Well over 12 million young people enter the job market each year, while only about three million jobs are created annually.

The International Finance Corporation's Regional Vice President for Africa, Ethiopis Tafara, revealed this at the opening of the B20 Summit in Johannesburg, South Africa, on Wednesday.

This is the first time the B20 summit is being held on the African continent, giving the continent an opportunity to influence decisions that will be taken at the G20 summit.

Tarafa said national governments and the public sector alone can't address the continent's major development challenges, including closing the US$2.5 trillion financing gap required to achieve the UN Sustainable Development Goals.

He added that creating jobs, mobilising local savings and attracting international capital are not only economic priorities but also critical social needs.

"The World Bank Group structured its actions around a clear goal, making job creation a star of all initiatives by focusing on three pillars: investing in infrastructure, human capital, and performing regulatory frameworks to foster entrepreneurship and mobilising the private sector at scale."

Tafara explained that to fully mobilise the private sector, obstacles such as currency risks, political uncertainties and credit constraints must be addressed.

"Success will depend on all of us; regulators must foster innovation while fostering political stability, financial institutions must offer products that speak to local needs, public decision makers must accelerate the development of capital markets, and investors must fully recognise Africa's full potential."

Tarafa also noted an increase in renewable energy investment enabled by supportive policies across Africa. However, he said global shocks and limited fiscal space continue to challenge the continent's resilience.

"We all know national governments and the public sector can't solve these daunting problems on their own and close the US$2.5 trillion financing gap to achieve the UN SDGs. So the math simply does not add up. We need the private sector."

He called on stakeholders from both the private and public sectors to act urgently to address the continent's immediate challenges.