China needs to create good jobs for Africans

By Mark Kapchanga Source:Global Times Published: 2013-9-15 23:13:01

Illustration: Liu Rui/GT

Illustration: Liu Rui/GT



Africa's productivity in the natural resources and mining has been swelling as the continent cements its engagement with China.

Currently, China is Africa's main trading partner. Its portion of exports from Africa has appreciated considerably over the last decade from 3 percent in 1998 to over 20 percent at present.

Even with Beijing's amplified commitment to Africa, more than 75 million of the continent's 300 million youths are out of work. The figure could increase as the population of the young people rises from 300 million to about 561 million by 2050. The effects of rapid population growth are especially visible in Kenya, South Africa, Nigeria, Ghana, Tanzania, Uganda and Ethiopia where unrest and insecurity have been constant over the past decade.

Unlike in the developed world where it is the young people who are coming up with super-innovative thinking that is propelling the economy, in Africa they are still seen as slackers and remain a wasted resource.

However, the "Arab Spring" showed African governments that the problems of unemployment cannot be discounted and they must prioritize job creation. They have to leverage their relationship with China to help tackle the imminent crisis.

In fact, China's boom is bringing hope to the millions of the continent's unemployed population. Beijing has provided much-needed capital to a continent hungry for overseas investment. Over the next three years, China has promised to inject over $20 billion in the continent.

The construction of the Thika Superhighway in Kenya, the setting up of a credit line from the Export-Import Bank of China for the erection of three gas-fired power stations in Nigeria, the setting up of a coal power station in Botswana and its foray in the construction of the Tanzania-Zambia railway, among other key projects, have created thousands of job opportunities for jobless Africans.

Strong demand from China and increased access to its markets is helping Africa deal with its mounting youth unemployment through the development of a more robust manufacturing sector.

Indeed, China is reenergizing its relationship with Africa through the setting up of special economic zones, which are projected to make a significant contribution to industrialization in Africa.

The demand for African exports, coupled with China's investments in infrastructure in Africa, is creating millions of job openings for youth in the region.

But this development seems not to be fully quenching the thirsty and expectant population. Some of the jobs are casual, the working environments precarious and there is neither pension nor medical schemes for many workers. Worse, the managerial posts are kept for Chinese alone. This has created tension between some Chinese firms and the locals.

In order to change the situation, efforts from both Chinese firms and local governments are needed. African nations need to reengage China by creating a fertile ground for labor-intensive firms to set operations in the continent.

Rwanda has already set up a brilliant model worth emulating. It is one of the easiest places on earth to set up a new business and enforce contracts. It is also among Africa's most secure and politically stable nations. To address the costly and unreliable power supplies, the East African nation is investing in alternative power sources such as methane gas and geothermal power.

To spur job creation, Africa should offer a number of incentives such as tax holidays to foreign firms that create local employment for Africans. And they should encourage the use of local workers by foreign firms for basic tasks.

This will help ensure that Africa does not miss out on the job creating potential of China's increasing investment. Failure to do so will be a squandered opportunity for both parties.

The author is a journalist on African issues based in Nairobi, Kenya. mkapchanga@gmail.com



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