The World Bank has said Malawi and other sub-Saharan African countries need to put in place job-friendly policy reforms that could deliver greater welfare to the people.
In its latest Africa’s Pulse report released on Wednesday, the bank says the urgent need for job creation is a pressing concern in the region.
According to the report, in sub-Saharan Africa, only one in six workers have a wage job, compared to one in two in high-income countries.
It says the lack of quantity contributes to poor job quality, as defined by unstable employment, inefficient use of skills, lack of appropriate equipment or inhumane working conditions.
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This, the report says, is reflected in high levels of involuntary self-employment and the prevalence of informality.
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Among other things, the Africa’s Pulse says lack of capital undermines the structural transformation required for good quality jobs.
It notes that the development of labour-intensive manufacturing sectors seems to be missing in Africa, with improvements in agricultural productivity leading to service sector growth in urban areas.
This, the report says, translates into poor labour productivity and lack of investment in labour-complementing capital.
World Bank Chief Economist for Africa Andrew Dabalen says with up to 12 million young Africans entering the labour market across the region each year, it has never been more urgent for policymakers to transform their economies and deliver growth to people through better jobs.
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World Bank Economist Nicholas Woolley said the urgency of the jobs challenge in sub-Saharan Africa is underscored by the huge opportunity from demographic transitions that have been seen in other regions.
“This will require an ecosystem that facilitates private-sector development and firm growth, as well as skill development that matches business demand,” Woolley said.
Speaking at the United Nations General Assembly in New York, United States, President Lazarus Chakwera said Malawi has prioritised the agriculture sector to enhance job creation.
Chakwera affirmed Malawi’s commitment to the Global Accelerator Initiative.
