http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 12.99Change: 0.04
R/$ = 12.08Change: 0.06
Au 1186.35 $/ozChange: 2.44
Pt 1139.50 $/ozChange: -1.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Aug 31, 2012

McKinsey’s new Africa report sees big jobs-acceleration potential

Back
Agriculture|Construction|Africa|Consulting|Education|Environment|McKinsey & Company|Africa|Europe|Brazil|South Korea|Thailand|United States|McKinsey Global Institute|Manufacturing|Product|Products|Services|Infrastructure
Agriculture|Construction|Africa|Consulting|Education|Environment||Africa||||Manufacturing|Products|Services|Infrastructure
agriculture|construction|africa-company|consulting-company|education-company|environment|mckinsey-company-company|africa|europe|brazil|south-korea|thailand|united-states|mckinsey-global-institute|manufacturing|product|products|services|infrastructure
© Reuse this



The research arm of international consulting group McKinsey & Company believes that Africa has the potential to create 72-million wage-paying jobs by 2020, primarily in agriculture, manufacturing, and retail and hospitality.

To achieve such an acceleration, though, countries would need to address some of the current barriers to job creation and would do well to follow the example of countries such as Thailand, South Korea and Brazil, which created stable jobs at double and triple Africa’s current rate when their economies were at similar levels of development.

The McKinsey Global Institute (MGI), which nailed its Afro-optimist colours to the mast in 2010 with the release of ‘Lions on the move: The progress and potential of African economies’, says that, given prevailing trends, the continent should be able to generate 54-million stable jobs by 2020.

But in the study, entitled ‘Africa at work: Job creation and inclusive growth’, MGI argues that growth in jobs could be more than 50% faster in agriculture, manufacturing, and retail and hospitality if policymakers removed key obstacles to private-sector growth.

By 2020, Africa’s labour force should rise to more than 500-million, with 122-million of its citizens likely to enter the labour market over the coming eight years. The African labour force will also be more educated by that date, with estimates showing that 48% of African workers will have secondary or tertiary education, up from 40% currently.

Therefore, the report asserts that Africa could reap a demographic dividend, courtesy of its young and rapidly growing workforce and its declining dependency ratio. By 2020, the number of children and retired people that each worker supports will fall from the highest in the world today, to a level on a par with the US and Europe by 2035.

However, while the continent’s official unemployment rate is 9%, only 28% of Africa’s labour force is in wage-paying jobs.

MGI argues that agriculture, which is set to create eight-million stable jobs at current trends, could add six-million more by 2020 if the continent accelerates the development of this sector. “This upside would come from two sources in particular: expanding large-scale commercial farming on uncultivated land, and shifting from low-value grain production to more labour-intensive and higher-value-added horticultural and biofuel crops.”

In manufacturing, 15-million jobs could be created instead of the current forecast of seven-million, if countries tap into their comparative advantages. For instance, countries with large agricultural sectors could develop downstream agro-processing industries, such as food and beverage manufacturing, textiles, leather goods and wood products. “To realise these opportunities, however, African countries need to address high costs for transportation, inputs, duties, and bureaucracy”.

In retail and hospitality, which is on track to add nine-million jobs by 2020, a further five-million could be generated if countries removed hurdles to the formalisation and modernisation of the sector. “Hospitality and tourism is already growing strongly, but there is potential to accelerate growth by addressing inadequate and costly air travel and visa requirements, poor surface transportation, and problems related to land-use and development rights.

Outside of these sectors, MGI expect that there could also be employment growth in construction, transport and communication, and financial services, while government and social sectors will also remain strong contributors.

Issues identified as key constraints to private sector growth include macroeconomic conditions, the potential for political instability and the continent’s infrastructure shortcomings.

The study urges Africa’s policymakers to adopt explicit strategies aimed at encouraging growth in labour-intensive sectors, which could be executed in conjunction with the private sector.

“Focusing on gross domestic product growth alone will not be enough to transform Africa’s employment landscape fundamentally or to ensure inclusive growth and wider opportunities for Africa’s people. To harness growth for job creation, African leaders should focus on reforms to the business environment in the labour-intensive sectors that have the potential to create large numbers of jobs,” the authors argue.

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Economy News
With South African business and consumer confidence being negatively affected by the unfavourable exchange rates and ongoing power cuts, JSE-listed Nampak said the performance of its local businesses, particularly its home business division, was under pressure. The...
Long-time Congress of South African Trade Unions (Cosatu) national spokesperson Patrick Craven has resigned following the expulsion of general secretary Zwelinzima Vavi. Craven attended a media briefing held by Vavi on Wednesday in Johannesburg.
JSE-listed industrial conglomerate Ansys has raised R17.2-million through the issue of 42.4-million ordinary shares to partly fund the acquisition of Parsec Holdings and for working capital requirements. In November, the company entered into a R93.2-million...
More
 
 
Latest News
Updated 7 hours ago State-owned power utility Eskom and Public Enterprises Minister Lynne Brown confirmed on Wednesday that contracts under the so-called short-term power purchase programme (STPPP) had been renewed ahead of the March 31, 2015, expiry date. Eskom told Engineering News...
Updated 7 hours ago The value of copper stolen in February decreased to R12.7-million, from R12.9-million in January, but was 18.1% higher than the value of copper stolen in February 2014, the South African Chamber of Commerce and Industry (Sacci) revealed on Wednesday. In its latest...
Paper and packaging group Mpact has concluded a broad-based black-economic empowerment (BBBEE) deal that will see a purpose-formed trust subscribing for 10% of the ordinary issued shares in group subsidiary Mpact Operations, which holds its South African businesses....
More
 
 
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
 
 
 
 
 
This Week's Magazine
Projected capital expenditure (capex) in the South African automotive assembly industry should reach a record R7.48-billion this year, says the National Association of Automobile Manufacturers of South Africa (Naamsa) in its 2014 fourth quarter business review. Capex...
After several years of navigating project-threatening red tape and currency fluctuations, the 4.4 MW Bronkhorstspruit biogas power plant, which will supply clean energy to a leading automotive manufacturer in Gauteng, is expected to enter production before June....
RESOURCEFUL The raw material for the pilot plant would be supplied from the dissolving wood pulp plants at Sappi’s Saiccor and Ngodwana mills, in South Africa, and the Cloquet mill, in the US
South African paper and pulp producer Sappi reported earlier this month that it would build a pilot plant for the production of low-cost Cellulose NanoFibrils, or CNF (nanocellulose) at the Brightlands Chemelot Campus in Sittard-Geleen in the Netherlands.
The long-term outlook for Nigeria is a country that has the potential to be very strong. So affirmed International Monetary Fund (IMF) Nigeria Mission Chief and Senior Resident Representative Dr Gene Leon on recently. "But we are starting from a point of huge...
Poor infrastructure planning and inadequate maintenance are becoming increasingly problematic for new developments and the associated infrastructure required to support such developments. In many urban and rural municipalities, the state of infrastructure has been...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96