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The Next Generation: Why Renewable Energy is Key to Youth Employment in a Growing Global South

The shift towards distributed renewable energy (DRE) technologies presents a once in a generation opportunity for youth employment and career development, particularly in regions like sub-Saharan Africa and the Global South. As highlighted in the recent "Green Jobs for Rural Youth: Unlocking Renewable Energy’s Potential in Agriculture" report, these regions face rapidly growing populations and high youth unemployment rates, making the expansion of DRE technologies a critical pathway to unlocking new career paths and enhancing economic stability for young people in rural areas.


DRE technologies are revolutionizing the agricultural sector, which is the largest employer in many developing economies. By decentralizing energy production and making it accessible to off-grid communities, rural farmers can increase productivity, reduce costs, and improve their overall quality of life. This transition not only creates jobs directly related to the installation and maintenance of these systems but also stimulates indirect job creation across agricultural value chains. 


In countries like India and Kenya, the adoption of solar water pumps (SWPs) is projected to generate tens of thousands of jobs by 2030. These jobs will span various sectors, including manufacturing, installation, maintenance, and agricultural processing. In India alone, the SWP sector could create up to 77,000 jobs by 2030, with a significant portion of these opportunities available to rural youth.


Notably, 70% of Kenya’s population is under 30, and the median age is just 19. As the population is projected to grow rapidly—66 million by 2030 and 91.5 million by 2050—the challenge of youth employment is urgent. However, Kenyan youth are struggling to find jobs with more than 31% of the youth population either under-employed or unemployed.[1] This is much higher than the national unemployment rate of 6%.[2] However, the rise of renewable energy technologies offers new opportunities for rural youth to find meaningful, long-term employment in agriculture, allowing them to uplift their communities through innovative technology. Attracting and developing a skilled workforce in rural, decentralized energy solutions will be key to mitigating the impacts of unemployment. 


The manufacturing sector stands to benefit significantly from the growth of DRE technologies. In countries with established solar manufacturing industries, like India, there is potential to create thousands of highly skilled jobs. These positions include roles such as welders, computer numerical controlled (CNC) operators, and solar installers, which require specialized training and offer competitive wages. As the demand for solar equipment grows, so too will the need for skilled workers, making technical and vocational education and training (TVET) programs crucial. In regions where the manufacturing sector is developing, like Nigeria, there is an urgent need to strengthen local production capabilities. By investing in local manufacturing, these countries can reduce their reliance on imports, create jobs, and build a sustainable DRE industry that supports long-term economic growth.


DRE technologies also have the potential to bring efficiencies to agricultural value chains by increasing productivity and reducing post-harvest losses. For example, the introduction of solar-powered cold storage in Kenya's French bean value chain, which accounts for 20% of the country's fresh vegetable exports, could significantly reduce food waste and boost smallholder farmers' profitability. This would create additional jobs in areas such as processing, transportation, and marketing. The adoption of DRE technologies in agriculture can lead to the creation of new roles that are less physically demanding, offering young people more sustainable and appealing career options. This is particularly important in regions where agriculture remains the primary source of employment but is often associated with low wages and extreme working conditions.


Despite DRE technologies' potential, high costs, limited availability, and a lack of skilled workers hinder their adoption. Overcoming these barriers requires stronger financial support, local manufacturing, and targeted training. Governments, investors, and organizations must collaborate to unlock DRE's full benefits, driving sustainable job creation and rural economic growth.


As sub-Saharan Africa and the Global South experience rapid population growth, DRE technologies are crucial for shaping youth employment. DRE offers scalable solutions to the rising job demand while aiding the fight against climate change. By creating and enhancing job opportunities, DRE can transform rural economies. However, achieving this potential requires overcoming adoption barriers and investing in a skilled workforce. With the right support, DRE can empower youth to build prosperous careers and drive sustainable development.


For a more detailed exploration of the impact of DRE technologies on youth employment, refer to the full report: 
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[1] https://youthdashboard.kippra.or.ke/ 
[2] https://data.worldbank.org/indicator/SL.UEM.TOTL.ZS?view=chart&locations=KE

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