BUSINESS OF BREXIT
with handouts and aid, to an inclusive “job-and-wealth creation” mindset, to accelerate industrialisation goals.
As important is the creation of a new economy, new entrepreneurs and sustainable businesses.
Although Africa continues to “rise”, the fruits of its economic growth must be broadly shared going forward. Its growth is crucial to the success of the UN’s Sustainable Development Goals (SDGs), otherwise the SDGs will fall short of eradicating global and regional inequalities.
Many African countries are implementing positive policy reforms to improve the business investment climate. As a result, private sector investors have chosen to increase their presence in Africa, despite the recent macroeconomic turbulence.
However, more effort is needed to convert this investment into job creation and inclusive growth. Youth unemployment and underemployment constitute central challenges to Africa’s development.
If youth unemployment rates remain unchanged in Africa, nearly 50 percent of youth – including students – will be unemployed, discouraged, or economically inactive by 2025.
A sustained economic slowdown could exacerbate this situation with slower growth rates, depressed incomes and a reduced labour demand, making it even more challenging for many Africans to meet their basic needs.
The problem is expected to be the most severe in Africa’s resource-rich countries, such as Nigeria and South Africa, where low commodity prices and the threat of recession make a solution to the youth unemployment challenge more urgent.
The likely consequences include increased poverty, social and economic exclusion, migration off the continent and an increased risk of political tensions.
The growing consensus shows that there is immense opportunity on the African continent. It also shows that Africa continues to receive massive investment from both the global community and via intra-Africa trade.
The recent Africa Continental Free Trade Agreement highlighted that Africa needs to trade more within and prioritise key sectors that will improve and advance youth employment and infrastructure development on the continent.
Although Africa has seen growth in investments over the years, these have not translated into increased youth employment.
The lack of implementation of policies and good leadership has also contributed to the lack of growth and unemployment challenges faced in South Africa.
Here a few points to consider, which I feel could help get our youth back on track:
◆ Good local government leadership: Although a lot of focus has been on getting national governments to work, the problem actually lies at the heart of the communities, which are the local governments. The majority of these are non-functional as those running them are unqualified to do so and lack the basic knowledge to turn things around and create local jobs for the people.
◆ Build our manufacturing sector: Many of us probably saw the YouTube clip where a Nigerian minister is briefing parliament on the shocking state of its manufacturing sector, highlighting that even toothpicks are imported in Nigeria. I think this says it all…
◆ Get the youth to lead: Perhaps the African Union should champion an initiative to get all countries to sign an agreement that only 30- to 60-yearolds can lead their country in various government positions.
◆ Digital skills: Upskill the youth with various digital skills, rather than redundant teachings, to ensure that they are future-fit for the dynamics of the ever-changing global work environment.
◆ Big business support: Big businesses should change their perspective from Corporate Social Investment, which is largely deemed as a hollow PR exercise, to a Sustainable Investment that brings shared value and ensures a higher and more tangible impact in the communities where they operate.
◆ Build entrepreneurs: I can’t say this loud enough. I’m probably sounding like a broken record, but we must build and nurture our young entrepreneurs. Invest in them from the get-go – after all, they are our continent's economic “tomorrows”.
Yes, all African countries have faced significant challenges, but our youth are the only drivers that can prevent a continental economic meltdown.
So let’s stand them to work.
There’s no time like the present.
together and
get
Kizito Okechukwu is the co-chairperson of the Global Entrepreneurship Network (GEN); 22 on Sloane is Africa’s largest start-up campus.
JAGUAR SHUTS DOWN UK PLANTS
JAGUAR Land Rover shuts its UK plants yesterday for five days over Brexit, adding to other shutdowns to leave at least half the country’s car production off-line in what could be a pivotal week for Britain’s divorce from the EU. The move by Britain’s biggest carmaker, to prepare for any disruption resulting from Brexit, was taken a few months ago at a time when the departure date – since extended to April 12 – was March 29. Automotive firms face a number of possible risks under a disorderly Brexit, including delays to the supply of ports and finished models, new customs bureaucracy, the need to recertify models and an up to 10 percent tariff on finished vehicles. Prime Minister Theresa May’s efforts to obtain a longer extension have also ruined contingency plans for some of them. Shutdowns are generally organised far in advance so employee holidays can be scheduled and suppliers can adjust volumes, making them hard to move. With Britain’s political leaders still deadlocked over Brexit and some EU states questioning a further departure delay, culture minister Jeremy Wright said May would continue talks with the opposition Labour Party to try to find a compromise solution. BMW’s UK Mini and Rolls-Royce plants are also shuttered this week, as is Peugeot’s Vauxhall factory, which brought forward summer shutdowns to April. Together Jaguar, Mini, Rolls-Royce and Peugeot’s Vauxhall brand, which is branded as Opel on the continent, built more than 750 000 of Britain’s 1.52 million cars last year. Honda has also scheduled six “non-production days” in April, but declined to say on which dates they will take place. | Reuters