Only Difficult Reforms Can Create Jobs In Africa, Says World Bank VP For Africa

Ensuring that Africa's economic growth delivers job to its people will require significant reforms, some of which will be difficult, but which are capable of producing huge dividends according to the Vice President Africa Region of the World Bank, Ms Obiageli Ezekwesili, Empowered Newswire reports.
Speaking at the ongoing World Bank Annual Meetings in Washington DC over the weekend, the Nigerian former Solid Minerals and Education Minister stated that "the employment challenge requires microeconomic reforms--in the business climate, in infrastructure, in education and skills training, in agricultural productivity."

Although she conceded that some of such reforms are "more difficult than macroeconomic reforms because they require institutional changes and can be political." Even then, according to her, there is evidence that they reap huge dividends.

Currently according to the World Bank VP, on the overall, workers in Africa lack skills with half the existing labor force, and a third of the new entrants, haven't finished primary school. The new entrants includes some 7-10m young Africans annually, and besides, vocational training programs also have a poor track record.

However in order to bring about changes through reforms, "we need a coalition of stakeholders--the government, the private sector, civil society and academics, and most importantly the young people who are Africa's future."

Ezekwesili gave the opening remarks at one of the several Annual Meetings Program of Seminars themed: Africa Needs Growth that Delivers Job," and organised on Saturday by the Africa Region office of the World bank and moderated by Lerato Mbele from CNBC Africa, a TV network.

Other speakers at the seminar included Professor Ernest Aryeetey, from the University of Ghana, Maria Kiwanuka, the Ugandan Minister of Finance, Santiago Levy (IADB Chief Economist), and Bethlehem Tilahun Alemu, an entrepreneur from Ethiopia.

According to the World Bank Vice President, "Africa has been experiencing 5-6 percent economic growth before--and after--the global economic crisis. But it cannot rest on these laurels."

She said "growth has been driven by commodity prices and macroeconomic policy reforms. These have not brought about a structural transformation--a diversification of our economies so that countries can compete globally in manufacturing and services, and provide productive employment, especially for the 7-10 million young people entering the labor force every year."

Ezekwesili noted that this explains why the first pillar of the Africa Strategy is "Competitiveness and Employment."

She added that the job challenge is both greater and different in Africa, first because the "formal-sector employment is still a small fraction of the labor force--10-15 percent in most low-income countries. This is the other side of the fact that the continent has not yet achieved a structural transformation."

Also she added that "most people are working in the informal sector, in farms and household enterprises, at very low earnings. They can't afford to be unemployed--there are no alternatives."

The World bank VP said it was this worrying job situation that necessitated such a seminar bringing together academics, private entrepreneurs, including those in the informal sector, policymakers from other regions, African policymakers--and a global audience on the web--to share their experience and jointly discuss solutions.

The seminar featured participation from the internet from African youths who posted questions and also spoke of their hopes and aspirations for the continent's economic growth and development.

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