This paper investigates the drivers of human capital development in Africa empirically using household-level and firm-level data, and the implications for growth and structural transformation. The study finds that though Sub-Saharan Africa lags behind all other regions in educational accessibility, there has been an upward trend in enrolments. At the household level, the key drivers of educational attainment are household income, parental education, school infrastructure and quality, and individual characteristics such as age and health status.
At the firm level, the determinants of training for workers include organizational size and age, credit availability, and workforce educational status. Human capital is observed to be positively associated with growth and at the same time facilitating the transformation from dependence on agricultural sector employment to non-agricultural sector employment. The positive externalities associated with human capital calls for sustainable pro-education and pro-training policy from governments in Africa.