The annual economic impact of girls dropping out of school in sub-Saharan Africa amounts to $210 billion in GDP, according to a report.

The United Nations has disclosed that the significant dropout rate of girls from schools in sub-Saharan Africa is resulting in an astonishing economic loss estimated at around $210 billion each year.

The report, titled “Progress on the Sustainable Development Goals – The Gender Snapshot 2024,” underscores the profound economic consequences of gender inequality in education within the region, where girls face considerable disadvantages compared to their male counterparts.

According to the report, “In sub-Saharan Africa, where girls are at a significant disadvantage compared to boys, the annual cost of girls leaving school early is $210 billion, more than 10 per cent of the region’s combined GDP.”

This economic loss represents over 10% of the total GDP of sub-Saharan African nations, highlighting the substantial cost of unrealized potential, as girls who lack educational opportunities are unable to make full contributions to the economic development of the region.

Skills Gap

The United Nations Educational, Scientific and Cultural Organization (UNESCO) projects that by 2030, the global annual social costs associated with the basic skills deficit will exceed $10 trillion, a sum that surpasses the combined GDP of France and Japan.

The report indicates that a mere 1 percentage point reduction in the number of children leaving school early and those lacking basic skills could lead to an increase of $470 billion in annual global labor income and over $650 billion, respectively. This underscores the significant economic potential that is being overlooked due to the education gap.

While there has been some advancement in global education, evidenced by an additional 5.4 million girls enrolling in school since 2015, the overall situation remains critical for many. Currently, 119.3 million girls around the world are still not in school, reflecting the sluggish pace of progress. A considerable portion of these girls resides in sub-Saharan Africa, where access to education is obstructed by systemic poverty, gender inequality, and insufficient resources, exacerbating the region's economic challenges.

Furthermore, 39% of young women globally do not complete upper-secondary education, which further restricts their ability to engage fully in the workforce and contribute to economic growth.

Economic implications

The economic ramifications of this educational disparity are significant. When girls are unable to finish their education, it limits their chances of obtaining skilled jobs, diminishes their lifetime earnings, and hampers economic development at both national and regional levels.

To address these economic losses, the report advocates for effective gender-responsive policies. These include reducing the costs of schooling, providing cash transfers to support girls' education, creating safe learning environments, and tackling gender-based violence. Additional recommendations involve implementing comprehensive sexuality education, ensuring a diverse and gender-balanced teaching staff, and promoting awareness of the critical importance of girls' education.