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Africa possesses the youngest population in the world, presenting significant opportunities for economic growth and innovation. However, persistent youth unemployment and underemployment continue to undermine the continent’s ability to fully harness its demographic dividend. This study examines the causes, consequences, and policy responses to youth unemployment in Africa, with particular reference to Ghana. Employing a mixed-methods approach, the study draws on secondary data from the International Labor Organization (ILO), World Bank, Ghana Statistical Service, and other relevant sources, supplemented by qualitative insights from stakeholders and existing literature. The findings indicate that demographic pressures, inadequate industrialization, educational and skills mismatches, infrastructure deficits, the dominance of the informal sector, and weak policy continuity are among the major factors contributing to youth unemployment. The study further demonstrates that unemployment and underemployment have profound economic, social, and political consequences, including poverty, human capital depreciation, mental health challenges, migration, social instability, and declining confidence in democratic institutions. Evidence from Ghana highlights the persistence of structural constraints that limit the capacity of economic growth to generate sufficient decent employment opportunities. The study concludes that sustainable solutions require coordinated and evidence-based policies aimed at strengthening education-to-employment linkages, promoting entrepreneurship, accelerating industrialization, fostering digital innovation, and ensuring continuity in national development strategies. Such measures are essential for improving youth employability and achieving inclusive and sustainable economic development across Africa.