If the recent report by the African Development Bank is anything to go by, Africans are not grappling with unemployment. The problem is underemployment. 70% of Africans are based in the rural areas and they work on family farms to earn a living. With an under-developed Agri-processing sector and lack of access to big markets, however, farmers cannot earn a decent living. Africa needs to find ways to create decent jobs. For this to happen there should be a restructuring of the economy and labor market. Strategies such as better training of employees will not do. There is need to provide the private sector with infrastructure and finance to achieve a booming job market. Further, policymakers should fund strategic programs which can compete on a global level and create demand for employment in the formal sector. Read the entire article at African Business Magazine.
Dear D –
Africa is facing an underemployment problem whose solution will be found in promoting strategic projects in the private sector, encouraging entrepreneurship, reducing bureaucracy, and improving infrastructure. For example, governments should also link rural agriculturalists to the formal economy, by providing access to distributors or a ready market. In Western Africa, for example, farmers who have signed deals to supply produce for factories are reaping big. Africa can also solve the problem of the informal sector by following in China’s footsteps—creating special economic zones, industrial parks, and Agri-processing zones to smooth business. Regional infrastructural expenditure should be around $1.7 billion annually. Additionally, government needs to invest in the reformation of the education system to equip the booming population of youths with relevant 21st century skills.
Can you think of more ways that Africa deal with the problem of underemployment? Share.
What? I probably need to read more before hastily reacting to titles