Home > Uncategorized > 10 facts investors must keep in mind about Africa – Business News | IOL Business | IOL.co.za

10 facts investors must keep in mind about Africa – Business News | IOL Business | IOL.co.za

September 17, 2012 Leave a comment Go to comments

9 Africa needs more than petrodollars

Mining, oil, and gas contribute significantly to GDP, but these sectors employ less than 1 percent of the workforce.

Africa needs a jobs strategy, not just a growth strategy. Countries need explicit programmes to create jobs targeted at labour-intensive sectors that enjoy comparative advantage.

Governments, working with private companies, need to improve access to finance in those sectors, build the necessary infrastructure, cut unnecessary regulation and bureaucracy and create a more business-friendly environment.

Morocco’s car parts industry is an example of success. Realising the country’s unique advantage of proximity to the large market of high-income earners in Europe, the Moroccan government set a goal for the country to become the industrial automotive supplier for Europe.

Today, the sector employs more than 60 000 people, and this year saw the opening of a e1bn (R11bn) assembly plant by Renault.

10 The future for Africa looks bright – but there’s still a lot of work to be done

More than 300 million Africans will remain in vulnerable jobs in 2020. And even if governments on the continent are successful at promoting job creation, the number will keep rising for at least another 20 years because the labour force is expanding so quickly.

Africa’s employment challenge is daunting, but it is not unique. Many other emerging markets have transformed their employment landscapes, and with the right policies, Africa has the right ingredients to produce similar success. Africa may prove to be one of the next great global stories. – The Independent

This is an edited version of a piece in Foreign Policy magazine. Susan Lund is a principal at the McKinsey Global Institute, the business and economics research arm of McKinsey & Co. Arend Van Wamelen is a principal in McKinsey’s Johannesburg office.

via 10 facts investors must keep in mind about Africa – Business News | IOL Business | IOL.co.za.

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