What are the main challenges and opportunities presented by global demographic changes?

Urbanization is accelerating rapidly, unlocking new economic opportunities for developing countries. By 2050, 70 % of the world’s population is projected to live in urban areas, up from 53% in 2020. As urban centres become Hubs of economic activity and innovation, this shift creates opportunities in sectors such as construction, consumer goods and services. The concentration of people in cities also fosters economies of scale and agglomeration effects, which can boost productivity and industrial growth if managed properly. However, rapid urbanization also presents challenges, including increased demand for energy, housing and infrastructure, and The need for sustainable urban development. While demographic transitions create new opportunities for industrial development, they also pose significant challenges, particularly in regions such as sub-Saharan Africa, where rapid population growth, intensifies the need for the creation of productive jobs.

 To benefit from these demographic shifts, developing countries will need to 

(i) generate employment opportunities and harness the potential of young populations;

(ii) develop the necessary industrial capabilities tomeet evolving demand patterns and healthcare needs, and 

(iii) foster domestic demand-led industrialization to complement export-led strategies due to increased urbanization.