Tanzania’s Nchemba: Why Africa should prioritize human capital investments

Tanzania's Finance Minister, Dr. Mwigulu Nchemba, recently weighed in on the importance of prioritizing human capital investments in Africa during an interview with CNBC Africa's Terry-Anne Chebet. The conversation took place on the side-lines of the Africa Human Capital Heads of State Summit in Dar es Salaam, where leaders discussed the need to refocus budgets towards education, health, nutrition, and other key pillars essential for human capital development. Dr. Nchemba emphasized that Africa has no choice but to invest in human capital due to the consequences of past budget cuts and constraints. He pointed out that families unable to afford education costs often leave children behind, leading to learning poverty and underdeveloped human capital. Additionally, prioritizing human capital without aligning with market needs results in unemployment and a mismatch between graduates' skills and job requirements. To address these challenges, Dr. Nchemba stressed the importance of developing specific skills required by the market to achieve quality outcomes from investments made in human capital. He highlighted the need to view human capital development as a priority sector and essential for advancing a country's overall development. The Finance Minister acknowledged the balancing act required to allocate resources among various priorities such as infrastructure, institutions, gender inclusiveness, and job creation while emphasizing the urgency of refocusing on human capital. He noted that the new generation's involvement in productive activities and the rapid changes in the economy necessitate a shift towards prioritizing human capital to keep pace with the evolving dynamics. Dr. Nchemba cautioned that lagging behind in generating a skilled workforce could hinder progress in other sectors like value chain development and industrialization, leading to subpar outcomes despite heavy investments. He underscored the need for African governments to recognize the impact of human capital investments on overall performance in sectors like manufacturing and public service. In conclusion, Dr. Nchemba's remarks at the summit underscored the critical need for Africa to re-invest in human capital and align education and skill development with market demands to drive economic growth and job creation. As the continent navigates a turning point in prioritizing human capital, the Finance Minister's insights serve as a clarion call for African leaders to seize the opportunity for sustainable development and prosperity.