Asking a question that has long been answered. Holly Young in conversation with Junior Davies at the Guardian:
More hereWhy has Africa's growth failed to translate into adequate job creation?
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Africa has a huge problem with unemployment, particularly youth unemployment. It has experienced a high rate of population growth, which has the potential to be a demographic dividend but only if there is sufficient investment in jobs, skills and education.
Essentially, the continent hasn't produced enough investment and growth in the domestic economy. Public sector investment has been low, and foreign direct investment has largely been channelled into the sectors where the big returns are – oil, gas and minerals.
The difficulty is that these sectors are not very good at generating economic benefits outside a very small enclave. They are not labour intensive so they don't create large numbers of jobs and benefit the wider economy. Investment needs to support sectors such as agriculture, manufacturing and industry that have the potential for higher growth and job creation. This type of employment creation will be key to the future of the continent's growth.
What lies behind this failed investment strategy?
Partly it is the advice many African countries have had from Bretton Woods Institutions [World Bank and International Monetary Fund]. It is also partly a risk-averse strategy so they don't find themselves in a terrible situation should another global financial crisis arise. But it is also fundamentally about a lack of political focus on building capacity, diversifying economies and recognising the need to create more employment.
