Capital Index measured that the Sub-Saharan Africa region scored the lowest of all the world’s regions, showing high mortality rates as well as inadequate student learning outcomes, which have a direct affect on the economic productivity.
“Preventing a child from fulfilling his or her potential is not only fundamentally unjust, but it also limits the growth potential of economies whose future workers are held back. GDP per worker in Sub-Saharan Africa could be 2.5 times higher if everyone were healthy and enjoyed a good education from preschool to secondary school,” said World Bank VP for Africa, Hafez Ghanem.
The publication adds that the plan includes a drastic reduction in child mortality and increasing learning outcomes for girls and boys in schools by 20 percent, which the World Bank is targeting to be achieved by 2023. The organisation is set to increase its investments in human capital in Africa by 50 percent in the next funding cycle.
“Human Capital Project countries are breaking away from traditional paradigms to make investment in their people a priority and are working in a more coordinated way across government to ensure that households have the right enabling environment to support human capital formation,” added World Bank VP for Human Development, Annette Dixon.
The World Bank will increase grants and concessional finance for human capital projects in Africa totaling $15 billion between 2021 and 2023. It says it will invest these funds strategically to remove structural constraints to human capital development.