http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.53Change: 0.02
R/$ = 12.17Change: -0.01
Au 1173.05 $/ozChange: -1.46
Pt 1078.50 $/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
 
 
 
Article   Comments   Other News   Research   Magazine  
 
 
Sep 14, 2012

Jobs for Africa?

Back
Agriculture|Construction|Africa|Consulting|Education|McKinsey & Company|transport|Africa|Europe|Brazil|South Korea|Thailand|United States|McKinsey Global Institute|Manufacturing|Products|Services|Infrastructure
Agriculture|Construction|Africa|Consulting|Education|transport|Africa||||Manufacturing|Products|Services|Infrastructure
agriculture|construction|africa-company|consulting-company|education-company|mckinsey-company-company|transport|africa|europe|brazil|south-korea|thailand|united-states|mckinsey-global-institute|manufacturing|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’, the 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 dependence 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.

The 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 agriculture sectors could develop downstream agroprocessing industries, such as food and beverage manufacturing, textiles, leather goods and wood products. “To realise these opportunities, however, African countries need to address the high costs of 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 are 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 these sectors, the MGI expects that there could also be employment growth in construction, transport and communication, and financial services, while government and the social sectors will also remain strong con- tributors.

Issues identified as key constraints to private- sector growth include macroeconomic con- ditions, 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.

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Editorial Insight News
The new operating philosophy outlined by acting Eskom CEO Brian Molefe sounds very much like the much maligned ‘keeping the lights on’ policy pursued in the immediate aftermath of the 2008 crisis. The strategy is based on finding the theoretical ‘sweet spot’ that...
The legal instrument governing the creation of the so-called Tripartite Free Trade Area (T-FTA) – encompassing 26 mostly Southern and East African countries – would be formally launched at the third Tripartite Summit being held in Sharm el-Sheikh, Egypt, this week....
Notwithstanding its recent downgrade to junk status, State-owned electricity utility Eskom is still planning to raise a whopping R66-billion in debt funding during 2015/16 to cover operational and capital expenditure (capex) shortfalls that will arise even after a...
More
 
 
Latest News
Updated 5 hours ago Gauteng Premier David Makhura recommitted the provincial government’s support to the revival of Gauteng’s manufacturing base, telling the second yearly Manufacturing Indaba on Tuesday that policymakers would drive legislation that created an environment in which the...
The Competition Commission has reached a settlement agreement with Japanese shipping liner Nippon Yusen Kabushiki Kaisha (NYK) for contravening the Competition Act in the transportation of motor vehicles to and from South Africa by sea. This settlement followed the...
State-owned aerospace and defence technology conglomerate Denel on Tuesday launched a book to demystify defence technology to South African learners and attract them to the defence industry’s career opportunities, while creating greater awareness about innovation and...
More
 
 
Recent Research Reports
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Electricity 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Road and Rail 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
JSE-listed Afrimat will make a cash offer to acquire the entire remaining issued share capital of subsidiary Infrasors that it does not already own.
TEAMWORK Aggreko Europe, Middle East & Africa MD David Taylor-Smith; Aggreko Zambia chairperson Dr. Sixtus Mulenga; Aggreko Africa MD James Shepherd
Temporary power generation services provider Aggreko announced earlier this month that it had appointed Dr Sixtus Mulenga as nonexecutive chairperson of Aggreko Zambia, a move it believed was integral to the ongoing expansion of its operations in Zambia and the rest...
Major global aircraft manufacturer Airbus Commercial Aircraft is maintaining a steady course. "I don't have any big news, good or bad," company President and CEO Fabrice Brégier told international aviation journalists in Toulouse, France, at the company’s recent...
MEASURING DEVICES Bosch has released a mobile app that enables the measurements made with measuring devices to be sent and used directly on the app for accuracy and on-site quoting
Industrial tool manufacturer Bosch has increased the compatibility of many batteries in its range of blue industrial power tools and has released mobile-device applications (apps) for users of the tools, says Bosch South Africa training manager Peter du Bruyn. Many...
The new Nissan Navara has been launched onto the global market, but Nissan South Africa (NSA) will only know in August whether the local Rosslyn plant will assemble the one-ton pickup. The NSA plant currently produces the old NP300 Hardbody one-ton bakkie, as well as...
 
 
 
 
 
 
 
 
 
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