The nature and extent of demographic dividend in West Africa: National transfer account approach

Abstract

The population of West Africa is fast growing with a projection of large youth population which may limit the potential opportunity provided by the African Agenda 2063 and the global 2030 Agenda for Sustainable Development of the sub-region. This study investigates the nature and extent of demographic dividend in the West African sub-region, using the National Transfer Accounts (NTA) methodology. The Countries in the sub-region were aggregated based on the two available monetary zones including West Africa Monetary Zone (WAMZ) and West African Economic and Monetary Union (UEMOA). Findings reveal that children consumption is lower than for adults in West Africa. However, consumption expenditure is lower in the UEMOA countries, than in WAMZ or the West African average at all age groups. It is also found that UEMOA countries reached peak income earlier than those of WAMZ. In addition, consumption expenditure exceeds the labour income at all ages below 29 years while surplus ends at 63 years. The study further discovered that West Africa had entered the period of first demographic dividend since year 1999, and expected to peak in the year 2049.