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The African Economic Research Consortium (AERC) hosted a high-level World Bank Group (WBG) delegation at its headquarters in Nairobi on 29th September 2025, for the presentation of the Bank’s upcoming flagship report, The Skill Crisis: Why People Are Poor and Countries Don’t Grow. The report is expected to reshape how African policymakers approach human capital and job creation.

The WBG delegation, led by Mamta Murthi, Vice President for the People Vice Presidency of the WBG, shared key findings that underscore the immense value of human capital. The new report moves beyond traditional metrics to introduce a revised Lifetime Human Capital Index (LHCI), which captures skill accumulation into young adulthood (ages 18-24) and working life (ages 25-54). The research, led by WBG Chief Economist Norbert Schady, argues that for human capital to flourish, stakeholders must also focus on three critical settings: the home; the neighborhood; and the workplace. 

Commenting on the shared priority, Ms. Murthi stated, “the new report broadens the lens on human capital. At the World Bank, we are placing jobs at the very center of our development agenda. We recognize that investing in people is not only fundamental to job creation, but also to building more resilient, inclusive, and prosperous economies across Africa.” 

The AERC Executive Director, Prof. Victor Murinde, pointed out Human Capital Development (HCD) is a core component of AERC’s work, particularly as a key pillar in the organization’s new 10-year strategy. He said, “Human Capital Development has been at the heart of AERC’s mission for decades. Through our training programmes, collaborative research, and policy engagement, we have built a pan-African network of economists and policymakers who are shaping the future of the continent. In our new 2025–2035 Strategic Plan, Human Capital Development is not only one of the four pillars, but also a cross-cutting priority that underpins Africa’s capacity to create jobs, drive innovation, and compete globally. The World Bank’s renewed focus on this agenda reinforces the urgency of aligning skills with opportunities, especially for Africa’s youth, who represent our greatest asset.” 

The meeting was attended by AERC staff and network members including Professor Martine Oleche, the Chairman of the Department of Economics at the University of Nairobi and three colleagues: Prof. Phyllis Machio; Prof. Germano Mwabu, and Prof. Peter Muriu. This high-level dialogue reaffirms the deep partnership between AERC and the WBG,  united by the shared goal of tackling the continent’s most pressing challenges. By incorporating the WBG’s revised Human Capital Index (HCI), AERC is ensuring that policymakers across Africa have the best evidence to create effective interventions for youth employment and sustainable economic growth.