The potential gap of some 335 million jobs for young people in Africa over the next decade could manifest into a loss of hope among them.
This, in turn, necessitates governments and societies to orientate themselves towards creating good jobs for their population, said President Tharman Shanmugaratnam on Tuesday (June 10).
He was delivering a talk on “Investing in the drivers of inclusive growth” to students at the University of Dar es Salaam — the oldest and largest public university in Tanzania — on the second day of this three-day state visit to the East African country.
Reflecting on the new phase of partnership between Singapore and Tanzania, President Tharman recalled that the founding leaders of both countries, Lee Kuan Yew and Julius Nyerere, shared a common belief on what determines a nation’s wealth and dignity.
“(It) will be determined not by its financial resources or even its natural assets, but by the capabilities and unity of its people…but which have to be continually developed and renewed at every stage of our nation’s development.”
But he noted that the journey of development has become “more complex and challenging”, especially in Africa, with about 500 million youngsters projected to reach working age over the next decade.
According to the World Bank, only about 165 million young Africans are expected to find formal jobs, leaving a gap of about 335 million.
“A gap of that magnitude is unprecedented in any region. But It’s not just a gap in numbers.
“It is potentially a gap that will be manifest in a loss of hope amongst young people and their sense of a future for themselves,” President Tharman explained.
Need for good jobs
Good jobs have to be the test of whether growth and development is succeeding and carries meaning for all people, he said, adding that this requires the basic orientation of governments, societies and enterprises.
Illustrating it, President Tharman said that educators and trainers will have to go beyond credentials to help young people acquire skills that can be used in the job market.
Even in policies, infrastructure planners have to consider if work will go on to open opportunities for enterprises to grow, thereby creating jobs.
Policymakers dealing with trade and investments must ask if a country is positioning itself in cross-border and global value chains, so that the jobs created will provide for a continuous step up in productivity and incomes.
Turning to the impact of artificial intelligence on jobs, President Tharman cautioned that the larger risk for developing countries is not in the loss of jobs, such as in advanced countries, but that an entire generation of youth could lose out on that opportunity of being on a ladder of skills and incomes in a technology-enriched world.
Then, there is also the impact of climate change on agriculture, which about half of the labour force in Sub-Saharan Africa is engaged in.
Leapfrogging into opportunities
Notwithstanding the challenges, he suggested that these can be turned into opportunities — through stepped changes in how countries go about development — in education, energy security and abundance, green transition, regional connectivity, and governance and regulation.
Pointing to the current mismatch between knowledge and skills of graduates against the needs of the market, he suggested that Africa can leapfrog into capabilities-based technical and vocational education.
On energy security and abundance, President Tharman noted that Africa not being locked into traditional, fossil-based energy, while having solar, wind, and hydro-resources means it could leapfrog into becoming a major producer of renewable energy. By doing so, Africa can also create jobs.
He also suggested that Africa could look into developing the bio-economy and nature-based solutions for addressing the climate challenge which would also diversify livelihoods for rural populations.
Turning to the African Continental Free Trade Area, President Tharman pointed out that the scale within an integrated African market would be significant to development inter- and intra-regional connectivity.
This will allow agribusiness, manufacturing, finance, and a whole set of other industries to go up the value curve, he said.
Finally, referencing an International Monetary Fund study, the president noted that governance and regulation provides predictability, encourages investors and enterprises to create jobs, and also, builds trust in a population.
He said policy stability, law and order, and the creation of transparent institutions are the ultimate enabler for long-term economic performance, better jobs, and inclusive development in every country.
Finally, President Tharman expressed optimism for Africa.
“Africa can succeed, Tanzania will succeed, and it is in all our interests that you do so. Singapore in its modest way, will be a keen partner on this next phase of your development journey,” he added.
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