World Bank urges Africa to cut poverty, create jobs

 The World Bank on Tuesday called on sub-Saharan Africa to create more productive jobs and cut poverty to boost economic growth. The WB said in its latest report on youth employment in Africa that creating well-paying jobs for the continent's youth is very crucial for the region's economic progress. World Bank Vice President for Africa Makhtar Diop said attracting investment into large enterprises that create wage jobs in the mainstream "formal" economy is critical, but it is only part of the solution to Africa's youth employment challenge. "For the millions of young people who are just surviving in the hidden informal sector, they will need greater access to land, skill training, and credit to thrive," Diop said. "This will be a game-changer for small farmers and entrepreneurs who will prosper as African economies grow, in close cooperation with the private sector." The regional report, "Youth Employment in Sub-Saharan Africa" noted that close to 80 percent of the workforce will continue to work on small farms and in household businesses in the near future. Deon Filmer, lead economist at the WB and co-author of the report said governments can approach the youth employment challenge by helping to improve the business environment to spark more private investment. He said the government can also tackle the employment issue by investing more in young people's education and other skills to create brighter life prospects for them. With more than half of Sub-Saharan Africa's population now under the age of 25, as many as 11 million young Africans are expected to join the labour market every year for the next decade. The report noted that while many African economies have registered impressive economic growth in recent years, poverty levels across the region have not fallen as much as expected and young people looking for better-paying work have been at a great disadvantage. This, the report said, is partly because many African countries rely heavily on oil, gas, and mineral extraction which boosts economic growth but does little to creating new jobs for the region's fast-growing youth population or reduce overall rates of poverty. "New development partners such as China, India, and Brazil are actively working with the World Bank to help develop these science and technology skills for Africa's youth," he said. The new report noted that manufacturing, services, and agriculture are traditionally labor-intensive sectors that can generate productive work for young people.